Crown Gold Corporation

November 17, 2010 16:40 ET

Crown Gold Intersects High Grade at Red Lake: 1.9 Ounce Per Ton Gold Over 1.5 Feet

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2010) - Crown Gold Corporation ("Crown" or the "Company") (TSX VENTURE:CWM) is pleased to announce assays from a recent 10 hole core drilling programme at its McKenzie Island property at Red Lake in northwestern Ontario.

A total of 660 metres were drilled to test the down dip extension east of a 100 m strike interval where channel samples of an exposed quartz vein assayed between 3.2 g/t and 30.7 g/t gold over true widths between 0.32 to 0.75 m. (News Release 10.16.10). The quartz vein lies along, or close to, the western contact of a NNE striking mafic dyke that cuts the Dome intrusive granodiorite stock.

All holes intersected quartz veining down dip to approximately 75 m, indicating good continuity. The more northerly six holes all contain gold values that exceed 1 g/t and up to 65.5 g/t (1.9 opt) gold over intersected widths between 0.80 and 0.35 m. Assay results from these six holes are tabulated below.

McKenzie Drill Assay Results

Hole No From To IW g/t Au
                                       1 29.00 29.88 0.88 6.18
incl 29.40 29.88 0.48 10.73
                                       2 21.28 21.78 0.50 1.37
                                       3 31.10 31.45 0.35 1.71
                                       8 54.24 55 0.76 41.5
incl 54.24 54.54 0.46 65.48
                                       9 70.80 71.6 0.80 4.39

The results suggest a northerly plunge to the gold bearing part of the vein and follow up drilling is warranted down plunge and along strike to the north and will start as soon as winter conditions permit. The wide range of individual assays in both trench and core samples along with several examples of visible gold in trenches indicate that coarse gold mineralization is irregularly distributed, placing a premium on collection of large samples. Assaying of remaining mineralized core halves as well as additional splits taken from larger pulverized samples is planned together with fire screen assays to provide further data.

Crown's Red Lake property consists of six patented claims on McKenzie Island, approximately 4 km southwest of the former McKenzie Red Lake Mine, which produced more than 651,000 ounces of gold at an average grade of 9.5 g/t (0.277 oz/t) from veins in the McKenzie Stock, a comparable geological setting. Crown's property is situated within and near the northern edge of the Dome Stock, the same age as the McKenzie Stock.

The quartz vein target drilled occurs in a granodiorite adjacent to, and west of, the contact with a mafic dyke in a NNW striking, composite shear zone, all recently exposed by mechanical trenching and stripping along 200 m of strike. These quartz-gold occurrences were originally prospected by shallow trenches and drilled by short, small diameter, core holes in the 1930s when assays as high as 43.2 g/t (1.26 oz/t) gold across 1.2 m were reported.

Surface geophysical data completed by Crown earlier this year indicates that a strong linear conductive trend, probably coincident with the shear, and a magnetic anomaly reflecting a mafic dyke adjacent to the quartz veining, extend 900 m NNW across the property. This extension is by no means fully prospected and this work is planned in 2011.

The McKenzie Island property also contains an east-west trending gold-bearing quartz-carbonate vein system, the "MacAndrew Trend", representing another target not yet examined in detail by Crown. It is described in old reports as an east-west, northerly dipping, carbonated shear zone with numerous small quartz veins and is approximately 100 m wide. In light of continued encouraging drill results from a similar east west zone, the Laverty Corridor, on the Mega Precious Metal North Madsen property south of McKenzie Island, Crown Gold now considers the MacAndrew trend a promising large tonnage-open pit target. Sampling and drilling is planned this winter.

Crown Gold, formed by the recent amalgamation of Crown Minerals and Gold Summit, is exploring for high grade gold and silver deposits in Nevada and high grade gold deposits in both Nevada and Ontario. In Nevada, Crown has NI 43-101 compliant inferred resources of approximately 300,000 ounces of gold and indicated resources of 37,000 ounces of gold at its Monte Cristo and Sugarloaf properties at a cut-off grade of 1 g/t. These are the most advanced of five, high-grade, epithermal vein systems controlled by the company. The existing resources at Monte Cristo and Sugarloaf remain open along strike and at depth. Planning for further exploration and development either underground or by surface drilling is underway. The three other properties, Blue Sphinx, Gold Springs and Black Warrior, all contain well-defined and essentially undrilled targets.

In northwestern Ontario, Crown has two other gold properties in addition to McKenzie Island. At Tabour Lake, sampling and previous drilling at the old Sakoose Mine confirm that extension of previously mined grades of 14 g/t gold are present down plunge and open at depth. Drilling of this property is planned in early 2011. A large property package at Surprise Lake in the Uchi Belt, east of Red Lake, contains a large number of gold occurrences, all classic greenstone gold targets.

In northeastern Ontario, the company holds strategic land positions adjacent to Trelawney's Chester discovery, at the old Stairs Mine and in the Timmins camp. Evaluation of drill targets on these properties will continue.

All assays reported in this release are from half sawn 42 mm diameter BTW core samples, analyzed by standard fire assay/AA or fire assay/gravimetric methods at SGS Laboratories in Red Lake. Crown's QA/QC protocol includes the introduction of standard, blank and replicate samples.

Larry Kornze, Senior Consultant to Crown Gold and a registered Professional Engineer/Geologist, is designated as the Qualified Person under National Instrument 43-101 has reviewed and approved the contents of this news release.

Forward-looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that Crown believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond Crown's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement, speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Crown disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Crown believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.

Historical information, such as the reported assay results for the McKenzie Island property from the 1930s, pre-dates NI 43-101 and, accordingly, is not compliant with the requirements of NI 43-101; such historical information should not be relied upon.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or contents of this news release.

Contact Information

  • Crown Gold Corporation
    Mr. Stephen Dunn
    President and CEO
    (416) 822-3343
    Crown Gold Corporation
    Dr Anthony Taylor
    Executive Chairman
    (775) 843-5838