TOMAGOLD CORPORATION (TSX-V:LOT) is pleased to report the signing of an agreement with Skyharbour Resources Ltd to acquire Skyharbour’s interest in the Baird property in exchange for 600,000 shares of the Corporation. As a result, TomaGold will hold a 24.5% interest in the property, with New Gold Inc. holding a 24.5% interest and Goldcorp Inc., as operator, owning the remaining 51% interest. The property is currently subject to a 2.0% net smelter return.
The Baird property lies in the central Red Lake gold belt six kilometres north of the Madsen Mine and fourteen kilometres southwest of the Goldcorp Red Lake Mine. The property lies within the highly prospective Balmer assemblage of volcanic rocks and exhibits structural and alteration systems typical of the Goldcorp Red Lake and Campbell mines. Drilling in the 1980’s by United Reef on Baird returned assay values of 172 g/t gold over 1.2 metres and 19 g/t gold over 1.8 metres. These showings were the focus of Skyharbour’s initial drill program. The intent was to gain a greater understanding of the geologic setting where these historical grades were present. Skyharbour completed a 1,600 metre drill program on the Baird property in the summer of 2002 with gold intersections of up to 10 g/t gold over 1.0 metre encountered in what is known as the North Shear Zone. The 2002 drill program also identified a potential South Shear Zone. Placer Dome then earned a 51% interest in the property, which Goldcorp acquired (Source: Baird Property 2003 Driliing Program, David J. Busch, P.Geo., March 3, 2004).
“This new acquisition fits our business model of acquiring properties that are under JVs with majors, and that are located in known mining camps,” said David Grondin, President and CEO of TomaGold. “We now hold interests in two promising properties in the Red Lake mining camp, Baird and Sidace Lake, and continue to be on the lookout for projects that we believe have a strong exploration potential.”
A finder’s fee of 60,000 shares of TomaGold is payable to Transcend Capital Inc.
This acquisition is subject to regulatory approval. The shares issued pursuant to the acquisition will be subject to a hold period of six months following the closing date.
About TomaGold Corporation
TomaGold Corporation is a Canadian-based mining exploration company whose primary mission is the acquisition, exploration and development of gold projects in Canada and abroad.
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