ATW Gold Corp.
TSX VENTURE : ATW

ATW Gold Corp.

November 17, 2010 14:04 ET

ATW Gold Corp.: Mutiny Gold Reports High-Grade Results from Drilling at Deflector Deposit on Its Joint Venture Gullewa Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2010) - ATW Gold Corp. (TSX VENTURE:ATW), ("ATW" or the "Company") is pleased to report that Mutiny Gold Ltd. (MYG: ASX) ("Mutiny") has announced preliminary results from its recent drill program at the Deflector Gold-Copper Deposit, on the Gullewa Property. As previously announced in the Company's news release dated July 20, 2010, ATW has entered into an agreement (the "Agreement") with Mutiny, whereby Mutiny can earn a 70% interest in the Gullewa Gold Project in Western Australia, by making exploration expenditures and paying to ATW Gold Corp Australia Pty Ltd, a total of AUD$9,000,000.

Highlights:

Significant high-grade gold-copper intersections from Mutiny's Deflector Deposit drill program include:

3m @ 29.5g/t Au and 14.8% Cu;
4m @ 24.9g/t Au and 10.1% Cu;
3m @ 19.9g/t Au and 1.96% Cu

Mutiny to follow up drilling along strike of Deflector mineralization in early 2011 to test mineralized extensions and high-grade drill intersections by ATW.

Results announced are from recent drilling program at the Deflector Gold-Copper Deposit, the main project within the Gullewa Project in Western Australia. The 41 hole program for 3,461 metres of reverse circulation ("RC") drilling had two objectives:

  • To convert part of the existing Indicated Resource to higher category Measured Resource;
  • To further test the extension of the main lode of the Deflector Deposit – the West Lode – to the south of the existing resource.

Results have been received for the first 10 of 41 holes. The results are presented in Table 1 and on Figure 1 (refer to Company website). Hole locations are listed in Table 3. The results received to date for the resource upgrade drilling into the West Lode are positive. Five of the ten holes returned assays of higher grade than was expected from the previous intersections in adjacent holes, with two of the other holes returning lower assays than expected.

Background

Gullewa is located 450 kilometres north of Perth, in the Yalgoo mineral fields of Western Australia. Gullewa is a 550 sq kilometre property that hosts several gold deposits of various size and grade, the most significant being the Deflector gold-copper deposit. 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 = 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.

Diamond core holes were drilled into the deposit, and along strike from it, by the Company in 2009. They are presented below in Tables 2 and 4 and Figure 1 (refer to Company website). The hole numbers have a 09DEF prefix. The recent RC holes drilled by Mutiny have a 10DRC prefix.

Drill Results

The initial results received for the resource upgrade drill program are highly encouraging, with five of the ten holes for which results have been received returning assays of higher grade than was expected from the previous intersections in adjacent holes. The results are listed in Table 1 for all intersections greater than 0.5g/t Au.

The results include:

  • 1m @ 23.0g/t Au and 1.90% Cu in 10DRC01;
  • 3m @ 19.9g/t Au and 1.96% Cu in 10DRC02;
  • 3m @ 29.5g/t Au and 14.8% Cu and 2m @ 33.8g/t Au and 9.26% Cu in 10DRC05;
  • 1m @ 19.8g/t Au and 3.68% Cu in 10DRC06;
  • 4m @ 24.9g/t Au and 10.1% Cu in 10DRC08;
  • and 3m @ 12.5g/t Au and 3.05% Cu in 10DRC01.

Following receipt of all drill results, CRM, Mutiny's independent resource consultant, will update the resource estimate for the Deflector Deposit. The resource estimate is expected to be complete by mid December 2011.

Deflector Southern Extension

ATW hole 09DEF104, drilled 100m to the south of the present planned Deflector Pit limit, intersected 1.4m @ 220g/t Au and 9.98% Cu and 09DEF103, drilled 40m further south, intersected 2.3m @ 55.0g/t Au and 2.19% Cu. Mutiny drilled two holes, 10DRC37 and 38, to check the interpreted plunge extensions to the high-grade intersection in 09DEF104. Results for these holes are pending.

Mutiny intends to follow up these intersections during the first quarter of 2011 by systematic drilling of the interpreted position of the southern extension to the Deflector mineralization.

Deflector Northern Extension

ATW hole 09DEF037 drilled 120m to the north of previous intersections of the West Lode intersected 4m @ 11.6g/t Au and 12.3% Cu.

