Denver, CO – June 15, 2006 - Fischer-Watt Gold Company, Inc. (OTCBB: FWGO ) has entered into an agreement with private vendors to purchase the Pinal Gold mineral lease in Pinal county, Arizona.
Under the terms of the agreement, Fischer-Watt has an exclusive 60 day period in which to complete its due diligence review of the property. Subsequently, subject to regulatory approvals, Fischer-Watt may acquire the 100% interest in the mineral lease for a payment of $15,000 and delivery of 100,000 restricted common shares of Fischer-Watt to the vendors. The vendors will retain a 2% net smelter return royalty on production from the property. Fischer-Watt will pay an advance royalty of $20,000 on the first anniversary of the agreement and $25,000 each year thereafter until the commencement of production from the property. These advance royalties will be recoupable from the production royalty payments.
Gold mineralization on the property is hosted within faulted blocks in well-altered granitic rocks. Previous work by others indicated that this area has the potential to host several near-surface low-grade deposits. The project has no reserves at present and there is no assurance that the project will advance from its present exploration stage. However, the possibility exists of discovering higher grade mineralization in feeder systems, such as the feeder system of the nearby Tiger Mine area. Historical production at that site, prior to 1950, was reportedly about 400,000 ounces of gold.
About 10 years ago, the property had some wide-spaced drilling carried out on it by others. Fischer-Watt will carry out a series of geological surveys on the property prior to designing a closer spaced test drilling program in areas of stronger mineralization.
Mr. Peter Bojtos, President, CEO and Chairman of the Board of Fischer-Watt noted that, “This is the first of several gold properties that we are planning to acquire. We are focusing on the western United States to build the foundation of Fischer-Watt's rejuvenation.”
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those projected in the forward-looking statements.
For further information please contact:
Mr. Peter Bojtos, President and Chief Executive Officer.
Fischer-Watt Gold Company, Inc.
303-232-0292