Lions Gate Energy Inc.
TSX VENTURE : LG

October 27, 2009 02:43 ET

Lions Gate Energy Inc.: NI 43-101 Technical Report on Its 100% Owned El Toro Polymetallic Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 27, 2009) - Lions Gate Energy Inc. (TSX VENTURE:LG) announced today that it has completed a National Instrument 43-101 ("NI 43-101") technical report for the Company's El Toro Polymetallic Project in Telkwa, British Columbia. The report has been prepared by company's independent geologist Jean Pautler, P.Geo. (JP Exploration Services Inc.). The 2008 program involved mapping, prospecting, rock and soil geochemical sampling, GPS surveying of previous diamond drill hole collars and underground and surface workings, an evaluation of the property, followed by a 1495 line km airborne magnetic and electromagnetic geophysical survey. The program verified work completed by previous operators, located previous drill holes and many of the old workings, indicated potential for the discovery of a subvolcanic copper-gold-silver (arsenic, antimony) deposit similar to Equity Silver and for calc-alkaline porphyry copper+/-molybdenum+/-gold(silver) and commonly associated epithermal gold-silver mineralization, and identified targets for follow up.

The 2008 airborne geophysical survey delineated a number of northeast trending electromagnetic anomalies in Hunter Basin that suggest continuity to sulphide mineralization along the structures which host high grade copper-silver-gold mineralization. The survey detected known mineralization in Hankin Basin and delineated additional similar unexplored electromagnetic anomalies that require follow up. Two electromagnetic high anomalies, one coincident with a magnetic low, were identified in the Denys Creek area which may be indicative of additional high sulphide veins outboard of the Sunsets stock. An electromagnetic high anomaly was detected peripheral to the MSJ stock which could be related to an associated high sulphide vein or mineralized dyke. A 2 km diameter magnetic low in the Starr Creek area was identified which may reflect an altered intrusion related to the skarn mineralization at the Princess showing.

The complete NI 43-101 report may be found at www.sedar.com.

El Toro Polymetallic Project:

The 34,356 hectare El Toro Project area, is located in the Omineca Mining Division, 30 kilometres southwest of Telkwa, which is 11 km southeast of Smithers in central British Columbia. The principal deposit type present on the El Toro Project is the subvolcanic copper-gold-silver (arsenic, antimony) type, also referred to as transitional or intrusion related polymetallic stockwork and vein types. The Equity Silver past producing mine, 60 km southeast of El Toro, is an example of this type of deposit and produced 33.8 million tonnes of 0.4% copper, 64.9 g/t Ag, and 0.46 g/t Au. The El Toro Project covers a well-mineralized area southwest of Telkwa that includes 36 Minfile occurrences, including 3 past producers and 1 developed prospect in Hunter Basin, 6 prospects and 26 showings, as documented by the British Columbia Geological Survey Branch.

Table 1 - Significant Rock sample assay results of 2008 field program



Copper Gold Silver Zinc Lead
Sample North- Cu Au Ag Zn Pb
ID Location Easting ing Type (%) (ppb) (ppm) (ppm) (ppm)
14457 Colorado 616879 6044031 grab 2.2 220.0 1064.0 1113
14456 Colorado
Hunter 616879 6044031 grab 24.0 75.0 1589.0 1304
14517 Countess 600288 6037206 grab 5.3 85.0 69.9
14503 Deny
North
Friendly 1.0m
Trench 619991 6037438 chip 1.7 9520.0 180.0 157000 9520

14519 Duchess 600280 6036918 grab 0.8 20.0 90.2
14522 Duchess 600351 6036804 grab 7.9 35.0 100.0
14498 Fly 618487 6039523 talus trace 75.0 54.2
14501 Fly 618411 6039376 grab 0.1 455.0 110.0
14499 Fly 617962 6039252 talus 0.2 945.0 504.0 5220
14487 Fog 618508 6039204 grab 0.9 65.0 48.2
14530 Hankin 622977 6044791 grab 1.3 190.0 15.8
14531 Hankin 622964 6044777 grab 6.5 1740.0 108.0
14532 Hankin 623062 6044564 grab 3.2 535.0 16.0
14533 Hankin 623089 6044510 1m chip 1.0 140.0 5.1
14451 Idaho? 618583 6042968 float 30.6 1790.0 1886.0
14454 King 0.5 cm
Mine 618125 6042609 chip 6.5 4650.0 202.0
14455 King
Mine 618125 6042609 grab 36.5 155000.0 2306.0
14476 Lefty 596297 6027177 1.5m 0.7 4960.0 2.4
chip
14477 Lefty 596301 6027176 1.5m 0.2 2090.0 1.4 1493
chip
14475 Lefty 596273 6027084 0.5m trace 1680.0 1.5
chip
14469 MSJ 602863 6032337 grab 3.3 10.0 68.3
14467 MSJ 602863 6032337 2m chip 4.0 35.0 146.0
14468 MSJ 602863 6032337 0.7m 4.3 5.0 51.9
chip
14466 MSJ 602851 6032318 float 4.6 90.0 328.0
14463 Old Tom
- Hankin 622839 6045011 grab 1.3 1080.0 50.3
14513 Silver
Heels E 600436 6038010 grab 2.4 15.0 142.0
14514 Silver
Heels E 599471 6037987 grab 1.6 50.0 24.6
14460 Tribune 617612 6044173 grab 1.4 5.0 540.0 11200 39500
14510 War Eagle
N W 602976 6035512 grab 1.0 45.0 46.4
14511 War Eagle
N W 603010 6035493 grab 5.0 25.0 87.8
14524 War Eagle
P 604100 6035311 float 6.7 180.0 99.8 3246
14523 War Eagle
P 603795 6035304 grab 1.3 105.0 31.6
14527 War Eagle
P 603847 6035278 grab 1.1 35.0 11.7


In 2009 previous unpublished data was uncovered for a single diamond drill hole on the War Eagle showing indicating a result of 0.70 oz/t Au over 10 feet, which had not been followed up. At the War Eagle stock copper-silver mineralization occurs peripheral to a porphyry intrusion as is the case at the Huckleberry Mine. Significant porphyry copper mineralization was also uncovered within the Loljuh stock and an MMI soil survey was completed over the MSJ porphyry stock in 2009. Results are pending.

The technical information in this news release has been reviewed and approved by chief geologist Jean Pautler, PGeo, a qualified person as defined in National Instrument 43-101.

A new website design has been implemented for public access with El Toro project updates at http://www.lionsgateenergy.com .

ON BEHALF OF THE BOARD OF DIRECTORS

J. Frank Callaghan, President and CEO

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Lions Gate Energy Inc.
    Andrew Rees
    Director
    604 669-6463 or TOLL FREE: 1-800 663-9688
    604 669-3041 (FAX)
    www.lionsgateenergy.com