TORONTO, Sept. 22, 2010 (GLOBE NEWSWIRE) -- Shield Gold Inc. ("Shield" or the "Company") (TSX-V:SHG-P) is pleased to announce that it has entered into an option and joint-venture agreement with Virginia Mines Inc. ("Virginia") on the La Grande Nord property (the "Property"), located in the La Grande Greenstone Belt in the James Bay region of Quebec.
Under the terms of the Option Agreement and subject to the approval of the regulatory authorities, Shield has the option to acquire a 50% interest in the Property in consideration for incurring expenditures of CA$1,000,000 in exploration work over a 5-year period and making option payments totalling CA$30,000 payable, at Shield's election, either in cash or in common shares of the Company. Shield will be the operator during the earn-in period, with Virginia having the right to become operator thereafter.
The La Grande Nord project comprises three non-contiguous blocks of claims for a total of 31 claims covering 1,583 ha. The claims are located in a relatively unexplored Archean-age volcanic belt where several polymetallic showings have been discovered. The three blocks of claims are known respectively as the Gaber, La Grande Nord and the Sakami-Extension. Historical showings on La Grande Nord include:
These historical results have not been verified by the Company.
Howard Sinclair-Jones, President and CEO of Shield Gold, notes that:"In addition to allowing us to work with the exploration team of Virginia, the importance of this agreement to Shield is that it consolidates our 2010 exploration work. The Gaber claims of the La Grande Nord project are surrounded by the Summit-Gaber property, where Shield is conducting its 2010 exploration program. The agreement with Virginia allows us to extend this work to the Gaber property, at considerable savings of exploration dollars."
About Virginia Mines Inc.: Virginia is among the most active mining exploration companies in Quebec with a working capital of $45 million as at May 31, 2010, and 30,197,942 shares issued and outstanding as at August 31, 2010. Virginia trades on the Toronto Stock Exchange (TSX) under the ticker symbol VGQ. Virginia concentrates its activities on its numerous properties that are spread over the vast unexplored regions of northern Quebec.
About Shield Gold Inc.: Shield Gold Inc. is a junior exploration company whose mission is the discovery and development of high quality precious and base metal resources. Shield's exploration work is currently focused on the La Grande Greenstone Belt in northern Quebec.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT: Shield Gold Inc. Howard Sinclair-Jones, President 416-654-1408 email@example.com