Raj Chowdhry, President of TintinaGold Resources Inc. comments on the completion of verification drill program on the Sheep Creek property, Montana, U.S.A.
Raj Chowdhry, C.A., President of TintinaGold (the "Company" - trading symbol: TSX.V: TAU), recently stated "Having satisfactorily verified seven high grade copper-cobalt intersections with up to 8.72% Cu over 6.35 meters and 10.84% Cu over 4.05 meters in historic resource area, the Company has received all the high grade copper-cobalt assay results from its 2010 drilling program which verify certain historic drilling results at its Sheep Creek property in central Montana, U.S.A, as announced in the Company's news release.
Raj stated "The historic results from the 20 drill holes, results of which are set out in the news release referred to above, showed significant mineralization. Prior data, which I am sure is available if you seek it out, likely had resulted in the estimation, by the previous operators, of resources based on the historic results. Since historic resources calculated by earlier operators are non-compliant with NI 43-101 standards and are not being relied upon for resource estimation purposes, I am not at liberty to discuss them. The Company, being encouraged by the verification results of the historic data, plans to complete additional infill drilling to improve resource definition to establish Measured and Indicated resources and a Preliminary Economic Assessment, as well as additional exploration drilling to expand known resource areas and evaluate other copper targets on the property to build additional resources.
Raj further stated "As previously announced, TintinaGold has commenced the process to create a New Gold Company (the "New Gold Co - Spin-Out" - see news release September 22, 2010) to further explore and develop the Colorado Creek Project and, in due course, to pursue the acquisiton of other Gold and/or Precious Metal(s) assets. The New Gold Co - Spin-Out is being undertaken/performed pursuant to a plan of arrangement (the "Plan Of Arrangement") similar to a plan of arrangement previously undertaken and completed, on October 9, 2009, to create AsiaBaseMetals Inc. (TSX.V: ABZ).
Raj summarized "In my opinion, as I have previously pointed out, it is worth noting that many of the shareholders who qualified to fully participate in the 1st spin-out that created AsiaBaseMetals Inc. did not fully understand the concept of exercising their, then held, outstanding warrants of TintinaGold in order to take full advantage of the additional shares they would have received in AsiaBaseMetals."
Raj emphasized "Note, the warrants, under the Plan of Arrangement, as previously done in the 1st spin-out that resulted in the creation of AsiaBaseMetals Inc, and as contemplated in the 2nd Spin-Out that will result in the creation of Gold Company, are not/will not be carried forward into the Spin-Out company. i.e. in order to maximize the number of shares a shareholder of TintinaGold can/may receive as a result of the Spin-Out of the Gold Company, the TintinaGold shareholder has to decide to exercise their warrants in TintinaGold prior to, yet to be set, the record date (the "Record Date") of the Spin-Out of the Gold Company."
Raj highlighted "Incidentally, there are two series of warrants outstanding in TintinaGold as of today's date. The first set (14,448,339 warrants expiring on May 20, 2012) are exercisable at $0.4929 per share and the second set (12,500,000 warrants expiring on Feb 3, 2014) are exercisable at $0.65/share. The exercise by the shareholders of the warrants would provide the Company $15,246,586 (1st set - $7,121,586 & 2nd set - $8,125,000). Consequently, the exercise of the warrants, if undertaken by the shareholders of TintinaGold, is likely to fund the Company and the Spin-Out Gold Company adequately to advance their mining projects in a prompt manner. This should continue to build shareholder value."
