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Gold/Mining/Energy : Pure Gold Resources TSE -- Ignore unavailable to you. Want to Upgrade?

To: Jesse who wrote (377)	10/30/1997 3:41:00 PM
From: Roman	Read Replies (1) \| Respond to of 383

OCTOBER 30, 1997 Caribgold Seeks Stake in Pure Gold and Reclamation's Sweetgrass Arch Property, Southern Alberta VANCOUVER, BRITISH COLUMBIA--Donald R. Sheldon, President of Pure Gold Resources Inc., is pleased to announce that the Company has entered into an option agreement with CaribGold Resources Inc. (TSE-CG) on the Lethbridge Property, an area totalling 1.4 million hectares situated in southern Alberta. The Lethbridge Property covers the north-northeast trending Sweetgrass Arch one of the two oldest arches in Alberta, the other being the Peace River Arch where Ashton Mining of Canada and Pure Gold have discovered a number of important diamondiferous kimberlites. Both arches intersect Archean Cratons, the Buffalo Head and the Hearne Province cratons. Mr. Wilf Jones, Diamond Consultant to Pure Gold, believes that the potential of locating clusters of unexplored kimberlitic intrusions associated with splay faults close to the Ohinge zoneO of the Sweetgrass Arch is high. Past exploratory work south of the Lethbridge block has uncovered seven intrusive bodies proximal to the Ohinge zoneO. The best documented intrusion is the Black Butte pipe which reportedly recovered one micro-diamond from a surface trench sample. The Company has recently begun a detailed high resolution magnetic survey covering a wide area straddling the Ohinge zoneO of the Sweetgrass Arch. It is anticipated that the survey will take approximately 4 weeks to complete. The Property is currently held 75 percent by the amalgamated Pure Gold and Cayo Resources (see news release dated October 24, 1997) and 25 percent Reclamation. As a first option, CaribGold can earn a 25 percent undivided interest pro rata from Pure Gold and Reclamation. To exercise its option, CaribGold will make a cash payment of $125,000 on signing and another payment of $125,000 before the first anniversary of the Agreement and spend $1,000,000 on exploration expenditures within the first two years of the option. A minimum of $500,000 will be spent in the first six months. By spending an additional $2,000,000 by the fourth anniversary of the Agreement and issuing 100,000 shares CaribGold can earn an additional 15 percent interest in the property. The Property is subject to a 2 percent GOR and 2 percent NSR in favor of the staker. This agreement is subject to regulatory approval.

To: Jesse who wrote (377)	10/31/1997 8:55:00 PM
From: Famularo	Respond to of 383

Diamond royalty acquisition in Alberta Pure Gold Resources Inc PUG Shares issued 88,106,667 Oct 30 close $0.30 Fri 31 Oct 97 News Release See Frontier Pacific Mining Corporation (FRP) News Release Mr John Mirko reports The company has taken steps to expand and diversify its mineral project portfolio into the diamond development field by acquiring by way of an absolute assignment agreement a 2.0% gross overriding royalty and a 2.0% net smelter return royalty in 923 applications for metallic and industrial mineral permits covering over 20 million acres in the province of Alberta. This acquisition allows Frontier to participate in all revenue from any new diamond discoveries on the properties for no cost. Reported exploration to date carried out by 690688 Alberta, Pure Gold Resources (T.PUG), Cayo Resources, Ashton Mining of Canada and others on the property has resulted in the discovery of a 0.392 carat diamond in gravels within the Edmonton project block and over 50 circular high resolution aero-magnetic anomalies identified over the Lethbridge project block. Four of the anomalies are proximal to the discovery site of the Legend Diamonds of 0.14 and 0.17 carats, and the beige-green Black-Butte diamond chip. Exploration work is expected to commence in the near term on the Peace River-Caribou Hills project block areas. Pursuant to the terms of the royalty agreement, Frontier is entitled to a GORR equal to 2% of the average appraised value of all gem and industrial diamonds produced, recovered, sorted and graded from the property free and clear of all costs of development and operation, and subject only to government mineral and mining taxes and royalties and the fees and expenses of graders, to be paid to Frontier. Average appraised value means the average of the valuations in Canadian dollars determined by two independent graders, one appointed by the property holder and one appointed by Frontier. Such independent graders would be duly qualified and accredited and would sort, grade and value the diamonds in accordance with industry standards, having regard to, but without limiting the generality of the foregoing, the commercial demand for the diamonds, the grades of the diamonds (gem or industrial) and the colors, sizes and clarity of the diamonds (gem or industrial). Each independent valuator would value each particular classification of the diamonds in accordance with the industry price books, standards and formulas. The intention of the parties is that the GORR is to be paid to Frontier on this basis regardless of the price or proceeds actually received by the property holder for or in connection with the diamonds or the manner in which a sale of the diamonds to a third party is made, and without deduction except for the fees and the expenses payable to the two graders, which will be paid by the property holder. The GORR will be paid to Frontier within 30 days of each calendar quarter, based on all diamonds from the property which were graded in that quarter. The NSR will be calculated and paid on industry standard terms on all other minerals produced. CHINA Further to the news in Stockwatch dated October 28 1997, Frontier's new vice-president of exploration, China, Antin Guo, is currently in China finalizing the company's formulation and licensing procedures for the Ding-Ma, Zhen'an gold mine joint venture. CANADA AND RUSSIA Further work on the company's Canadian portfolio of gold, copper and uranium properties will commence in the spring of 1998 with a diamond drill program financed by the company's joint venture partner on the Lion project in Northern BC. Frontier has also started the investigation and detailed assessment of a potential gold project in Russia in which a majority joint venture interest is available.