March 22, 2016 -- New Carolin Gold Corp. (the 'Company' or 'New Carolin') (TSXV: LAD)
is pleased to announce it has completed an Option agreement with Crucible Resources Ltd (Crucible) in respect to acquiring mining claims adjoining the Company's Ladner Gold Project (the Project). The Company entered into a previous option agreement in 2012 with Crucible in respect to seventeen (17) mining claims and revisions to that agreement have resulted in a new Option, which now consists of a total of twenty (20) claims, covering an area of 30 sq km. These claims are situated in the southern portion of the Project below the Coquihalla Hwy.
Three (3) of the new Crucible claims adjoin a prospective new gold zone which has been traced to a length of approx. 1 kilometer to date, where a sampling program was carried out in the 1980's. Reported soil samples from this historic program ranged between 20 and 1000 ppm, with one sample of 5900 ppm (close to 6 g/t). It has been noted that gold returns of 20-50 ppm are considered high in soils and this zone has wide areas with numerous samples between 100-1000 ppm. The assay of 5900 ppm and other sporadic higher grade samples reported are unusual in soils and we note this may indicate placer-type gold particles in the soil cover. The Company intends to engage Crucible to carry out a new sampling program in 2016 to confirm historic sample locations and assay results, and expand the sampling program on the three new claims with the expectation of extending the gold zone and locating the source. Very little exploration work has been carried out on the lower 72 square kilometer section of the Project to date, which includes the former high grade Emancipation Mine and one of the Company's other prospective gold zones. The Company plans to step up efforts this year and explore lower claim zones where gold on surface is present. The designated area with elevated gold values spread consistently over a wide area is of immediate interest and will be the focus of further exploration on the lower claim block. Further details will be provided in this regard when exploration plans are finalized. Please note that gold values mentioned are based on historical reports and have not been verified by the Company.
We also note that the initial option agreement required that the Company make certain annual payments to Crucible and expend $250,000 over the initial 5-year option period. Because of poor resource market conditions the past several years Crucible did not hold the Company to the financial conditions in the 2012 option and instead agreed to a settlement and provided the Company with its full support on the newly completed Option agreement.
Relevant Terms of the new Crucible Option Agreement:
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The Company is to pay Crucible $32,000 in respect to settlement and to secure the new Option;
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The Option period is 5 (five) years;
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The Company may now acquire all twenty (20) claims for a total of $50,000, at anytime;
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Funds expended on exploration will be factored into the $50,000 acquisition purchase price;
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Crucible retains a 2% NSR. The Company may purchase the first 1% back for $250,000 and the second 1% for $500,000, at any time.
Completing the Option Agreement may be subject to regulatory approval.
About New Carolin Gold Corp.
New Carolin Gold is a Canadian-based junior company focused on the exploration, evaluation and development of a strategic 144 square kilometer contiguous mineral claim property, collectively known as the Ladner Gold Project. The 100% controlled property is located near Hope, BC, in the prospective and under-explored Coquihalla Gold Belt, which is host to several historic small gold producers including the Carolin Mine, Aurum Mine, Emancipation Mine, Pipestem Mine and numerous high grade gold prospects dating back to 1885.
For additional information, please visit the Company's website at www.newcarolingold.com.
ON BEHALF OF THE BOARD OF DIRECTORS
'Robert L. Thast'
President & Chief Executive Officer
Phone: 604.542.9458
Cell: 604.220.5031
E-mail: [email protected]
Web site: www.newcarolingold.com
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the 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 the accuracy of this press release.
Caution concerning forward-looking information
This news release may contain forward-looking statements that are based on the Company's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.