HOUSTON, TX – TriStar Gold Inc. (TSX.V: TSG) today announced the signing of an Option Agreement with a private owner, to acquire 100% of the Castelo dos Sonhos Property, located in Southwestern Pará State of Brazil.
Castelo dos Sonhos consists of 72,067 hectares of mineral rights located approximately 15km East of the Cuiabá-Santarém road. The host rocks for the property’s gold mineralization are quartzites, meta-arenites and metaconglomerates of the Early Proterozoic Castelo dos Sonhos Formation. The property encompasses a 15km by 12km plateau with an average elevation of 300 meters above ground. The main creeks and drainages which flow from the plateau were extensively mined for alluvial gold from the mid 1980’s to the mid 1990’s.
Barrick Gold Corp. conducted significant exploration at Castelo dos Sonhos from June 1995 to November 1996 including geological mapping, stream sediment, soil and rock sampling, trenching, drilling and airborne geophysics. This resulted in the identification of two large gold soil anomalies in addition to positive gold intercepts in trench and drill core samples. The property was later optioned by Osisko Mining Corp. in 2004 until recently, although it did not carry out additional field work.
TriStar plans to initially review all available data and conduct further extensive detailed exploration prior to drill testing the property targets.
“We have been very impressed by the geological potential of Castelo dos Sonhos and were fortunate to have the opportunity to option this significant property. Our knowledge of the Amazon’s environment will enable us to quickly develop and test targets in the coming months”, Vice President of Exploration Elton Pereira said.
TriStar paid the property owner US$50,000 upon signing the Option Agreement and will pay US$250,000 after the satisfactory completion of a thirty day due diligence review. To maintain the option, an additional stream of six month option payments totalling US$2.4 million are payable over a period of 36 months. Should a gold deposit with proven and probable reserves larger than 1 million troy ounces be identified, the owner will receive an additional US$1 for each troy ounce. TriStar has also committed to incur minimum exploration expenditures of US$0.75 million in the first year and, to maintain the option in good standing, TriStar will incur further annual exploration expenditures of US$1.25 million, and US$2.00 million respectively during the following two years. The property owner will retain a 2% NSR royalty, half of which can be purchased by TriStar at any time and which amount will be calculated based on the proven and probable reserves identified by a feasibility study.
TriStar is a gold exploration company focused on high-potential properties in Brazil. As well as Castelo dos Sonhos, it holds exploration projects in the Tapajos district known as the Bom Jardim and the Andorinhas properties. TriStar’s shares are listed on the TSX Venture Exchange under the symbol TSG-V. Further information is available at www.Tristarau.com
For further information, please contact:
TriStar Gold Inc.
Mark Jones III
Chairman and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon TriStar’s reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause TriStar’s plans to change include changes in demand for and price of gold and other commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments in Brazil; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of TriStar’s projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business. TriStar disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.