Astral Mining Corporation
TSX VENTURE : AST
FRANKFURT : A7D
PINK SHEETS : ASMGF

Astral Mining Corporation
Kootenay Gold Inc.
TSX VENTURE : KTN

Kootenay Gold Inc.

July 12, 2007 04:46 ET

Astral Drills 7.01 g/t Gold Over 19 Metres on Jumping Josephine Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2007) - Astral Mining Corporation (TSX VENTURE:AST)(PINK SHEETS:ASMGF)(FRANKFURT:A7D)(WKN# A0JDX3) and Kootenay Gold Inc. (TSX VENTURE:KTN) are pleased to provide results for the second batch of samples, from eleven holes of the 20 hole Phase I drill program completed on the JJ Main Gold Zone, on the Jumping Josephine (JJ) Gold Project in southeast British Columbia. The JJ Main Zone remains open to the south, north and to depth (to see attached long section map, please click on the following link: http://www.ccnmatthews.com/docs/AstralMining.pdf).

Results from HQ diamond drill holes #3 through to #13, include 19m averaging 7.01 g/t gold (62.32 feet at 0.205 opt(i)) from hole 07JD013, which includes 5m averaging 16.42 g/t gold (16.40 feet at 0.479 opt(i)). Based on current information the JJ Main Gold Zone has an estimated true width of up to 12.6m (41.32 feet). Mapping and geochemistry to date suggest that the JJ Main structure may extend for over three kilometres. See Table 1 for detailed results.

Visible gold was observed in 07JD012 and 013 and both are located on the southernmost fence drilled in the Phase I program (see attached long section map). The table below contains a summary of significant intercepts from ten holes recently reported by the assay laboratory. Assays are pending for the remaining 7 drill holes and will be released when received by the Company.

Furthermore, the company reports drill holes #1 and 2 (see June 14, 2007 news release) were submitted for re-assay. Drill hole #1 has now been upgraded by 27% to 10m averaging 12.65 g/t gold. See Table 2 below for detailed results.

Technical Summary

At the JJ Main Gold Zone 1,461m in 20 holes have been completed along 5 fences, testing the gold-bearing quartz stockwork zone over a strike length of 180m and to a vertical depth of 100m. Surface trenching on the stockwork zone during 2006 by Astral returned channel sample intervals of up to 31.19 g/t gold over 7m, including 133.91 g/t gold over 1m (see Astral's December 14th 2006 news release). The zone is characterized by silicified and sericitized quartz monzonite hosting a distinct zone of multi-phase stockwork veining and breccia zones controlled by a northeast striking structure. Early mapping and geochemistry suggest that this structure may extend for over three kilometres. Interpretation of aeromagnetic images show the structure to be underlain by a feature thought to be a buried intrusive stock approximately 2km in diameter. Astral suspects this stock may be genetically related to the stockwork-hosted gold mineralization and is applying a porphyry target model to the project. A significantly expanded Phase II diamond drill program is being planned to test the stockwork zone along strike and at depth and to test for a potential underlying buried porphyry deposit.



Table 1: Significant Intervals from Holes 07JD003 to 07JD013 on JJ Main
Gold Zone
--------------------------------------------------------------------------
WID- Au
AZI- FROM TO TH Au WIDTH (opt)
HOLE ID UTM E UTM N DIP MUTH (m) (m) (m) (g/t) (ft) (i)
--------------------------------------------------------------------------
07JD003 429814 5456753 -45 315 32 34 2 2.81 6.56 0.082
(ii) (ii)
--------------------------------------------------------------------------
07JD004 429814 5456753 -65 315 24 29 5 2.04 16.40 0.060
--------------------------------------------------------------------------
07JD006 429831 5456798 -45 315 11 17 6 3.49 19.68 0.102
--------------------------------------------------------------------------
07JD007 429831 5456797 -65 315 18 21 3 10.41 9.84 0.304
(includ-
ing) 18 19 1 16.91 3.28 0.494
--------------------------------------------------------------------------
07JD008 429839 5456840 -45 317 3 6 3 0.69 9.84 0.020
--------------------------------------------------------------------------
07JD009 429840 5456840 -70 317 6 8 2 0.92 6.56 0.027
--------------------------------------------------------------------------
07JD010 429847 5456786 -60 315 37 40 3 6.08 9.84 0.178
(includ-
ing) 39 40 1 15.19 3.28 0.444
--------------------------------------------------------------------------
07JD011 429861 5456821 -60 315 35 37 2 1.43 6.56 0.042
--------------------------------------------------------------------------
07JD012 429757 5456728 -50 314 28 36 8 3.06 26.24 0.089
(includ-
ing) 35 36 1 11.32 3.28 0.331
--------------------------------------------------------------------------
07JD013 429757 5456728 -70 314 46 65 19 7.01 62.32 0.205
(includ-
ing) 48 53 5 16.42 16.40 0.479
(includ-
ing) 56 60 4 7.53 13.12 0.220
--------------------------------------------------------------------------
(i) troy ounce per short ton
(ii) 30g Fire Assay - interval to be re-assayed by total metallics


Based on the results received to date, gold grades and interval widths generally increase towards the south as evidenced by hole 07JD013. To the north drill holes 07JD008 and 009 were collared in quartz stockwork, and lower grades in these holes may reflect an incomplete sample across the mineralized zone.

