TORONTO, Nov. 28, 2012 /CNW/ - Viking Gold Exploration (TSX-V:VGC), the "Company" or "Viking Gold", is pleased to announce that it has entered into a non-binding letter of intent to acquire Trilogy Mining Corporation ("Trilogy"), a Canadian mining exploration company active in Uruguay.
Trilogy, through its wholly owned subsidiaries, owns the "Ecovent Projects", a property totaling over 30,000 hectares in the Florida Greenstone Belt in southwestern Uruguay. Trilogy also holds a 51% interest in an adjacent property with the right to increase its ownership to 80% by investing $350,000 on the property prior to September 30, 2015. This property is identified by Trilogy as the "Chamizo Project" and covers an area of approximately 7,000 hectares. Two other permits, Rincon and El Cuervo, are to be granted by the authorities and added to the portfolio of the company.
The most advanced property of the Ecovent Projects is "Carreta Quemada", a large gold mineralized system inferred from stream sediment and soil geochemical surveys. Visible gold particles are plentiful in the drainage system and the area shows a good structural preparation potential for volume deposits. This potential has been confirmed by a single trench over the best soil anomaly that showed a stockworking style of mineralization where leached surface rock samples returned as high as 1.3 g/t Au. More than 700 soils samples were collected and
analyzed and other large soil anomalies are ready for testing.
The Chamizo property contains many targets, of which two, Zones 13 and 14 exhibit potential ore grade gold occurrences demonstrated by limited reverse circulation and diamond drilling carried out by previous operators. In addition, a new high-grade gold bearing vein set has been discovered at Esperanza.
At Zone 13, gold mineralization has been identified by RC drilling over a strike length of 300 metres with the easternmost hole returning 2.78g/t Au over 8 metres starting at surface in a sericite schist with pyrite. The Zone 14 was drilled for high-grade quartz veins with the best intersection returning 9 meters at 4.5 g/t Au. None of this earlier drilling is NI 43-101 compliant.
Esperanza is characterized by three occurrences of a 3 to 4 metre wide quartz vein recognized over 1,200 metres along an East-West magnetic lineament. Chip samples of the three occurrences have returned 25.9 g/t Au (Esperanza West), 8.7 g/t Au (Esperanza Center) and 33.2g/t Au (Esperanza East).
Initial exploration will focus on expanding the known gold bearing zones 13 and 14 and to explore Esperanza. Geophysical surveys, MAG and IP, will be carried out over the prospective areas and soil geochemical surveys will be extended to cover all the drainage anomalies. At this time there are no defined resources or proven reserves on these properties
As part of this acquisition, Viking Gold acquires a team of seasoned
professionals on the ground in Uruguay led by Chris Clark, a successful
Geologist that has had many prospecting successes and put mines into production.
The Company is pleased to announce that Chris Clark will be joining its
Advisory Board on closing of this transaction. Mr. Clark will continue to run the Uruguay operations on behalf of Viking Gold after the closing. He spent 15 years with Rio Tinto Group and then worked as a consulting geologist for numerous companies until becoming the founder, President and CEO of Uruguay Goldfields, (subsequently Uruguay Mineral Exploration and now Orosur).
SOURCE Viking Gold Exploration Inc.