Reverse circulation (RC) drill hole B-1201 intersected 360 feet of 0.119 oz/ton gold (Au) or (118 m of 4.08 grams per tonne (g/t) Au) in the first of six holes drilled during the program, delivering the best intercepts ever drilled to date at the project. Assay results for the remaining holes in Phase II are expected to be delivered by September 2012.
"The results we have seen from Phase I and Phase II give us great confidence in the production potential of the Bruner site," said Karl Boltz, Vice President of Business Development for Patriot Gold. "We look forward to the remaining assay data from the optionee's drilling at the Bruner site and to completing a full NI 43-101 compliant resource analysis."
In November 2011, Phase I exploration drilling at the Bruner project was initiated. In March 2012, final assay results from the 13 hole reverse circulation (RC) drilling program were received and included an average of 12.97 g/t and higher at a vein located 400 feet south of historic drill intercepts BRU-085 and BRU-105.
Patriot Gold's Option To Canamex
Through its subsidiary Provex Resources, Patriot Gold owns 100% undivided rights, title and interest in the project and in May 2010 entered into an agreement with Canamex Resources Corp., the optionee, (CSQ:TSX.V) ("Canamex") to develop the property. Under the agreement, Canamex has the right to earn 70% interest in the Bruner project by spending $6 million over seven years and may earn an additional 5% by completing a bankable feasibility study for a total of 75% interest in the project.
In June 2012, Dr. Stuart Simmons, a world renowned expert on volcanic-hosted epithermal gold-silver deposits and a consultant for Canamex, produced a summary report of his work and observations of the Bruner site. In his report, Dr. Simmons stated: "The patterns of hydrothermal alteration and mineralization at Bruner represent the boiling up-flow zone of a once active hydrothermal system that transported/deposited gold and silver. These attributes mean that the environment and processes conducive to formation of epithermal precious metal mineralization existed. Based on gaps in the exploration drilling, there appears to be significant opportunity for discovery of precious metal ores in blind veins or in lateral-vertical extensions of historically productive veins."
"The drill hole intercept [from B-1201] opens up a new exploration area and deposit type within the Bruner property. The grade and thickness exceed anything in the historical database or drilled previously by the Company [Canamex] and indicates the potential for a deposit of significant size and grade may be present on the property," said Greg Hahn, Chairman and CEO of Canamex. "The intercept is open in almost all directions and the presence of high gold values, breccias and hydrothermal quartz and textures indicates a very robust hydrothermal system is represented by the intercepts in drill hole B-1201."
Favorable Initial Metallurgy Results
Column leach tests conducted by Kappes Cassidy & Associates, a world recognized metallurgical test facility which specializes in cyanidation tests for heap leaching, continue on the bulk sample from the historic resource area on the Bruner property where gold extractions have achieved 81% and 76% on 3/4" and -3" crush material respectively in 40 days, based upon bottle roll cyanide leach and calculated head grade analyses, and leaching of gold in both columns continues.
Further, Miramar Mining Company in their 1991 Annual Report reported 82% extraction of gold in 56 days from a column test run on unagglomerated -3/8 inch particle size material from the historic resource area, with low cyanide consumption. The head grade was unreported.
The Bruner Project
The Bruner Project is situated in central Nevada, fifteen miles north of the Paradise Peak mine, forty-five miles northwest of Round Mountain and twenty-five miles east of the Rawhide mine. Historic production included about 100,000 ounces at an average grade of 0.56 opt gold. Since commencing drilling with Canamex in November 2011, the project has completed 14 drill holes through reverse circulation techniques.
The geological disclosure in this press release has been reviewed and verified by Canamex's Chairman and CEO, Greg Hahn, a Certified Professional Geologist (#7122), a Qualified Person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
Complete assay results for hole B-1201 are provided in the Table below:
* AuEq (gpt) = Au (gpt) + 1/40th Ag (gpt)
*gpt = grams / metric tonne
*opt= ounces per ton
Drill samples were transported by a third party consulting geologist from the drill rig and stored in a locked storage unit and retrieved by ALS-Chemex personnel, transported in their custody to the ALS-Chemex laboratory in Reno/Sparks, Nevada, where they were dried, crushed, and split, and representative splits sent to the ALS-Chemex laboratory in Vancouver for gold and silver analyses. Duplicates, blanks, and standards were inserted at regular intervals for QA/QC purposes.
Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.