here is the news release that we have all be waiting for:
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FOR FURTHER INFORMATION PLEASE CONTACT:
Riosun Resources Corporation
Mr. P. Charles Cochrane
President and Chief Executive Officer
(403) 266-3644
(403) 266-3648 (FAX)
THE VANCOUVER STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENTS OF
THIS NEWS RELEASE
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: RIOSUN RESOURCES CORPORATION
VSE SYMBOL: RSR
NASDAQ SYMBOL: RRSCF
MAY 9, 1997
Riosun Resources Corporation Announces "Farm In"
Agreement
CALGARY, ALBERTA--P. Charles Cochrane, President and CEO is
pleased to announce that the COMPANY has entered into a "farm in"
agreement (the "agreement") on May 8 1997, to explore for gold in
the Democratic Republic of Madagascar.
The Agreement was signed with Glamorgan Group Limited ("GGL"), a
British Virgin Islands company and enables the COMPANY to earn a
net undivided interest of 52.5 percent of the project by funding
the exploration program. The project area covers 31.25 square
kilometers consisting of five concessions (permit areas) in
Betsiaka, Ambilobe province, Madagascar.
Madagascar had been a well established gold producing country for
a long time. Official figures indicated 1995 production of 36
metric tonnes from artesianal gold operations. Recorded Betsiaka
gold production history goes back to the 1845's when gold was
first reported by French geologists. Currently, artesianal gold
is being produced from the Betsiaka area.
The COMPANY had the benefit of satellite surveys of the concession
areas and samplings from the area before entering into the
Agreement. In February and March 1997, Mr. G. Lloyd, P.Eng.,
P.Geol., independent consulting geologist for the COMPANY
collected about 200 samples from more than 24 sites. The samples
were inspected by the Director General Inspector of Madagascar and
were waxed sealed and sent under secure courier to Loring
Laboratories of Calgary where the seal was broken by Loring Lab's
officials for assay.
Following further analysis of the results by Mr. Lloyd, it was
strongly recommended that immediate exploration be conducted,
including detailed mapping, trenching and coring.
Mr. Lloyd also reported widespread alluvial gold in the areas
which could be brought into production fairly quickly.
The COMPANY is optimistic that the contract area will produce
economic quantity of gold and had agreed to provide additional
consideration to GGL upon proving gold reserves of 500,000 to
1,500,000 ounces.
The COMPANY's Canadian geologists will be dispatched to the site
to begin the work program in the next few weeks.
Progress in the COMPANY's emerald mine is on schedule and the re-
opening and commencement of production is anticipated by the end
of June 1997. Mr. Cochrane also met with potential gem cutters,
dealers and marketers in Israel to organize for the marketing and
distribution of the stones to be produced from the mine.
/T/
RIOSUN RESOURCES CORPORATION
signed by
"Irene B. Rohlsberger"
per P.C. Cochrane
President and Chief Executive Officer
/T/
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