|March 08, 2010|
Tonogold Resources, Inc. Releases 43-101 Technical Report on the Mineral Mountain Gold Project, Goldstrike Mining District, Utah
|Tonogold Resources, Inc. (PINK OTC: TNGL) announces the completion of the 43-101 technical report for the Mineral Mountain project, Goldstrike Mining District, southwest Utah, prepared by Puchski GeoConsultants, Inc. This 43-101 technical report is now available at www.tonogold.com. |
The Mineral Mountain gold project is 30 miles northwest of St. George, Utah and consists of 197 mining claims covering 3,940 acres on BLM land. It is just west of the Goldstrike Mine which, until recently, produced 280,000 ounces of gold and 197,000 ounces of silver. There are 93 historic drill holes concentrated in the western portion of the property, and the resource is open ended.
• An inferred mineral resource, in the center of the drilled area at Mineral Mountain, consists of 41,144 ounces of gold in 3.4 million tons grading 0.012 ounces per ton (opt).
• The inferred resource extends from the surface to a depth of 450 feet, the limit of drilling.
• The main host rock is the gently-dipping Eocene Claron Formation, consisting of sandstones and conglomerates with additional mineralization in the underlying Paleozoic limestones.
• Mineralization is open for expansion in three directions from the existing resource, and is on an east-west trend that extends 4 miles east to the Goldstrike Mine.
• Mineralized drill holes in these three open-ended directions are not drilled at close enough spacings to calculate a resource.
• Other exploration and development targets within Tonogold's claim block include the Black Canyon area one mile east of Mineral Mountain, where one hole intersected >0.01 opt gold mineralization from 55 feet to 135 feet in the Claron Formation. This area of limited drilling has immediate potential for expansion.
• Only a small portion of the Mineral Mountain property has been drilled. Grab samples taken by Tonogold geologists in outlying areas range up to 0.92 opt and may indicate future targets for exploration and drilling.
Recommendations in the 43-101 Report
A first phase of drilling is designed to validate known mineralization inside the volume of the existing inferred resource in the Main Zone. Five confirmation holes (HQ core) to 500-foot depths in the main zone are recommended. Estimated cost is $188,000.
A second phase of drilling is designed to connect mineralized areas north and south of the Main Zone. Twenty reverse circulation holes to 600 foot depths are recommended. These second phase holes should also be deep enough to test for gold mineralization in the underlying carbonate rocks. Estimated cost is $334,000.
A third stage of drilling, contingent upon success in the first two programs, would focus on those areas farther south and east along the strike of the mineralization under shallow cover.
Donald G. Strachan, the Vice President of Exploration, commented: "The technical report upholds Mineral Mountain as a valid target for near-term resource development. Additional drilling along the east-west trend of the mineralization on obvious near-surface gold targets could define additional resources that may tie into the Mineral Mountain drilling."
Tonogold Resources, Inc. is a minerals exploration company based in La Jolla , California . For more information on the Company visit their website www.tonogold.com.
Cautionary Note to U.S. Investors - All mineral resources have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as NI 43-101 as required by Canadian Securities Administrators. U.S. reporting requirements for disclosure of mineral properties are governed by the United States Securities and Exchange Commission (SEC) Industry Guide 7. Canadian and Guide 7 standards are substantially different. The SEC permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. SEC guidelines strictly prohibit terms that are not defined in Industry Guide 7, such as "resources," "geologic resources," "proven," "probable," "measured," "indicated," and "inferred," from being included in Issuer's reports and registration statements filed with the SEC. U.S. investors should be aware that the Company has no "reserves" as defined by Guide 7 and are cautioned not to assume that any part or all of mineral resources will ever be confirmed or converted into Guide 7 compliant "reserves." Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute Guide 7 compliant "reserves" by SEC standards as in-place tonnage and grade without reference to unit measures.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking information about Tonogold Resources, Inc. ("Tonogold") which is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Tonogold Resources, Inc., that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include: our lack of operating revenue and earnings history, our need for additional capital to pursue our business strategy, the grade and quantity of minerals in our projects may not be economic, we do not have fee title to our properties, but derive our rights through leases and the Mining Law, we are a non-reporting company and as such do not make periodic filings with the Securities and Exchange Commission, we trade on the Pink Sheets and there can be no assurances that a liquid market will develop in our securities, mining is subject to extensive environmental regulations and can create substantial environmental liabilities, gold and silver are commodities which have substantial price fluctuations, a drop in gold and/or silver prices could adversely affect future profitability and/or capital raising efforts, and mining can be dangerous and present operational hazards for employees and contractors. Readers are cautioned not to place undue reliance on these forward-looking statements. Tonogold does not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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