Kestrel Gold Inc. Terminates Argentina Acquisition Agreements
October 01, 2012 - Vancouver, British Columbia: Kestrel Gold Inc. (“Kestrel” or the “Corporation”) (TSXV: KGC) has provided notice in writing to the owners of the Huachi Property located in San Juan Province, Argentina that it does not intend to continue to exercise its option to acquire an interest in the Huachi Property.. After conducting widespread exploration of the gold mineralized portion of the Huachi Property, including 4,000 metre diamond drill program, management of the Corporation has concluded that the exploration results obtained to date do not outweigh the economic and political risks in taking the project forward in Argentina.
The Corporation has also given written notice of termination on two other acquisition agreements related to its other projects in Argentina, namely the Antofalla property in Catamarca Province, Argentina and the Condor Yacu property in Salta Province, Argentina.
Since the commencement of Kestrel’s initial work programs in Argentina in late 2010, the political climate has changed to the degree that management is of the view that the risks are now considered too great to continue with further exploration on any of these projects.
It is anticipated that in accordance with IFRS reporting standards, the Corporation’s investment in these projects will be written off in their entirety prior to issuance of the Corporation’s audited financial statements for the current fiscal year.
Kevin V. Nephin, President and CEO of the Corporation stated: “Due to the regulatory environment and the political uncertainty present in Argentina today, risk has increased substantially along with costs of doing business and mineral exploration in Argentina. Difficult market conditions have added to this situation causing investors to search for safe havens rather than countries with added political risk and changing regulations. Management is, therefore, of the opinion that it is in the best interest of the Corporation to concentrate the Corporation’s future exploration efforts in North America. This focus will be mainly on the Corporation’s King Solomon’s Dome Project in the Yukon, Canada, in the heart of the Klondike Goldfields. The King Solomon’s Dome group of properties represents a fantastic opportunity to seriously explore for the source host of the 20 plus million ounces of gold obtained to date from the near by placer creeks.”
The Corporation is also currently looking to increase its mineral land position in both the Yukon and in other prospective parts of Canada in the near term.
About Kestrel Gold Inc.
Kestrel is a gold exploration company headquartered in Canada. Its principal project is the King Solomon Dome property in Canada's Yukon Territory. Kestrel (KGC) is listed on the TSX Venture Exchange.
For further information, please contact:
Kevin V. Nephin at 604-824-6056 or 604-799-2456
Macam Investor Relations
Office (403) 452-6600
This news release contains “forward-looking information” within the meaning of applicable securities laws, including but not limited to, statements with respect to termination of exploration projects in Argentina. Readers are cautioned to not place undue reliance on forward-looking statements. Forward-looking statements are based on certain key assumptions made by the Corporation, including assumptions based on the Corporation’s exploration results to date in Argentina and political risk in Argentina. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting exploration results and other geological data and the ability of the Corporation to obtain the funds and resources required to carry out further exploration. The forward-looking statements in this press release are made as of the date of this release and the Corporation undertakes no obligation to update publicly or revise any forward looking statements whether as a result of new information or otherwise, except as required by applicable securities laws. The Corporation undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Corporation or its financial or operating results or (as applicable) its securities.
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