SOURCE: Star Gold Corp.

June 17, 2010 09:30 ET

Star Gold Corp. Announces That It Has Completed the Permitting and Bonding Process With the U.S. Bureau of Land Management for Its Wholly Owned Excalibur Project

POST FALLS, ID--(Marketwire - June 17, 2010) -  Star Gold Corp. (OTCBB: SRGZ) (the "Company") is pleased to announce that it has completed the permitting and bonding process with the U.S. Bureau of Land Management for its wholly owned Excalibur project in Mineral County, Nevada ("Excalibur" or the "Property"). The permits issued by the U.S. Bureau of Land Management allow the Company to drill up to five drill holes testing various targets. Drilling is planned to commence around the middle of June, 2010. The Company will test two targets identified through a detailed campaign of geologic mapping and rock chip sampling within the Excalibur. Samples collected from quartz veined sedimentary rocks of Permian age Mina Formation along with clay altered sills of Cretaceous age range from less than 0.01 g/t to 33 g/t gold and less than 1 g/t to 431 g/t silver. These values represent selectively sampled material collected from waste piles of historic workings and from road cuts and outcrops. 

The Excalibur is located in the central portion of the Walker Lane trend, a well-known trend of significant gold/silver occurrences. The Walker Lane structural zone is a well-defined area, which extends from Owens Valley, California to north of Reno, Nevada. The Walker Lane is further defined by trans-tensional structures, which have provided pathways for mineral rich fluids. The Walker Lane parallels the California-Nevada border, and can be traced for nearly 600 kilometers in length (approximately 373 miles) and more than 100 kilometers in width (approximately 62 miles). The Walker Lane trend contains gold, silver and base metal deposits such as the Goldfield District (located in the southern portion of the Walker Lane) which has produced 4.2 million ounces of gold (as reported in F.L. Ransome 1909, Geology and ore deposits of Goldfield, Nevada: USGS Professional Paper 66, Chapter XIII and J.W. Ruetz 1986, The Geology of the Goldfield District), and the Comstock District (on the north end) which has shown historic production of 8.25 million ounces of gold and 192 million ounces of silver (Peter Vikre, 1989 Economic Geology, v. 84; no. 6; p. 1574-1613). The nearby Candelaria mine, just 10.6 miles away, has produced over 42.7 million ounces of silver and 104,000 ounces of gold within the last 30 years and may contain an additional 45.4 million ounces of silver and 48,000 ounces of gold as reported in the Nevada Bureau of Mines and Geology Special Publication MI-2008. The Candelaria mineral deposit is hosted by similar rock types, as present within the boundary of Excalibur, based on regional mapping of the area by the U.S. Geological Survey and the Nevada Bureau of Mines and Geology. 

Previous owners of the Excalibur property conducted investigation of the Property over a decade ago. The Company has recently obtained the previously produced soil, rock and drill information collected by the previous owner. The previous studies of the Property confirmed the existence of gold and silver values ranging from less than detection to at least 12 g/t gold and less than detection to over 250 g/t silver from surface sampling in three separate locations within the borders of the 1000 acre Property. Drilling confirmed gold values at depth including 5 feet grading of 1.10 g/t gold in hole EX 5, 30 feet of an average grade of 0.34 g/t gold in hole EX 3 and 20 feet grading 0.36 g/t gold EX 6. These values were encountered at depths of 3 meters (10 feet) to 148 meters (485 feet) below the surface. 

The geologic mapping and sampling program, conducted by the Company during 2009, outlined three gold and silver anomalous areas associated with dike filled structures within sedimentary rocks and quartz-calcite-sulfide zones in chert. The recent mapping and sampling provides a better understanding of the mineralized system located within the Property. The Company plans to drill in two areas of untested mineral potential in order to determine widths and grade of the surface mineralization at depth. The third target will be further defined by additional mapping and sampling during the remainder of 2010 prior to consideration of conducting any additional drilling. Stargold has a drill rig on site and will begin drilling within the week. 

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Star Gold Corp (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at under "Search for Company Filings."

Contact Information