Discovery Gold Secures Extension of Edum Banso Concession Option Agreement in Ghana
DENVER, August 5, 2013 -- Discovery Gold Corporation (OTCQB-DCGD) (the “Company”), a U.S. based mineral exploration company, is pleased to announce that its Ghana subsidiary, Discovery Gold Ghana Ltd. (“DGG”), has entered into an Extension of Option Agreement for the Edum Banso Concession (the “Extension Agreement”) with the holder of the exploration concession license, Adom Mining. The Edum Banso Gold Project is strategically located in the southern portion of Ghana’s prolific Ashanti gold belt.
Under terms of the Extension Agreement, DGG has secured, for an additional three (3) years, the right to acquire 100% of Adom Mining’s right, title, and interest in the Edum Banso concession license issued under the Minerals and Mining Law by the Government of the Republic of Ghana. The Extension Agreement calls for DGG to make nominal annual payments to Adom Mining to maintain DGG’s rights to the Edum Banso concession until November 11, 2016. Adom Mining is also processing renewal of its concession license with the Ghana Minerals Commission. DGG can exercise the Option to acquire Adom Mining’s rights by (i) paying $25,000 before commencement of commercial production of gold and (ii) upon commencement of commercial production, granting a 2% royalty and paying $200,000 if two million ounce deposit or $100,000 if less.
“We are gratified to have secured a multi-year option extension for our Edum Banso Gold Project located in one of the most active mining and successful exploration areas of Ghana’s Ashanti Gold Belt,” stated Discovery Gold’s President, Steve Flechner. “With this extension in place, Discovery Gold can pursue financing and permitting for the exploration work recommended by our geologists in their recently completed 43-101 compliant Edum Banso assessment report.”
The Edum Banso Gold Project is located within Ghana’s prolific gold producing Ashanti Gold Belt, in close proximity and with apparent similar geology to several recent discoveries and producing local gold mines, including the Father Brown and Adoikrom deposits currently being open pit mined by Golden Star Resources within two miles of one of the Company’s high-priority targets.
Edum Banso has a well-documented history of systematic exploration (when gold was at much lower prices), including extensive geophysical (aeromagnetic) interpretation, soil and stream sediment sampling (5,758 total samples), trenching (214 samples), auger drilling (252 holes), and numerous rock chip samples. To date, four distinct mineralized gold zones have been identified over an area approximately 8 km (5 miles) long and 600 m (650 yards) wide, including two southern zones sharing contact with the unique Mpohor Complex geologic structure. The Mpohor structure is one of the largest known gold bearing synvolcanic mafic intrusives on the African continent, and it extends into the nearby Golden Star projects.
Mr. Flechner concluded that, “Dependent upon financing efforts, we intend to conduct an exploration program of trenching and deep auger drilling at high priority Edum Banso target areas where gold mineralization has already been identified. Based on anticipated positive results of trenching, auger drilling, related geophysics, and sufficient financing, we intend to drill targets at depth to seek to intersect underground sources of surface gold showings.”
About Discovery Gold Corporation
Discovery Gold Corporation is an emerging U.S. based mineral exploration company. The Company's wholly-owned subsidiary, Discovery Gold Ghana Limited, currently holds a 95% interest in the option of the exclusive rights to explore the Edum Banso Gold Project within the historic and prolific gold producing Ashanti Gold Belt in Ghana.
For further information regarding Discovery Gold Corporation, contact:
LiveCall Investor Relations
Toll-free: (855) 490-9700
Forward-Looking Statements/Disclaimer: We week safe harbour. Certain statements in this press release that are not historical facts are “forward-looking statements” within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “may”, “will”, “would”, “should”, “plan”, “projected”, “intend”, and similar expressions. The Company bases these forward-looking statements on current expectations and projections about future events, based on information currently available. Such forward-looking statements, involve known and unknown risks, uncertainties, hurdles, and other factors that may cause the actual results, performance or achievements of the Company to differ materially and adversely from those expressed or implied by such forward-looking statements. The Company disclaims any obligation to update any of its forward-looking statements, except as may be required by law. The Company has no mineral resource or reserve estimate for the Edum Banso Gold Project, has no assurance that it will discover significant mineral resources, and may not have sufficient funding to thoroughly explore, drill or develop its property.
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Discovery Gold Corporation
Ticker Symbol: DCGD
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