Gossan Options Vermillion Gold Property
WINNIPEG, MANITOBA -- (Marketwire) -- 09/09/11 -- Gossan Resources Limited (TSX VENTURE: GSS) has optioned the Vermillion Gold Property which, along with additional ground staked by Gossan, encompasses about 576 hectares. The property is located on the south shoreline of Vermilion Lake about 26 km west of Sioux Lookout, Ontario.
The property was originally staked in 1928. Historic records indicate a 25-ton bulk sample was extracted in 1930 by H. Botham and E.K. Mitchell that produced 15.75 ounces of gold or the equivalent of a recovered grade of 0.63 opt (21.60 gpt) gold. A second bulk sample of 18 tons was taken in 1935 that produced 7.076 ounces of gold or a recovered grade of 0.393 opt (13.47 gpt) gold. The latest reported work was conducted in 1988-89 by Acadia Mineral Ventures who drilled 5 drill holes from lake ice towards the projection of mineralization beneath the gold showings along the shoreline. The holes intersected altered meta-sediments, quartz/carbonate alteration, tourmaline stringers, and minor pyrite. Acadia also drilled 8 other holes in the vicinity.
The mineralized zone appears to strike N80E, more or less parallel along the lakeshore, and dips about 70 degrees to the north under the lake. The mineralized zone appears to be up to 10 feet wide and can be traced along strike for 150 feet before disappearing under the lake to the west and under overburden to the east. The host rock for the gold mineralization is a highly sheared and altered quartz porphyry unit with inclusions of sheared meta-sediments. The quartz porphyry is in contact, to the north and south, with the Patara metasediments which include argillites, arkose, greywacke, and conglomerate. The mineralized quartz porphyry is altered to a quartz-sericite, or talcose, schist with minor Fuchsite or Mariposite. It is variably mineralized, with 10-15% disseminated pyrite, chalcopyrite and minor arsenopyrite and/or galena.
Gossan intends to conduct a limited surface program at the Vermillion Gold Property followed by a drill program to extend exploration at depth, if warranted. Any drilling would be conducted during the winter on the ice offshore of the mineralized zone.
Under the terms of the option agreement, Gossan must make a series of payments totalling $56,000 through to May 15, 2015. The property is also subject to work commitments totalling $75,000 and a 2.0% NSR of which 1.0% is re-purchasable by Gossan for $1,000,000.
MaryAnn Mihychuk, P.Geo. is the Company's Qualified Person and she has reviewed and approved the technical contents of this news release.
Gossan Resources Limited is engaged in mineral exploration and development in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty and minor metals, tantalum, lithium, chromium, titanium and vanadium. The Company also has a large deposit of magnesium-rich dolomite, the world-wide rights to the Zuliani magnesium production process, and a silica sand deposit. Gossan trades on the TSX Venture Exchange and has 29,277,900 common shares outstanding.
For further information, please bookmark www.gossan.ca.
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 news release.
Contacts:
Gossan Resources Limited
Douglas Reeson
CEO
(416) 533-9664
info@gossan.ca
www.gossan.ca