Garson Gold Corp.
TSX VENTURE : GG

Garson Gold Corp.

June 09, 2008 11:05 ET

Garson Gold Announces a New Resource Estimate for No. 3 Zone at New Britannia Mine Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2008) - GARSON GOLD CORP. (TSX VENTURE:GG) ("Garson Gold" or "the Company") is pleased to announce that an updated estimate of gold resources at the Company's No. 3 Zone on the New Britannia Mine (NBM) property has added significantly to the previous known resources. This new National Instrument 43-101 compliant estimate includes resources in the Indicated category of 85,000 oz (394,000 tonnes @ 6.72 grams per tonne (g/t) gold) and a further 117,000 oz (575,000 tonnes @ 6.31 g/t gold) in the Inferred category.

In addition to the No. 3 Zone, the NBM property also hosts Measured and Indicated resources at the Main Mine of 364,000 ounces (2,211,000 tonnes @ 5.11 g/t), and 201,000 Inferred ounces contained at the Main mine and other satellite deposits on the property.

No. 3 Zone Resource Estimate

Approximately 30,000 ounces of gold mining from the No. 3 Zone established modern production in 1995. A major objective of the Company's current exploration and evaluation program has been to expand and upgrade the No. 3 Zone gold resources estimates to a level that would support re-establishing gold production from this zone. Prior to Garson's acquisition of the NBM, the previous resource estimate within this zone was approximately 50,000 ounces of gold in the Inferred category (220,000 tonnes at an average grade of 7.10 g/t) (Micon International, October 2006). The current resource estimate was completed in-house utilizing an updated drill hole data base consisting of 214 diamond drill holes (both historical and current drill holes) and surveyed level plans of the historical mine workings. The results of the estimate are presented in the table below. The outline of the No. 3 Main Zone resource is contained on the updated long section (To view the NBM No. 3 Zone long section map accompanying this release please click on the following link: http://media3.marketwire.com/docs/0609gg.pdf).



Table 1: Summary of No. 3 Zone resource estimate

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TONNAGE GRADE
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ZONE CLASS (tons) (tonnes) (opt) (g/t) OUNCES
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No. 3 Zone - Main Indicated 434,000 394,000 0.20 6.72 85,000
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No. 3 Zone Total Indicated 434,000 394,000 0.20 6.72 85,000
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No. 3 Zone - Main Inferred 288,000 261,000 0.23 7.85 65,000
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No. 3 Zone - Footwall Inferred 346,000 314,000 0.15 5.04 51,000
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No. 3 Zone Total Inferred 634,000 575,000 0.18 6.31 117,000
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Estimation Methods and Parameters
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The No. 3 Zone resource update is a block model based on a geological
interpretation and model of the mineralized zones. The estimation methods
and procedures used are consistent with the CIM Estimation of Mineral
Resources and Mineral Reserves Best Practices Guidelines. Economic and
technical parameters used include: 0.10 opt intersection cutoff grade,
minimum true width of 6 feet, and a top cut grade of 1.0 opt based on
statistical analysis of the assay database. Abbreviations used in the
table: tons equals short tons, tonnes equals metric tonnes, opt equals
troy ounces per short ton, g/t equals grams per metric tonne, and ounces
equals troy ounces. Tonnage figures rounded to nearest '000 tonnes (tons)
and grade figures rounded to 2 decimal places. Total ounces based on SI
units. Conversion factors used: 1 gram equals 0.0322 troy ounces, 1 g/t
equals .02917 opt. Mineral resources which are not mineral reserves do not
have demonstrated economic viability.


Exploration Potential

The No. 3 Zone is located approximately 1.5 kilometres north of the New Britannia mine and mill complex, remains open for expansion down plunge. In addition, a number of recently completed and potentially economic drill hole intersections, above and below the No. 3 Zone - Main and No. 3-Zone Footwall, have not been included in the current resource estimate. These intersections remain open for interpretation and drill follow-up.

The Kim and Boundary Zones are located between the New Britannia Mine and the No. 3 Zone, approximately 200 and 500 metres (m), respectively, south of the No. 3 Zone. Recent drill results include 7.08 g/t gold over an intersection length of 4.54 m at the Kim Zone and 7.67 g/t gold over an intersection length of 7.22 m at the Boundary Zone (see Garson news release dated May 27, 2008). Two diamond drill rigs are currently operating on the Boundary Zone and near-term plans include drilling at the No. 3, Kim, and Boundary Zones which all represent high priority targets on the NBM property and collectively represent potential to develop an additional mining center on the NBM property.

David Tafel, President and CEO of Garson Gold notes, "Our goal is to develop a sufficient resource in the NBM satellite zones to justify reopening the mine. We are very pleased that our exploration program has met with early success in significantly increasing the resource base at the New Britannia and are optimistic that our exploration program will continue to generate successful results. With this increased resource estimate, we have taken a big step towards our objective of reestablishing gold production."

Compilation of historical exploration and geological data on the 3,900 hectare New Britannia Mine property has resulted in identification and prioritization of exploration target areas. A summer exploration program is currently underway that includes soil geochemical surveys, trenching and outcrop stripping, geological mapping, and prospecting.

QUALIFIED PERSON AND STATEMENTS

The No. 3 Zone resource estimate was prepared in-house by qualified Company personnel and has been audited and reviewed by Micon International Limited (Micon), an independent consulting firm, under the direction of William J. Lewis, P. Geo. Mr. Lewis has reviewed the technical content of this release. A 43-101 compliant technical report, completed by Micon, in support of the updated No. 3 Zone resource estimate, will be filed on SEDAR within 45 days of the date of this release. The estimate completed and reported here is based only on resources and does not include reserves. As per National Instrument 43-101, mineral resources which are not mineral reserves do not have demonstrated economic viability.

ABOUT THE NEW BRITANNIA MINE

Garson Gold holds a 100% interest in The New Britannia Mine (NBM) Project in Manitoba and the Copper Prince and McMillan Gold Mine Projects in Ontario. The Company's flagship project is the NBM, which covers approximately 3,900 hectares and hosts the historic New Britannia Gold Mine. NBM operated from 1949 to 1958 and again from 1995 to 2004 and produced approximately 1.43 million ounces of gold. The historical resource estimate at the NBM property, audited by Micon International Ltd. in accordance with CIM classifications pursuant to National Instrument 43-101, is available for viewing on Sedar (www.sedar.com) and www.garsongold.ca. A modern mill capable of processing 2,150 tonnes/day and ancillary surface and underground infrastructure facilities have been kept on care and maintenance since the NBM project was purchased by the Company in December 2006.

In addition to the current exploration activities and resource estimation update, a scoping study is underway to assess viable start-up and production scenarios with the intent to reestablishing gold production at the NBM Property. The scoping study will include; an estimation of capital costs required to rehabilitate the NBM mine and mill.

On Behalf of the Board,

David G. Tafel, President and Director

This news release may contain forward looking statements concerning future operations of Garson Gold Corp. (the "Company"). All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Garson Gold Corp.
    Michelle M. Hohn
    VP Corporate Communications
    (604) 484-2161 x 226 Toll Free: 1-877-784-2161
    (604) 683-8544 (FAX)
    Email: mhohn@garsongold.ca
    Website: www.garsongold.ca