MGold Resources Inc. ("MGold" or the "Corporation") (TSX VENTURE:MNI) announces
that it has served a notice of termination of the option agreement (the "Option
Agreement") previously entered into with Silver Reserve Corp. ("SRC") a wholly-
owned subsidiary of Infrastructure Materials Corp. (OTCBB:IFAM)(TSX
VENTURE:IFM)(TSX VENTURE:IFM.S), to acquire a 50% undivided interest in the
Silver Queen and Klondyke properties, both located in Esmeralda County, Nevada
USA (as disclosed in a news release issued on September 16, 2011).


Under the terms of the Option Agreement, MGold had the option to acquire a 50%
working interest in the Silver Queen property by incurring expenditures of CAD$4
million over a thirty- month period plus cash payments of CAD$2 million over a
thirty-three month period. The Option Agreement also called for MGold to expend
CAD$1,350,000 over a thirty month period plus cash payments of CAD$265,000 over
a thirty-three month period to acquire a 50% working interest in the Klondyke
property. MGold has elected to terminate the Option Agreement and to discontinue
cash payments and exploration expenditures for both the Silver Queen and
Klondyke properties ahead of a March 16, 2012 work commitment anniversary date.
This decision comes as the Corporation feels the results to date at Silver Queen
do not meet its key decision hurdles and it was not able to meet its expenditure
commitments at both properties. Discussions with SRC in efforts to renegotiate
the work commitment and cash payment terms for the two properties have been
unsuccessful. With MGold's decision to terminate the Option Agreement, SRC
retains 100% interest in both the Silver Queen and Klondyke properties.


MGold is currently focused on advancing its 100%-owned Burchell Lake property
located within the Shebandowan greenstone belt in northwestern Ontario. MGold's
nearly 6,000 hectare Burchell Lake property is highly prospective for
Archean-aged lode gold deposits and shares property boundaries with Foundation
Resources Inc.'s Coldstream property to the north and Moss Lake Gold Mines
Ltd.'s property to the west. The Osmani gold deposit, part of the Coldstream
property, is located 1.7 kilometers north of MGold's property boundary and
contains a 43-101 compliant resource of 763,276 ounces of gold Inferred and
96,400 ounces of gold Indicated. Also, just 1 kilometer north of MGold's
property boundary, a 1.15 m trench sample from Foundation Resources Goldie Zone
returned 30.7 g/t gold. The Moss Lake deposit is located 5 kilometers west along
strike of MGold's property boundary and contains an Inferred resource of 1.5
million ounces of gold. Also, reported historical production of 30,000 ounces of
gold and 140,000 ounces of silver came from the Ardeen Gold Mine, located
approximately 10 kilometers along strike to the west.


Results from MGold drilling at Burchell Lake in 2006-2008 returned encouraging
results such as 1.38 g/t Au over 7.15 meters in hole BU08-9 and 1.26 g/t Au over
4.3 meters in hole BU08-11. MGold intends to follow-up on this work during 2012
with 3-D GIS compilation and drill targeting work along with geological mapping
and geophysical/geochemical surveys on the remainder of the Burchell Lake
property. To date, only 10% of MGold's Burchell Lake has been effectively
explored.


In addition to developing and executing work programs at Burchell Lake, MGold
continues to evaluate other exploration opportunities throughout North America.
MGold's recently bolstered exploration team is continuously reviewing gold and
base metal opportunities in Ontario and has recently signed a Confidentiality
Agreement to review data for several early to advanced stage silver-gold mineral
properties in Nevada, USA.


The Qualified Person, as defined in NI 43-101, responsible for the issuance of
this press release is Joel Scodnick, P.Geo., President & CEO of MGold.


About MGold

MGold is engaged in mineral exploration for precious and base metals and holds a
100% interest in the Burchell Lake Property, which is located in the Shebandowan
area of Northwestern Ontario and is prospective for Archean lode gold deposits.
MGold has 36,144,024 issued and outstanding common shares, and 49,094,296 on a
fully diluted basis.
Stakeholder Gold (TSXV:SRC)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Stakeholder Gold Charts.
Stakeholder Gold (TSXV:SRC)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Stakeholder Gold Charts.