July 9, 2008 - Laurentian Goldfields Ltd. (TSX-V: LGF) ("Laurentian" or the "Company") is pleased to announce that it has signed 7 option agreements to acquire 100% interest in 7 contiguous mining properties in the Eagle-Wabigoon-Manitou Lakes Greenstone Belt near Dryden, Ontario. The 7 option agreements encompass a contiguous block of 18 patented claims and 14 standard mining claim blocks totaling 1,083 hectares. Adjacent to the 14 standard mining claim blocks under option are 6 claim blocks staked on behalf of Laurentian earlier in 2008. Collectively, these 20 claim blocks (1,467 hectares) are referred to as the Van Horne Property. All agreements are subject to regulatory approval.
The Van Horne Property
The Van Horne Property straddles the Van Horne and Aubrey townships in the Kenora Mining Division and is easily accessed by road from Dryden, Ontario. Working closely with the Dryden Development Corporation, an economic development initiative by the City of Dryden, Laurentian became the first company to consolidate 8 separate properties known to host 20 exploratory and/or production shafts, 53 test pits, 73 trenches, 189 quartz veins, and 54 sulphide occurrences within a 3.5 x 10.0 km area. The Van Horne Property is underlain by a diverse sequence of Archean mafic to felsic volcanic flows, volcaniclastics, and synvolcanic intrusions along a major lithotectonic boundary 5 km south of the Wabigoon Fault, a major crustal-scale structure.
Terms of Option Agreements
To earn 100% interest in each of the 7 properties under option, the aggregate consideration to be paid by Laurentian over a 4 year period will be:
- $311,250 in cash to the property vendors.
- 967,500 common shares in the capital of the Company to the property vendors.
- $1,600,000 in exploration expenditures.
Laurentian will also be subject to certain additional buyout payments relating to the final acquisition of surface/access rights under 3 of the 7 option agreements. The property vendors will retain a 2% Net Smelter Royalty (NSR) on each of the 7 properties under option. Laurentian will have the right to reduce the NSRs to 1% for 6 of the 7 NSRs at a price of $1,000,000 each.
Dryden Area Exploration Background
Prospecting in Dryden began in the late 1890's. However, gold (Au) exploration in the area was limited due perhaps to an overshadowing by activity in the nearby and prolific Red Lake mining camp. The Bonanza Mine and Redeemer Mine (combined production less than 1000 ounces Au) are within the Van Horne Property limits and are amongst the earliest narrow vein gold mining operations in Ontario. Limited work in the 1980s led to historic (non-compliant to NI 43-101) mineral resource estimates at the Vanlas deposit (55,000 tons at 0.30 oz/t Au), the Bonanza Mine (4,834 tons at 0.24 oz/t Au) and the Flambeau Zone, which was reported to have 572,000 tonnes of "possibly economic material".
Historic drill results from the Flambeau Zone include:
1. 10.29 g/t Au over 1.52m (FL-09)
2. 9.36 g/t Au over 0.95m (FL-11)
3. 15.08 g/t Au over 0.45m and 41.48 g/T Au over 0.10m (FL-21)
4. 10.18 g/t Au over 0.78m (FL-23)
5. 15.22 g/t Au over 0.52m (FL-31)
6. 51.50 g/t Au over 0.59m (FL-32)
Strategic Fit for Laurentian
The Van Horne Property acquisition is consistent with the Company's strategy to acquire gold properties in areas that are highly prospective but underexplored. Laurentian will apply its advanced lithogeochemical techniques and interpretive capabilities to determine whether the Van Horne Property has the geochemical footprint which characterizes a large, multi-million ounce gold mineralizing system.
Representatives of Laurentian and The Grand Council of Treaty #3, the government of the Anishinaabe Nation in Treaty #3, met prior to the signing of the option agreements. Both Laurentian and The Grand Council of Treaty #3, whose Eagle Lake and Wabigoon Lake communities neighbour the Van Horne Property, are committed to a productive and mutually beneficial working relationship. Additional community consultations are forthcoming.
"The Van Horne Property acquisition offers tremendous value to the Laurentian shareholder. We now have a commanding land position in a highly prospective and underexplored greenstone belt which hosts an abundance of gold occurrences, is easy to access, has great infrastructure and is supported by the local communities in a mining-friendly province of Canada," states Andrew Brown, M.Sc., P. Geo., President and Chief Executive Officer of Laurentian.
Mr. Andrew Brown, M.Sc., P.Geo, a qualified person as defined by National Instrument 43-101, has reviewed the content of this press release.
About Laurentian Goldfields Ltd.
Laurentian is a team of highly skilled exploration professionals focused on discovery and growth in under-explored regions of mining-friendly jurisdictions. The Company employs leading edge exploration concepts and techniques to quickly and cost-effectively screen vast tracts of land for geological and geochemical signatures known to be associated with world class gold deposits.
ON BEHALF OF THE BOARD OF DIRECTORS,
Andrew Brown, M.Sc., P.Geo., President and CEO
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future payments, expenditures and share issuances and exploration, development and production activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing of future payments, expenditures and share issuances and the timing and success of future exploration, development and production activities.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact
Laurentian Goldfields Ltd.
Manager Corporate Communications
(604) 642-2411 (FAX)