Strait Gold Corporation

Strait Gold Corporation

September 29, 2009 09:49 ET

Strait Gold Options Alicia Copper-Gold Property in Peru

TORONTO, ONTARIO--(Marketwire - Sept. 29, 2009) - Strait Gold (TSX VENTURE:SRD) is pleased to announce it has entered into an agreement with Panoro Minerals Ltd. giving Strait Gold the option to earn up to a 100% interest in the Alicia copper-gold property in southern Peru subject to a 2% net smelter return royalty.

The 2,593-hectare Alicia property is located in the department of Cusco approximately 500 km southeast of Lima, within the prolific Andahuaylas-Yauri porphyry copper and skarn belt, host to several world-class deposits including Las Bambas (900 million tonnes at 0.9% copper), Haquira (686 million tonnes at 0.5% copper) Los Chancas (355 million tonnes at 0.6% copper) and Tintaya (158 million tonnes at 1.2% copper and 0.16 g/t gold) among others.

Past exploration at Alicia by Minera Anaconda Peru S.A. in 2000 defined nine surface skarn zones with high-grade copper and significant gold-silver-molybdenum values over substantial widths. These samples are historic in nature and as such should not be relied upon. Highlights of past trench sampling from this work are listed below.

Zone Trench Width (m) Cu (%) Au (g/t) Ag (g/t) Mo (%)
1 Iris 5 56.0 1.9 0.18 12.7 0.003
1 Iris 6 32.2 2.0 0.10 7.2 0.012
1 Iris 10 32.2 1.8 0.20 12.0 0.009
1 Iris 11 12.0 3.2 0.40 31.4 0.004
2 Huanca 9 16.4 1.8 0.22 7.0 0.013
3 Suraco 3 16.0 1.2 0.40 12.7 0.002
4 Suraco 1 20.2 1.7 0.94 10.9 0.002
5 Huanca 7 16.3 2.4 0.36 12.8 0.035
6 Huanca 3 14.9 2.0 0.39 16.7 0.001
7 Huanca 1 31.7 0.5 0.07 4.6 0.002
8 Huanca 5 20.0 4.9 0.42 29.2 0.009
8 Huanca 6 23.2 3.9 0.23 21.6 0.038
9 Iris 7 31.6 2.8 0.32 14.7 0.024
9 Iris 8 19.3 1.5 0.18 8.1 0.005

Check sampling of select trenches by Strait Gold geologists during a site visit returned comparable values to historic sampling including 13.5 metres of 4.3% copper, 0.46 g/t gold and 23.4 g/t silver from trench Huanca 5, and 9.7 metres of 1.6% copper, 0.44 g/t gold and 8.7 g/t silver from trench Suraco 1. Sample preparation and analysis was carried out at ALS Chemex facilities in Lima, Peru, an ISO 9001:2000 registered laboratory. Samples were analyzed for gold by fire assay followed by atomic absorption spectroscopic finish and by gravimetric finish for samples exceeding the upper limit of analysis (over limit).

Furthermore, a single chip sample taken by Strait Gold geologists from a previsouly unsampled skarn outcrop located 180 metres along strike of trench Iris 11 (Zone 1) returned two metres of 4.4% copper, 0.37 g/t gold and 18.5 g/t silver, potentially extending the strike length of this zone significantly.

"Alicia presents an excellent opportunity to rapidly drill-test wide zones of high-grade skarn mineralization in an emerging world-class porphyry-skarn belt," said Strait Gold President Jim Borland. "The extensive historic assay and geologic database will allow us to jump-start our exploration program at Alicia and quickly determine our best drill targets."

Mineralized zones consist of disseminated bornite-chalcopyrite and secondary malachite within garnet skarn along the contact of a multi-phase granodiorite porphyry intrusion with surrounding Cretaceous limestone of the Ferrobamba Formation, the favorable metallotect in the region.

The property was subject to a three-hole, 1,053-metre diamond drill campaign in 2003 by a previous owner that targeted porphyry copper mineralization within the intrusive body. One hole appears to have targeted Zone 1 but is believed to have been drilled roughly parallel to the dip of the porphyry-limestone contact as it remained in weakly mineralized and weakly altered porphyry for its entire length, failing to intersect the skarn zone at depth.

The general geology of the main skarn prospects have been mapped at 1:5,000 scale, however no property-wide mapping appears to have been executed, nor any systematic sampling or mapping of the historic workings of high-grade polymetallic mineralized veins located two kilomtres south of the targeted skarn zones.

The Company plans a Phase I exploration program, including surface mapping and sampling and an IP geophysical survey, to indentify drill targets followed by a drill program to test for economic mineralization at depth.

Under the terms of the option and lease agreement, Strait Gold can earn a 100% interest by issuing 1,000,000 shares and incurring $1.25 million in work expenditures over the three-year term of the agreement. The first 100,000 shares are to be issued upon signing with further payments on the first, second and third anniversary dates with the anniversary date established as the date a community agreement to allow drilling is reached but no later than 18 months from signing. Panoro will retain a 2% net smelter return royalty, half of which Strait Gold can purchase for a one-time payment of US$2.3 million within six months of earning a 100% interest. If Strait Gold does not earn the 100% interest but issues a minimum of 600,000 shares and incurs a minimum of $650,000 in work expenditures within two years, it will earn a 55% interest. The transaction is subject to TSX Venture Exchange approval.

Ryan Weston, P.Geo., is the Qualified Person as defined by NI 43-101 for the purpose of this press release and has reviewed its technical content.

About Strait Gold Corporation:

Strait Gold Corporation is a Canadian mineral exploration company active in Peru and listed on the TSX Venture Exchange. It holds a 100% interest in the Letra Rumi South copper-molybdenum property and in the Culebrilla gold-silver property, both in Ancash Department approximately 325 km north of Lima, the capital of Peru. To learn more about Strait Gold, please visit our website at

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

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