| ||July 15, 2008|
Lund Acquires Gold Property in Schreiber-Hemlo Greenstone Belt, Ontario
| ||Lund Gold Ltd. (TSX-V: LGD ) ("Lund") is pleased to announce that it has entered into an option agreement, subject to regulatory approval, to acquire a 100% legal and beneficial interest in 9 contiguous unpatented mining claims (76 units, 1216 hectares) known as the Blackfox Property, located within Tuuri Twp., Thunder Bay Mining Division, Ontario in the Schreiber-Hemlo Greenstone Belt. The claims are optioned from a syndicate of Thunder Bay area prospectors, ("Prospectors"). |
In order to acquire a 100% interest subject to a 2.5% Net Smelter Royalty, Lund is required to:
In addition, Lund can purchase a 1% portion of the NSR at any time by making a cash payment of $1 million to the Prospectors.
- Make cash payments to the Prospectors totaling $85,000 over 3 years including an initial $25,000 payment.
- Issue to the Prospectors an aggregate of 300,000 common shares of Lund including 100,000 shares upon regulatory approval, 100,000 shares on the first anniversary and 100,000 shares upon a positive feasibility study.
The Schreiber-Hemlo Greenstone Belt is host to the 25 million ounce Hemlo gold deposit -- one of Canada's largest gold producers -- located 70 kilometres to the east. Gold mineralization at Hemlo averages 8 g/t, occurs in several zones totaling greater than 95 million tonnes, extends over a 3.7 km lateral extent and greater than 1.5 km deep.
The Blackfox Property contains extensive alteration zones up to hundreds of metres wide characterized by intense quartz/sericite/pyrite and quartz/fuchsite/pyrite schists associated with shearing which is parallel and sub-parallel to regional structures, and locally associated with gold mineralization.
Despite its easily accessible location (the Trans Canada highway, a national rail line and a major power transmission line cross the Blackfox Property) only sporadic gold exploration has taken place since the 1890's. Prospector interest resurfaced after Operation Treasure Hunt in 2000 when the Ontario Ministry of Northern Development and Mines ("MNDM") performed regional airborne geophysical surveys over the region. This work led to the discovery by prospectors of gold showings with associated alteration zones along a greater than 2-kilometre south west regional trend crossing the Blackfox Property. Of particular note is the discovery of high grade gold float located along this trend, near the centre of the Blackfox Property, where sampling and assaying by the Ontario MNDM office in Thunder Bay returned consistent results ranging from 165 to 189 g/t gold. The hydrothermally altered float samples (silica, sericite and iron carbonate with pyrite) consisted of fragile angular blocks that are assumed proximal to their source location.
Lund is planning an initial program of geological mapping, detailed prospecting, geochemical surveying, trenching and IP geophysical surveying to be followed by diamond drilling. This program will start as soon as crews can be mobilized.
To find out more about Lund Gold Ltd. (TSX-V: LGD), visit our website at www.lundgold.com.
On behalf of the Board of Directors of
LUND GOLD LTD.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS RELEASE
This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and our other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, estimates of exploration investment and the scope of exploration programs. There can be no assurance that such statements will prove to be accurate, and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates or opinions change. Forward-looking statements are subject to risks, uncertainties and other factors, including risks associated with mineral exploration, price volatility in the mineral commodities we seek, and operational and political risks. Readers are advised not to place undue reliance on forward-looking statements.
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