Mr. Jeffrey Wilson reports
PRECIPITATE IDENTIFIES MULTIPLE PRIORITY TARGETS AT MOTHERLODE GOLD PROJECT IN NEWFOUNDLAND CANADA WITH COMPREHENSIVE DATA COMPILATION
Precipitate Gold Corp. has released the latest target refinement results derived from an expanded compilation and review of historical data from the company's Motherlode gold project within the Burin peninsula of southern Newfoundland, Canada.
Interpretation of the project's historical surface geochemical sampling data (soil, rock, till and lake) in combination with a modern surface lineament structural study confirms and enhances at least 11 priority target areas characterized by elevated concentrations of gold and arsenic combined with underlying or nearby structural features. These attributes are important characteristics for the structurally related orogenic gold style mineralization observed at Motherlode. None of the target zones have seen a modern ground geophysical survey, and only one zone has been drill tested in the past, by way of a shallow drill program in 2007.
In addition to the data compilation, a property-wide high-sensitivity airborne magnetic-radiometric geophysical survey has recently been completed at the project. Following receipt and review of the airborne magnetic data, the company expects to commence a follow-up field program of detailed sampling, geological mapping and ground geophysical surveying within prioritized areas of the project for continuing advancement and target delineation.
Jeffrey Wilson, Precipitate's president and chief executive officer, commented: "We're pleased to complete this important compilation of existing data as a cost-effective means of advancing the project. The data derived from the first fully comprehensive digital desktop review of the Motherlode's historical geochemical and geological data in conjunction with our structural study has refined and improved our understanding of the project's potential for hosting gold mineralization. We're excited to apply the insight derived from this new data compilation with pending airborne magnetic data in identifying prospective zones for follow-up groundwork and prioritizing potential drill targets."
Motherlode gold project, major attributes:
- Historical data identify at least 11 newly prioritized target areas characterized by elevated concentrations of gold and arsenic with underlying or nearby structural features;
- Select historical sampling highlights: Rock grab samples: 25 grams per tonne gold, 15.7 g/t Au, 11.6 g/t Au, 6.3 g/t Au and 4.5 g/t Au. Channel samples: 0.5 m of 4.5 g/t Au, 1.5 m of 10.1 g/t Au, 6.2 m of 3.6 g/t Au;
- Located within Newfoundland's Burin peninsula, a current gold exploration focus of many other junior explorers;
- District-scale potential within a 12,350-hectare project, an estimated 16.5-kilometre-long exploration trend hosted in late Proterozoic-age Burin group volcanic and ultramafic rocks;
- Excellent year-round road access, with highway access, a high-power electrical line bisecting the project and nearby Atlantic Ocean ports.
The Motherlode gold project is located in the southeastern region of Newfoundland's Burin peninsula approximately 3.5 hours by road from Gander and/or St. John's. The project has excellent access and logistical infrastructure, with year-round road access, a high-power electrical line bisecting the property and nearby Atlantic Ocean ports. By way of a combination of staking and property option agreements, the company has exclusive rights to acquire a 100-per-cent interest in the project mineral exploration licences (covering 12,350 hectares), subject to a 1.5-per-cent and a 2.5-per-cent net smelter return royalty.
The Motherlode project covers an approximately 16.5-kilometre-long gold exploration trend of late Proterozoic-aged Burin group volcanic and ultramafic rocks. Exploration by Precipitate and predecessors indicates that the project's northeastward-trending Burin Group lithologies host at least eight known gold occurrences of structurally related orogenic gold style mineralization, where gold-enriched quartz veins and quartz-silica stockworks are strongly associated with shears, schists and folds containing a generally low sulphide concentration. The presence of strong silica alteration with pyrite (plus 5 per cent) and arsenopyrite are favourable indicators for gold enrichment, particularly when hosted within metavolcanics (quartz-chlorite-sericite schist) or ultramafics (gabbro).
The company's digital data compilation and interpretation for the historical Motherlode data set include a few generations of geological maps, trench maps, prospecting, rock/soil/till/stream-lake sediment sampling, cut grid lines, limited ground magnetic geophysics and eight diamond drill holes (totalling 902 metres). The historical geochemical sample data include 231 lake sediment, 944 rock, 1,128 soil, 69 stream sediment and 69 till samples. The project's historical geochemical samples collected by past operators (Newfoundland government and private sector exploration companies and local prospectors) were collected on a wide range of surface densities and were submitted to various laboratories, including Eastern Analytical, Activation Laboratories and Assayers Canada, with wide variety of analyses ranging from fire assay for gold only to multielement ICP-MS (inductively coupled plasma-mass spectrometry) analysis (no gold analysis). All data are stored in various digital formats and are in the company's possession.
This news release has been reviewed by Michael Moore, vice-president, exploration, of Precipitate Gold, the qualified person for the technical information in this news release under National Instrument 43-101 standards.
About Precipitate Gold Corp.
Precipitate Gold is a mineral exploration company focused on exploring and advancing its mineral property interests in Newfoundland, Canada, and the Dominican Republic. The company has entered into an earn-in agreement with Barrick Gold Corp., whereby Barrick can earn a 70-per-cent interest in the company's Pueblo Grande project by incurring $10-million (U.S.) within six years and producing a qualifying prefeasibility study. Precipitate is also actively evaluating additional high-impact property acquisitions with the potential to expand the company's portfolio and increase shareholder value in other favourable jurisdictions.
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