Project Highlights
- Spring drilling project is underway with two out of 12 scheduled drills completed.
- The first drill hole has produced the second best intercept in the history of the current project, recording assay results of 91.4 meters of 3.1 grams gold per tonne
- Remaining spring 2013 scheduled drills to be completed during the first half of 2013 in the new Penelas East area
- An additional 16 scheduled drills are scheduled to be completed in the northwest region of the Bruner project site during 2013.
The second best intercept drilled on the Bruner property was encountered in drill hole B-1301 which intersected 91.4 meters of 3.1 grams per tonne ("g/t") Au (300 feet grading 0.090 ounces per ton (“opt”) gold) between 290-590 feet. This long intercept of mineralization included 5 feet grading 117 g/t Au (3.402 opt) and 396 g/t Ag (11.55 opt) between 415-420 feet. The intercept is located approximately 55 meters (180 feet) south of the discovery hole B-1201 reported last year which contained 110 meters of 4.08 g/t Au (360 feet grading 0.119 opt) between 290-650 feet. In addition, drill hole B-1301 intersected two thinner and lower grade zones further down the hole at 660-695 feet depth, including 35 feet grading 1.507 g/t Au (0.044 opt) and between 750-780 feet downhole, 30 feet grading 0.474 g/t Au (0.014 opt).
In comparison, drill holes B-1301 and B-1201 have very similar characteristics with a high-grade core close to centered within an extensive and robust lower grade halo surrounding the high-grade core. More importantly, drill hole B-1301 is on the southern end of the drilling pattern completed to date at the Penelas East target area, indicating that the wide zone of mineralization with a central high-grade core remains open to the south. Mineralization at this depth could be accessible by open pit.
Drill hole B-1302 (N95E azimuth and -75 degree inclination) was designed to intersect the mineralized zone 60 meters (200 feet) below that in B-1301 (N95E azimuth and -60 degree inclination) and intersected 16.8 meters (55 feet) grading 1.563 g/t Au (0.046 opt) from 640-695 feet downhole. It has not yet been determined whether this intercept is the down-dip equivalent of the thicker high-grade zone encountered in B-1301 or whether the target dips to the east and, thus, out of reach of drill hole B-1302.
The drill intercepts are summarized in the following table with the complete table of results included at the end of this release.
Highlights of Drill Hole B-1301
As part of the drill program, all intercepts greater than 3 g/t Au (0.09 opt) are being re-assayed from a one kilogram split from the coarse rejects and pulverized entirely to -200 mesh to assess the presence of particulate gold in the higher grade intercepts.
For the first half of 2013, a total of twelve holes are planned for the drill program at the Penelas East target area to obtain a better understanding of the geometry and orientation of the mineralized zone given that the area is not exposed at the surface. Results from these holes will be announced as they are received and analyzed and are expected to be released on a section-by-section basis going forward.
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. Since commencing drilling with its current earn-in optionee/operator in November 2011, the project has completed 19 drill holes through reverse circulation techniques and three core holes. Currently, ten more holes are planned for the East Penelas target area in the first half of 2013, and an additional 16 drill holes are planned in 2013 for the northwest portion of the Bruner Project to test the northern extension of the historic producing areas.
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 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.