Tanoyan Drilling Produces Strong Drilling Results

VANCOUVER, Aug. 31, 2011 /CNW/ --
TSX: GL

    --  Modupola Vein, results include:
  o 16.5 metres at 2.0 g/t Au including 4.6 metres at 5.7 g/t Au
  o 3.0 metres at 3.2 g/t Au
    --  Round the clock drilling with 2 diamond drill rigs
    --  Program designed to expand Tanoyan's initial NI43-101 resource
        of 91,100 ounces of gold

VANCOUVER, Aug. 31, 2011 /CNW/ - Golden Peaks Limited (TSX: GL) (the
company) is pleased to announce drilling results from the Modupola Vein
system on the Tanoyan Gold Project, Sulawesi, Indonesia.

The company currently has 2 diamond drill rigs operation at Tanoyan. Rig
1 is drilling the Sondana Vein system, rig 2 has concentrated on the
Modupola Vein system which is located approximately 1 Km to the east of
Sondana Vein. Both veins systems are part of an extensive system of
auriferous quartz veins, hosted by andesitic volcanics, which have been
traced over a strike length of approximately 5,600 metres.

Historical drilling on the Modupola vein has been less extensive than on
the Sondana vein and only sparse outcrop occur in the vicinity of
Modupola. For these reasons the strike and dip of the veins was not
well defined, which prompted the company to initially drill a fence of
holes (Fig 1) in order to strengthen the geological understanding of
the system. Figure 1 (http://www.goldenpeaks.com/i/maps/2011-08-31_NR1.jpg) shows that one of the holes reported here (TND060) was most likely
collared in the footwall of the vein; which explains the lack of
significant mineralisation in this hole. The poor surface expression of
the veins in certain areas such as Modupola represents a significant
additional opportunity for the company to increase the 43-101 Mineral
Resource at Tanoyan by better positioning of the drill holes in the
light of this recent information.

Table 1 lists the 6 holes completed so far at Modupola. Four holes have
cut mineralised structures from the vein system. Two holes did not
effectively test the vein; TND055 was abandoned before reaching target
depth due to technical drilling problems and TND060 in interpreted to
have been collared in the footwall of the main vein. Highlights of the
results include intersections from holes TND 056 and TND 058:

TND 056: 16.5 metres at 2.0 g/t Au from 73.9m (Interpreted true
thickness 14.1m), including

4.6 metres at 5.7 g/t Au from 73.9m (Interpreted true thickness 3.9m),

            TND 058: 3.0 metres at 3.2 g/t Au from 124.75m (Interpreted
true thickness 2.6m)

Figure 1 reveals a thickening of the structure of the mineralised vein
at approximately 75 metres below surface. It is interpreted that this
thickening represent a dilatational feature commonly found in veins of
this type, which, when traced along strike, often translate into shoots
of higher grade mineralisation. The principal focus of Golden Peaks
current drilling campaign is the discovery and delineation of these
thicker and higher-grade shoots.

Golden Peaks' President Scott Emerson commented: 'This is our second
release of drilling results from Tanoyan and it is a strong follow-up
to the first set of results from the Sondana Vein, released recently. 
It is very gratifying to see consistent geological correlations of the
veins and gold mineralisation in cross sections and with continued
drilling, building a growing geological model which will form the basis
for significantly increasing the initial NI 43-101-compliant Inferred
Mineral Resource of 2.22 Mt at 1.3 g/t for 91,100 ounces of contained
gold.'

Table 1: Tanoyan Project Drilling Results

 _____________________________________________________________________
|DH No.|   Zone 51 N|   Vein | From |   To |Interval|  Au |Interpreted|
|      |         UTM|        |      |      |        |     |           |
|      |____________|        |______|______|________|_____|___________|
|      | East |North|        |  (m) |  (m) |   (m)  |(g/t)|True Width |
|      |      |     |        |      |      |        |     |    (m)    |
|______|______|_____|________|______|______|________|_____|___________|
|TND052|641003|67563|Modupola| 44.1 | 45.1 |   1.0  | 1.7 |     1.5   |
|______|______|_____|________|______|______|________|_____|___________|
|TND055|      |     |Modupola|         hole abandoned  - no samples   |
|______|______|_____|________|________________________________________|
|TND056|640990|67613|Modupola| 73.9 |90.35 |   16.5 | 2.0 |     14.1  |
|______|______|_____|________|______|______|________|_____|___________|
|      |      |     |   incl | 73.9 | 83.3 |   9.4  | 3.1 |      8.0  |
|______|______|_____|________|______|______|________|_____|___________|
|      |      |     |   incl | 73.9 | 78.5 |   4.6  | 5.7 |      3.9  |
|______|______|_____|________|______|______|________|_____|___________|
|      |      |     |        |113.45|115.7 |   2.3  | 7.1 |      2.0  |
|______|______|_____|________|______|______|________|_____|___________|
|TND058|640942|67640|Modupola|124.75|127.75|   3.0  | 3.2 |      2.6  |
|______|______|_____|________|______|______|________|_____|___________|
|TND060|641047|67528|Modupola|         hole abandoned  - no samples   |
|______|______|_____|________|________________________________________|
|TND062|640915|67326|Modupola| 40.9 | 44.9 |   4.0  | 0.8 |      3.4  |
|______|______|_____|________|______|______|________|_____|___________|

The company currently owns two drill rigs and they are being operated by
PT Maiwadrill Resources Antarnusa. All samples were assayed by Intertek
Indonesia; a division of the global Intertek Group PLC.

Core is collected and initially logged at Tanoyan Base Camp at the
project area. The core is then securely transported in closed core
boxes to Golden Peaks' Exploration Office in Kotamobagu, North
Sulawesi. Here the core is logged in detail, cut longitudinally into 2
equal halves and half-core is sampled at 1 meter intervals; except
where the geology dictates a lesser sampling interval. Half core is
permanently retained, as a reference, in the secure Kotamobagu
core-storage facility. All QC samples are introduced before the bagged
samples are trucked to PT Intertek Laboratory's sample preparation
facility in Manado. Prepared samples are then couriered by PT Intertek
to their analytical facility in Jakarta for analyses.

Gold is fire assayed using a 50.0 gram aliquot sample with an AA finish.
Multi-element analysis is by Four Acid Digestion using an Induced
Coupled Plasma (ICP) finish.

The Company's QA/QC program now includes the regular insertion of
blanks, multiple certified assay standards into the sample shipments.
Locally-sourced blank samples are inserted in every assay batch of 10
samples. Commercial standards are inserted in every assay batch of 25
samples. Sludge samples are also collected and assayed on a 1 metre
interval from the drilling fluid circulation return. Regular monitoring
of these QC samples is a critical part of Golden Peak's QA/QC protocols.

This press release has been reviewed and approved by Mr. John Levings,
B.Sc., FAusIMM, director of Golden Peaks Resources Limited and a
Qualified Person as defined by National Instrument 43-101, under whose
direction the exploration programs are being carried out.

The statements herein that are not historical facts are forward-looking
statements. These statements address future events and conditions and
so involve inherent risks and uncertainties, as disclosed under the
heading 'Risk Factors' in the company's periodic filings with Canadian
securities regulators. Actual results could differ from those currently
projected. The Company does not assume the obligation to update any
forward-looking statement.

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/31/c7589.html