Gateway Gold Corp.

Gateway Gold Corp.

November 09, 2006 11:06 ET

Gateway Gold Reports Progress on 2006 Drill Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2006) - Gateway Gold Corp. (the "Company") (TSX:GTQ) is pleased to provide an exploration update on the 2006 program being carried out on the Company's gold properties in northeastern Nevada. Drilling has been underway since late June on four projects - Big Springs, Deep Sammy, Golden Dome and Dorsey Creek. On the Lower Mac Ridge project, the Company carried out geological mapping, soil and rock sampling and hand trenching. Receipt of gold assays has been extremely slow this season; at the present time, the Company has 21,820 feet awaiting analysis in the laboratory.


A NI43-101 compliant resource report (see news release dated January 30, 2006) estimated an inferred resource of 15,415,000 tons at an average grade of 0.078 opt (2.67 g/t) containing 1,195,000 ounces of gold. The 2006 drill program was designed to test for extensions of the known gold zones and to increase the confidence levels in the resource.

Nineteen holes totaling 11,523 feet were drilled this year of which two were terminated before completion due to technical difficulties. Of the seventeen holes that were completed to target depth, assays have been received for thirteen. Ten of those report one or more intervals grading 1.0 g/t or greater over a minimum drilled intercept of 5 feet. Gold grades range from 1.01 g/t to 2.92 g/t over drilled intervals ranging from 5 feet to 30 feet. Assay results for the remaining holes are pending.


Late in the 2005 program, a hole drilled below the former South Sammy open pit intersected Lower Plate rocks at depth. This was a significant discovery in that rocks that comprise the Lower Plate host the largest gold deposits in Nevada and are the primary host rocks for the Jerritt Canyon deposits, 10 miles to the south of the Company's project area.

The 2006 program had initially planned to drill two holes to test the Lower Plate target under the South Sammy pit area. The first hole targeted the projected intersection of the Brien's fault, a major northeast trending structural zone that controlled the distribution of gold mined in the South Sammy area, and the Lower Plate rocks. The second hole, approximately 2,000 feet north of the first, targeted the intersection of the northwest trending SWX fault and Brien's fault at the Lower Plate contact. Both holes intersected Lower Plate rocks; however, due to deviations in the hole and in the dip of the Brien's fault, the holes intersected the Lower Plate approximately 600 feet east of the targeted area.

Two additional holes have now been drilled from the same drill sites as the initial two holes. Both holes have intersected the targeted area of Lower Plate as planned. The Lower Plate rocks in the target area are well altered and carry moderate to high amounts of pyrite. Assays are pending for these two holes.


The Golden Dome project lies approximately halfway between the Big Springs project and the Jerritt Canyon mines to the South. Last fall, three widely spaced reconnaissance holes encountered Lower Plate rocks and all of the holes returned significant gold values. A number of structural intersections have been interpreted from the available geological, geophysical and geochemical data. These structural intersections, which are the major controls for the location of gold deposits in the district, are the targets for the 2006 drilling program.

Fourteen holes have been drilled to test some of these structural intersections. Lower Plate rocks were intersected in all holes completed to target depth. Assay results have been received from four holes, all of which contain strongly anomalous gold and arsenic values within structural zones in the Upper Plate rocks. These results are considered highly encouraging in that they may reflect leakage from a Carlin style gold deposit at depth. Assays from the remaining holes will be reported when all results have been received and evaluated.


One deep hole was drilled at Dorsey Creek to test for the presence of Lower Plate rocks in the footwall of a gold-bearing dyke, which returned highly anomalous gold and arsenic values from the 2005 drilling program. The deep hole did not encounter Lower Plate rocks; assays are pending for the hole.


The Mac Ridge property lies immediately east of the Big Springs claim group and was the location of the first mining in the Big Springs area from a small pit near the top of the ridge.

One of the most exciting developments for the Company in 2005 was the discovery of significant gold at surface in Lower Plate rocks at the Lower Mac prospect (see news release dated January 23, 2006). The prospect is approximately 1,500 metres east of the former Mac Ridge pit. The gold-bearing outcrop was discovered by prospecting within gold-in-soil geochemical anomalies.

Follow-up work carried out during the 2006 program comprised geological mapping, soil and rock sampling and hand trenching. The geologic mapping established the presence of a thick section of the Hanson 2 Formation over a distance of at least 5,000 feet. The Hanson 2 Formation is part of the Lower Plate rocks and is the principal host for the gold deposits in the Jerritt Canyon district.

Results from the 2006 soil geochemical sampling produced several new gold-in-soil anomalies. Prospecting within these anomalies discovered two new altered outcrops of Lower Plate rocks, which have been sampled. Assays are pending on these samples.

Three trenches were hand-dug within two of the gold-in-soil anomalies. The first trench returned an average of 2.16 g/t (0.063 opt) over 60 feet. The second trench, 900 feet to the northwest of the first trench, returned 0.438 g/t gold over 25 feet including 5 feet at 1.1 g/t. Assays for the other trench are pending.

All samples are prepared and analyzed by ALS Chemex, with sample preparation in Elko and analyses in North Vancouver.


Michael D. McInnis, P.Eng., President and CEO

Dr. Giles Peatfield, P.Eng. is an Independent Qualified Person for GTQ and has reviewed and approved the contents of this release.

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration activities and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Nevada will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

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

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