TNGL Tonogold Resources, Inc. Announces Tonopah Divide Advanced Gold Exploration Project
Tuesday March 7, 4:15 pm ET
LA JOLLA, CA--(MARKET WIRE)--Mar 7, 2006 -- Tonogold Resources, Inc. (Other OTC:TNGL.PK - News) is pleased to announce the signing of a Mining Lease with the Tonopah Divide Mining Company (Other OTC:TODM.PK - News).
The Mining Lease covers 36 patented lode mining claims and 55 unpatented lode mining claims located in the Divide Mining District in Esmeralda County, Nevada.
Approximately 17,000 feet of reverse circulation drilling has been completed on the property by four companies: Falcon Exploration, Echo Bay Mines, Corona Gold and USMX. Since these drilling efforts, an additional claim area, the Gold Zone, has been added to the property consisting of 5 claims. The Gold Zone has never been drilled.
Jeff Janda, President of Tonogold, stated: "We believe the Tonopah Divide project is one of the most attractive advanced exploration projects in southern Nevada. Until recently, the Tonopah Divide property was unavailable due to a prior long-term lease. With the termination of the prior lease we felt it was time to move forward on a deal and unlock the potential of this property."
Janda added: "There is voluminous information on past drill programs and past mining activity. We plan to compile and evaluate this information immediately in order to begin planning our 2006 exploration program."
Donald Strachan, Tonogold's Vice President of Exploration, commented: "Our target is a large uneroded paleosurface related epithermal disseminated gold deposit related to the Odie mineralizing event. The Odie event is the later of two mineralizing events in the Divide District."
Gold was discovered in the Divide District in 1901. In 1912, the Tonopah Divide Mining Company was formed through a reorganization of a prior company and mining commenced on the Tonopah Divide property. The company mined and shipped ore for its own account until the late 1920s, when the property was turned over to lessees. Lessees produced ore every year from the mine until 1948. The property was intermittedly mined and prospected until 1978 when the property was leased to Falcon Exploration. Falcon delineated an area of silver ore in the southern extension of the property and operated an open pit mine with a heap leach pad.
Detailed terms of the agreement were not released but Tonogold said the Lease provides for a monthly advanced royalty payable to Tonopah Divide, minimum annual work requirements, and a net smelter royalty when in production.
Tonogold Resources, Inc. is a minerals exploration company based in La Jolla, California with gold and silver properties in Alaska and Nevada. Tonogold is the parent company of Prospect Uranium, Inc. For more information on the Company visit their websites at www.tonogold.com and www.prospecturanium.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking information about Tonogold Resources, Inc. ("Tonogold") which is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Tonogold Resources, Inc., that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include: our lack of operating revenue and earnings history, our need for additional capital to pursue our business strategy, the grade and quantity of minerals in our projects may not be economic, we do not have fee title to our properties, but derive our rights through leases and the Mining Law, we are a non-reporting company and as such do not make periodic filings with the Securities and Exchange Commission, we trade on the Pink Sheets and there can be no assurances that a liquid market will develop in our securities, mining is subject to extensive environmental regulations and can create substantial environmental liabilities, gold and silver are commodities which have substantial price fluctuations, a drop in gold and/or silver prices could adversely affect future profitability and/or capital raising efforts, and mining can be dangerous and present operational hazards for employees and contractors. Readers are cautioned not to place undue reliance on these forward-looking statements. Tonogold does not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