As stated previously (see June 14, 2007 news release), reject material from the first batch of samples reported on from the Phase I drilling program was submitted to a second laboratory, ALS Chemex in North Vancouver for metallic gold check assays. This work returned a general increase in gold values up to 40.8% (07JD002 between 10-12m). The original interval from 07JD001 of 10m averaging 9.95g/t gold has now been upgraded by 27.1% to 10m averaging 12.65g/t gold. The ALS samples utilized a 1kg sample size, 100% larger than the sample size from the original 500g metallic gold analysis completed by Acme.



Table 2: Metallic Gold Re-Assays from Holes 07JD001 and 07JD002 on
JJ Main Zone
--------------------------------------------------------------------------
RE-
Original RE- ASSAY
Original Au ASSAY Au
FROM TO WIDTH WIDTH Au (opt) Au (opt) Change
HOLE ID (m) (m) (m) (ft) (g/t) (i) (g/t) (i) (%)
--------------------------------------------------------------------------
07JD001 6 16 10 32.8 9.95 0.290 12.65 0.369 +27.10%
(includ-
ing) 7 9 2 6.6 42.61 1.243 58.1 1.695 +36.34%
--------------------------------------------------------------------------
07JD002 10 19 9 29.5 1.34 0.039 1.40 0.041 +4.39%
(includ-
ing) 10 12 2 6.6 2.52 0.074 3.55 0.104 +40.87%
(includ-
ing) 17 19 2 6.6 2.40 0.070 1.68 0.049 -30.0%
--------------------------------------------------------------------------
(i) troy ounce per short ton


With the recent completion of 643.3m in 2 holes at the Bonanza Pass target and 544.2m in 9 holes at the Albion-Dubrovnik targets in the southern part of the JJ property, the Phase I drilling program at on the JJ Projected has been completed. Surface trenching over several new prospects on the JJ Project is now underway and an expanded program of soil sampling and geological mapping will commence by the beginning of August. Ministry of Energy, Mines and Petroleum Resources permitting for the Phase II expanded drill program is complete and is planned to commence later in the summer once all results from the current phase of drilling have been received and compiled. Astral has a diamond drill rig booked for this work. To view all of the results from Astral's 2006 summer work programs visit www.astralmining.com.

All drill core samples comprised 1m intervals of HQ drill core halved by diamond core saw. All analytical results reported herein are from 500g samples analyzed using the Metallic Gold method or by 30gm Fire Assay (07JD003) by Acme Laboratories in Vancouver B.C. or 1kg samples analyzed by Metallic Gold method at ALS Chemex in North Vancouver B.C. Observation of gold concentrations in the coarse versus fine fractions from the original analyses prompted Astral to forward mineralized intercepts to ALS Chemex for confirmatory metallic screen analysis using the larger, 1kg sample size.

All analytical work reported herein was carried out by Acme Analytical Laboratories Ltd., Vancouver, or ALS Chemex, North Vancouver, both internationally-recognized analytical service providers. In addition to laboratory standards Astral has included independently-prepared standards into the sample sequence to assure proper quality assurance/quality control (QA/QC). Exploration work reported in this release was completed under the supervision of Astral's Project Geologist Dale Brittliffe, B.Sc. Technical information contained in this release has been reviewed by Dr. David A. Terry, P.Geo., Director and Vice President of Exploration for Astral Mining Corporation, and a Qualified Person as defined in National Instrument 43-101.

Astral is earning a 60% interest in the JJ Project from Kootenay (see April 12, 2006 news release).

Astral Mining Corporation, a member of the Grosso Group, is a Canadian-based company engaged in the exploration and development of precious metal properties in North America. By focusing on exploration in mining-friendly districts, the Company minimizes the political and social risks encountered in many other parts of the world. With a new gold discovery at the Company's Jumping Josephine Gold Project in Southern British Columbia currently being drilled for the first time, and an experienced technical team and seasoned management, Astral is poised to leverage this expertise into early exploration success. Further details on Astral Mining Corporation and its high-quality portfolio of exploration projects can be found at www.astralmining.com.

Kootenay is an emerging exploration Company actively developing a suite of premier gold and silver projects in British Columbia, Canada and Mexico. The Company's top priority remains the ongoing aggressive development of its rich Promontorio Silver project, which encompasses the former producing Promontorio Silver Mine in Northwest Mexico. Supported by an experienced and accomplished technical team, over the past four years Kootenay has substantially grown its mineral asset base through key acquisitions, while successfully achieving four new mineral discoveries in the Rossland Republic Gold Trend of British Columbia. Further information can be found at: www.kootenaygold.ca.

ON BEHALF OF THE BOARD

Mr. Manfred Kurschner, President & CEO

Astral Mining Corporation

ON BEHALF OF THE BOARD

Mr. James M. McDonald, CEO

Kootenay Gold Inc.

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. 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.

2007 Number 20

Astral Shares Outstanding - 17,668,614

Kootenay Shares Outstanding - 18,495,725

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

Contact Information

  • Astral Mining Corporation
    Manfred Kurschner
    President & CEO
    1-800-901-0058 or (604) 687-1828
    (604) 687-1858 (FAX)
    Email: info@astralmining.com
    Website: www.astralmining.com
    or
    Kootenay Gold
    James McDonald
    CEO
    (403) 238-6986
    or
    Kootenay Gold
    Ken Berry
    President
    (604) 683-2214 or 1-888-268-8688
    Website: www.kootenaygold.ca