Monday, December 22, 2008

Arctic Oil & Gas Corp. (AOAG) Alaska Placer Gold Mines; Forward Gold Sales Offering

Arctic Oil & Gas Corp. (PINKSHEETS: AOAG), a resources development company, is pleased to announce the Company is rapidly progressing its plans for two new Alaska placer mine developments for commissioning in 2009 to produce approximately 300,000 ounces gold p.a. in the first year.

The Company has completed preparing and is now distributing a $250 million private offering for delivery of 500,000 ounces of gold at $500 per ounce paid upfront, with bullion deliveries estimated to commence in July 2009. The forward gold purchase offer promises Banks and Institutional investors delivery of gold bullion at a discount to the spot price.

The unique forward gold purchase offer promises qualified investors a potentially more profitable mechanism than gold exchanges for securing large quantities of gold bullion, with a lower net cost of $500 per ounce.

The non NI 43-101 compliant gold resources providing security to the forward gold purchase offer total approximately 1.00 million ounces of placer gold based on detailed historical resources estimates in the following placer deposits:

Nome Offshore: 7.3 million cubic yards measuring only the first yard depth, (in a 10-15 yard deep placer deposit) grading 0.0269 Oz/yard, (0.83 grams/yard) Gold reported by Westgold and others in 1980s and cited in previous news releases. Adjacent lease application areas could hold an additional 1-10 million ounces.

Denali North Mine, Onshore: At least 15 million cubic yards grading 0.029 to 0.039 Oz/yard Gold from sampling, drilling and mapping, reported by independent geologists, the mine operator and others and cited in previous news releases. Gold reserves on this property are in excess of 500,000 ounces.

The Company plans to re-evaluate the substantial amount of historical drilling and bulk sampling on the two project areas to prepare new NI 43-101 compliant reserves statements.

Use of Historic Resource Estimates: All historical resource estimates quoted herein are based on prior data and reports obtained and prepared by previous operators and certain other information. The historical estimates should not be relied upon. No qualified person (as defined by NI 43-101) has done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Further work will be required to evaluate these resource estimates.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks associated with resource exploration risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. More information about factors that potentially could affect AOAG's financial results is included in its filings with the Securities and Exchange Commission.

Contact:
Peter Sterling
323-356-7777
Email Contact

No comments:

Post a Comment