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

Astral Mining Corporation
Kootenay Gold Inc.
TSX VENTURE : KTN

Kootenay Gold Inc.

May 06, 2008 12:07 ET

Astral and Kootenay Form JV and Announce 2008 Exploration Program for Jumping Josephine Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2008) - Astral Mining Corporation (TSX VENTURE:AST)(PINK SHEETS:ASMGF)(FRANKFURT:A7D)(WKN# A0JDX3) ("Astral" or "the Company") and Kootenay Gold Inc. (TSX VENTURE:KTN) are pleased to announce that the 2008 exploration program on the Jumping Josephine (JJ) Gold Project in southeast British Columbia has commenced with diamond drilling now underway and a 40 line kilometre three dimensional (3D) Induced Polarization (IP) survey scheduled to start mid-May. Line cutting is currently underway to facilitate the geophysics.

Early in 2008 Astral completed its obligations under the option agreement to earn a 60% undivided interest in the JJ Gold Project (see April 12, 2006 news release for agreement details). The companies are now completing a formal Joint Venture (JV) agreement and have formed a Management Committee which will direct all future exploration work on the project.

Initial drilling will be focussed on infilling and expanding the auriferous structurally-controlled quartz stockwork zone at JJ Main. Subsequently other gold targets currently defined on the property will be drilled in addition to geochemical targets and targets identified by the 3D IP survey. The drill program is anticipated to comprise up to 10,000m to be carried out in two phases. Further geochemical surveys, geological mapping and trenching will also be carried out as part of the 2008 exploration program.

Drilling in 2007 intersected the JJ Main Zone along 15 section lines over a strike length of 700m and to vertical depths of up to 225m below surface. Gold Assay highlights from the 2007 drill program include:

- 9.95 g/t(i) over 10m(1) (0.290 opt(ii) over 32.8 feet) from hole 001, including 42.61 g/t over 2m (1.243 opt over 6.56 feet)

- 7.01 g/t over 19m(2) (0.205 opt over 62.32 feet) from hole 013, including 16.42 g/t over 5m (0.479 opt over 16.40 feet)

- 15.18 g/t over 4m(3) (0.443 opt over 13.12 feet) from hole 032, including 56.4 g/t over 1m (1.645 opt over 3.28 feet)

- 7.74 g/t over 5m(4) (0.226 opt over 16.4 feet) from hole 034, including 15.99 g/t over 2m (0.466 opt over 6.56 feet)

- 13.83 g/t over 3m(4) (0.403 opt over 9.84 feet) from hole 043, including 35.6 g/t over 1m (1.038 opt over 3.28 feet)

- 8.28 g/t over 6m(4) (0.241 opt over 19.68 feet) from hole 046, including 43.5 g/t over 1m (1.269 opt over 3.28 feet)

- 12.44 g/t gold over 8m(4) (0.363 opt over 26.24 feet) from hole 048, including 26.9 g/t gold over 3m (0.784 opt over 9.84 feet)

- 7.96 g/t over 5m(4) (0.232 opt over 16.4 feet) from hole 051, including 32.4 g/t over 1m (0.945 opt over 3.28 feet)

(i) grams per tonne

(ii)troy ounce per short ton

(Previously Released on: (1)June 14th 2007, (2)July 12th 2007, (3)November 14th 2007, (4)November 29th 2007).

The 3D IP survey will be carried out by SJ Geophysics of Delta and will cover a 2.5km by 5.4km grid centred on the JJ Main Zone. The aim of the survey is to identify quartz-sulphide stockwork vein zones along strike and at depth along the JJ Main trend and to identify parallel zones. Matrix Diamond Drilling of Kimberly has been contracted to conduct the HQ diamond drilling program.

An independent 43-101 report detailing work on the JJ Project up to the end of 2007 by Apex Geoscience has been completed and will be posted on SEDAR (www.sedar.com).

Exploration work on the JJ project is carried out under the supervision of Astral's Project Geologist Dale Brittliffe, P.Geo. 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 Mining Corporation 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, 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 mineral projects in British Columbia, Canada and the Sierra Madre Region of Mexico. The Company's top priority remains the ongoing development of its Promontorio Silver project, which encompasses the former producing Promontorio Silver Mine in Northwest Mexico. 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.

Astral Shares Outstanding - 21,996,109

Kootenay Shares Outstanding - 27,866,975

2008 Number 4

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 Inc.
    James McDonald
    CEO
    (403) 238-6986
    or
    Kootenay Gold Inc.
    Ken Berry
    President
    (604) 601-5655 or 1-888-601-5650
    Website: www.kootenaygold.ca