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November 2nd, 2011, VANCOUVER, B.C. – ASHBURTON VENTURES INC. (ABR-TSX:V) (ARB-FRANKFURT) (“Ashburton” or the "Company”) reports that it has signed a letter of intent (LOI) with Premier Gold Mines Limited (PG-TSX; ‘Premier’) to option the Golden Edge property, located 50 kilometers (31 miles) east of Winnemucca, Nevada. Premier and Ashburton have also entered into discussions regarding additional opportunities to work together in advancing certain prospective Premier projects and assessing additional opportunities that could be beneficial to both companies.
The Golden Edge property is positioned in the Battle Mountain-Eureka trend, roughly 26 kilometers south of the Turquoise Hill Mine (operated by Barrick Gold Corporation) and eight kilometers north of the Lone Tree Mine (operated by Newmont Mining Corporation). The Battle Mountain Eureka trend is a linear feature defined by the presence of gold and silver deposits that includes a number of operating mines. Many of the deposits are associated with the main structure and with areas of intersecting structures. The Lone Tree Mine is associated with a north-south fracture zone called the Valmy Fault Zone, which is about 90 metres wide and can be identified in regional aeromagnetic surveys. The Valmy Fault Zone extends northward and intersects the western parts of the Golden Edge property. Previous work on or near to the property includes CSAMT, reflection seismic, and soil geochemical surveys, and roughly 1,700 meters of drilling distributed over six RC drill holes. As part of the year one work commitment, this data will be reviewed with the intent of identifying areas for drilling with a focus on the Valmy Fault Zone.
Subject to approval, Ashburton will have the right to purchase a 50% interest in the project and to establish a 50%-50% joint venture agreement between the Company and Premier through payment of $20,000 upon signing of the agreement, with additional payments and exploration totalling $3.13 million by the end of year three of the agreement. Ashburton shall have up to 60 days from the date of signing the LOI to perform due diligence on the property.
The Company has also entered into discussions with Premier, whereby Ashburton would assist Premier in assessing new gold exploration opportunities in North America as identified by Premier, or independently identified by Ashburton. Funding for the arrangement would be raised either partially through additional Ashburton share purchases by Premier, or through independent financing by Ashburton. Identified projects would become subject to earn-in style Option and/or Joint Venture Agreements between the Companies.
The technical contents of this release were approved by Dr. Tom McCandless, P.Geo., Vice President, Exploration for Ashburton and a qualified person as defined by National Instrument 43-101.
Premier Gold Mines Limited is one of North America's leading exploration companies with a high-quality pipeline of projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company's portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada.
Ashburton Ventures is a junior exploration company actively seeking mineral opportunities for the benefit of all its stakeholders.
ON BEHALF OF THE BOARD
Michael England, President
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Some statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Ashburton Ventures Inc. Actual results may differ materially from those currently anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.