10.04.2004
Sahelian Goldfields Inc. (CNQ listed: symbol SAGE) is pleased to announce that it has executed option agreements to earn 100% interests in four properties; Pony Spur and Dike in the south end of the Carlin-Rain Trend, and Corridors and Sugarloaf along the Midas Trend, Nevada, totalling 3,080 acres.
Nigel Lees, Sahelian’s C.E.O., commented that “The addition of these four new properties, combined with the recently announced option agreements on Triple Junction and Dixie Fork, gives the Company an excellent portfolio of exploration properties in a highly prolific gold region. The Carlin Trend has already produced over 50 million ounces of gold from estimated reserves of over 100 million ounces.”
Pony Spur, comprising of 12 lode claims (240 acres), and Dike, comprising of 64 lode claims (1,280 acres), host sediment-hosted Carlin-Rain type gold mineralization, and lie along the western side of the Piñon Range, about 16 miles from Newmont’s Rain Mine and Saddle deposits. The area hosts several gold deposits including Pony Creek (contiguous to Pony Spur), Trout Creek, Railroad-Bullion, Dark Star and Dixie Creek. These properties are in close proximity to Triple Junction and Dixie Fork on which Sahelian recently announced an option to acquire up to a 70% interest in each property. Sahelian proposes to drill-test the contact between the overlying Webb Formation fine-grained clastic rocks and the Devil’s Gate limestone where the majority of the gold mineralization in the Carlin-Rain Trend has been found.
The Corridors property comprises 46 lode claims (920 acres) that are situated along the Northern Nevada Rift, 20 kilometres east of Newmont’s Midas Mine (Ken Snyder Mine) and 9 kilometres north of Hecla Great-Basin’s high-grade Ivanhoe-Hollister gold-silver deposit. The deposit model is Midas-type, with veining along major structures. There are surface outcrop exposures of silicified hydrothermal breccia which contain silica sinter clasts, veinlets and rhyolitic tuff clasts.
The Sugarloaf gold-silver property comprises 32lode claims (640 acres) situated in the Edgemont Mining District of Northern Elko County, along trend to the north of the Cornucopia and Tuscarora Mining Districts. It is a Midas-type gold system similar to the deposits at Midas, Sleeper, Mule Canyon and Silver Cloud. The property covers five high- level epithermal gold-silver drill targets in a large domal area of Eocene and Oligocene felsic volcanic strata.
A.C.A. Howe International Limited has been engaged to prepare a technical report on the properties and oversee a work program that will be comprised primarily of drilling. “The infrastructure in the region for mining is excellent and the regulatory environment favourable,” Nigel Lees stated. For each property, Sahelian will earn its 100% interest through increasing annual payments of cash and shares over a five-year period, commencing with US $10,000 in cash, and US $15,000 in Sahelian common shares based on the greater of Cdn $0.01 per share or the 20-day weighted trading average of the shares on the CNQ immediately prior to issue.
The total option payments over the 5-year period for each property are US $87,500 in cash and US $115,000 in shares. However, should Sahelian expend US $1.0 million on any of the properties during the five-year option period, it will not be required to make any further cash or share option payments due after that time and will have earned its 100% interest in that particular property.
The Company can terminate the agreements at any time without penalty. Upon exercise of the Option by Sahelian, Rick Redfern, the claims holder, will retain a 3% N.S.R. royalty on each property which Sahelian can purchase for US $1.0 million per percentage point. The transactions are subject to all requisite regulatory body filings. The Company is very pleased that Rick Redfern, C.P.G., will have an active role as a geological consultant in the exploration program. Sahelian is a precious metals mining exploration company with properties in Ontario, Quebec, and Nevada. The company is building an exploration and development company with existing properties and through the acquisition of additional properties.
There are 411,775,215 shares outstanding. For further information, contact: Nigel Lees, President and C.E.O., or Allan Ibbitson, C.F.O. Phone: 416-204-3170 Fax: 416-260-2243
This release was prepared by management of the Company who takes full responsibility for its contents. The Canadian Trading and Quotation System Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.