VANCOUVER, British Columbia, Sept. 27, 2005 (PRIMEZONE) -- Evolving Gold Corp. (CNQ:GOLD) (OTCBB:EVOGF) ("Evolving") is pleased to announce the signing of a Letter of Intent with Meridian Gold Inc. (NYSE:MDG) (TSE:MNG) ("Meridian") regarding an option by Meridian to earn a 70% interest in Evolving's Winnemucca Mountain property (the "Property"). The Property is situated near the northern end of the Battle Mountain-Eureka gold trend and consists of 272 unpatented mineral claims covering about 2,115 hectares in Humboldt County, in northwestern Nevada.
Under the terms of the Letter of Intent, Meridian can earn a 70% interest in the Property by making a total contribution of $US 500,000 in staged cash payments to Evolving and investing a total of $US 4 million in exploration on the Property before December 31, 2008. The minimum exploration expenditure between now and December 31, 2006 is $US 500,000. In addition, Meridian must deliver a pre-feasibility report on or before June 30, 2009. Upon completion of the required payments and expenditures, Evolving and Meridian will establish a joint venture in respect of the claims on the Property and Meridian will contribute 136 claims that adjoin the Property.
Background on the Winnemucca Mountain Property
Previous exploration work by Santa Fe Pacific Mining (now Newmont Mining Corporation) at the Property focused on the pediment-covered Swordfish Zone between 1988 and 1990. Gold mineralization at the Swordfish Zone occurs within a northeast-trending, low sulfide, quartz-adularia vein-type system. Santa Fe completed 73 reverse circulation drill holes, nearly all of which were focused on the Swordfish Zone, and reported results ranging up to 13.7 meters averaging 3.9 grams per ton gold.
Near the end of Santa Fe's tenure on the Property, a step-out hole, approximately 500 meters northeast of the Swordfish Zone, encountered 2.2 ounces per ton (68.6 grams per ton) gold across a 5 foot (1.5 meter) hole length, at what is now called the SF Extension Zone. This intercept has never been followed up by further drilling, and has been interpreted by Evolving to indicate that higher gold grades may occur in structurally-controlled zones northeast of Swordfish, similar to the high-grade "feeder" zones which underlie the Sleeper, and other gold deposits in the district. The SF Extension, and beyond to the northeast, is a high-priority drill target.
In addition to the Swordfish and SF Extension areas, additional exploration targets have been identified and are comprised of multiple outcropping vein-style occurrences reported to carry anomalous gold values that have yet to be explored in detail.
Evolving has recently completed a detailed compilation of all existing data. Evolving's President, Dr. Lawrence A. Dick stated: "I am extremely pleased to have Meridian Gold Company as a partner in Nevada. Meridian's participation in this, one of our key projects, shows that we share common exploration and discovery objectives and adds credibility to the project."
In compliance with National Instrument 43-101 ("NI 43-101"), Lawrence A. Dick, Ph.D., P.Geo., is the Qualified Person responsible for the technical accuracy of this news release. An independent NI 43-101 compliant technical report was been filed on SEDAR.
On behalf of Evolving Gold Corporation "Larry Dick" Lawrence A. Dick, Ph.D., P.Geo. President
Forward Looking Statements: This press release may contain statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include the risks and uncertainties described in Evolving's Form 20-F Registration Statement or Annual Report filed with the United States Securities and Exchange Commission. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.