SOURCE: Cibolan Gold Corp

April 02, 2015 00:00 ET

Cibolan Gold Identifies High Grade Gold Targets; May Improve Production Economics

RENO, NV--(Marketwired - Apr 2, 2015) - Cibolan Gold Corporation's (OTC PINK: CIBG): (www.nevada-goldmine.com) (the "Company") new technical team (See the news release from March 19, 2015) completed its preliminary review resulting in recommendations for achieving a successful transition to production.

The review focused on identifying the potential for developing 4 to 5 million tons containing at least 200,000 ounces of gold (grading 1.42 grams per ton or better) that could be mined economically and placed on the previously designed leach pad that fits on the Independence property. The Independence project is located directly adjacent to Newmont's multi-billion dollar operating Phoenix Fortitude mining complex.

The results of the new technical team review are:

  • Identified a range front fault system along western edge of current drilling
    • Several holes with multi ounce intercepts drilled west of the fault
    • Tenth ounce or greater intercepts in other holes were on trend
  • Identified other targets on the property -- including a High Grade NE Structural Zone
  • Designed drilling plan to expand current mineralized material; potentially identifying up to 2.0 million tons averaging up to 0.30 ounce per ton (20 times our current average grade)

These results were confirmed via several reinterpreted and previously discounted holes west of the Range-Front fault using the collection and incorporation of data from area properties. The data allowed the team to translate the information generated in the previous drilling programs and surface mapping into a new model.

The new model explains and clearly outlines previous assay results into a new sensible model expanding on the current mineralized material and adding ounces to the project mineralized material inventory. The visualization of the data indicates holes remain on trend and "within expectation" of grade within this newly identified high grade area.

Daniel J. Forbush, Company President and CEO reports, "I couldn't be more pleased with the work completed so far! Our new team of mining professionals has already revealed a high grade range front fault system extending north to south along the western edge of current drilling. I feel that this development makes Cibolan a "must watch" company for Gold focused investors."

The evaluation identified three high grade target areas that could, through further development, meet Cibolan's goal of expanding the gold available in the near surface mineralized material. They are (in order of importance):

1. Range-Front Structural Target Area (insdicated by holes GM-127,59,128)

                                 
Drill Hole No.   Intercept Depth   Gold Grade Ounce/ Ton   Drill Hole No.   Intercept Depth   Gold Grade Ounce/ Ton   Drill Hole No.   Intercept Depth   Gold Grade Ounce/ Ton
GM127   160   1.586   GM128   35   0.146   GM128   315   2.897
GM127   165   0.407   GM128   40   0.051   GM128   320   0.137
GM127   170   0.220   GM128   45   0.055   GM128   325   0.033
GM127   175   0.123   GM128   50   0.014   GM128   330   0.021
GM127   180   0.093                        
                                 

2. North East Structural Target Area (indicated by holes GM-111 and IN-2)

                     
Second Table   Intercept Depth   Gold Grade Ounce/Ton   Drill Hole No.   Intercept Depth   Gold Grade Ounce/Ton
GM 111   310   0.049   IN 2   320   0.149
GM 111   315   0.073   IN 2   325   0.085
GM 111   320   0.022   IN 2   330   0.158
GM 111   325   0.052   IN 2   335   0.321
GM 111   330   0.119   IN 2   340   0.148
GM 111   335   0.146   IN 2   345   0.091
GM 111   340   0.039   IN 2   350   0.160
GM 111   345   0.040   IN 2   355   0.073
GM 111   350   0.083            
GM 111   355   0.081            
GM 111   365   0.042            
GM 111   370   0.023            
GM 111   375   0.018            
GM 111   380   0.052            
GM 111   385   0.056            
                     

3. North South Structural Target (identified in gold in soils survey data; untested by drilling) 

Included in the most recent PowerPoint presentation posted on Cibolan's website is additional information on these targets, their location and explanation of the data. The new information supports the following plan of action recommended by the team.

  • Re-examine geologic model in current resource area -- focus on structural controls, emphasize high-grade potential
  • Evaluate Range Front system by drilling additional core and reverse circular holes
  • Evaluate other identified targets areas with further mapping, sampling and drilling
  • Complete PEA using revised geologic model resulting form Range Front and other target drilling using a realistically discounted gold price.

Mr. Forbush also stated, "This is great news for shareholders as we now have a more clear understanding of how the mineralization is controlled by the various faults existing on the property! More importantly we can focus with certainty to maximize shareholder returns and minimize expenditures based on the review's findings."

New corporate plans will focus on the continued rapid expansion of the new zones and it integration into the property as a whole. Production is still projected to come through the engineered leach pad already designed and part of the pending plan of operations submission to the Bureau of Land Management. This plan of operations is nearly completed and held in reserve until a new technical report outlining improved grades and economic viability is completed.

"To that end, the Company is approaching a number of interested accredited investors with a funding proposal to obtain up to $1.1 million in three tranches. Each unit sold in these tranches contains one share and three share purchase warrants with one of the warrants expiring on each of the first, second and third anniversaries of buying of the unit," explained Mr. Forbush.

About Cibolan Gold Corporation. Cibolan Gold Corporation (OTC PINK: CIBG); www.nevada-goldmine.com, is an aggressive junior mining exploration and development company, based in Reno, Nevada. The company is actively pursuing the re-opening of its Independence gold and silver mining project strategically located in the prolific Battle Mountain Mining District of Nevada.

Notice Regarding Forward-Looking Statements. This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and in Canadian securities legislation. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expansions, recommendations, explanations, expectations, goals, evaluations, findings or intentions regarding the future. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expansions, recommendations, explanations, expectations, goals, evaluations, findings or intentions will prove to be accurate.

Contact Information

  • For further information, please contact:

    Wayne Meyerson
    Investor Relations
    Cibolan Gold Corporation
    1155 West Fourth Street, Suite 210
    Reno, NV 89503
    775.583.4636 office