FORT WORTH, Texas, Aug. 17, 2011 /PRNewswire/ -- VHGI Holdings, Inc.
(OTC Bulletin Board: VHGI.QB) and VHGI Gold, LLC, its wholly-owned
operating subsidiary, are extremely excited to announce the
execution of a Letter of Intent with Northern Freegold Resources
Ltd (TSX.V: NFR / OTCBB: NFRGF) towards the purchase of the almost
2000 acre Burro Creek Gold and Silver lease block.
The Burro Creek Property is located 1 mile off AZ State Highway
93 in Mohave County, Arizona,
approximately 60 miles southeast of Kingman, Arizona, just south of the historic
trading center of Mayer, AZ.
The almost 2000 acre property consists of four patented
mineral claims and 100 surrounding located mineral claims, 50 of
which were recently staked by Northern Freegold Resources to cover
strike extensions of the known vein system.
"We are very excited about the prospect of adding this lease
group to our holdings," said VHGI Gold LLC - VP/COO, Mr.
Eric Leonetti. Adding, "This
area has a long history of exploration and with the all data
collected by Northern Freegold now available to us we hope to
complete our final due diligence phase in a timely manner with the
goal of finalizing our purchase or these leases upon the successful
conclusion to our investigations."
Burro Creek Property Highlights
- NI 43-101 resource estimate includes
- An indicated resource of 75,600 contained ounces of gold and
2,757,000 contained ounces of silver (at 0.5 g/t Au Eq cut-off)
within 2.8 million tonnes grading 1.01 g/t gold and 36.77 g/t
silver
- An inferred resource of 43,200 contained ounces of gold and
2,236,000 contained ounces of silver (at 0.5 g/t Au Eq cut-off)
within 2.2 million tonnes grading 0.60 g/t gold and 30.95 g/t
silver
Excellent infrastructure with Arizona State Highway 93 and
parallel high tension power lines within 1.6 km of deposit; water
rights secured on the patented mine property
The vein mineralization is open to NW and SE as well as at
depth; only 300 m of vein drilled to date. The vein system outcrops
1.7 km from the drilled area.
Mineral Resource Estimate for Burro Deposit
|
|
|
AuEq*
Cut
|
Tonnes
|
Gold
Grade
|
Contained
|
Silver
|
Contained
|
AuEq
Grade
|
Contained
|
|
|
off
(g/t)
|
|
g/t
|
Gold
(oz)
|
Grade
(g/t)
|
Silver
(oz)
|
(g/t)
|
AuEq(oz)
|
|
|
|
|
|
|
|
|
|
|
|
Indicated
|
|
|
|
|
|
|
|
|
|
0.1
g/t
|
2,390,173
|
0.99
|
76,013
|
36.13
|
2,776,930
|
1.6
|
123,280
|
|
|
0.5
g/t
|
2,331,871
|
1.01
|
75,567
|
36.77
|
2,756,778
|
1.63
|
122,491
|
|
|
1.0
g/t
|
1,854,615
|
1.15
|
68,687
|
40.69
|
2,426,363
|
1.84
|
109,987
|
|
|
2
g/t
|
597,424
|
1.68
|
32,234
|
53.68
|
1,031,131
|
2.59
|
49,785
|
|
|
Inferred
|
|
|
|
|
|
|
|
|
|
0.1
g/t
|
2,307,891
|
0.59
|
43,730
|
30.42
|
2,257,402
|
1.11
|
82,154
|
|
|
0.5
g/t
|
2,247,069
|
0.6
|
43,243
|
30.95
|
2,236,113
|
1.13
|
81,304
|
|
|
1.0
g/t
|
1,249,248
|
0.72
|
29,051
|
43.96
|
1,765,707
|
1.47
|
59,106
|
|
|
2
g/t
|
87,778
|
1.18
|
3,327
|
63.06
|
177,973
|
2.25
|
6,356
|
|
|
|
|
|
|
|
|
|
|
|
The National Instrument 43-101 was updated in January of
2011.
The purchase price for the leases and property is estimated to
be $4,000,000.00 (U.S.) with
$2,000,000.00 to be paid in cash over
a twelve month period follow the close on or about November 25, 2011. The remaining
$2,000,000.00 will be made up in VHGI
Holdings Common stock. The closing is subject to various
conditions precedent, including execution of mutually agreeable
definitive documentation and due diligence. There can be no
assurances that the transactions contemplated by the Letter of
Intent will be consummated, or if consummated, what the final terms
will be.
About VHGI and VHGI Gold
VHGI is a diverse company with assets and interests focusing on
opportunities within the Healthcare Technology Industry and
Precious Metals Markets. VHGI Gold, a wholly owned subsidiary of
VHGI has recently initiated steps to leverage the company's
operating history and corporate resources within the Gold Mining
Industry and intends to pursue these opportunities through
Lease-Purchase opportunities, Acquisitions and Joint Ventures.
"Safe Harbor" Statement:
The statements in the press release that relate to the company's
expectations with regard to the future impact on the company's
results from new products in development and any other statements
not constituting historical facts are "forward-looking statements,"
within the meaning of and subject to the safe harbor created by the
Private Securities Litigation Reform Act of 1995. Since this
information may contain statements that involve risk and
uncertainties and are subject to change at any time, the company's
actual results may differ materially from expected results. This
document may contain forward-looking statements concerning the
Company's operations, current and future performance and financial
condition. These items involve risks, contingencies and
uncertainties such as product demand, market and customer
acceptance, the effect of economic conditions, competition,
pricing, the ability to consummate and integrate acquisitions, and
other risks, contingencies and uncertainties detailed in the
Company's SEC filings, which could cause the company's actual
operating results, performance or business plans or prospects to
differ materially from those expressed in, or implied by these
statements. The Company undertakes no obligation to revise any of
these statements to reflect the future circumstances or the
occurrence of unanticipated events.
Investors are invited to obtain information concerning our
operations at http://www.vhgiholdings.com or by calling shareholder
relations at (440) 773-4310 or emailing info@vhgiholdings.com.
For Further Information:
Shareholder Relations – Communications (817) 820-7020
SOURCE VHGI Holdings, Inc.
