Choice Gold Corp.
CNSX : CHF

Choice Gold Corp.

October 06, 2011 09:00 ET

Choice Gold Intersects 9.91 Meters at 1.76 g/t of Near Surface Oxide Hosted Gold in Newly Tested Area of Sugarloaf Peak Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2011) - Choice Gold Corp. (CNSX:CHF) ("Choice Gold") is pleased to report the intersection of a new oxide gold interval in a newly tested area of its Sugarloaf Peak Gold Project ("Sugarloaf Peak") in Western Arizona. The discovery hole is located approximately 1 kilometer northeast (view map: http://media3.marketwire.com/docs/CHFDrillLocationsMap.pdf) of the core of the historically known mineralized zone. Diamond drill hole SGL-11-04 intersected 9.91 meters of 1.76 g/t gold between 5.34 and 15.24 meters of depth.

"This new near surface oxide discovery opens up a whole new dynamic to the large scale potential of the Sugarloaf Peak project," said Gianni Kovacevic, Choice Gold's CEO. "All the historical data points to a large, near surface, bulk tonnage situation, however with this potential oxide component a new set of work programs and further interpretations will be required on the property to complement our other stated objectives. Our phase 1A drilling program was designed to better understand overall controls and test extensions to the North, East and at depth to the known mineralization. The success of SGL-11-04 demonstrates that extra potential exists outside the already interesting historical mineralized area. Only 40% of the wide spaced phase 1A drill program assays have been returned, thus we are eagerly awaiting the remaining results so that Choice's geological team can fully assess and revise the strategy of our anticipated phase 1B follow-up drill program. It should also be noted that there are at least 3 privately owned operations extracting gold within 2km of the Sugarloaf Peak property limits and over 100 years of historical small scale gold mining in the area."

Gold in hole SGL-11-04 occurs in a strongly oxidized interval of faulting and tectonic brecciation. Iron oxides are dominated by hematite and jarosite; no sulphides are observed. Some scattered quartz crystals observed along the interval suggest that the host rock could be a strongly altered felsic volcanic rock, the dominant lithology present on the property. Drill holes SGL-11-01 and SGL-11-02, drilled outside and north of the known mineralized zone, returned anomalous gold values in the top 200 meters with grades averaging 125 ppb hosted by a series of sericitized felsic volcanic units. These values show the strength of the mineralizing system. Sporadic gold values reach 0.78 g/t in hole SGL-11-01 and 0.53 g/t in hole SGL-11-02. All the samples were analysed for Au using fire assay (FA-Pb30) by American Assays Labs, an independent laboratory based in Reno, NV. All the results were checked by a strict QAQC protocol using, blanks, standards and duplicates. Results for the other drilled holes are pending.

The discovery of gold associated with hematite alteration, not previously described on the property, creates a new type of exploration target and will influence the next proposed drilling plan. The majority of the gold mineralization described in historical reports occurs in quartz-sericite-pyrite altered volcanics, the main target until now. The known hematite-rich zones over the property will now be the object of additional sampling and mapping delineation to develop a better understanding of their geometry and their relationship to mineralizing events.

Brigitte Dejou, P.Eng., Choice Gold's Manager of Exploration, is the non-independent, Qualified Person, responsible for the technical information reported herein.

About Choice Gold Corp.:

Choice Gold Corp. was created to acquire and advance select high-potential mineral projects and thereby unlock shareholder value. With this goal in mind, the company has entered an option agreement with Riverside Resources Ltd. (TSX VENTURE:RRI) to acquire a 100% interest in the Sugarloaf Peak Gold Project just west of Quartzsite, Arizona. Sugarloaf Peak covers over 24 km² and was the subject of intermittent drilling from the 1950s through to the 1990s and of small-scale mining for over a century. For more information about Choice Gold please visit our website at www.choicegoldcorp.com.

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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