Tri-Valley Corporation (NYSE Amex: TIV) today announced Select Resources Corporation, Inc. (“Select”), its wholly-owned minerals subsidiary, has entered into a binding letter of intent with US Gold Corporation (“US Gold”) (NYSE and TSX: UXG) outlining the principal terms and conditions for a four-year Exploration Lease and Purchase Option Definitive Agreement (the “Definitive Agreement”) with respect to Select’s Richardson Project (“Richardson”) in Alaska. Under terms of the letter of intent, US Gold will acquire an exploration lease for Richardson, along with an exclusive option to purchase a 60% interest in the project and enter into a joint venture with Select for its development. The Definitive Agreement is expected to be finalized by July 1, 2011.
Richardson is located 115 kilometers southeast of Fairbanks, Alaska, and covers an area of approximately 46 square miles. Avalon Development Corporation, an independent geological consulting firm based in Fairbanks, recently completed an NI 43-101 report on Richardson for Select that identified areas of potential intrusive-related gold mineralization on the site.
“US Gold is a premier gold exploration and development company with significant financial resources and extensive minerals management experience, ranging from exploration stage projects through mine development and production. We are very pleased to be working with a company of this stature to further explore Richardson’s potential for the mutual benefit of our respective shareholders,” said Maston N. Cunningham, President & CEO of Tri-Valley Corporation. “US Gold is moving forward with its logistical and resource planning in order to take advantage of this year’s Alaska summer season to commence its exploration field work. In addition, this agreement will allow Select to reduce its annual operating costs by approximately $200,000 while we continue to seek a potential partner to help us develop our Shorty Creek Project.”
“The partnership with US Gold represents an important milestone for Tri-Valley that moves us forward on our goal to monetize one of our two mineral assets in Alaska. Several potential partners remain interested in our Shorty Creek mineral assets and data reviews on that property are continuing,” concluded Mr. Cunningham.