April 4, 2011, Toronto, Ontario, Canada – Escape Gold Inc. (the “Company”) is pleased to announce that at the special meeting of the shareholders of Rio Silver Exploration Ltd. (‘Rio Silver”) held on March 31, 2011 that 100% of the votes cast representing 97% of the eligible shareholders have voted in favour of the terms of the Company’s Letter of Intent to acquire (“the Acquisition”) 100% of the outstanding shares of Rio Silver and its wholly owned Peruvian, subsidiary, Minera Rio Plata S.A.C., through an amalgamation, merger or plan of arrangement. (see Escape news release, March 7, 2011).
Rio Silver is a private Alberta company engaged in the acquisition and exploration of mineral properties in the Huancavelica silver district of Peru. Rio Silver’s founding shareholder is Jeff Reeder, P.Geo., who is also the President and CEO of Duran Ventures Inc. and has over 17 years of exploration success in Peru. Mr. Reeder was the founder of the Aguila copper molybdenum porphyry project in northern Peru and the Pinaya copper gold porphyry in southern Peru. Upon the successful closing of this Acquisition, which is subject to TSX Venture Exchange approval, he has agreed to join the Board of Director’s of the Company.
Minera Rio Plata S.A.C. owns the mineral rights to several silver and gold exploration properties totaling in excess of 7,200 hectares. Each of the projects is owned 100% by Minera Rio Plata with no royalties or exploration expenditure commitments. None of the projects have been explored since early 2003 when silver was trading in the US $5 per ounce range and they represent exciting exploration targets in this precious metal, commodity boom.
Completion of the Acquisition remains subject to Exchange acceptance and execution of formal documentation. The securities of the Company to be issued on the Acquisition will be subject to a four month hold period.
The acquisition of Rio Silver provides the Company with a pipeline of exploration projects in the Huancavelica silver district of Peru. The most interesting of the properties is the Ninobamba project with only 1,862m of historical drilling.
The 900 hectare Ninobamba silver project is located approximately 330 km southeast of Lima in the Department of Ayacucho, Peru. The Ninobamba claim block is adjacent to claims owned by Southern Peru Copper and Newmont, in an historic, mining friendly jurisdiction.
Originally explored by AngloGold Exploracion Peru S.A.C. (“Anglo”) in 2001, Anglo focused on an area of intense hydrothermal surface alteration and drilled five widely spaced core holes totaling 861metres. Anglo’s drilling highlights included DDH-2 which reported assay results of 87.0 gpt silver over a drilled interval of 130 metres starting from a depth of 9 metres and DDH-4 reporting 54.0 gpt silver over a drilled interval of 96 metres starting
from 23 metres. In 2003 Bear Creek Mining signed an option agreement to earn a 60% joint venture interest and an additional eight holes were drilled totaling 1001 metres. Results of this limited exploration program outlined two distinct zones of silver mineralization reported to be open along strike and at depth. This new geological information has been reinterpreted by Rio Silver’s geologist’s as a high sulphidation epithermal silver system in parallel, northeast trending structures hosted within a Tertiary volcaniclastic unit.
Rio Silver’s geologists have worked closely with the Company and have defined the highest priority drill targets for the initial exploration program. Once the Acquisition is completed the Company will consult with all local stakeholders in anticipation of permitting a 2011 drill program.
T. John Magee, P.Geo., President and CEO of the Company is the Qualified Person who has reviewed and is responsible for the technical data contained in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS OF ESCAPE GOLD INC.
T. John Magee
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward-looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.
For more information contact:
T. John Magee, P.Geo., President and CEO
Phone: (647) 436-0093