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

Coastal Gold Corp.

September 25, 2013 07:00 ET

Coastal Gold Intersects 4.95 Grams Gold Per Tonne Over 14.9 Metres at Hope Brook Gold Project, Newfoundland

TORONTO, ONTARIO--(Marketwired - Sept. 25, 2013) - COASTAL GOLD CORP. (TSX VENTURE:COD)(OTCQX:COGGF)(FRANKFURT:CY41) (the "Company") announces further results from its 2013 resource definition diamond drill program at its 100% owned Hope Brook Gold Project in southwestern Newfoundland. Assays have been received for an additional four holes that tested the newly developed "Footwall Target" (see press releases August 6, 2013 and September 16, 2013) where previous mining left significant higher grade mineralization in the footwall of the stopes.

Drill Program Highlights:

  • Hole HB13-116 intersected 4.95 grams gold per tonne (g Au/t) over a core length of 14.9 metres (m) in the footwall of the 5015-180 stope.
  • Hole HB13-114, approximately 100 m southwest of HB13-116, intersected high grade mineralization on the footwall of the 4960-170 stope grading 5.12 g Au/t over a core length of 7.0 m.
  • Hole HB13-115, approximately 50 m southwest of HB13-114, intersected 2.00 g Au/t over a core length of 15.0 m in the footwall of the 4960-165 stope.

Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold, commented: "We are very pleased with the results of this drilling which confirms that significant mineralization remains in the footwall of the old mine workings. These results, along with new data from drilling in progress, are being used to update and refine our geological model for resource estimation."

David Copeland, P.Geo., Chief Geologist of Coastal Gold, commented: "We expect that the positive drill results from the Footwall Target, combined with smaller than modelled stopes on the 5015-level and refinements made to the underground void model, will help increase the gold resource at Hope Brook." Mr. Copeland further commented: "Ongoing in-fill drilling in our second major target area, the SW Pit Extension, has intersected the targeted silicified horizon in each of the 15 drill holes completed to date. This demonstrates that there is good continuity to the mineralized structure and associated alteration zone within this area. Assays on the SW Pit Extension in-fill drill holes are pending."

To date 3,317 m of drilling in 21 holes has been completed with assay results pending on 15 holes. The first six (6) holes tested the Footwall Target and the next fifteen (15) are in the SW Pit Extension Target as 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 (%)
Footwall Target
HB13-112* 144.0 154.0 10.0 4.9 2.99 0.01
incl. 145.0 149.0 4.0 2.0 4.69 0.01
HB13-113* 150.1 163.6 13.5 6.3 4.09 0.04
incl. 155.1 163.6 8.5 4.0 5.42 0.04
HB13-114 124.0 136.0 12.0 4.5 0.61 0.01
and 153.0 158.8 7.0 2.6 5.12 0.01
HB13-115 153.0 174.5 21.5 7.7 1.66 0.01
incl. 156.0 171.0 15.0 5.4 2.00 0.01
and 189.3 208.8 19.5 7.0 1.10 0.02
incl. 189.3 197.5 8.2 2.9 1.80 0.01
and 208.0 209.7 1.7 0.6 3.59 0.14
HB13-116 151.5 166.4 14.9 6.8 4.95 0.01
incl. 163.6 166.4 2.8 1.3 21.70 0.01
HB13-117 129.0 138.0 9.0 3.7 0.66 trace
131.0 133.0 2.0 0.8 1.51 trace
* 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)
Footwall Target
HB13-112 418006 5287984 11656 5226 5142 159.0 145 -44
HB13-113 418006 5287984 11656 5227 5142 215.0 145 -50
HB13-114 418041 5288016 11702 5233 5146 163.6 145 -44
HB13-115 418040 5288016 11702 5233 5146 172.0 145 -52
HB13-116 418118 5288080 11802 5241 5148 166.4 145 -41
HB13-117 418176 5288084 11853 5211 5149 138.3 145 -49
Southwest 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 417840 5287558 11275 4973 5118 199.0 325 -63
HB13-123 417767 5287578 11227 5031 5117 86.8 325 -45
HB13-124 417792 5287495 11200 4949 5122 182.2 325 -55
HB13-125 417767 5287578 11227 5031 5117 109.3 325 -62
HB13-126 417792 5287495 11200 4949 5122 238.8 325 -66
HB13-127 417727 5287547 11176 5029 5118 93.9 325 -45
HB13-128 417769 5287531 11202 4992 5120 134.0 325 -46
HB13-129 417754 5287507 11176 4981 5120 183.7 325 -69
HB13-130 417703 5287493 11126 4998 5120 153.0 325 -60
HB13-131 417685 5287476 11101 4995 5120 167.9 325 -72
HB13-132 417703 5287493 11126 4998 5120 100.0 325 -80
Total 3317.7
Note: Assays are pending for Holes HB13-118 to HB13-132
(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 flag ship 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, both qualified persons 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. 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 the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/cod.pdf.

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