Mutiny also intends to follow up this intersection during the first quarter of 2011 by systematic drilling of the interpreted position of the northern extension.

Table 1 Drill-hole Assay Results

 HOLE
 
FROM
(m)
TO
(m)
INTERVAL
(m)
AU
(g/t)
Cu
(%)
Check assays pending
(intervals)
10DRC01 115 116 1 23.0 1.90 116-117
10DRC02 93 96 3 19.9 1.96 96-97
10DRC03 113 115 2 1.67 0.21  
10DRC04 97 99 2 5.43 1.68  
10DRC05 68 71 3 29.5 14.8 71-78
and 78 80 2 33.8 9.26 80-84
10DRC06
 
102
 
103
 
1
 
19.8
 
3.68
 
99-100, 101-102, 103-104,
and 106-107
and 123 126 3 2.92 1.12  
and 128 130 2 9.15 2.76 130-132
10DRC07 76 78 2 2.5 2.24  
and 100 104 4 1.4 0.22  
10DRC08 86 90 4 24.9 10.1  
10DRC09 103 106 3 12.5 3.05  

Table 2 ATW 2009 Assay Results

 HOLE
 
FROM
(m)
TO
(m)
INTERVAL
(m)
AU
(g/t)
Cu
(%)
09DEF001 102 105 3 1.27 6.17
09DEF002 77 78 1 0.14 1.58
and 79.8 82 2.2 1.38 2.43
and 89 90 1 3.00 0.02
and 98 99 1 81.7 2.41
09DEF003 85 86 1 12.2 2.89
and 95 96 1 1.11 0.20
and 100 107 7 12.3 3.19
09DEF004 84 86 2 0.6 0.48
and 98 101 3 6.1 5.07
09DEF037 104 108 4 11.6 12.3
09DEF101 53.6 56.4 2.8 3.46 0.12
09DEF102 82.2 85.6 3.4 3.03 0.59
09DEF103 111 113.4 2.4 2.44 0.31
and 116 118.3 2.3 55.0 2.19
09DEF104 61.65 61.9 0.25 27.1 2.29
and 66.2 66.6 0.4 13.0 2.22
and 71.7 73.1 1.4 220 9.98
09DEF105 123.2 124.1 0.9 20.8 0.95

TABLE 3 Drill-hole Details

HOLE
 
EAST
(LOCAL)
NORTH
(LOCAL)
EAST
(GDA94)
NORTH
(GDA94)
RL
(m)
DEPTH
(m)
DIP
(°)
AZIMUTH
(LOCAL)1
10DRC01 9750 19480 439378 6828748 279 123 -60 95
10DRC02 9758 19460 439374 6828722 279 105 -60 93
10DRC03 9753 19440 439359 6828708 279 126 -57 92
10DRC04 9759 19380 439323 6828661 279 126 -56 90
10DRC05 9760 19340 439298 6828628 279 84 -57 91
10DRC06 9744 19360 439300 6828644 279 132 -57 90
10DRC07 9750 19260 439243 6828570 279 120 -57 86
10DRC08 9742 19242 439225 6828560 279 120 -57 92
10DRC09 9730 19220 439203 6828551 279 114 -57 90
10DRC010 9746 19200 439204 6828526 279 90 -58 90
1 Local azimuth is 38° less than UTM azimuth
 
Table 4 ATW 2009 Drill-hole Details  
HOLE
 
EAST
(LOCAL)
NORTH
(LOCAL)
EAST
(GDA94)
NORTH
(GDA94)
RL
(m)
DEPTH
(m)
DIP
(°)
AZIMUTH
(LOCAL)1
09DEF001 9731 19120 439143 6828474 279 121 -60 90
09DEF002 9739 19240 439219 6828567 279 120.7 -60 90
09DEF003 9746 19280 439253 6828591 279 126.7 -60 90
09DEF004 9756 19360 439310 6828648 279 152 -60 90
09DEF037 9748 19600 439452 6828842 279 202 -60 90
09DEF101 9805 18880 439054 6828239 279 100 -60 270
09DEF102 9825 18880 439069 6828227 279 105.1 -60 270
09DEF103 9845 18878 439084 6828213 279 135 -60 270
09DEF104 9815 18920 439086 6828265 279 105 -60 270
09DEF105 9855 18920 439118 6828240 279 154.1 -60 270

This news release has been reviewed by Brent Butler, a Qualified Person as that term is defined in NI 43-101.

ATW GOLD CORP.

"Brent Butler"

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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