News Release 07-07
Endurance Gold Corporation (EDG -- TSX.V, the "Company") is pleased to announce that it has entered into an option agreement with North American Uranium Corp ("NAUC"), a private British Columbia corporation, whereby NAUC can acquire up to a 75% interest in 14 claims comprising 60 claim units (the "Property") in the Dogpaw Lake Area of northwestern Ontario. Under the terms of the agreement, NAUC may earn an initial 70% interest (the "Initial Option") in the Property through issuing 400,000 shares to EDG, and by completing $200,000 in exploration expenditures on the Property by June 30, 2007. On exercise of the Initial Option, NAUC has 30 days to determine if it will elect to exercise a second option (the "Second Option"), whereby it may earn an additional 5% interest in the Property through issuing an additional 50,000 shares and completing an additional $250,000 in exploration expenditures within 12 months of electing to exercise.
On exercise of the Initial Option, and if NAUC elects not to exercise the Second Option, then the parties will form a 70% NAUC -- 30% EDG joint venture to proceed with any exploration and development on the Property. Should NAUC exercise the Second Option, then the parties will form a 75% NAUC -- 25% EDG joint venture to proceed with any exploration and development on the Property.
The claims comprising the Property occur in three groupings. Four claims, located in the southeast portion of the Dogpaw Lake Area map-sheet, cover a large felsic intrusive known as the Stephen Lake Stock. During a 2003 reconnaissance mapping program within the intrusive, EDG discovered a zone of fracture controlled pyritic mineralization that returned initial grab samples to 47.3 gpt Au. Surface stripping and channel sampling of this zone opened up an area of mineralization measuring 80 metres by 30 metres, from which the composite grade of 93 channel samples was 1.99 gpt Au, including a 10.0 metre trench averaging 4.22 gpt Au. In the winter of 2004, EDG completed a short seven hole drill program beneath the surface mineralization, with best results of 1.79 gpt Au across 7.0 metres.
In the northwest portion of the map-sheet, five claims cover a series of north-south trending shear zones cutting mafic intrusive and metavolcanic rocks, along which several gold occurrences have been documented. At the Jenson-Johnson Occurrence, surface sampling by EDG in 2003 returned widespread anomalous gold values in excess of 1.0 gpt over a north-south distance of 250 metres. At the Knapp Lake Occurrence, narrow zones of silicification within a north-south shear returned individual grab samples to 47.75 gpt Au.
In the north-central portion of the map-sheet, an additional five claims cover a northwest-southeast trending mineralized zone within altered (sericitized) felsic tuffaceous rocks. Surface sampling on the shores of Dogpaw Lake in 2003 returned individual grab samples to 23.42 gpt Au from this horizon, with a 6.8 metre channel sample returning gold values of 1.05 gpt.
Duncan McIvor, President and CEO of EDG stated: "This transaction continues our effort to divest ourselves of non-core assets, while maintaining a substantial equity position in our new partners and the ability to participate down the line in the event of real exploration success. I believe NAUC will become an exciting new partnership for Endurance, as they explore the Dogpaw Lake Property and assemble a strong portfolio of new projects. At the same time, this frees us to aggressively pursue our gold and gold-uranium projects in the Cobalt Embayment area of Ontario, and our sediment hosted gold projects in central and northwestern British Columbia."
NAUC will immediately undertake a drilling program on several targets on the Property, in order to meet its June 30th expenditure commitment.
Duncan McIvor, P. Geo is the Qualified Person under National Instrument 43-101, and is responsible for the content of this news release.
ENDURANCE GOLD CORPORATION
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT
Jeffrey Wilson, Corporate Communications (604) 868-0225, or visit our website at www.endurancegold.com
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