Coastal Gold
TSX VENTURE : COD
OTCQX : COGGF
FRANKFURT : CY41

October 21, 2013 07:00 ET

Coastal Gold Intersects 1.66 Grams Gold Per Tonne Over 12.3 Metres in Southwest Pit Extension at Hope Brook Gold Project, Newfoundland

TORONTO, ONTARIO--(Marketwired - Oct. 21, 2013) - COASTAL GOLD CORP. (TSX VENTURE:COD)(OTCQX:COGGF)(FRANKFURT:CY41) (the "Company") has completed the 2013 resource definition diamond drill program at its 100% owned Hope Brook Gold Project in southwestern Newfoundland. A total of 4,075 metres of drilling in 26 holes were completed to test the "Footwall Target" (six holes - see press releases dated September 16, 2013 and September 25, 2013) and the "Southwest (SW) Pit Extension Target" (20 holes - see press release dated October 7, 2013). Assays have been received for 14 of the 20 drill holes that tested the SW Pit Extension Target.

Resource Definition Drilling Program Highlights:

  • Hole HB13-125 intersected 1.66 grams gold per tonne (g Au/t) over a core length of 12.3 metres (m) including 2.75 g Au/t over 6.1 m;

  • Hole HB13-130, intersected 1.81 g Au/t over 11.0 m core length including 3.38 g Au/t over 4.8 m; and

  • Hole HB13-131 intersected 1.29 g Au/t over a core length of 18.0 m including 2.53 g Au/t over 5.8 m.

Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold, commented: "The 2013 resource definition drilling program has been successful in confirming significant mineralization in the Footwall Target and significantly extending known mineralization in the SW Pit Extension Target. The new drill results will be used to prepare an updated geological model on which an updated mineral resource estimate will be based. The updated resource estimate is expected to be released before the end of 2013."

David Copeland, Chief Geologist of Coastal Gold, commented: "All 20 holes completed in the SW Pit Extension area have intersected significant widths of silicification and we continue to encounter higher grade mineralization (>2 g Au/t) with local copper within a broader, more extensive lower grade mineralized zone, which is typical of the Hope Brook style mineralization. These results are expected to improve and expand the gold resource at Hope Brook."

The locations of the drill holes testing the SW Pit Extension Target are shown in Figures 1 and 2. Table 1 lists significant results and Table 2 gives collar location, orientation and depth information for all holes.

Tailings Vibracore Drilling Program

The Company also announces that it has completed the planned tailings vibracore drilling program. A total of 73 vibracore drill holes totalling 155 metres were completed on an approximate 100-metre square grid over the two tailings ponds to evaluate the full thickness of the tailings and provide sufficient data to support a National Instrument 43-101 ("NI-43-101") compliant mineral resource estimate. Fifty-four of the 73 drill holes successfully sampled tailings with a thickness ranging from 0.3 to 6.0 metres and an average thickness of 3.0 metres. The remainder of the holes encountered bedrock in areas where the tailings ponds where not filled. The previous shallow piston core sampling program indicated that the tailings contain an average grade of approximately 1.0 g Au/t (see news releases dated March 29, 2012 and April 24, 2012). Assays are currently pending for 125 tailings and control samples from the vibracore drilling program.

Table 1: List of significant assay results 2013 Drill Program - Hope Brook Gold Project
Hole No. From
(m)
To
(m)
Core
Length
(m)
True
Width
(m)
Au
(ppm)
Cu
(%)
SW Pit Extension
HB13-118* 107.3 128.0 20.7 9.4 1.19 0.03
incl. 107.3 109.2 1.9 0.9 4.84 0.22
and 132.5 158.0 25.5 11.6 0.54 trace
and 201.2 211.0 9.8 4.4 0.76 0.01
HB13-119* 5.0 20.1 15.1 13.3 1.52 0.02
incl. 5.0 10.0 5.0 4.4 2.27 trace
HB13-120* 64.1 87.0 22.9 17.5 0.75 0.01
incl. 82.5 85.5 3.0 2.3 1.66 0.01
HB13-121* 80.8 106.5 25.7 12.5 1.67 0.15
incl. 85.0 90.0 5.0 2.4 2.08 0.18
incl. 100.0 105.0 5.0 2.4 3.25 0.28
HB13-122* 160.0 170.5 10.5 7.3 0.92 0.01
HB13-123* 18.7 27.0 8.3 7.3 0.72 0.08
and 40.9 59.0 18.1 16.0 1.64 0.07
incl. 40.9 51.3 10.4 9.2 2.61 0.11
HB13-124 133.5 141.5 8.0 6.3 0.73 0.46
and 148.3 154.7 6.4 5.0 1.93 0.01
HB13-125 26.5 38.8 12.3 8.7 1.66 0.23
incl. 26.5 32.6 6.1 4.3 2.75 0.38
and 56.9 60.1 3.2 2.3 3.31 0.01
HB13-126 181.1 193.5 12.4 7.8 0.67 0.01
incl. 181.1 185.0 3.9 2.5 0.85 0.02
HB13-127 22.0 36.3 14.3 12.6 0.82 0.01
incl. 29.0 34.2 5.2 4.6 1.12 trace
and 56.1 59.4 3.3 2.9 1.07 trace
HB13-128 60.4 66.3 5.9 5.2 1.09 0.01
and 81.0 84.2 3.2 2.8 0.68 0.04
HB13-129 101.0 103.0 2.0 1.2 1.09 0.01
and 125.0 126.8 1.8 1.1 1.29 0.36
and 149.2 156.4 7.2 4.4 1.46 0.01
HB13-130 64.0 68.0 4.0 2.9 1.17 0.06
and 92.5 103.5 11.0 8.0 1.81 0.24
incl. 93.9 98.7 4.8 3.5 3.38 0.52
HB13-131 102.4 120.4 18.0 10.3 1.29 0.11
incl. 108.1 120.4 12.3 7.1 1.58 0.08
incl. 114.6 120.4 5.8 3.3 2.53 0.13
* previously reported
Table 2: Drill hole locations and orientations - Hope Brook Gold Project
Hole No. UTM Mine Grid Elev. Length Az Dip
Easting Northing Easting Northing (i) (ii) (ii)
SW Pit Extension
HB13-132 417708 5287492 11130 4995 5123 222.0 325 -80
HB13-133 417670 5287475 11089 5003 5127 120.3 325 -46
HB13-134 417578 5287364 10949 4965 5127 136.8 325 -46
HB13-135 417593 5287389 10976 4977 5113 115.8 325 -45
HB13-136 417601 5287457 11022 5027 5118 89.0 325 -45
HB13-137 417593 5287389 10976 4976 5114 164.0 325 -68
Note: Details for Holes HB13-118 through HB13-131 were included in the press release dated October 7, 2013. Assays are pending for Holes HB13-132 to HB13-137.
(i) Elevations have 5,000 metres added to actual measurements to conform to historical practice.
(ii) All measurements are in metres except Azimuth (Az) and Dip, which are measured in degrees.

