ATW Gold Corp.

ATW Gold Corp.

April 27, 2009 16:28 ET

ATW Gold Corp.: 10,000 Meter Drill Program to Begin at the Gullewa Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2009) - ATW Gold Corp. (TSX VENTURE:ATW) ("ATW" or the "Company") is pleased to announce that Boart Longyear has been awarded a contract for 10,000 metres of core drilling at the Company's wholly owned Gullewa Gold Mine Project ("Gullewa"). The program will commence in the first week of May, using two rigs, operating 24 hours per day.

Gullewa is located 450 kilometres north of Perth, in the Yalgoo mineral fields of Western Australia. The project is 550 square kilometres in size and hosts several gold deposits of various size and grades. The most significant resource is the Deflector gold-copper deposit ("Deflector"), which contains a measured and indicated resource of 369,000 ounces at 6.75 grams per tonne (g/t) gold equivalent ("AuEq") and an inferred resource of 400,000 ounces at 7.71 g/t AuEq (gold equivalent ounces, AuEq, are calculated using the ratio 1% copper equals 2.5 g/t gold and a cut-off grade of 1.0 g/t AuEq). Mining infrastructure assets at Gullewa include an 800 tonne per day CIL plant, a licensed tailings disposal facility, a 50-person camp, offices, and workshops.

Results from the gravity survey completed at Gullewa last fall identified potential length extensions north and south of the current Deflector resource. The gravity survey data was interpreted and analyzed in conjunction with historic magnetic and induced polarization (IP) survey data, as well as drill and geological data with 3D modeling software. Interpretation of the 3D model shows that previous drilling to the south did not penetrate deep enough to test for potential mineralization. To the north, the 3D model suggests a fault offset and a possible northern extension of 1,800 metres that has yet to be drilled. ATW's resource geologist believes the results of the gravity survey demonstrate excellent opportunity to increase the size of the current resource.


Target 1: Deflector (south of known mineralization; 900 metres of untested strike length)

The IP survey completed over Deflector in 2006 displays an anomaly which indicates that there is approximately 900 metres of untested strike length to the south and down plunge of the known mineralization. Geophysical data from last year's gravity survey identifies a gravity high that is coincident with the IP survey anomaly. These areas have not been adequately drill tested, as previous drill holes were not drilled deep enough to test the deposit's southerly plunge.

Target 2: Deflector (north of known mineralization; 1,800 metres of untested strike length)

The gravity survey completed in 2008 displays displacements in the gravity high that are coincident with known mineralization. These displacements, believed to be caused by faulting are not evident in the historical datasets. This area has had limited work completed and was underexplored by previous operators. Three historic RAB holes were drilled on the edge of the gravity high but were only selectively sampled; thus, are not considered to be definitive.

The area immediately to the north of Deflector's known mineralization has a strike length of 400 metres while the next offset from the gravity high has a strike length of 1,400 metres.

Target 3: Deflector (Inferred resources below Deflector Central and West Open pits

A significant portion of the current NI 43-101 compliant resource at Deflector is classified as inferred and has not been adequately tested at depth. A principal focus of this 10,000 metre drill program will be to upgrade the current inferred resource and to expand the deposit at depth.

In addition, a fourth area, with two near surface targets known as Golden Stream and Tintoretto will also be tested.

Assays will be performed by Genalysis Laboratory Services Pty Ltd in Perth and will be released as they are received.


The Deflector deposit is hosted by pillowed, variolitic high-magnesium basalts intruded by dacitic porphyry, dolerite and dolerite-lamprophyric dikes. The rocks have been folded into a regional syncline and the deposit sits on the northern limb. Several faults have been mapped and observed in the geophysics that offset the mineralized trends.

The mineralization at Deflector consists of steeply dipping, northeast-trending quartz veins with pyrite, chalcopyrite and pyrrhotite. The veins vary in thickness from one to five metres. The wall rocks tend to be pyritic, and strongly silicified with quartz stockworks. The strike length of the known mineralization is approximately 930 metres.

Brent Butler, Chief Executive Officer and President, commented: "This is the first time the Deflector deposit has been drill tested since interpretation of magnetic, gravity, IP, geological and drill data in a 3D model. This 3D model demonstrates compelling evidence to suggest that the Deflector deposit is not limited to its current size."

Brent Butler, President and CEO of ATW Gold Corp., is the qualified person under National Instrument 43-101 and has reviewed the contents of this news release.

The Company would also like to report the grant of 1,388,000 incentive stock options to certain directors, officers, employees and consultants of the Company at a price of $0.70 per common share, exercisable for a 5 year period.

ATW Gold Corp.

Brent Butler, President & CEO

"This news release may contain forward-looking statements. 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."

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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