King's Bay Gold Exploration Update at the Menary Project in the Kenora Mining Division of Ontario
Nov 23rd, 2011 (via Thenewswire.ca) - Winnipeg, Manitoba - King's Bay Gold Corporation (TSX.V: KBG) is pleased to report that it has now completed its 2011 drill program for a total of 17 BQ holes at its Menary Project located in the Kenora Mining Division of north-western Ontario. In 2010 and 2011, a total of 29 BQ holes were completed at the Wagg Occurrence, 3 additional BQ holes were drilled at the Galbraith “A“ Occurrence and one additional BQ hole was drilled at the southern end of the property close to Road 404 to test a sulfide zone for mineralization.At the Galbraith “A“ Occurrence, an approximately 200 metre-long gold-bearing system was uncovered. It is comprised of a strongly boudinaged and sugary-textured quartz vein of up to 1 metre in width with intermittent red hematite staining in a shear / fault zone. This sugary quartz and red coloration mimics that at the Wagg Occurrence located approximately 1 kilometer south of the Galbraith “A“ Occurrence. Grab samples from this zone have assayed up to 40.5 g/t gold (see the news release dated October 26th, 2011). Additional work between the Galbraith “A“ and the Wagg Occurrences is needed to confirm if these gold-bearing systems are continuous.
Red, sugary-textured quartz also occurs in a quartz vein swarm found at about the 73 metre depth mark in the -45 degree, 152.4 metre-long hole identified as Gal-A-11-03. When projected to surface, this quartz vein swarm is located approximately 41 metre horizontally NE from the above mentioned gold-bearing quartz vein in the shear zone. This hole is presently being logged and sampled.
After further excavator work (pictures are available on the company's website at http://www.kingsbaygold.com/properties/menary-twp/ ) and the washing of trenches in the area, smoky quartz was found in some felsic dykes in the Galbraith “A“ area. These have been logged, sampled and sent away for assay.
Grab samples, channel samples and drill core samples are either now being processed for delivery or have already been delivered to Accurassay Laboratories located in Thunder Bay, Ontario. Accurassay Laboratories is an ISO-Certified laboratory. Assay results, along with the methodology used to process the assays, will be released once they have been received and reviewed by the company's on-site geologist, Mr. Russell Crosby, M.Sc., P.Geo., who is acting as the Qualified Person (QP) for this project in compliance with National Instrument 43-101.
Outstanding samples to be assayed are as follows:
Batches 64-71, 79-80 (310 samples) are presently at the lab for assaying.
Batches 72-74 (96 samples) are ready to be shipped and are scheduled to be picked-up on Nov. 24th.
Batches 75-77 (96 samples) are presently being processed and will be shipped by Nov. 30th.
Batches 78, 81-84 (160 samples) are presently being processed and will be shipped by Nov. 30th.
Total samples: 662
Of these 662 samples to be assayed:
107 are grab samples
184 are channel samples
371 are BQ drill core samples drilled at the Galbraith “A“ Occurrence.
Kyle Picard, King's Bay Gold's President & CEO, stated “I'm excited about both our new gold discoveries on the Menary and the accomplishments of our new management team at King's Bay Gold. In the 11 months since and including December 2010, we've developed a more focused exploration program and made new gold discoveries on the Menary Project. We've also reduced the company's related party transactions by 54% from $696,200 in fiscal 2010 to an estimated $320,000 for the current fiscal year which will end on December 31st, 2011. We expect this trend to continue into fiscal 2012. Management is committed to creating continued value through creative thinking, results driven exploration and fiscal responsibility.“
By staking an additional 1,760 acres after discovering the new gold bearing shear zone of over 200 metres in length on surface, Kings Bay Gold has secured the remaining open ground between the Sabaskong granitic batholith and the open ground over the adjacent greenstones. The Menary Project now consists of 16 claims comprising 108 units for approximately 4,320 acres in a single land package. The project is 100% optioned to and operated by King's Bay Gold Corporation. The project is subject to those annual payments of stock and cash and NSRs on future gold production as described in the respective option agreements (see the news releases of January 20th, 2010 and August 26th, 2010).
The property is located in the Townships of Menary, Claxton, McClarty and Senn in the Kenora Mining Division of north-western Ontario. The project is located roughly fifteen kilometers northeast of the Richardson Township Project owned by Rainy River Resources Limited (TSX.V: RR) and within 12 kilometres of the new discovery by Bayfield Ventures Corp. (TSX.V: BYV). The property is adjacent to and along strike to the Rainy River Resources Limited drilling that has been conducted on their Off Lake Gold Project.
Qualified Person's Statement
All of 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. Mr. Crosby has reviewed the technical disclosure in this news release.
About King's Bay Gold
King's Bay Gold Corporation is an active Canadian mineral exploration and development company with mineral exploration projects located in two of Canada's main gold camps - Red Lake, ON and Rainy River, ON.
KBG Shares Outstanding: 90,241,913
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.
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