Coastal Gold
TSX VENTURE : COD
OTCQX : COGGF

November 01, 2013 07:00 ET

Coastal Gold Reports Final Drill Results and Commences Work on NI 43-101 Mineral Resource Update for Hope Brook Gold Project, Newfoundland

TORONTO, ONTARIO--(Marketwired - Nov. 1, 2013) - COASTAL GOLD CORP. (TSX VENTURE:COD)(OTCQX:COGGF) (the "Company") has received final assays for the 2013 resource definition diamond drill program at its 100% owned Hope Brook Gold Project in southwestern Newfoundland. A total of 4,075 metres (m) of drilling in 26 holes were completed that successfully tested the "Footwall Target" (6 holes - see press releases dated September 16, 2013 and September 25, 2013) and the "Southwest (SW) Pit Extension Target" (20 holes - see press releases dated October 7, 2013 and October 21, 2013).

Resource Definition Drilling Program

Highlights:

  • Mineralized Silicified zone was intersected in each of the 20 drillholes within the SW Pit Extension Target with an average true width of approximately 30 m;
  • Hole HB13-133 intersected 0.87 grams gold per tonne (g Au/t) over a core length of 33.2 m including 1.29 g Au/t over 6.0 m; and
  • Hole HB13-135 intersected 1.23 g Au/t over 7.9 m core length and Hole HB13-136 intersected 1.65 g Au/t over 4.0m core length.

Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold, commented: "The resource definition drill program achieved its objective to better define the full extent of mineralization in both the Footwall and SW Pit Extension targets. We are now updating the NI 43-101 mineral resource estimate for the Hope Brook project. This update will incorporate new drilling data from both the recently completed program and the fall 2012 program as well as an updated geological interpretation using the new structural model developed by our exploration team led by Dave Copeland, M.Sc., P.Geo." Pearson further commented: "Work on the Preliminary Economic Assessment (PEA) is continuing to progress and will accelerate once the resource update is complete. We anticipate the resource update to be completed by mid-December and the PEA by early 2014."

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
HB13-132 141.7 158.5 16.8 7.6 0.69 0.02
incl. 155.0 158.5 3.5 1.6 1.22 0.03
and 178.9 179.7 0.8 0.4 2.01 0.01
HB13-133 57.3 90.5 33.2 29.0 0.87 0.02
incl. 62.0 71.0 9.0 7.9 1.16 0.02
incl. 81.0 87.0 6.0 5.2 1.29 0.03
HB13-134 79.0 83.2 4.2 3.7 0.63 trace
and 89.2 98.9 9.7 8.5 0.64 0.01
and 107.0 109.0 2.0 1.7 0.90 0.01
HB13-135 68.5 88.9 20.4 18.0 0.87 0.04
incl. 68.5 74.0 5.5 4.9 1.11 0.03
incl. 81.0 88.9 7.9 7.0 1.23 0.06
and 83.0 88.9 5.9 5.2 1.41 0.06
HB13-136 33.3 37.3 4.0 3.5 1.65 0.01
HB13-137 104.1 123.0 18.9 11.9 0.70 0.02
incl. 107.9 120.0 12.1 7.6 0.87 0.03
incl. 118.0 120.5 2.5 1.6 2.07 0.03

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
(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.

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, the estimation of mineral resources and the anticipated timing for the release of the updated mineral resource estimate and PEA. 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.

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