Dec 20 2010
Murgor Resources Inc. (MGR: TSX-V) announced today that it has received the results from its first four drill holes at the Golden Arrow Gold project, located 65 kilometres east of Timmins, Ontario.
The first four holes were drilled from the 90 foot bench of the Golden Arrow open pit and were designed to test the gold mineralization below the open pit floor.
"Murgor's due diligence work is advancing very well and the company doesn't foresee any obstacles to the deal moving forward with Victoria Gold Mines. The drilling results are very encouraging so far and attest to the potential for the Golden Arrow Mine to become a near-term gold producer once again." said André Tessier, President and CEO of Murgor Resources. "Meanwhile, drilling continues at the property and additional results are expected early in the new year."
The intervals reported below are located from 5 to 40 m below the floor of the lowest bench of the open pit, approximately 65m below the original topographic surface. The holes were drilled in sequence from north to south and confirm the gold mineralization below the open pit.
The four drill holes are part of Murgor's due diligence drilling program at the Golden Arrow Gold Mine where Murgor intends to acquire an interest of up to 70% upon satisfactory completion of its due diligence work (see Murgor press release dated November 4th, 2010). Four additional drill holes remain to complete the 1,200 meter program.
The terms of the Letter of Intent dated November 2nd, 2010, provide for the entering into a definitive agreement, subject to regulatory approval, by January 10, 2011.
The Golden Arrow property consists of 17 mining patents and leases, and two mining claims covering 524 hectares in Hislop Township and located 65 kilometers east of the Town of Timmins in Ontario. In 1981 and 1982, a total of 279,593 tons of ore was mined at a grade of 0.061 oz/t (2.09 g/t) from the Arrow open pit. Mining ceased due to low gold prices.
The property was originally explored underground in the 1940s to by the Golden Arrow Mining Company Ltd. who sank a shaft to a depth of 435ft (130m) below surface and undertook about 700m of horizontal development on the 250ft (76m) and 400ft (122m) levels.
The Golden Arrow property is underlain by Mafic Flows and Syenite Intrusions with younger post mineral Diabase. Gold is associated with pyrite-quartz veining and hematitic/potassic alteration associated with a quartz vein stockwork within a syenite intrusion and related to a NE-SW structure associated with the Porcupine-Destor Fault Zone. The property covers a two kilometre strike extent of this NE-SW structure. The Golden Arrow gold deposit is located 5 km SW of the past-producing Ross Gold Mine which produced nearly one million ounces of gold between 1936 and 1989. Also located in Hislop Twp are the presently producing Hislop Mine of St. Andrew Goldfields Ltd. and the Black Fox Mine of Brigus Gold Corp.
The technical information in this news release has been reviewed by Mr. John Reddick, P.Geo, a qualified person in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, responsible for the supervision of the project.