NEWS RELEASE [PDF version attached]
CNQ: HYLK
FRANKFURT: HYK
HY LAKE GOLD AND GOLDCORP RED LAKE GOLD MINES SIGN LETTER OF INTENT ON
ROWAN LAKE PROPERTY IN RED LAKE, ONTARIO
FOR IMMEDIATE RELEASE, October 3, 2007 - Toronto, Ontario.
Hy Lake Gold Inc. (CNQ: HYLK; FRANKFURT: HYK) (\"Hy Lake Gold\" and
\"the Company\") is pleased to announce that the Company has signed
a binding Letter of Intent with Red Lake Gold Mines, a general
partnership of Goldcorp Inc. (TSX: G; NYSE: GG) and Goldcorp Canada
Ltd. (collectively \"Goldcorp Red Lake Gold Mines\") on Goldcorp Red
Lake Gold Mines\' Rowan Lake property in Todd Township, Red Lake,
Ontario.
Goldcorp Red Lake Gold Mines currently holds a 100% stake in the
117-claim, 2187 hectare Rowan Lake property which is contiguous
with Hy Lake Gold\'s Mount Jamie property to the west. Under the
terms of the contemplated option agreement, Hy Lake Gold can earn
a 60% interest in the property, as operator, through exploration
expenditures of Cdn. $2,500,000 over 3 years with Cdn. $500,000
committed in the first year. Goldcorp Red Lake Mines shall have a
back-in right to purchase a 20% interest in the property from Hy
Lake Gold, within 90 days of the exercise of the option, for Cdn.
$5,000,000. Hy Lake Gold and Goldcorp Red Lake Mines will execute
the formal option agreement within 5 days of Hy Lake Gold completing
its due diligence. All additional information, including that
regarding terms of a subsequent joint venture, will be available
upon finalization of the definitive agreement.
The Rowan Lake property lies on the Pipestone Bay-St. Paul\'s Bay
Deformation zone (GSC
CR2001-C19), hosts the past producing Rowan
Lake Gold Mine, adjoins the past producing Mount Jamie Mine (Hy
Lake Gold) to the east and surrounds the past producing Red Crest
Mine (Claude Resources). The property, which has been explored
only to very shallow depths, is underlain by the same geology and
structure as these three past producers and has been subjected to
limited underground exploration from a shaft and adit on the property.
The property is host to numerous gold occurrences which have seen
limited drill testing returning results such as:
. Hole RWU53370 - 40.79 grams Au per tonne over 3.39 metres
. Hole RW8457 - 14.57 grams Au per tonne over 4.42 metres
. Hole RW8459 - 26.51 grams Au per tonne over 2.51 metres
. Hole RW8460 - 11.02 grams Au per tonne over 4.22 metres
. Hole RW8577 - 39.26 grams Au per tonne over 1.47 metres
Potential exists to expand upon these gold mineralized zones both
along strike and at depth. The Red Lake greenstone belt is host to
some of the richest gold deposits in the world. The Red Lake Camp
has produced over 23 million ounces of gold, including approximately
18 million ounces from the Goldcorp Red Lake Gold Mines deposit
(source MNDM website).
Hy Lake Gold is a junior exploration company currently focused on
gold exploration in the Red Lake area of northwestern Ontario. To
find out more about Hy Lake Gold Inc. (CNQ: HYLK; FRANKFURT: HYK)
visit our website at
www.hylake.com.The content of this release has been carried out under the supervision
of Mr. Kenneth Guy, P. Geo., designated Qualified Person for Hy
Lake Gold, who has reviewed the this press release.
There are 16,575,781 shares of the Company outstanding.
On behalf of the board:
Mr. Robert B. Seitz, President
416-203-9181, ext. 4500
--
Robert B. Seitz
President
416 203-9181 ext. 4500
