TintinaGold Drills 46.6 Meters Thick Cu-Co-Ag Zone on Its Sheep Creek Property, Montana, USA
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/12/11 -- TintinaGold Resources Inc. ('TintinaGold' or the 'Company') (TSX VENTURE: TAU) is pleased to announce that it has confirmed the presence of a high grade Middle Copper Zone on its Sheep Creek Copper-Cobalt-Silver property ('Sheep Creek') located in Central Montana, USA (see Figure 1).
Highlights:
-- Drill hole SC10-006 encounters 46.6 meters grading 2.56% Cu and 0.11% Co
and 13.5 g/tonne Ag in the Strawberry East mineralized area.
The Company has received initial results from drill hole SC10-006 (see Table 1, below). The drill hole intersected 2.56% Copper; 0.11% Cobalt and 13.5 g/tonne Silver in a Middle Sulfide Zone (from 384.02 meters to 430.64 meters) at Strawberry East target area. The Strawberry East target area is located 2.5 kilometers southeast of the Strawberry Butte where the Company has recently completed a NI 43-101 Inferred Resource estimate containing 366 million pounds of copper. (See News Release dated Jan 6, 2011)
The Middle Copper Zone lies 50 meters stratigraphically below the Upper Sulfide Zone in the Strawberry East target area (see Figure 3) and consists of silicified breccias, chalcopyrite, and pyrite. SC10-006 also passed through the Upper Copper Zone which contained sub economic quantities of copper, and the Lower Copper Zone which contained significant copper mineralization over 5.65 meters and for which assays are pending. Both the Middle and Lower Sulfide Zones remain open.
Table 1 - Strawberry East Mineralized Area Drill Intersections:
Hole From (m) To (m) Width (m) Width (ft) Cu % Co % Ag (g/t)
---- ----- --- ------ ------ ---- ---- --------
Middle
------
Copper Zone
-----------
SC10-006 384.02 430.64 46.62 152.95 2.56 0.11 13.5
The Strawberry East target area hosts multiple sulfide horizons, including the previously identified Upper Copper Zone, Middle Copper Zone, Lower Copper Zone and two additional sulfide zones referred to as the 0/I Copper Zone and the Ynu II Copper Zone. Further drilling in this area could add substantial Cu-Co-Ag resource to the emerging Sheep Creek resource inventory.
Rick Van Nieuwenhuyse, Chairman of the Board, said: 'This intersection clearly demonstrates that the Sheep Creek property has significant expansion potential well beyond the resources already identified at the Strawberry Butte target. The Strawberry East target area could easily become as important as the Strawberry Butte target area where we are presently planning a winter infill drill campaign to upgrade and expand the recently announced Inferred Resource to Measured and Indicated status so that we can initiate a feasibility study. We are also planning to complete a resource estimate on the Lower Zone intersections at Strawberry Butte. Meanwhile, the Company is currently undertaking to complete a Preliminary Economic Assessment on the mineralization encountered to date. With the shallow nature and nearly flat geometry of the Upper Zone at Strawberry Butte, we believe that bulk mineable underground mining could be employed with modest capital costs and low operating costs given the properties excellent location relative to infrastructure. Our plan is to fast track this high quality copper resource towards production.'
Jerry Zieg, Vice President of Exploration for the Company is a Qualified Person for the purposes of National Instrument 43-101 and has reviewed and approved the information of a scientific nature contained in this news release. Assays for this program have been completed by ALS Chemex including duplicates, standards, and blanks for QA/QC purposes.
Warrant Exercises
Further, TintinaGold is pleased to announce that the Company is in receipt of $1,150,957 from the exercise of 2,335,072 warrants exercisable at a price of $0.4929 from two warrant holders. The warrants exercised included 2,045,242 warrants held by Electrum Strategic Metals, LLC. The Company intends to use the proceeds primarily for the exploration of the Sheep Creek resource property located in Montana, USA and for general working capital and other corporate purposes.
