West Red Lake Gold Mines Ltd. press release

Citadel Gold Mines Inc. announces signing of letter of intent to enter into an option agreement on Sudbury base metal property

2006-11-02

TSXV - TSX Venture Exchange · Gold · Silver · Copper · Iron · Arsenic · Sulfur · Canada

TORONTO, Nov. 2 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange). Citadel Gold Mines Inc. announced today that it has signed a letter of intent to enter into a formal option agreement with Terex Resources Inc., (TRR-TSXV) whereby Citadel can earn up to a 75% interest in the Massey property located in Salter Township, Ontario, about 100 km west of Sudbury. The property consists of about 2,000 acres covering three former copper-producing mines, the Massey mine, the Hermina number 1 mine, and the Hermina number 3 mine. Citadel can earn up a maximum 75% interest in the property by issuing up to 1,150,000 common shares, by making cash payments totalling up to $260,000 and by incurring an aggregate of $1,200,000 in exploration and development expenditures on the property over a 5 year period. The letter of intent also provides for the option for Terex and Citadel to associate, on a joint venture basis, for further development of the property. Management is excited about the potential for the Massey property to host iron oxide - copper - gold (IOCG) deposits, and looks forward to partnering with Terex to maximize this site's potential.