Icon Industries Limited
TSX VENTURE : ICN

Icon Industries Limited

November 02, 2009 15:55 ET

Icon Commences Drilling at the Hog Ranch Project and Substantially Expands its Land Position

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2009) - Icon Industries Limited ("Icon" or the "Company") (TSX VENTURE:ICN) is pleased to report that the Company has commenced a 5,200 metre drilling program on the Hog Ranch epithermal gold property, which is located in Washoe County in northwestern Nevada, USA. The Company has an option to earn a 100% interest in the property from Seabridge Gold Inc. ("Seabridge").

The drilling program is targeting high grade gold mineralization within potential feeder structures that often occur beneath low-grade, very high level epithermal deposits like those previously mined at Hog Ranch. As such, drill holes will penetrate deeper (200 to 500 metres) than most prior drill holes on the property. Comparable gold deposits globally, including Great Basin Gold's nearby Hollister deposit and Newmont's Midas deposit, are characterized by high grade vein systems 100 to 200 metres below the near surface, paleowater table levels analogous to those seen in outcrop at Hog Ranch. To target these deeper levels, 1,000 metres of drilling in four core holes and 4,200 metres drilling in 16 reverse circulation drill holes will be completed. The core holes will be drilled between planned RC holes to provide additional geological information not obtainable in the RC drilling.

Most of the drilling will be completed in the area of the historically mined 139, Geib, and Krista pits, from where the bulk of the approximately 200,000 ounces of historical production was obtained. These drill holes will be oriented mainly north-northwest to east-southeast and are planned to cross breccia, veinlet, and mineralized trends defined by 3D analysis of previous drilling results. Although historical mining at Hog Ranch was at grades of 1 to 1.5 g/T Au from shallow dipping disseminated zones of mineralization, local areas grading multiple ounces of gold per tonne were encountered indicating the potential for bonanza gold grades in the system. Many high grade drill intercepts obtained by previous operators lie beneath the depths of the historical mining, underscoring this potential. In the 139 pit area, downward extensions of high grade mineralization encountered in late stages of mining will also be tested, including the potential continuity of mineralization encountered in drill hole 8-199, which intercepted 194.1 g/T Au over 1.5 metres at depths of 91.4 to 92.9 metres, well below the historical mining depths. Other intercepts in the few deeper drill holes beneath the pit areas will be followed up, including an intercept beneath the Krista Pit of 13.0 g/T Au over 7.6 metres at depths of 118.9 to 126.5 metres in drill hole 8-018. Morphology and continuity of these intercepts are currently unknown.

In the vicinity of the Geib and Krista pits, multiple historic drill hole intercepts at depths of 40 to 90 metres suggest the presence of one or more shallowly dipping horizons of significantly higher grade than that which was previously mined. These levels will be further tested during the current program, since drill holes targeting deeper feeder vein mineralization will also pass through them, and several shallow drill holes may also be completed to test continuity between the intercepts. No resource has previously been estimated for these horizons, within which the mineralization is aligned in east-northeast trends that are up to several tens of meters wide and several hundred meters long in plan view. These zones may represent the upward projection of high grade feeder structures at depth. Some of the more significant higher grade intercepts in this area include:

  • 26.6 g/T Au over 3.05 metres from 48.77 metres in drill hole 6-143, beneath the Krista pit
  • 59.5 g/T Au over 3.05 metres from 62.48 metres in drill hole 7-120 beneath the Geib pit
  • 92.9 g/T Au over 1.52 metres from 60.96 metres in drill hole 7-238 beneath the Geib pit
  • 64.9 g/T Au over 1.52 metres from 82.3 metres in drill hole 8-025 beneath the Geib pit
  • 19.7 g/T Au over 9.14 metres from 50.29 metres in drill hole 9-042 beneath the Geib pit
  • 72.8 g/T Au over 1.5 metres from 73.15 metres in drill hole 9-044 beneath the Geib pit
  • 5.2 g/T Au over 21.3 metres from 67.06 metres in drill hole HR-040-03 between and below the levels of the Geib and Krista pits

Based on the shallow dipping morphology of this mineralization and the steep dip of the drill holes, most of these intercepts are likely at or close to true thickness, and in cross section are likely to be lensoidal. Continuity between these, and other significant intercepts not listed here, has not yet been definitively established, and surrounding portions of the shallow dipping horizon are lower grade, but do include additional intercepts grading greater than 10 g/T Au over intervals greater than 1 metre. While believed to be reliable, these results cannot be verified due to their historical nature.

In addition to the drilling in the main pit areas during the upcoming exploration program, drilling in four holes is planned to test the down dip extent of mineralization in the Cameco and Airport zones in northwestern portions of the property. These zones both occur in flat lying lacustrine sedimentary rocks and comprise shallowly dipping zones of high level disseminated mineralization. Previous drilling in the Cameco zone encountered 61.8 g/T Au over 6.1 metres at a downhole depth of 50.3 metres, for which true width is unknown, and for which the limits are partially bounded. This high level intercept reflects the local potential for high grade mineralization if a deeper feeder vein system can be identified in the underlying, more competent flow foliated rhyolite. Two drill holes are also planned in the Bell Springs area, which comprises the southernmost of the historically mined Hog Ranch deposits. Drilling will test for deeper mineralization beneath the pit where erratic high gold grades were historically intersected, but where most drilling was also very shallow.

Exploration activities on the Hog Ranch site are being managed by Equity Exploration Consultants, of Vancouver B.C. under the direction of Darcy Baker, Ph.D, P. Geo, President of Equity. Drilling is anticipated to be completed in early December, 2009.

Staking

When the option on the Hog Ranch property was obtained from Seabridge, the property comprised 238 unpatented lode mining claims covering approximately 4917 acres (1990 hectares), and a mining lease with Estill Ranches LLC on approximately 592 acres (239.6 hectares) of privately owned fee land. This ground position constituted a minimum holding area covering the extents of previous mining and known mineralization. Icon has recently completed a surface staking program which has nearly doubled the area of the property with the addition of approximately 220 new claims, covering extensions of prospective alteration from the mineralized areas and structural targets, as well as providing a buffer for potential future exploration and mining.

Additional information concerning the Hog Ranch project is available at the company's website at: http://www.iconindustriesltd.com/s/HogRanch.asp.

Technical information in this news release was compiled by D. Rhys, P. Geo., a Qualified Person as defined by N.I. 43-101 and a director of Icon.

On behalf of the Board of Directors of Icon Industries Limited.

"T. Barry Coughlan"

T. Barry Coughlan
Chairman & CEO

Certain matters discussed in this press release may contain forward-looking statements. Investors are cautioned that all statements, other than statement of historical fact, involve risks and uncertainties, including but not limited to: exploration and mining risks and financing risks. There can be no assurance that such statement will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Investors are encouraged to review ICON's filings on SEDAR at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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