Threegold Resources Inc.
TSX VENTURE : THG

Threegold Resources Inc.

April 30, 2010 07:30 ET

Threegold Resources Inc.: Preliminary Results From Second Drilling Program at Mercier Confirm Rare Earth Element (REE) Discovery

VAL-D'OR, QUEBEC, CANADA--(Marketwire - April 30, 2010) - Threegold Resources Inc. (TSX Venture:THG) is pleased to report preliminary results from the second drilling program on its rare earth discovery at the Mercier Project, 175 km northeast of Val-d'Or, Quebec. The results confirm the high-grade rare earth element (REE) potential of the project, yielding widths of up to 59.5 metres and laterally extending the original zones discovered during the 2008 program. With less than a third of the alkaline intrusive complex explored, Threegold is highly optimistic about its follow-up work program.

The first three diamond drill holes of the current program tested targets in the northern extension of the complex, and the other holes listed in Table I investigated the near-surface and lateral extensions of the most significant REE-bearing zones from 2008 (50-m step-outs from holes MER08-13 and -08; see also Table II). The preliminary results of the 2010 program (Table I) clearly demonstrate the continuity and elevated rare earth content of the REE-bearing lithologies at Mercier. Of particular interest is hole MER10-20, which was drilled 150 metres off hole MER10-08 and intercepted an almost continuous 120-metre section of anomalous REE values in both the silicate (pyroxenite-amphibolite) and carbonate (carbonatite) facies.

Table I – Preliminary rare earth element results from the 2010 program at Mercier

Hole # From To Width* TREO
**
TREO LREO HREO
  (m) (m) (m) (ppm)*** (%) (%) (%)
MER10-15 118.10 120.50 2.40 6920 0.69 0.68 0.01
  85.32 101.00 15.68 1493 0.15 0.14 0.01
MER10-17 126.00 170.00 44.00 2731 0.27 0.26 0.02
including 149.00 160.00 11.00 4434 0.44 0.43 0.02
MER10-18 95.00 103.00 8.00 2279 0.23 0.21 0.01
  114.00 124.00 10.00 1246 0.12 0.11 0.01
  126.50 161.00 34.50 1965 0.20 0.18 0.02
MER10-19 15.00 21.00 6.00 1346 0.13 0.13 0.01
  24.00 32.00 8.00 1247 0.12 0.11 0.01
  38.66 52.00 13.34 1680 0.17 0.15 0.02
  56.00 91.00 35.00 2083 0.21 0.19 0.02
  167.00 177.80 10.80 2368 0.24 0.22 0.01
MER10-20 10.50 44.00 33.50 1477 0.15 0.13 0.01
  53.80 83.00 29.20 1695 0.17 0.15 0.02
  85.75 145.25 59.50 1817 0.18 0.17 0.01
MER10-22 151.60 154.14 2.54 8906 0.89 0.88 0.02
Including 152.36 153.64 1.28 20770 2.08 2.04 0.03
  158.40 159.80 1.40 3336 0.33 0.33 0.01
  226.30 228.04 1.74 7121 0.71 0.69 0.02
  232.70 233.60 0.90 2945 0.29 0.28 0.01
MER10-23 68.50 72.40 3.90 7675 0.77 0.75 0.02

*drill intercept length

**TREO= total rare earth oxides; LREO/HREO= light/heavy rare earth oxides; Y= yttrium

***ppm = g/t

The above holes were successful in repeating the intercepts of the 2008 diamond drilling program, thus demonstrating continuity in the zones. Additional holes tested other portions of the alkaline complex to locate higher-grade REE mineralization. Despite the mild winter that shortened the drilling season, Threegold was able to investigate several targets and results are pending. 

Table II – Highlights of rare earth element results from the 2008 program at Mercier

Hole # From To Width* TREO
**
TREO LREO HREO
  (m) (m) (m) (ppm)*** (%) (%) (%)
MER08-08 121.80 150.91 29.11 1546 0.15 0.14 0.01
  156.61 162.00 5.39 2057 0.21 0.19 0.02
  172.09 175.28 3.19 1151 0.11 0.11 0.01
  178.22 195.00 16.78 1719 0.17 0.16 0.01
  205.00 237.00 32.00 2083 0.21 0.19 0.01
MER08-13 94.76 108.00 13.24 2020 0.20 0.19 0.01
  110.43 117.00 6.57 2910 0.29 0.28 0.01
  119.00 133.29 14.29 2205 0.22 0.21 0.01
  147.00 197.00 50.00 2600 0.26 0.24 0.02

*drill intercept length

**TREO= total rare earth oxides; LREO/HREO= light/heavy rare earth oxides; Y= yttrium

***ppm = g/t

Management is greatly encouraged by these results and is planning follow up work to investigate the remaining two thirds of the alkaline complex. Specifically, the entire northern lobe and the southeast flank of the southern lobe have yet to be explored. Not only is the background REE content of the Mercier rocks very high, but there is the additional unusual feature that all lithologies (silicate- and carbonate-dominant facies) have the potential of carrying REE, and the HREO content ranges considerably from a maximum of 1% in the carbonatite facies to 37% in the silicate facies. This suggests that differentiation occurred during the evolution of the complex and HREO were preferentially concentrated in the silicate rocks.

Given the current market conditions for rare earths and the urgency to find alternative sources, Threegold is well positioned with its Mercier Project and its six (6) newly staked targets bearing comparable geophysical and geochemical signatures. Reconnaissance work on the new targets will begin this summer.

The Mercier Project is about 175 km from the town of Val-d'Or, Québec, and consists of 61 designated cells with a surface area of 3,865 hectares. The property covers a bi-lobate alkaline intrusive complex measuring 6 km by 2-3 km, comprising alkaline syenite to ultramafic rocks with intercalated carbonatite facies in the western portion of the southern lobe.

The 2010 diamond drill program consisted of fourteen (14) diamond drill holes totalling 3,112 metres of NQ-sized core. Drilling operations were carried out during February and March with holes irregularly distributed at intervals of about 500 metres. The main goal was to test coincident or near-coincident MMI gradient magnetometric anomalies. The core was logged on-site and transferred to Val-d'Or for sampling. Assaying was carried out on sawed half-core samples at Actlabs in Lancaster, Ontario, using broad spectrum ICP/ICP-MS for the rare earth element series and other major and trace element suites.

ABOUT THREEGOLD

Threegold Resources is a dynamic and active Quebec-based junior explorer with a diversified property portfolio. Threegold is pursuing exploration on three main projects in Quebec: Lemieux Dome in the Gaspé Peninsula for copper, zinc, lead, silver and gold; Mercier in the Abitibi region where the Company recently made a rare earth element discovery containing base and rare metals (see press release of August 6, 2009); and Adanac, a gold property just a few kilometres from downtown Rouyn-Noranda. 

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

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