ABOUT COASTAL GOLD

Coastal Gold is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "COD". Coastal Gold's flagship property is the Hope Brook Gold Project located in southwestern Newfoundland, which has 12.4 million tonnes at 1.48 g Au/t for 590,000 ounces of indicated mineral resources and 8.2 million tonnes at 2.07 g Au/t for 548,000 ounces of inferred mineral resources (see technical report entitled "Updated Mineral Resource Estimate Technical Report, Hope Brook Gold Project, Newfoundland and Labrador, Canada", effective October 1, 2012).

SAMPLING, ASSAYING AND QUALITY CONTROL

The core (NQ (47.6 mm) and BQ (36.5 mm)) is logged, photographed and then sawn in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples were prepared and assayed at ALS Minerals, with sample preparation done in Sudbury and analytical work done in North Vancouver. All locations of ALS Minerals are ISO 9001:2000 certified. The entire sample received is weighed and crushed to = 70% passing 2mm (10 mesh). A sample split of up to 1000g is then pulverized to = 85% passing 75 microns (200 mesh) to produce a homogenized sample. A 50g aliquot is used for fire assaying with an atomic absorption (AA) finish to determine gold concentration. Copper is initially analyzed using a four acid digestion ICP (inductively coupled plasma-atomic emission spectrometry) method. Any results for copper greater than 10,000 ppm are assayed further by a four acid digestion and "ore grade" ICP method. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The Company also conducts internal check assaying using certified external reference standards and blanks. Regular external check assays are performed at a second certified Canadian commercial laboratory. Coastal Gold also inserts external reference standards as well as blank granite drill core in each sample batch as a further external check.

The vibracorer drilling program is a low impact coring method that allows for recovery of unconsolidated sediments using a four inch diameter aluminum core tube. The tailings core was logged, photographed and then split in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples will be prepared and assayed at ALS Minerals, with sample preparation done in Sudbury and analytical work done in North Vancouver. All locations of ALS Minerals are ISO 9001:2000 certified. The entire sample received will be dry weighed and crushed to = 70% passing 2mm (10 mesh). A sample split of up to 1,000g is then pulverized to = 85% passing 75 microns (200 mesh) to produce a homogenized sample. A 50g aliquot is used for fire assaying with an atomic absorption (AA) finish to determine gold concentration. Copper is initially analyzed using a four acid digestion ICP (inductively coupled plasma-atomic emission spectrometry) method. Any results for copper greater than 10,000 ppm are assayed further by a four acid digestion and "ore grade" ICP method. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The Company also conducts internal check assaying using certified external reference standards and blanks. Regular external check assays are performed at a second certified Canadian commercial laboratory. Coastal Gold also inserts external reference standards as well as blank silica sand in each sample batch as a further external check.

QUALIFIED PERSONS

David Copeland, P.Geo., Chief Geologist, who is a qualified person as defined by NI 43-101, supervised the diamond drilling program at Hope Brook. Mr. Copeland and Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold and a qualified person as defined by NI 43-101, have reviewed and approved the scientific and technical content of this news release.

Cautionary Note Regarding Forward-looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the Company's exploration prospects and the estimation of mineral resources. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry. Full details (including assumptions) relating to the Company's mineral resource estimate can be found in the technical report entitled "Updated Mineral Resource Estimate Technical Report, Hope Brook Gold Project, Newfoundland and Labrador, Canada", effective October 1, 2012, which is available under the Company's profile on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER 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

To view Figure 1: Vertical Longitundinal Section and Figure 2: 3D Isometric Projections, please visit the following link: http://media3.marketwire.com/docs/cod1021_F1-2.pdf.

Contact Information