About Sheep Creek
The Sheep Creek deposit sits 27 km north of White Sulphur Springs along a maintained gravel road and within two miles of U.S. Highway 89. The Sheep Creek property consists of approximately 5,775 acres of fee - simple lands and mining claims in central Montana. The property contains sediment - hosted zones of massive sulfide mineralization originally explored by Cominco American Inc. and BHP during the 1980's and early 1990's. The drilling undertaken by Cominco American Inc. and BHP had encountered significant zones of stratabound copper sulfide with cobalt in multiple bedded pyrite zones in the lower part of the Precambrian Belt Supergroup; this same stratigraphic unit hosts the Sullivan zinc-lead-silver deposit.
Exploration to date, conducted by TintinaGold has identified an inferred resource of 7 MMT grading 2.4% Cu, 0.12% Co, and 12.3 g/tonne Ag at a 1.5% Cu cut-off grade based on an assumed copper price of $2.50/lb, as reported in the Company's news release dated Jan 6, 2011.
About TintinaGold
TintinaGold is a growth company focused on the exploration and development of precious and base metal properties around the world. The Company's experienced management team has assembled an impressive portfolio of gold and base metal projects in Alaska, including the Colorado Creek gold project, located in southwest Alaska approximately 100 miles northwest of the 40 million ounce Donlin Creek project, the Kugruk copper project located 70 miles north of Nome in the northern Seward Peninsula, Alaska, and the Sheep Creek copper-cobalt property in Montana. The Company, in a short period of time, has successfully established itself in several of the most prolific mineral belts in North America.
The Company, as announced in the News Release dated September 22, 2010, proceeding with the spin-out of its Colorado Creek mineral exploration property located in Alaska, U.S.A., to a new company under a statutory plan of arrangement (the 'Arrangement') in order to pursue the creation of a company focused on precious metals.
Under the proposed terms of the Arrangement, the shareholders of TintinaGold will retain their common shares in TintinaGold and will be entitled to receive one common share of the new company for every share of TintinaGold held on the record date for the Arrangement. The completion of the Arrangement will be subject, among other things, to TSX Venture Exchange, court and shareholder approval.
Further details regarding the Arrangement will be set out in an Information Circular that will be sent to shareholders in advance of the annual and special shareholders meeting that is expected to be held in March of 2011 to seek approval for the Arrangement and routine annual business.
Website: www.tintinagold.com
ON BEHALF OF THE BOARD OF DIRECTORS
Raj Chowdhry, C.A., President & CEO
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's plans for and intentions with respect to exploration of the Company's Sheep Creek property, the proposed completion of a spin-out and the timing of a meeting of the shareholders of the Company, constitutes 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any government or other regulatory approvals and any financing required to complete the Company's planned exploration activities and the spin-out, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis, that the Company's exploration activities on the Sheep Creek property will not be affected by actions of environmental activists or other special interest groups, that actual results of exploration activities are consistent with management's expectations and that the Company is able to obtain regulatory, shareholder and other required approvals for the proposed spin-out transaction and on a timely basis. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to TintinaGold's operation as a mineral exploration company and the Sheep Creek property that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining or inability to obtain required government or other regulatory approvals or financing, interference with TintinaGold's exploration activities by environmental activists or other special interest groups, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns, bad weather and the timing of and success in completing the proposed spin-out, including the timing and success in obtaining TSX Venture Exchange, court and shareholder approvals. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. TintinaGold does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
To view Figure 1 - Sheep Creek, Montana, please visit the following link: http://media3.marketwire.com/docs/tau_0112_fig_1.pdf
To view Figure 2 - Historic drill pattern and new drilling, Strawberry East area, Sheep Creek, Montana, please visit the following link: http://media3.marketwire.com/docs/tau_0112_fig_2.pdf
To view Figure 3 - Cross section through Strawberry East area, Sheep Creek, Montana, please visit the following link: http://media3.marketwire.com/docs/tau_0112_fig_3.pdf
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
TintinaGold Resources Inc.
Kelsey Chin
Direct Line: 604-628-1162
604-628-1163 (FAX)
KChin@tintinagold.com
www.tintinagold.com