Majestic Gold Corp.

Majestic Gold Corp.

January 22, 2007 09:02 ET

Majestic Gold Significantly Expands Gold Targets at Sawayaerdun

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 22, 2007) - Majestic Gold Corp. (TSX VENTURE:MJS) is pleased to announce the results of its 2006 exploration program at Sawayaerdun in the Xinjiang province of China. The program extended the drill tested strike length of Zone IV by over 25 percent and identified over 12 linear kilometres of additional drill targets. Prior to 2006, Zone IV had been tested along strike for 2,000 metres. The results yielded an independent resource estimate as previously announced in the Company's news release dated April 5, 2006.

The 2006 program included the following and each aspect has been summarized below:

- 4 diamond drill holes totaling 1,120 metres;

- 119.5 line kilometres of soil geochemical surveys;

- 123.9 line kilometres of magnetometer geophysical surveys;

- 45.5 line kilometres of induced polarization surveys;

- Trenching and prospecting and rock sampling;

- High precision GPS survey;

- 200 tonne bulk sample and bio-leach test.

(See Map I: 2006 Sawayaerdun Project or visit

Diamond Drilling

Four diamond drill holes, totaling 1,120 metres were conducted to test the northern and southern extensions of the 2,000 metre portion of Zone IV (bounded by holes SWD-05-41 and SWD-05-35) that was drilled in 2004 and 2005.

This year's program included three core holes which established that the gold mineralization along Zone IV extends at least another 525 metres along strike to the southwest.

Hole ID Azimuth From To Width Au g/t Location
SWD-06-51 -45 degrees
@ 120 74.00 81.00 7.0 0.95 140 m SW of SWD-05-41
includes 75.00 76.00 1.0 2.43
SWD-06-51 136.00 141.00 5.0 0.64

SWD-06-52 -60 degrees
@ 120 144.00 203.00 59.0 0.52 140 m SW of SWD-05-41
includes 155.00 172.00 17.0 1.26
includes 165.00 172.00 7.0 2.39
includes 166.00 170.00 4.0 3.57

SWD-06-53 -45 degrees
@ 120 236.00 250.00 14.0 1.22 525 m SW of SWD-05-41
includes 241.00 249.00 8.0 1.63

Hole SWD-06-50 drilled approximately 600 metres to the northeast of hole SWD-05-35 (the northernmost hole used in the 2006 resource calculation) contained no significant intersections.

"The results of our 2006 campaign were highly significant and very exciting," said John Zimmerman, head of exploration. "Not only did we increase the strike length of Zone IV by over 25 percent, it remains open to the south and at depth, allowing for the potential of significant increases to the Sawayaerdun resources."

Soil Geochemistry

A total of 4,658 soil samples were collected over a 119.5 line kilometre grid. Lines were spaced 100 metres apart with 25 metre stations. The grid covered the remaining portion of the over 10 sq km area of known gold mineralization not covered by the 2005 survey. The aim was to extend the known gold areas along strike.

The results show excellent correlation to known zones and a possible northern extension of Zone IV, slightly east of where it was believed to have been; significant anomalies around Zones V and XVI; a potential one kilometre extension of Zone I; and several high values adjacent to other structures not previously trenched or tested. Anomalous areas range from a few hundred metres long and tens of metres wide to up to 1,300 metres by 200 metres with gold values up to 4,790 ppb.

Magnetometer Survey

A magnetometer survey of 123.9 line-km was completed by the #3 Xinjiang Geology Brigade over the same grid as the geochemical survey. The magnetic highs generated provide further support to the location of main mineralized shear zones. Results are as follows:

Anomalous Magnetic
Zone Character Anomaly Length & Direction
Zone IV Linear High 4,000 metres in a NE - SW direction
Zone II Linear High Approximately parallel to Zone IV, 400 to 800
metres NE of Zone IV; 4,000 metres in a
NE - SW direction
Zone I Linear High Approximately parallel to Zone II, 400 to 700
metres NE of Zone II; 3,000 metres in a
NE - SW direction

In addition to identifying the three main gold bearing structures, the magnetometer survey also identified three cross-cutting features with a general ENE-WSW trend. These features intersect the existing zones at between 45 and 60 degrees and can be traced for approximately 3,000 metres and are spaced approximately 600 to 800 metres apart. The northernmost feature corresponds to an apparent offset in the northern portion of Zone IV as also evidenced in the geochemical survey.

Induced Polarization Survey

A 45.5 line kilometres of induced polarization (IP) survey was conducted to help identify the down-dip extensions of un-drilled mineralized zones and also to test for additional sub-parallel conductive zones hidden by cover that may represent additional mineralized structures. The preliminary results show excellent correlation between the known mineralized zones and chargebility and resistivity highs and help to provide definition of these features in areas of little or no outcrop. In addition, several sub-parallel conductors were located that represent exciting new drill targets at Sawayaerdun.

"Our geochemical and geophysical programs have combined to highlight many prospective targets, including extensions of known mineralized zones and sub-parallel structures," Zimmerman said. "These untested areas have a total strike length of approximately 12,000 metres, an exciting indication of the potential at Sawayaerdun."

Trenching, prospecting and rock sampling

Twenty-five trenches comprised of 625 linear metres were also completed. These trenches excavated in 2006 were more exploratory than those completed in 2004 and 2005. The objectives were to search for the northern extension to Zone III, test for the northern extension to Zone IV, confirm some anomalous older Chinese trenches, and for general prospecting in areas of little outcrop. The program was successful in confirming the extensions of Zone III and Zone IV with moderate to strong anomalies and confirming a strong anomaly in Zone XI-2 with 7.0 meters carrying 4.7 grams/tonne gold. Other trenches showed nil to moderately anomalous zones and will be further evaluated in concert with the other data sets.

In Majestic's prospecting program, 407 grab samples were taken and indicate several areas worthy of follow-up next year. Most importantly, previously unrecognized sulfide veins were discovered at surface on the north side of the property between Zones IV and II. Several samples from these veins contained 1 to 4.5 grams gold with one carrying over 50 grams/tonne (final assay pending). Trenching and drilling next year will determine the potential significance of these veins.

High precision GPS survey

A high precision GPS survey was conducted over the property to provide detailed topographic controls for ongoing exploration and scoping study planning.

200 tonne bulk sample and bio-leach test

Majestic collected and stacked 200 tonnes of predominately un-oxidized gold mineralized rock from Zone IV to test for the potential of bio-oxidizing sulfide ores by surface leaching. The sample will remain on site and will be tested later in 2007 in an effort to enhance recoveries of gold.

The Sawayaerdun property is a joint venture established in November 2003 with the Xinjiang Bureau of Geology and Mineral Resources ("XBGMR"). Terms of the deal allow for Majestic to earn an undivided 90% interest on the Sawayaerdun property by making all of the exploration and development expenditures on the property. To fully vest, the Company is required to spend US$2 million over four years. The company expects to complete this obligation early in the 2007 work program.

This news release was reviewed by Qualified Persons as defined by National Instrument 43-101, including Rod Husband, P. Geo., who has prepared the technical information contained herein.

On Behalf of the Board of Directors

Rod Husband, P.Geo., Director

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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

Contact Information