First Gold Discovers Gold on Its Matchi-Manitou Property Near Val-D’Or, Quebec and Comments on Insider Trading
PRESS RELEASE
FIRST GOLD DISCOVERS GOLD ON ITS MATCHI-MANITOU PROPERTY NEAR VAL-D’OR, QUEBEC AND COMMENTS ON INSIDER TRADING
MARCH 18, 2010 – LAVAL, QUEBEC – First Gold Exploration Inc. (TSX.V: EFG) (FSE: F12) is pleased to announce that it has intersected a series of gold-bearing structures in one of the holes drilled this winter on the Matchi-Manitou property, near the Croinor mine, east of Val-d’Or in the Abitibi region.
The drilling program was designed to test two InfiniTEM anomalies identified in the northern part of the Matchi- Manitou property. The first two holes (MM10-01 and 02) tested the more northern anomaly, and three other holes (MM10-03, 04 and 05) were drilled on a stronger anomaly located about 1 km to the south. The InfiniTEM anomaly was explained by the presence of a massive pyrite horizon in the two holes farthest east (MM10-04 and 05). This massive sulphide horizon did not contain any base or precious metals.
The most westerly of the three holes (MM10-03) did not intersect the massive sulphide horizon, but did cut a silicified, pyritized structure injected with quartz-tourmaline-chlorite. The gold-bearing structure returned the following values:
| HOLE | FROM | TO | LENGTH | GRADE | ||||||
| HOLE | FROM | TO | downhole | GRADE | ||||||
| # | (m) | (m) | (m)* | (g/t) | ||||||
| MM10-03 MM10-03 MM10-03 MM10-03 MM10-03 | 314 315 318.86 329.35 340.7 | 315 315.61 319.68 330.35 341.7 | 1 0.61 0.82 1 1 | 6.57 0.393 1.265 1.58 2.21 | ||||||
| * True widths have not yet been determined. Core angle: ±45º | ||||||||||
| This discovery is significant, as no gold showings had yet been identified north of the Croinor mine, which lies | ||||||||||
| about 5 km to the south. The area is entirely covered by overburden and has never been explored for gold. | ||||||||||
| There is therefore real potential for a significant discovery. The Company has initiated a geological study to | ||||||||||
| attempt to define the nature of this new showing. The study should generate a drilling proposal. | ||||||||||
| It should be noted that First Gold incurred over $495,000 on the Matcchi-Manitou project over the past three | ||||||||||
| years, bringing its interest up to 71%, with the remaining 29% held by Brionor Resources (TSX.V: BNR). | ||||||||||
| “Our geology team has succeeded in making yet another discovery,” said Eric Leboeuf, President of First Gold. | ||||||||||
| Pierre O’Dowd (OGQ #668), a Qualified Person under NI 43-101, has reviewed and approved the technical | ||||||||||
| content of this release. Mr. O’Dowd has over 32 years of experience in mining exploration in Canada and | ||||||||||
| abroad, many of which he acquired with companies like Falconbridge, Noranda and Cambior (Doyon Mine) | ||||||||||
| before forming his own consulting firm in 1995. |
The Company also analysed the TSX insider trading reports since the 21st of January of 2010 and has found a major discrepancy with their filings.
Insider sells since the 21st of January are of approximately 2,025,000 shares till March 8th 2010 (visit www.sedi.ca) only on big volume days and the TSX has declared much more, approximately 4,500,000 shares sold, thousands of shares nearly every day. Note that the TSX has no control on these filings since the accounts that were selling had an insider code.
First Gold has found that a company that used to own more than 10% of the outstanding shares of First Gold was still declaring as an insider.
We have informed and asked this company to rectify the situation and to make the necessary changes to their accounts, to make a declaration to the regulators and to issue a news release mentioning all their transactions with dates and sell prices.
Please visit www.sedi.ca for the exact insider trading reports.
“I am glad to have found the cause of this discrepancy,” comments Eric Leboeuf, President of First Gold.
The Company is pleased to announce that Richard T. Groome has been appointed Chairman of the Board of Directors of the Company. Mr. Groome, who was already a director of the Company, replaces Robert Ayotte, who recently submitted his resignation as a Company director and Chairman of the Board for personal reasons.
For more information, contact:
Eric Leboeuf President and Chief Executive Officer Telephone: (514) 862-6889 [email protected] www.firstgoldexploration.com
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.