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Reese Corp. Acquires Drill-Ready Gold Property on the Carlin Trend in Nevada
Wednesday August 2, 5:08 pm ET
RENO, Nev.--(BUSINESS WIRE)--Aug. 2, 2006--Reese Corp. (OTCBB:RESE - News; FWB:R5E) is pleased to announce that it has acquired an option to earn a 80% interest from Consolidated Global Minerals Ltd. (TSXV:CTG) in the Bailey Hills property located along the Carlin Trend within the Great Basin of Nevada, one of the world\\'s great metallogenic provinces - about 11% of the total world production of gold (approximately 74% of the United States production) is produced annually from this region (source: USGS). Included within this region are some of the largest gold deposits in the world with a resource potential that exceeds 3,200 metric tonnes (100,000,000 ounces) of gold.
The Bailey Hills project covers approximately 4.5 square miles (approx. 3,000 acres) and consists of 150 mining claims within the southernmost part of the Carlin Trend, along a prospective northwest structural zone which hosts numerous world-class gold deposits.
Mr. Reed, VP Exploration, North America, commented "Some targets on the property were drilled to shallow depths in the 1980\\'s by U. S. Borax and by Newmont in the mid 1990\\'s. Along with this drill information, we have a huge amount of geologic, geochemical and geophysical data that we are compiling to guide our drill program. Many discoveries that have been made in Nevada recently have been the deep feeder systems for the disseminated gold deposits that have been mined near surface. Our initial drill program that will commence by early September will target the deep feeder system, as prior drilling was shallow and did not test this deep target."
The structural and lithologic setting at Bailey Hills, both on a regional and property scale, is a direct analog to that at the 1.5 million ounce gold Rain / Emigrant deposits (Newmont), located 43 miles north-northwest of the Bailey Hills project. Underlying the Bailey Hills property are the same units which host gold at Rain, and proximal intrusions are noted at both. Recognition of these intrusive bodies at Bailey Hills was previously hampered by post-mineralization volcanic cover rocks, but geophysical surveys have identified intrusive rocks and numerous high angle faults underlying the claim area.
A substantial database of geological, geochemical and geophysical data has been obtained for the project from previous operators. Results from surface exploration, geophysics and initial drilling compare well with the lithology, geochemistry and structure of several known mines on the Carlin Trend. A CSAMT (resistivity) geophysical survey has just been completed for Reese and is currently being interpreted.
Drill targets will be selected based on the compilation and evaluation of this data. A first phase drill program of approximately 12 deep drill holes is being planned and permitted for the Bailey Hills property and is expected to commence in early September.
Under the terms of the option agreement, Reese Corp can earn a 80% interest in the property from Consolidated Global Minerals Ltd. with an upfront cash payment of US$25,000; and expenditures of US$4,000,000 within a three-year period, payable as follows: US$1,000.000 in year one, US$1,500,000 in year two and US$1,500,000 in year three.
About Reese Corp.
Reese Corp. is a precious metals exploration and development company. It is management\\'s objective for Reese to become a gold and precious metals producer by developing the El Tiliche project in Mexico, the Bailey Hills property in Nevada, and by acquiring other advanced-stage projects and/or producing mines in proven precious metal districts throughout the world. The Company trades on the OTC market under the symbol "RESE" and on the Frankfurt Exchange under the symbol "R5E". For more information, please visit the Company\\'s web site at: www.ammexgoldmining.com (now available in the following languages: English, German, Mandarin, Spanish and French).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company\\'s control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company\\'s filings with the Securities and Exchange Commission.