Gateway Gold Corp.
TSX : GTQ

Gateway Gold Corp.

June 04, 2007 11:00 ET

Gateway to Commence 7,000 Metre Drill Program in Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2007) - Gateway Gold Corp. (the "Company") (TSX:GTQ) is pleased to report that its geological staff has mobilized to the field office in northeastern Nevada to commence the 2007 drilling campaign. The Company is planning a minimum of 7,000 metres of drilling on three of its gold properties. The program is budgeted at CDN $2,785,000 with the first drill scheduled to commence June 15.

BIG SPRINGS

The cumulative effect of prior season's drill programs continues to confirm management's expectation for the economic success of the property. Detailed deposit modeling and an initial resource calculation has been completed by Gustavson Associates LLC, who prepared a NI 43-101 compliant resource report. At a 0.025 opt cut-off, the resource is estimated to be 1.2 million ounces gold with an average grade of 0.078 opt gold.

Gustavson Associates have been retained to update the geologic model, review and revise the resource estimate and examine various mining methodologies. The study is anticipated to take approximately two months to complete.

MAC RIDGE PROJECT

The Mac Ridge property lies immediately east of the larger Big Springs claim block. This was the location of the first mining at Big Springs from a small open pit near the top of the ridge.

One of the most exciting developments of the Company has been the discovery of gold at surface in Lower Plate rocks at the Lower Mac Ridge prospect, approximately 1,300 metres east of the historic open pit mine. Rock chip samples collected from altered Lower Plate outcrops returned significant gold values ranging from 1.17 g/t (0.034 opt) to 5.70 g/t (0.166 opt). The samples were collected within a gold soil anomaly measuring approximately 150 metres by 250 metres. Subsequent trenching and additional rock sampling have discovered gold-bearing outcrops over a minimum distance of 650 metres. These discoveries confirmed the outline of a large area that is prospective for Lower Plate mineralization. The Lower Plate of the Roberts Mountain thrust hosts the majority of the large gold deposits found in Nevada.

The Company is planning a drill program comprising about 2,000 metres of drilling in 20 holes. The program will commence in late July after receipt of the necessary permits.

GOLDEN DOME PROJECT

The Golden Dome project lies approximately halfway between the Big Springs project and the Jerritt Canyon mines to the south. In 2005, three widely spaced holes were drilled to test a geological interpretation that postulated that Lower Plate rocks could exist at moderate depths beneath a 6 square kilometre gravel covered area in the middle of the property. Lower Plate rocks are considered very important as they host the mineralization at Jerritt Canyon and other major Carlin-style deposits.

All three reconnaissance holes encountered Lower Plate rocks and all of the holes returned significant gold values. These favorable results were followed up in 2006 with an 11 hole drill program. The most significant outcome of the 2006 drill program was that all of the drill holes intersected Lower Plate rocks and all of the holes carried anomalous gold or associated trace elements suggesting the presence of a large gold-bearing system.

In 2007, the Company is planning an initial shallow angle drill program designed to define the orientation of the gold-bearing structures followed by a deeper drill program designed to test the structures where they intersect Lower Plate at depth.

CARLIN EAST

The Carlin East property lies within the prolific Carlin Trend, about 5 kilometres east of the Betze-Post deposit, a 40 million ounce gold deposit. Regional airborne gravity data was one of the key technical elements that led Gateway to acquire the Carlin East property in late 2006. The airborne data show a gravity high anomaly underlying the property, which was believed to reflect Lower Plate rocks at prospective depths. After the property acquisition, Gateway commissioned a ground-based gravity survey over the property to confirm and better define the anomaly. The data collected confirmed the presence of a well-defined gravity high anomaly. Gateway's geological interpretation indicates that northeasterly structures that control the West Leeville deposit, and several others, project onto the Carlin East property where they intersect the gravity anomaly. The Company is planning a program comprising detailed mapping and sampling followed by diamond drilling.

Gateway Gold Corp is a mineral exploration company with an experienced management team and a solid track record of exploration success. The Company is focused on the discovery and development of gold deposits in Nevada, currently with six active exploration projects.

ON BEHALF OF THE BOARD

Michael D. McInnis, P.Eng., President and CEO

Dr. Giles Peatfield, P.Eng., is an Independent Qualified Person for GTQ and has reviewed and approved the contents of this release.

Certain of the statements made and information contained herein is "forward- looking information" within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration activities and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Nevada will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

The TSX does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Gateway Gold Corp.
    Michael D. McInnis
    President
    (604) 801-6040
    or
    Gateway Gold Corp.
    Raju Wani
    Investor Relations
    (403) 240-0555
    or
    Gateway Gold Corp.
    Ron Cooper
    Investor Relations
    (604) 986-0112
    Website: www.gatewaygold.com