King's Bay Gold Corporation provides an Update on the Headway, Cameron Lake and Menary Projects
(via Thenewswire.ca)
King's Bay Gold Corporation (TSX.V: KBG) is pleased to provide its shareholders with an update as to the progress made during the summer of 2011 at its various properties located in north-western Ontario.
Headway Project
The Headway Group of Patented Claims Property is comprised of 7 claims units for approximately 320 acres and is located in Dome and Balmer Townships near the Town of Red Lake, Ontario. The property lies approximately 8 kilometres from the Town of Red Lake, and approximately 1.5 kilometres south of the Town of Balmertown, Ontario where Goldcorp's Red Lake Mines are located. The claim units are transected by the highway that runs between Red Lake and Balmertown.
Mega Precious Metals Inc. (TSX.V: MGP) ("Mega") has an option to acquire a 100% interest in the Headway Project in Red Lake, Ontario subject to a staged three year cash payment, share issuance and exploration expenditures obligation that began in October 2009. Mega is the Operator for this project and is providing regular updates as to the progress being made with their diamond drilling program on the home page of their website at www.megapmi.com . Detailed geological information on the Headway project, along with maps, diagrams and pictures can be found at:
http://www.megapmi.com/headway_property .
All holes to date are located in strategic areas of the property. When Hole #2 (MH1002) was abandoned in February 2011, due to technical problems, Mega immediately commenced the diamond drilling of a third deep hole. Holes #1 (MH0901) and #3 (MH1103) are slated to extend to a minimum of 3,000 metres and act as "mother" holes from which a series of wedged holes, called "daughter holes", will be drilled once the intended target is reached and identified. As of the date of this news release, Hole # 1 is at 2,587 metres in depth and Hole # 3 is at 2,301 metres in depth.
Hole # 1 is progressing well with grinding and cementing through a fault zone. Given that Hole # 3 is presently idle pending the availability of a larger drill capable of drilling to 3,000 metres, crews are now working 24 hours per day and 7 days per week until Hole # 1 is completed.
James Rogers, President and CEO of Mega states; "Results to date confirm a strong correlation with Mega's geological model. In addition to the biotite, quartz, carbonate and arsenopyrite alteration near the fault, the location of the major (genetic) fault is positive evidence of potential economic gold mineralization. I realize that progress has been slow, but Mega is focused on the end game and doing everything to ensure that operational risk is minimized and the holes are completed as planned. I remain optimistic."
James Rogers P.Geo., CIM, Mega's President and CEO and King's Bay Gold's Chairman of the Board of Directors, is the Qualified Person for the Headway Project as defined by National Instrument 43-101.
Cameron Lake - Sullivan and Meston Prospects
The Cameron Lake Property, with its Sullivan and Meston Prospects is comprised of 20 leased claim units for approximately 800 acres and is located in the Rowan Lake Area of the Kenora Mining Division of Ontario. The property is approximately 29 kilometres east off of Highway 71 that runs between Kenora and Nestor Falls, Ontario along the Cameron Lake access road (roughly 40 kilometres north of Nestor Falls, ON).
This property was optioned to Cameron Lake JEX Corporation, a subsidiary of Coventry Resources Limited (a junior mineral resource company based and listed in Australia as ASX: CVY- news release of September 8th, 2010) ("Coventry"). Cameron Lake JEX is the operator of the project during the earn-in period. It can earn an 80% stake in the property by making certain cash and share issuances to Lasir Gold Inc. (the original vendor in a deal originally announced in a news release dated March 3rd, 2010), by making a $15,000 cash payment to King's Bay Gold (paid on March 2nd, 2011), and by expending $1,000,000 in exploration and development on the property on or before February 16th, 2014. Upon completion of the earn-in provisions, King's Bay Gold will retain a 20% interest in the property and both companies will then negotiate an agreement as per the terms that are customary for an 80 / 20 joint-venture.
The Meston Prospect is located approximately five kilometres east of the Cameron Gold Deposit and comprises a zone of gold mineralisation and alteration mapped discontinuously over a strike length of 350 metres. Results returned from first-pass drilling (35 diamond core drill holes for 3,935 metres) at the Meston Prospect, located immediately along strike from the Sullivan Prospect, as announced in a Coventry news release of July 6th, 2011, include:
True widths are not known.
10.0 metres at 1.13 g/t gold from 9.0 metres(9.0 to 19.0 metres)
8.7 metres at 2.19 g/t gold from 5.3 metres(5.3 to 14.0 metres)
8.0 metres at 1.02 g/t gold from 16.0 metres(16.0 to 24.0 metres)
4.0 metres at 5.16 g/t gold from 5.0 metres(5.0 to 9.0 metres)
2.0 metres at 4.67 g/t gold from 3.0 metres(3.0 to 5.0 metres)
2.0 metres at 3.05 g/t gold from 5.0 metres(5.0 to 7.0 metres)
The Sullivan Prospect is located approximately five kilometres east of the Cameron Gold Deposit and 1,000 metres along strike from the Meston Prospect. It comprises a series of historic workings (two shafts and an adit) in a geologically-complex area. Discontinuous outcrops of mineralisation and alteration have been mapped over a strike of 80 metres within glacial till cover. Results returned from first-pass drilling (21 diamond core drill holes for 2,626 meters) at the Sullivan Prospect as announced in a Coventry news release of July 6th, 2011, include:
True widths are not known.
