Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Feb. 14, 2012) – Choice Gold Corp. (CNSX:CHF)(MUN:OCG) (“Choice Gold” or the “Company”) is pleased to announce that it has now commenced Phase 1B of drilling on its Sugarloaf Peak Gold Project in western Arizona (“Sugarloaf Peak” or the “Property”). Sugarloaf Peak is located within 100 km of each of the Mesquite, American Girl, and Copperstone gold deposits and revealed its own gold potential through Choice Gold’s drilling and mapping program last year. The new planned program consists of 1,500 meters of reverse circulation (RC) drilling targeting areas with high-grade gold. Particular focus will be aimed at finding the extension of the gold oxide mineralisation found in drill hole SGL-11-04 and surface mineralized areas returning several grams of gold in grab samples collected during the mapping work.
Choice Gold has combined the results of its 2011 mapping and drilling campaign with the historical data available to better define targets for phase 1B. Of particular attention will be the intersection of economical grade close to the surface in hole SGL-11-04 (see press release of October 6, 2011), which returned 1.76 g/t Au over 9.91 meters, including one sample of 5.98 g/t Au over 0.61 meters, within an iron oxide rich interval. Surficial gold anomalous areas returning multi-gram Au values inside and outside of the historically known mineralized central zone, including 11.9 g/t Au in the blue schist (see press release of November 18, 2011), will be verified at depth. Most of these areas were never tested in the past. The portion on which drill testing is planned represents a surface area of approximately 3 square kilometers, which is about 4 times the size of the historically known mineralized central zone.
“We were encouraged by the results of our phase 1A drilling and mapping program in 2011, which tested for anomalous gold areas outside of the historically known mineralized zone at Sugarloaf Peak,” said Gianni Kovacevic, Choice Gold’s CEO. “We are now excited to follow up those results by drill testing the most highly prospective areas of the project.”
All the RC holes will be sampled successively from the top to the bottom of each hole following rigorous QAQC procedures. These QAQC procedures include the insertion of blanks, standards, and duplicates. Representative samples will be separated through a rotary cyclone splitter then one portion will be homogenized through a 2-chute universal splitter. The homogenized samples will then be shipped to a certified laboratory to be pulverised and analyzed for Au by the fire assay method and for a suite of trace elements using the ICP method. Excess rock material will be stored at the Company’s facilities in Ehrenberg, Arizona. Results of the drilling will be published intermittently when available.
Brigitte Dejou, P.Eng., Choice Gold’s Manager of Exploration, is the non-independent, Qualified Person who has reviewed this news release and is responsible for the technical information reported herein.
About Choice Gold Corp.:
Choice Gold Corp. was created to acquire and advance select, high-potential mineral projects and thereby unlock shareholder value. With this goal in mind, the company has entered an option agreement with Riverside Resources Ltd. (TSX VENTURE:RRI) to acquire a 100% interest in the Sugarloaf Peak Gold Project just west of Quartzsite, Arizona. Sugarloaf Peak covers over 24 km² and was the subject of intermittent drilling and small-scale mining from the 1950s through to the 1990s. The project is the subject of an historical, non-National Instrument 43-101 compliant mineral resource and Choice Gold has a mandate to prove its economic viability. For more information about Choice Gold please visit our website at www.choicegoldcorp.com.
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
