Farms out Kshish Copper/Moly Property
VANCOUVER, May 24, 2012 /CNW/ - JetGold Corp. (TSX-V: JAU) (the "Company") is pleased to report it has negotiated an option (the "Agreement") to acquire a 100% interest in an Iron ore prospect located in the Smithers Mining Division in West Central British Columbia (the "Claims"). The property, known as the "Nadina Group," is located approximately 21 kms north of the operating Huckleberry Mine.
The Nadina property is comprised of 100 claim units totaling 2,000+ hectares. The Company will plan a summer program of prospecting, sampling and mapping with a view to identifying the high-grade iron ore zones so they can be trenched, blasted and diamond drilled. The claims are surrounded on the west by Lions Gate Metals Inc. and to the south by Imperial Metals Corporation.
In order to acquire a 100% interest in the project, Jet must make cash payments totaling $200,000, issue 1,000,000 shares and spend $700,000 developing the project over four years. The optionee retains a two percent (2%) NSR royalty and the acquisition is subject to TSXV approval.
The Company is bullish on iron ore. This interest is being fueled by strong global demand for steel and the desire of China and other growing Asian nations to diversify from traditional supply sources. North American iron ore is regarded favorably on world markets and the Canadian government is supporting international business relationships. "JetGold expects these trends to continue and today's option acquisition announcement provides our shareholders with exposure to iron ore in a region with historical and on-going mining operational activity," stated JetGold President Brad Moynes.
Kshish Property Update
In addition, JetGold has executed a farm-out agreement for its 100% owned Kshish copper/moly property located in Terrace, British Columbia. Under the terms of the agreement, the Company will receive a cash payment of $340,000: $35,000 upon execution (which has been paid) and the balance of $305,000 over three years. The purchaser has also committed to spending $700,000 in work expenditures on the property. Doug McRae of Terrace, BC retains a two percent (2%) NSR royalty.
Jet Gold: Positioned for Long Term Growth
With a solid, diversified portfolio of carefully selected mineral properties, a professional team of mineral transaction and development experts in place and a strong pipeline of new projects, JetGold is well-positioned to create shareholder value through 2012 and beyond. The Company invites all interested parties to visit the JetGold website and to sign up to the email list, so as to keep informed of their progress going forward. The Company plans on issuing further news reports in the next several weeks with more detailed plans for its upcoming spring/summer exploration programs on its Big Hammer, Nadina and Silver Bay mineral properties.
JetGold is a Canadian resource exploration company actively developing gold, silver, iron ore, zinc, and tellurium mineral resource properties in British Columbia, Canada. The company is currently undertaking exploration of two precious metal properties [Big Hammer and Silver Bay] and one iron ore property [Nadina].
Big Hammer Gold/Silver/Tellurium (Au/Ag/Te) property located 13 km southeast of Terrace
Silver Bay Silver/Lead/Zinc/Gold (Ag/Pb/Zn/Au) property located in west central BC
Nadina Iron ore (Fe) property located in west central BC
JetGold is strategically investing in the Terrace and Smithers region of British Columbia, encouraged by the excellent road access and close proximity to abundant power, water, CN Rail lines, and the deep water container port at Prince Rupert. The Fairview Terminal at Prince Rupert is an important part of the Government of Canada's "Asia-Pacific Gateway & Corridor Initiative" and the Province of British Columbia's "Pacific Gateway" strategy.
Additional information can be found at: www.jetgoldcorp.com
On behalf of the Board of Directors,
Jet Gold Corp. (TSX.V: JAU)
"Brad J. Moynes"
Brad J. Moynes
President & CEO
For corporate information, contact:
Brad Moynes at 604-601-2070
JetGold Corp.
885 West Georgia Street, Suite 1500, Vancouver, BC V6C-3E8
T: 604-601-2070 F: 604-683-8125
www.jetgoldcorp.com
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