Lateegra Completes Drilling, Arranges Financing
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/15/10 -- Lateegra Gold Corp. (the 'Company') (TSX VENTURE: LRG)(FRANKFURT: LTGB) is pleased to announce that a six hole drill program totalling 2678 metres has now been completed on the DeSantis Mine project in the West Timmins area, Ontario (see press release dated June 24, 2010). The program was designed to test and confirm historical drilling on the Hydrothermal ('HTAZ'), Albitite, Contact, and Arsenopyrite Zones.
The first three holes (DS-10-1, 2 & 3) were designed to test the Albitite, Contact, and Arsenopyrite Zones in an area located south of the Number 2 shaft, an area which was previously drilled by Noranda in 1985. These holes intersected the same style and degree of alteration, mineralization and structural deformation encountered in the historic drilling. Noranda hole, MJD-85-12 returned results of 7.25 g/t Au over a core length of 8.2 meters from the Albitite zone, and nearby hole MJD-85-22 returned 53.5 g/t Au over a core length of 0.6 meters from the Arsenopyrite Zone. Another previous Noranda hole drilled in the area returned 10.2 g/t Au over a core length of 2.4 meters from the Contact Zone.
The other three holes (DS-10-4, 5, & 6) were designed to test and confirm the previous work carried out on the HTAZ zone situated at a vertical depth ranging from approximately 190m to 260m below surface and located approximately 250 metres south west of the Number 2 shaft. Again, these holes encountered the same style and degree of alteration, structural deformation and mineralization that was intersected in previous drilling in the area. Historical drill holes in the area returned values of 9.0 g/t Au over a core length of 5.4 meters.
Assays will be released when available. Phase 2 drilling is scheduled to commence in early August.
The DeSantis mine lies immediately north of the famous Destor Porcupine Fault Zone and hosts at least 5 known gold bearing zones including: the Contact Zone; Hydrothermal Zone; Albitite Zone, Arsenopyrite Zone; and East Pit area. The Company has been compiling data from the greater than 300 historic drill holes, along with shafts and drift development down to the 1175 foot level, into a 3D model now viewable on the Company website, www.lateegra.com.
'The Company has completed the first step in confirming the geology of previously drilled holes and we are anxiously awaiting assay results for the first series of holes,' stated President and CEO, Christopher Verrico. 'We are excited with the development of this project, and the next round of drilling will incorporate the element of building tonnage and ounces to the historical resource with infill and step out holes.'
The Company has arranged, subject to TSX Venture Exchange acceptance, a private placement of 2,000,000 units at $0.30 per unit for total gross proceeds of $600,000. Each unit consists of one common share and one transferable share purchase warrant, each warrant exercisable into an additional common share for a period of 18 months at a price of $ 0.45 per share.
Finders' fees may be payable in whole or in part on the placement pursuant to the policies of the TSX Venture Exchange.
Proceeds will be used for future property payments and general working capital.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Robert Duess, P.Geo., a Qualified Person.
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
