VANCOUVER, British Columbia, May 5, 2005 (PRIMEZONE) -- Douglas Lake Minerals Inc. (OTCBB:DLKM) is pleased to report that it has concluded an agreement with a private Tanzanian company that owns mineral concessions in Tanzania, following recent discoveries by local artesian miners of high grade gold zones. In addition, DLKM has secured an option through this private company on further mineral concessions in Tanzania. DLKM has agreed to acquire all the outstanding shares in the private company for consideration of issuing 4,000,000 shares of its capital stock and assuming all payments and obligations of the Mineral concessions. The acquisition is subject to DLKM being satisfied with its legal due diligence that will include a recognizable legal title opinion and subject to regulatory approval. The due diligence has a deadline for completion of May 31, 2005.
Two of the acquired mineral concessions were sampled earlier this year by the Company's president, a professional geologist and engineer, and an independent professional geologist. A third concession has been acquired to cover strike extension areas of workings by other companies' exploration concessions in Tanzania. The results of the initial sampling were reported earlier (up to 89 grams gold from a grab sample, and 2.4 grams from a rough chip sample over a 2 foot width and 6 grams of gold from the "tailings" of the local miners). The areas of extension of the workings of other companies' zones are immediately along strike to the west and host several ancillary workings to the east. The geology and presence of ongoing small-scale local mining encourages the Company to believe in the potential of these mining concessions.
In all of the concessions there are several auriferous structures already identified that extend several hundreds of metres along strike.
The properties potential to have significant auriferous zones identified along the structure, was enhanced by the Company's president, during his recent visit to two workings in the area where he identified the potential of the structure as having affinities to the Pogo Type Deposit of Alaska.
Upon securing a satisfactory due diligence report on the concessions, a program of geochemical soil sampling, geophysical surveying and Geological mapping has been recommended in consultation with the independent professional geologist. To that end, the Company has secured the appropriate equipment from Canada and has arranged for its transport to Tanzania as well as other materials to ensure that the exploration program is conducted according to normal standards.
The Company has been able to commence its 2005 exploration work program on its PAC mineral claims in British Columbia, Canada due to the early improvement in weather conditions.
No Exchange has neither approved nor disapproved of the information contained herein. This press release many contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control and actual results may differ materially from the expected results. The Company does not expect to update forward-looking statements continually as conditions change. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's quarterly filings with the SEC and other periodic filings.