- RC drill hole B-1430 is the first drill hole intersecting the plane of the Penelas Vein structure (at 15 feet grading 0.324 oz/ton of gold) at historically significant mined depths with gold visibility observed during the drilling process.
- Metallic screen assays are already underway to test the accuracy of the fire assay data.
- Drill holes B-1433 and B-1434 were also drilled into the Penelas Vein structure at similar depths.
- Additional drilling on the vein will be determined after all data has been fully evaluated and aligned with existing access requirements.
RC Drill Hole B-1430
Located approximately midway between the historic resource area and the new Penelas East discovery area, the old Penelas Mine Zone is where RC drill hole B-1430 intersected 15 feet (4.6 meters) grading 0.324 oz/ton Au (11.1 g/tonne Au) with a wider zone of 65 feet (19.8 meters) grading 0.095 opt Au (3.24 g/tonne au). Preliminary results indicate that gold was visible in the cuttings during drilling at the Penelas Vein structure and also observed when panned from the drill cuttings reject stream. Metallic screen assays are already in progress to test the accuracy of the fire assay data reported here.
RC drill hole B-1430 is the first drill hole to intersect the plane of the Penelas Vein structure at historically mined depths. The Penelas Vein structure was the focus of historic mining between 1929 and 1941, producing approximately 100,000 tons of material grading 0.34 oz/ton gold (Au) and 2.5 oz/ton silver (Ag). This material was then processed in a small 50 ton per day agitation leach cyanidation circuit. More recent samplings taken of the remaining tailings indicate possible extractions of 95% for gold and 60% for silver for the historic production.
Mineralized intercept in drill hole B-1430 are as follows:
RC Drill Holes B-1433 & B-1434
Drill holes B-1433 and B-1434 were also drilled into the Penelas Vein structure at similar depths with B-1433 intersecting the vein from 720-735 feet. Samples from this intercept are currently being further analyzed. Drill hole results for B-1434 suggest that the high-grade intercept, which penetrated old workings where the vein was projected, had been previously mined.
Additional drilling plans on the vein will be determined after all the data have been fully evaluated and reconciled with access requirements.
Additional Drill Holes
Additional drill holes drilled in the plane of the section of RC drill hole B-1430 were significantly higher up the dip of the Penelas Vein structure. These shallower holes intersected the vein, but with much thinner intersections of 5 feet (1.5 meters) or less, and were lower in grade, similar to upper levels of the old Penelas Mine workings.
Mineralized intercepts for these drill holes are reported below:
The Bruner Project
The Bruner Project is situated in central Nevada, 15 miles north of the Paradise Peak mine, 45 miles northwest of Round Mountain and 25 miles east of the Rawhide mine. Historic production from the Bruner property included about 100,000 ounces at an average grade of 0.56 opt gold.
Patriot Gold's Option To Optionee/Operator
Patriot Gold owns 100% undivided rights, title and interest in the project which is subject to certain royalties and an earn-in option agreement for 70% interest. The earn-in optionee/operator, Canamex Resources Corp. (TSX-V: CSQ) (OTCQX: CNMXF), 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. Subsequent to the optionee/operator earn-in, financing of the project will be on a proportional basis.
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.