Staccato Gold Resources Ltd.

Staccato Gold Resources Ltd.

January 18, 2007 13:03 ET

Staccato Gold Resources Ltd.: Drilling resumes south of the Lookout Mountain pit, South Eureka project, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) - Staccato Gold Resources Ltd. (TSX VENTURE:CAT) is pleased to announce that it resumed drilling at its South Eureka project. The Company received approval from the Bureau of Land Management (BLM) in December, 2006 for thirty-seven sites distributed south of the Lookout Mountain pit along approximately 1.5 kilometers (5,000 feet) of the Ratto Ridge Fault trend. Snow removal on the roads up to the first drill site, located 580 meters (1,900 feet) south of the Lookout Mountain pit, began on Monday, January 15 and the core rig was mobilized January 16. The ten- to twelve-hole drill program is expected to complete 3,050 to 3,660 meters (10,000 to 12,000 feet) of core over the next 2.5 months. Assay results are expected beginning the middle of February.

The previous core drilling programs of 2005-2006 have increased the Company's South Eureka gold resource to 545,000 measured and indicated ounces of gold from 273,000 ounces, and 336,000 inferred ounces of gold from 177,000 ounces (please refer to the Company's press release of October 26, 2006 for complete details of the resource estimate as prepared by independent QP, L. Creel, P.Eng).

Measured Indicated
Cutoff Short Oz/ton Short Oz/ton
Oz/ton Tons Au Oz Au Tons Au Oz Au
0.010 5,490,350 0.044 240,585 8,550,330 0.036 304,300

Short Oz/ton
Tons Au Oz Au
11,188,410 0.030 336,270

The objective of the Phase 3 drill program is to continue to define new gold resources, this time along a significant segment of the Ratto Ridge Fault system south of the Lookout Mountain pit. Ten to 12 core holes will initially be drilled in this program with the remainder of the 37 sites designed as offset/follow-up holes which will either be cored or drilled with a reverse circulation (RCR) machine as deemed appropriate by the Company. The Company also remains confident that the geologic model developed in the previous drilling programs will successfully guide the Phase 3 program in defining new gold resources south of the Lookout Mountain pit. Core drilling has repeatedly demonstrated the stratabound nature of the gold mineralization in thick zones of collapse breccias within carbonate rocks that flank the Ratto Ridge structural zone. The initial 10 to 12 core holes of the Phase 3 program will establish better geologic control in new areas as well as continue to provide superior sample integrity.

The Company is also currently formulating future drilling plans in the high potential Windfall/Rustler/Hoosac area, the center of which is located 5.3 kilometers (3.3 miles) northeast of the Lookout Mountain pit. Other areas with significant gold values in drill intercepts and/or with significant surface gold values are also being evaluated for future drilling programs.

The Company's 100% owned property position comprises an area of over 17,600 acres (27 square miles) and is one of the largest gold exploration target opportunities held by a junior in Nevada. The property is located in the Eureka Mining district within the Battle Mountain - Eureka Trend, also referred to as the Cortez Trend. Barrick's Archimedes (Ruby Hill) mine is located approximately 7.2 kilometers (4.5 miles) north of the Staccato claim block. Historic production from the district is in excess of 2 million ounces. Staccato's South Eureka property has a rich history of gold production from several open pits including the Windfall Mine, one of Nevada's first open pit heap leach mines.

R.H. Russell, M.S. Geo and Qualified Person has approved and is responsible for the contents of this press release and for quality assurance and quality control of exploration undertaken at the South Eureka project, Nevada.

On behalf of the Board of Directors


Greg Hryhorchuk, Vice-President & CFO

About Staccato Gold Resources Ltd: Staccato Gold is a junior gold exploration company with resources and advanced exploration assets exclusively in Nevada. The Company has assembled a portfolio of five gold prospects in the dominant gold trends in Nevada and has a joint venture agreement in place on its ICBM property in the Cortez Trend with Barrick.

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

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

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