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

October 07, 2013 07:00 ET

Coastal Gold Intersects 2.61 Grams Gold Per Tonne Over 10.4 Metres in Southwest Pit Extension at Hope Brook Gold Project, Newfoundland

TORONTO, ONTARIO--(Marketwired - Oct. 7, 2013) - COASTAL GOLD CORP. (TSX VENTURE:COD)(OTCQX:COGGF)(FRANKFURT:CY41) (the "Company") announces further results from the 2013 resource definition diamond drill program at its 100% owned Hope Brook Gold Project in southwestern Newfoundland. To date, 3,698 metres of drilling in 23 holes have been completed to test the "Footwall Target" (6 holes - see press releases dated September 16, 2013 and September 25, 2013) and the "Southwest (SW) Pit Extension Target" (17 holes). Assays have been received for the first six drill holes that tested the SW Pit Extension Target.

Drill Program Highlights:

  • Hole HB13-123 intersected 1.64 grams gold per tonne (g Au/t) over a core length of 18.1 metres (m) including 2.61 g Au/t over 10.4 m;

  • Hole HB13-121, intersected 1.67 g Au/t over 25.7 m core length including 3.25 g Au/t over 5.0 m; and

  • Hole HB13-119 intersected 1.52 g Au/t over a core length of 15.1 m including 2.27 g Au/t over 5.0 m.

Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold, commented: "These initial positive results from drilling in the SW Pit Extension area confirm that there is a good opportunity to significantly extend the potentially open pittable resource to the southwest. In addition, the grades returned from the new holes are much higher than indicated by the previous limited wider spaced historical drilling. Further drilling will continue to test this important target in our resource definition drill program."

David Copeland, Chief Geologist of Coastal Gold, commented: "All 17 holes completed to date have intersected significant widths of silicification ranging from 17 m to 69 m core length for an average true width of approximately 33 m. Initial results confirm the presence of 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. An additional three holes are planned to further test this target over a strike length of 450 m to a vertical depth of 160 m."

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.

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
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
HB13-118 417866 5287648 11348 5032 5125 213.0 325 -80
HB13-119 417797 5287616 11273 5045 5121 73.0 325 -45
HB13-120 417810 5287598 11273 5023 5121 136.0 325 -57
HB13-121 417887 5287667 11377 5036 5125 232.8 325 -78
HB13-122 417838 5287561 11275 4977 5120 199.0 325 -63
HB13-123 417768 5287578 11228 5031 5180 86.8 325 -45
HB13-124 417792 5287498 11201 4952 5126 182.2 325 -55
HB13-125 417768 5287578 11228 5031 5180 109.3 325 -62
HB13-126 417792 5287498 11201 4952 5126 238.8 325 -68
HB13-127 417727 5287547 11176 5029 5118 93.9 325 -45
HB13-128 417774 5287524 11201 4983 5124 134.0 325 -46
HB13-129 417746 5287508 11169 4986 5126 193.3 325 -69
HB13-130 417708 5287492 11130 4995 5123 153.0 325 -60
HB13-131 417670 5287475 11089 5003 5127 167.9 325 -72
HB13-132 417708 5287492 11130 4995 5123 214.2 325 -80
HB13-133 417670 5287475 11089 5003 5127 120.3 325 -46
HB13-134 417578 5287364 10949 4965 5127 136.8 325 -46
Note: Assays are pending for Holes HB13-124 to HB13-134.
(i) Elevations have 5000 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.

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/cod1007_F1-2.pdf.

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