Mr. Rauno Perttu reports
PROVENANCE GOLD GRANTED OPTION TO ACQUIRE WHITE ROCK GOLD PROSPECT IN NEVADA
Provenance Gold Corp., through its wholly owned subsidiary, Provenance Gold USA, has signed an agreement in which it has been granted an option to acquire 100 per cent of the White Rock gold property from Nevada Select Royalty Inc., a subsidiary of Ely Gold Royalties Inc. The four-year agreement allows the Company to acquire the property in consideration for a series of cash-payments to Nevada Select totaling $250,000, of which the Company has completed an initial payment of $10,000. Nevada Select will retain a two percent NSR royalty on production from the property, following the exercise of the option.
The property was historically explored by four companies who drilled 65 holes and conducted local soils sampling. Although most of the historic exploration intersected persistent and thick gold intervals, at the time gold prices were low and the companies sought higher gold grades than are normally being mined today. Additionally, the gold mineralization controls were poorly understood and strong gold intercepts along control structures were not followed up on.
The Company has evaluated and reinterpreted all available historic information on the property. Based on this historical information the Company believes the property contains a large, shallow gold resource that would be economic today, especially if historically intersected higher-grade gold structures are expanded by in-fill drilling. The Company plans a geological mapping and sampling program over the next three months, followed by confirmation and fill-in drilling.
Rauno Perttu, P. Geo., a Qualified Person (as defined by National Instrument 43-101), and the Chief Executive Office of the Company, has reviewed and approved the technical contents of this New Release.
We seek Safe Harbor.
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