VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/20/11 --
Lateegra Gold Corp. (TSX VENTURE: LRG) (FRANKFURT: LTGB) ('Lateegra' or 'the Company') is pleased to announce the commencement of exploration drilling on its DeSantis Project, located near Timmins, Ontario, as well as filing of a technical report on the property.
A diamond drilling program of approximately 8,000 metres in 18 holes is planned as the 2011 drill program for the project, contingent on exploration results. The 2011 drill campaign will follow-up on 2010 drill results and test other geological models for gold mineralization on the property. Potential extensions to known gold zones in the vicinity of the DeSantis Mine are being explored immediately, with targets on areas elsewhere on the property to be assessed later in the campaign.
A National Instrument 43-101 ('NI 43-101') compliant technical report entitled 'Technical Report on the DeSantis Property, Porcupine Mining Division, Ogden Township, Ontario, Canada' was filed by the Company with the TSX Venture Exchange on May 31, 2011. The report documents the geology, exploration and mining history, and results of exploration on the DeSantis Property as well as confirms the property has sufficient merit to justify additional exploration. Key highlights of past exploration work on the property documented in the technical report include historical, non-NI 43-101 compliant resource estimates which indicate that a total of 182,500 tonnes grading 8.64 grams per tonne gold is outlined in two zones in the vicinity of the underground workings. These resource estimates, generated by Noranda Inc. and Stan West Mining Corp., are historic in nature, do not demonstrate economic viability, and are considered to be historical estimates that should not be relied upon. Phase 1 and Phase 2 of a work program recommended in the technical report proposes diamond drilling and geophysical programs totaling $1.5 million and $3.0 million respectively be completed on the project within the next two years.
Lateegra's DeSantis Project is located in the heart of the prolific Timmins gold camp, which has produced over 70 million ounces of gold since the start of mining in the early 1900's. The property is situated along the north side of the Destor-Porcupine Tectonic Zone ('DPZ'), the main structure controlling gold deposits in the region, approximately 5 km southwest of downtown Timmins, 11 km west of the Dome Mine, currently owned and operated by
Goldcorp Inc. and 14 km east of
Lake Shore Gold Corp.'s Timmins Mine. The DeSantis property covers nearly 5 km of strike length within highly prospective volcanic stratigraphy on the north side of the DPZ, including the past producing DeSantis Mine, The DeSantis Mine produced approximately 35,800 ounces of gold from ore which graded 6.2 grams per tonne during its intermittent production history. The main production shaft, the DeSantis No. 2 Shaft, was rehabilitated in an advanced exploration program conducted by Noranda Inc. and Stan West Mining Corp. in the mid-1980's, which was the last major exploration effort on the property.
Lateegra currently owns a 51% interest in the DeSantis property and holds an option to acquire a 100% interest in the DeSantis West property. Lateegra has the option to acquire the remaining 49% interest in the DeSantis property by paying an additional $375,000 and issuing an additional 2.5 million shares to the property vendor. Lateegra can acquire the 100% interest in the DeSantis West property by paying an additional $35,000, issuing 150,000 shares, and completing $150,000 in exploration expenditures on that property.
Since acquisition in early 2010, Lateegra has completed 5,888 metres of diamond drilling in 15 drill holes on the property. The 2010 drill campaign focused on follow-up of previous results within the Hydrothermal Alteration Zone and the Albitite Zone. A 3D geological compilation of the project is in progress along with a review of previous geophysical surveys and the on-going drilling campaign.
President Chris Verrico comments, 'Lateegra's DeSantis Property is a main asset of the Company, well served by the geological work in progress. The current program will test the ability of the property to host gold deposits of sufficient grade and tonnage to justify a substantial increase in investment in the property'.
Reporting of Historical Work
Certain of the exploration results reported on in this news release are based on historical work by others and are identified in the preceding as such. Those reports of work cannot and have not been fully verified by Lateegra. Investors or potential investors should take this into account.
Drilling, Assaying and QA/QC
The Company intends that its exploration programs be subject to QA/QC and security programs which conform to industry-standard best practices and are in compliance with NI 43-101.
The current phase of diamond drilling on the DeSantis Project is being conducted by Bradley Bros. Drilling Ltd. Analytical work is being performed by ALS Chemex Ltd., an ISO 9001-2000 registered laboratory with internal QA/QC procedures. Lateegra utilizes, as part of its QA/QC program, the insertion of standard reference materials and blanks representing approximately 5% of the total sample population. Drill core is sampled according to standardized technical procedures, which include the core being sawn in half, half of the core being retained, while the other half is sampled for gold analysis via Fire Assay-Atomic Absorption finish using a 50g assay aliquot. Intervals were visible gold has been identified are analyzed via gravimetric or screened metallic procedures. Samples are securely packed for shipment utilizing security seals noted on Chain of Custody documents, which are confirmed as intact upon receipt at ALS's sample receiving facility.
Qualified Person
Lateegra's exploration programs are conducted under the supervision of its Vice President of Exploration, Ms. Heather Miree. Ms. Miree is a Qualified Person as defined by NI 43-101, and has prepared or supervised the preparation of the scientific or technical information in this press release and has verified the data contained herein.
Ms. Miree is an economic geologist with over 25 years of experience in the mineral industry. Prior to joining Lateegra in February 2011, Ms. Miree held senior geological and supervisory roles with several junior and mid-sized mining companies, in the areas of exploration and operations. Ms. Miree is not independent of Lateegra as she is an officer of the Company.
About Lateegra
Lateegra is a well-financed junior exploration company with gold exploration properties primarily located in northeastern Ontario and northwestern Quebec. As previously announced, Lateegra and
Excellon Resources Inc. have entered into an arrangement agreement ('Agreement') whereby Excellon will acquire all of the outstanding common shares of Lateegra, subject to court, regulatory, shareholder approval. This Agreement is expected to close within the next several weeks. The Company's common shares currently trade on the TSX Venture Exchange under the symbol LRG.
ON BEHALF OF THE BOARD OF DIRECTORS
Christopher Verrico
President and CEO
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as 'reserves' unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
'Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.'
Contacts:
Lateegra Gold Corp.
Christopher Verrico
President and CEO
604-669-9330 or Toll Free: 1-866-669-9377
604-669-9335 (FAX)
info@lateegra.com
www.lateegra.com
