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NEWS RELEASE DATED May 31, 2006
TRIO GOLD CORP. (TSX-V: TGK, US-Listed: TROOF)
Joint News Release - JOURNEY ENTERS INTO OPTION AGREEMENT WITH TRIO TO ACQUIRE INTEREST IN EMPIRE MINE PROJECT
VANCOUVER, B.C., MAY 31, 2006 - Journey Resources Corp. (TSX-V: JNY) ("Journey") and Trio Gold Corp. (TSX-V: TGK, US-Listed: TROOF) ("Trio") are pleased to announce that, subject to regulatory approval, they have entered into an Option Agreement, whereby Trio has granted Journey an exclusive option to acquire a 50% lease interest in and to certain mining claims comprising the Empire Mine property, located in Custer County, Idaho (the "Property").
The Property is a poly-metallic skarn deposit containing copper, zinc, gold and silver occurrences. It is located in the Alder Creek Mining District in Custer County, Idaho. The mine is located on the east-facing slope of the White Knob Mountains approximately three miles west of Mackay, Idaho. The Property consists of 26 patented mining claims, six mill-site claims and 21 unpatented mining claims (the "Claims").
Since the early 1960's, the Property has undergone several exploration drilling campaigns by major mining and natural resource companies. The Property is a late-exploration-stage project, which Journey believes can be quickly advanced to the development stage. The data are highlighted by 208 holes drilled along the length of mineralization, including extensive drilling in the AP pit area and its northern extension, the Empire Pit. The AP Pit is a zone of near-surface mineralization located at the southern end of the Empire Mine deposit. Historical estimates obtained from a report, originally prepared by Cambior Exploration USA, Inc. in 1997, reported that the Property hosts a drill indicated, acid leachable, geological resource of 18 million tonnes grading 0.49% copper with potential credits of gold, zinc and silver. This is underlain by a higher grade copper - gold core, which formed the main target of the old Empire Mine. The Empire Mine produced 694,000 tonnes grading 3.65% Copper, 1.64 g/t gold and 53.8 g/t silver. (These data are historical resource estimates under National Instrument 43-101, which have not been sufficiently verified by a qualified person to be classified as current mineral resources. Neither Trio nor Journey are treating these historical estimates as current resource estimates and therefore, these historical estimates should not be relied upon).
Under the terms of the Option Agreement, in order to exercise its option and earn a 50% interest in the Claims, Journey has paid to Trio US$50,000 and CDN$200,000. In addition, subject to regulatory approval, Journey will issue 700,000 common shares of its capital to Trio. Journey must also incur up to US$1,500,000 in exploration expenditures on the Property on or before August 31, 2007. Once Journey has completed the payment and expenditure requirements, it will have earned a 50% interest in and to the Claims, and a joint venture between Journey and Trio will have been formed.
Journey will also pay a finder's fee of 200,000 shares in connection with the transaction.
Jack Bal, President of Journey, commented: "We are very excited about concluding agreements with Trio and look forward to commencing a work program on the Property with the objective of completing a feasibility report".
The management of Trio comments: "We are pleased to have concluded this agreement with Journey and look forward to jointly developing the Property with the intention of placing the Empire Mine into production".
Journey Resources Corp. is a mineral-exploration resource company trading on the TSX Venture Exchange (Symbol : JNY). Journey is currently exploring three advanced exploration-stage projects; the Vianey Mine Silver Project, the Musgrove Gold Project and the Empire Mine Project. The Vianey Mine Project consists of concessions totaling 5,022 hectares in Guerrero State west of Mexico City, Mexico. The Musgrove Project is a prospect for a disseminated gold bulk-tonnage surface project similar to the Beartrack Mine, a nearby former gold producer.
Trio Gold Corp. is a mineral-exploration resource company trading on the TSX Venture Exchange (Symbol: TGK, US Listed: TROOF). The Company is continuing discussions with a third party for a Joint Venture participation to develop its Rodeo Creek property on the Carlin Trend in Nevada.
ON BEHALF OF JOURNEY RESOURCES CORP. AND TRIO GOLD CORP.
"Jatinder Bal"
"Harry Ruskowsky" JATINDER (JACK) BAL
HARRY RUSKOWSKY President & Director
President & CEO JOURNEY RESOURCES CORP.
TRIO GOLD CORP.
For further information on Journey Resources Corp., please contact Jack Bal at (604) 633-2442, toll free 1-800-667-1442, email at jack.centerline@telus.net, or visit our website at www.journeyresourcescorp.com.
For further information on Trio Gold Corp., please contact Harry Ruskowsky at (403) 262-9640, e-mail at trio@triogold.com, or visit our website at www.triogold.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
TRIO GOLD CORP.
Suite 145, 251 Midpark Blvd. S.E.
Calgary, Alberta T2X-1S3
E-Mail: trio@triogold.com
Website: www.triogold.com
Phone: (403) 262-9640
Fax: (403) 262-9759
CUSIP #89669C-108, Exemption #82-2127
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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