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Thursday, February 05, 2009
Sale of Interest in South Estelle Gold project, Alaska
Director's Shareholding
Hidefield Gold plc ("Hidefield" or the "Company"), the gold company with advanced projects in Argentina, Brazil and Alaska, including the Don Nicolas gold project in Santa Cruz Province, Argentina, announces that it has agreed to sell its interest in the South Estelle gold project in Alaska (the "Estelle Project") to Millrock Resources Inc. (MRO - TSX:V) ("Millrock") as part of an agreement for Millrock to acquire a 100 per cent. interest in the Estelle Project from the Hidefield and Mines Trust Co. ("Mines Trust") joint venture known as the "Golden Zone joint venture".
This agreement supersedes a prior option agreement between the Millrock and the Golden Zone joint venture companies by which Millrock was entitled to earn an eighty per cent. interest in the Estelle Project through a combination of cash payments and by funding exploration activities on the property.
The parties to the agreement plan to execute a formal purchase agreement by 17 February 2009 while completion of the sale remains subject to Millrock securing TSX Venture Exchange approval to the transaction.
The consideration for the sale of Hidefield's interest in the Estelle Project includes a cash payment of US$100,000, the issue to Hidefield of one million Millrock common shares and the granting of a one per cent. Net Smelter Royalty ("NSR") over future production from the Estelle Project.
Director's Shareholding
Mr. Kenneth Judge, Chairman of Hidefield, has informed the Company that Hamilton Capital Partners Limited ("Hamilton"), a company with which Mr. Judge is associated, has deposited by way of certain security arrangements related to borrowings by Hamilton, 16,961,675 ordinary shares representing 5.49 per cent. of the issued share capital of the Company. In total Hamilton holds 21,961,675 ordinary shares in Hidefield.
ABOUT HIDEFIELD
Hidefield is a gold company with a focus on the acquisition and development of highly prospective projects in North and South America. The Company has a diverse portfolio of projects. In South America and Alaska the projects are directly held by Hidefield, while those projects in Canada, Nevada and Arizona are held in independent, self-funded associate companies.
Hidefield's substantial direct gold project interests are principally in Argentina where the Company is actively exploring the advanced stage Don Nicol�s gold project in Santa Cruz Province with a mineral resource estimate, prepared in compliance with JORC reporting standards, of 1,214,000 tonnes at 7.7 gpt gold containing 301,600 ounces of gold using a high grade cut of 90 gpt gold (383,400 ounces of gold at 9.8 gpt without high grade cut off).
The Company is exploring an extensive portfolio of gold exploration licences in the Patagonian provinces of Santa Cruz and Chubut, Argentina while in Brazil the Company's activities are focused on the evaluation of the advanced stage Cata Preta gold project near the historic city of Ouro Preto in the productive Quadrilatero Ferrifero region of Minas Gerais state.
In Alaska, Hidefield has a 60 per cent. interest in the Golden Zone joint venture which includes the Golden Zone and South Estelle mineral projects and an option to earn up to 100 per cent. interest, subject to a 2.5 per cent. NSR, by making a series of staged cash, share and property expenditures. The Golden Zone property is located 240 km north of Anchorage and contains a measured and indicated resource of approximately 253,000 ounces of gold, 1,180,000 ounces of silver and 6,114,000 pounds of copper. The South Estelle property, now in joint venture, is located approximately 175 km northwest of Anchorage and 230 km southwest of the Golden Zone project and adjoins Kennecott's Whistler copper-gold property.
For more information on Hidefield go to www.hidefieldgold.com
For further information on this release, please contact:
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Hidefield Gold Plc
Ken Judge, Chairman |
+ 44 773 300 1002 |
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Investor Relations
Jon Bey: North America |
+ 1 800 689 2599
+ 1 604 689 2599
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Hanson Westhouse Limited (Nomad)
Tim Feather / Matthew Johnson |
+ 44 113 246 2610 | |
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