A local private junior exploration company has been issued a mining lease to carry out further work that could result in the development and production of the Stog�er Tight property on the Baie Verte Peninsula.

South Coast Ventures Inc. was issued the mining lease by the Department of Natural Resources as a result of a Request for Proposals process initiated last year to advance the gold project. The company had the highest score based on the evaluation criteria of the four bids submitted.

"This company now has the legal title to this property, allowing them to proceed with work related to their proposed exploration program," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "This is a company with a strong history of work on the Baie Verte Peninsula and we look forward to them advancing the Stog�er Tight property and bringing it to eventual development."

The Stog�er Tight property has a known gold resource, however, it had been leased since 1996 with no development. Government cancelled the existing lease in March of 2006 to allow for a new call for proposals to attract a company prepared to conduct more advanced activity.

The original mining lease was cancelled because the leasee failed to maintain production and pay annual rentals, as required by the conditions of the mining lease. The cancellation of a mineral lease is standard in the absence of activity in order to make the property available to another party.

Paul Shelley, MHA for Baie Verte, acknowledged the significance of this latest development for his district. "This is further evidence of the strength of the mining sector in the Baie Verte area," Mr. Shelley said. "This bodes well for the people of the district and it speaks positively of the opportunities that exist for, and are being pursued by, business in rural parts of our province."

South Coast Ventures Inc. will still require additional approvals from government to proceed to more advanced stages of development, including environmental approval for any mining activity.

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-1703
tracybarron@gov.nl.ca

2007 01 22                                                  3:55 p.m.