5.0 metres at 1.44 g/t gold from 73.0 metres(73.0 to 78.0 metres)
3.0 metres at 4.32 g/t gold from 19.0 metres (19.0 to 22.0 metres)
2.0 metres at 5.25 g/t gold from 62.0 metres(62.0 to 64.0 metres)
These results confirm the potential to develop satellite deposits at both the Sullivan and Meston Prospects to provide additional feed to a centralised processing facility at Coventry's nearby +1M oz Cameron Gold Deposit. The results also confirm the high prospectivity of the "Greater Meston Area", with numerous other prospects in close proximity to the Meston and Sullivan Prospects that have yet to be drilled.
Coventry is in the process of completing additional line cutting, stripping, trenching and sampling of areas to the south of the Meston and Sullivan Prospects. First-pass drill testing of these areas to the south will be dependent on results, but may be completed in late fall / early winter. Coventry also intends to conduct further work over the property in the form of till geochemical sampling to generate drill targets. Additional infill and extensional drilling of the Meston and Sullivan Prospects is also planned for late fall / early winter following a review of the previous first-pass drilling program.
The Competent Persons Statement in all of the Coventry Resources Limited news releases related to this project identifies Anthony Brendon Goddard as the Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as the Qualified Person as defined by Canadian National Instrument 43-101 (Standards for Disclosure for Mineral Projects). Mr. Goddard is Technical Director of Coventry Resources Limited and a Member of the Australian Institute of Geoscientists.
Menary Project
The Menary Project consists of the original core group of 4 un-patented claims acquired in January 2010 and an additional acquisition in August 2010 of 6 un-patented claims for a total of approximately 2,520 acres. The property is located in the Townships of Menary and Claxton in the Kenora Mining Division of north-western Ontario. The claim units are located approximately 20 kilometres southeast of the Town of Nestor Falls, Ontario and can be accessed along Road 404, east of Highway 71 which runs between Kenora and Fort Frances, Ontario.
King's Bay Gold drilled 16 holes for approximately 1,900 metres of BQ core over the Wagg Occurrence in the summer and fall of 2010. The Company also cut grids over both the south claims and the newly acquired north claims for a total of roughly 29 kilometres. The results received from the first 16 holes can be found in the Company's news releases dated September 27th, 2010 for 6 holes numbered MIN 10-01 to MIN 10-06, December 6th, 2010 for 4 holes numbered MIN 10-07 to MIN 10-10, January 11th, 2011 for 1 hole numbered MIN 10-11, and March 16th, 2011 for 5 holes numbered MIN 10-12 to 10-16. All of these news releases can be found on www.sedar.com . Results from the first 16 holes included:
True widths are not known.
0.2 metres at 141.53 g/t gold from 64.1 metres(64.1 to 64.3 metres)
0.9 metres at 57.62 g/t gold from 66.9 metres (66.9 to 67.8 metres)
0.5 metres at 39.35 g/t gold from 14.8 metres (14.8 to 15.3 metres)
1.2 metres at 34.63 g/t gold from 11.5 metres(11.5 to 12.7 metres)
1.7 metres at 18.66 g/t gold from 13.6 metres(13.6 to 15.3 metres)
1.2 metres at 8.31 g/t gold from 45.0 metres (45.0 to 46.2 metres)
Given the positive results obtained from MIN 10-01 to MIN 10-16 at the Wagg occurrence, the Company continued its drilling activities through the summer and is presently starting on Hole # 29. The Company is also planning to drill the Galbraith "A" occurrence immediately north of the Wagg occurrence this fall. Results from Holes # 17 to 26 will be released once they are received and reviewed.
Kyle Picard, King's Bay Gold's President & CEO stated "The information that we've received to date from our drilling activities indicates that the Menary may be amenable to low grade bulk tonnage open pit mining. Before that can happen, additional drilling, exploration and development work, economic analysis and research on processing methodologies and costs will be needed to determine if the zones identified to date will be economically amenable to open pit mining."
All the drilling and field work on this project has been supervised by the company's on-site geologist, Mr. Russell Crosby, M.Sc., P.Geo., acting as the Qualified Person (QP) in compliance with National Instrument 43-101 Guidelines.
Other Properties
With the encouraging results obtained at the Menary Project, the Company has been primarily focused on developing that property during the summer of 2011. As such, the Company is presently reviewing the information and data that it has on hand for Helena Lake, Halkirk-Watten, Raleigh Lake and Sturgeon Lake while planning for field work on those properties in 2012.
Clarification
With the termination of the Berven Lake, Saskatchewan option agreement as announced in the news release of July 29th, 2011, there are no longer any connections remaining between the Company and New Moon Minerals Corporation, its President & CEO Richard Rivet or members of his family. Furthermore, work on the Company's projects prior to September 2010 was organized and supervised by Ron Rivet, the Company's former Exploration Coordinator, with the use of drills and equipment owned by Kings Bay Gold and other independent contractors. Since his resignation on September 11th, 2010, neither Ron Rivet nor any of his affiliated companies, associates or family members have been involved in any of the Company's exploration projects.
Qualified Person's Statement
Mr. Russell Crosby, M.Sc., P.Geo., acting as the Qualified Person (QP) as directed by the National Instrument 43-101 Guidelines, has reviewed the technical disclosure in this news release.
About King's Bay Gold
King's Bay Gold Corporation is a very active Canadian mineral exploration and development company with mineral projects located in two of Canada's main gold camps - the Red Lake, ON and Rainy River, ON gold camps.
KBG Shares Outstanding: 90,381,913
King's Bay Gold Corporation
Kyle Picard
President & CEO and Corporate Secretary
(204) 253-4653
info@kingsbaygold.com
This news release includes certain forward-looking statements concerning the future performance of King's Bay Gold Corporation's business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and readers are cautioned against placing undue reliance thereon.
Neither 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.
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