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| | Thu Sep 2, 2004
Cangold Options Birch Lake Property To Trade Winds
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| | CANGOLD LIMITED (TSX-V: CLD) is pleased to announce that it has entered into an agreement with Trade Winds Ventures Inc. (TSX-V: TWD) whereby Trade Winds can earn up to a 70% interest in Cangold's wholly owned Birch Lake Property in the Red Lake Mining District of northwestern Ontario.
Terms of the deal call for Trade Winds to pay $10,000 and issue 50,000 shares to Cangold upon acceptance of the agreement by the TSX Venture Exchange, issue a further 25,000 shares on each of the first and second anniversaries of the signing of the agreement and spend $1 million over four years on the property to earn a 60% interest. If Trade Winds exercises the option to acquire 60%, Cangold will retain a 1% Net Smelter Return. Having met these conditions, Trade Winds may elect to acquire a further 10% interest by spending an additional $600,000 on the property over two years. Trade Winds will be the operator.
The Birch Lake Property comprises 240 claim units of prime exploration ground along the northeastern edge of the Birch Lake Greenstone Belt. It covers 14 kilometres of strike length on a major, northwesterly-trending deformation zone that is known to be associated with gold mineralization and is sub parallel to a gold-bearing structure passing through Trade Winds' own Birch Lake Property, immediately south of the Cangold claims.
The Birch Lake Cangold Property is believed to be prospective for both iron formation-hosted gold mineralization similar to that at Placer Dome's 3.3 million ounce Musselwhite Mine, approximately 200 kilometres to the north, and for high-grade shear-associated gold mineralization similar to that found throughout the Birch-Uchi and Red Lake Greenstone Belts.
Cangold recently flew a high resolution helicopter-borne aeromagnetic and electromagnetic survey over the property that defined numerous targets for detailed ground follow-up. Trade Winds partnered on this survey by flying their own claims, and the two companies amalgamated the data in order to outline the regional trend of gold-bearing structures across the two properties. The Birch Lake option will further strengthen the partnership between the companies for the benefit of exploration in the region and will allow Cangold to focus more on the advancement of the Argosy Gold Mine just to the northwest of Birch Lake.
FURTHER INFORMATION
For further information please visit the Company's website at www.cangold.ca or contact Don Mosher at telephone 604 685 6465, fax 604 685 1944 or e-mail info@cangold.ca
ON BEHALF OF THE BOARD
"Robert A. Archer"
Robert A. Archer, P. Geo.
President |
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