VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2011) - Harmony Gold Corp. (the "Company") (TSX VENTURE:H) is pleased to announce it has entered into a formal purchase agreement with Fernand Valliquette to acquire a 100% undivided interest in the Foubert Lake Property ("the Property"). The Foubert Lake Property consists of 20 claims for a total of 1010.93 hectares, located in the Carheil Township, approximately 230 km North-West of Val-d'Or, Quebec.
Harmony can acquire 100% undivided interest in the Foubert Lake Property by issuing 200,000 common shares of the Company and making a cash payment of $25,000 payable within 5 business days of receipt of TSX Venture Exchange ("Exchange") approval of the Transaction. The vendor has retained a 2-per-cent net smelter return royalty (NSR) on any ore production, which may be purchased by Harmony at any time up to five years from the commencement of commercial production from the Property, by making cash payment of $1-million.
The completion of the Transaction is subject to a number of conditions including, but not limited to, Exchange approval. In conjunction with this transaction Harmony has commissioned Geologica Group Conseil of Val-d'Or, Quebec, to complete a National Instrument 43-101 compliant report (the "Report") on the Foubert Lake Property.
The Foubert Lake Property is located in the Carheil Township approximately 230 km North-West of Val-d'Or and 24 km west of the SelBaie Mine, in the Abitibi area of Quebec. The Property is accessible by an all-weather road which runs north from LaSarre (120km) to Theo River via the Casa-Berardi Mine, then by a secondary logging road. The Property is located in the Harricana-Turgeon Belt, within the prolific Abitibi greenstone belt. The Harricana-Turgeon belt is largely comprised of meta volcanic- sedimentary rocks with lesser granitic and gneissic masses. The belt hosts several polymetallic (mostly volcanogenic massive sulphide "VMS") and gold deposits, including the past and present producing Mattagami Lake Mine (Xstrata Zinc), Eleonore Mine (Goldcorp), Phelps Dodge Mine, Selbie Mine (BHPB), Estrades Mine (Breakwater Resources Ltd.), and Casa-Berardi Mine (Horizon Mines).
The Property geology consists largely of pillowed and brecciated mafic volcanic rocks with minor interlayered cherty tuffs and felsic dykes. Several polymetallic sulphide occurrences have been identified in the central portion of the Property. Sulphide mineralization at these occurrences consists of pyrrhotite, pyrite and chalcopyrite. Where the mineralized occurrences have become heavily oxidized, malachite and limonite have also been noted.
The earliest recorded work on the Property goes back to 1960 by Davian Exploration Ltd followed by Selco Mining Corp.(1975) Sullivan Mines (1981-1983) Minéraux Morrison (1989), Sphinx Exploration Inc. (1992), F. Valiquette (1995), Mirandor Exploration (1997). Since 1960, a number of airborne and ground geophysical surveys including EM and magnetic have been completed over portions of the Property during the past fifty years. In addition to the geophysical surveys, property wide prospecting and mapping and a total of nine drill holes have been completed on the Property, eight of these in 1995. The outcome of these exploration campaigns resulted in the discovery of several polymetallic sulphide occurrences associated with EM anomalies in the central part of the Property. Results from prospecting grab samples from the occurrences returned results ranging from traces to 6.1% Cu, 5.5. g/t Au, 34.5 g/t Ag. Some of these occurrences have been drill tested returning anomalous gold, copper and silver values over narrow widths.
Concurrent with the preparation of an NI43-101 technical report, the Company will undertake a detailed evaluation of the historical exploration data and compilation of all historic geophysical surveys in order to determine the focus and scope of the first phase of work planned for the project. The Company anticipates this will take 4-6 weeks.
Doug Turnbull, PGeo, is a qualified person as defined by NI 43-101, and has reviewed and approved the information contained in this release.
HARMONY GOLD CORP.
Craig Michael Engelsman, President
Neither 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.