| ||September 29, 2004|
MBA Acquires S310 Gold Property Adjacent to Sleeper Gold Mine
| ||MBA Gold Corp. (TSX Venture: Symbol MBA) is pleased to announce that its Nevada based wholly-owned subsidiary Manele Bay Goldfield Inc. has optioned a 100% interest in a group of 12 unpatented lode mining claims (the "S310 Property") adjacent to the Sleeper Gold Mine in Humboldt County, Nevada. The Sleeper Gold Mine is currently the subject of a US$6.0 million joint venture exploration program being undertaken by X-Cal Resources Ltd. (TSX-V: XCL.V) and New Sleeper Gold Corp. (TSX-V: NWS.V). Manele Bay Goldfields Inc. has also staked 12 additional contiguous claims.|
The S310 Property is immediately adjacent to the low sulfidation bonanza grade gold vein/breccia Sleeper Mine property. Historic AMAX work and recent work indicate that the S310 property hosts geophysical, geochemical and geologic targets that are an extension of Sleeper mineralization and are more than 1000 feet (300m) from previous drilling. MBA anticipates a low-cost, focused exploration program directed toward the advancement of these gold targets with no anticipated environmental, cultural, or technical complications.
The S310 Property option agreement calls for an initial payment of $10,000 and the issuance of 75,000 common shares of MBA. In order to maintain the option in good standing, MBA must pay a further $7500 and issue an additional 50,000 shares over each of the next 3 years and incur exploration expenditures of an aggregate of $400,000 by July 31, 2007.
Provided the agreement is in good standing, MBA can acquire a 100% in the property by paying $100,000 and issuing an additional 100,000 shares by January 31, 2008. The Vendor will retain a 3% net smelter return royalty, 1.5% of which can be bought out for $1.5 million within 24 months of the commencement of commercial production. (All dollar amounts are in US currency)
Manele Bay Goldfields Inc. is a wholly-owned subsidiary of MBA Gold Corp., a natural resource company whose strategy is to acquire a portfolio of resource properties that have established resources and require further exploration or development work. MBA will add value to these projects by providing capital, exploration expertise and where justified, development and production planning.
For more information, contact Mr. Cam White at 604-707-0373.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the accuracy or the adequacy of this press release.
Visit our website at www.mbagold.com
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