Gateway Gold Corp.
TSX : GTQ

Gateway Gold Corp.

May 06, 2008 10:45 ET

Gateway Options Advanced Gold Property in Prolific Walker Lane Terrain From Barrick Subsidiary

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2008) - Gateway Gold Corp. (the "Company" or "Gateway") (TSX:GTQ) is pleased to announce that the Company has entered into an agreement with Homestake Mining Company of California, a wholly-owned subsidiary of Barrick Gold Corporation, whereby Gateway has acquired the right to earn up to a 70% interest in the Santa Fe gold property located in Mineral County, Nevada. Gateway can earn an initial 60% interest in the property by spending $5 million over five years and can earn an additional 10% by spending an additional $1.5 million in the sixth year.

The Santa Fe deposit was mined by Homestake in the late 1980's and 1990's, recovering in excess of 350,000 ounces of gold and 500,000 ounces of silver from near surface oxide ore bodies. Ore was mined by open pit methods and the gold was recovered by heap leaching the oxide ore. Based on information received from Homestake, a "500 x 500 foot high grade sulphide pipe", crops out in the south end of the Santa Fe pit. Although Homestake drilled over 30 holes into the pipe, it was never mined or drilled out in detail. Half of the holes drilled into the pipe by Homestake bottomed in significant gold mineralization. Hole BSF74-14, starting at surface on the south edge of the pit, intersected 240 feet averaging 2.88 g/t (0.084 opt) gold and 25.4 g/t (0.74 opt) silver including 90 feet averaging 4.66 g/t gold (0.136 opt) and 36.7 g/t (1.07 opt) silver. A second high-grade zone occurs below the north central part of the pit where Hole CSF89-19 intercepted 55 feet grading 3.98 g/t (0.116 opt) gold and 6.38 g/t (0.186 opt) silver including 25 feet that averages 7.99 g/t (0.233 opt) gold and 8.47 g/t (0.247 opt) silver. Previous drilling did not define the full extent of mineralization, which remains open for expansion.

Don Merrick, VP Exploration for Gateway, commented, "The Santa Fe data base is extensive; we see many exciting possibilities and attractive gold targets. Several thick gold intercepts within the sulphide pipe bottom in gold mineralization at 600 to 900 feet leaving the zone open to depth and on strike. The acquisition fits well into Gateway's business plan of focusing our financial resources into advanced projects like Santa Fe and Big Springs."

The Santa Fe Gold Mine is located in southwestern Nevada within the Walker Lane physiographic province. The Walker Lane, one of the prime exploration terrains in Nevada, is host to over 45 million ounces of gold and 436 million ounces of silver. Numerous large deposits occur in the Walker Lane including:



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Deposit Total Ounces
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Round Mountain 10 million ounces of gold
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Comstock 8.3 million ounces of gold
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Gold Fields 4.2 million ounces of gold
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Tonopah 1.8 million ounces of gold
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Bull Frog 3.6 million ounces of gold
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Paradise Peak 1.7 million ounces of gold
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Denton Rawhide 2.8 million ounces of gold
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Borealis 1.5 million ounces of gold
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Gateway is planning a comprehensive program of geological mapping, geochemical sampling and a minimum of 3,000 feet of initial drilling. The program is scheduled to commence in early June and can be worked year round.

For further information about the Company and its activities, please refer to the Company's website at www.gatewaygold.com and under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD

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 and the Alberta Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements and forward looking information 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 and forward looking information, 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 and forward looking statements are 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.

Contact Information

  • Gateway Gold Corp.
    Michael D. McInnis
    President
    (604) 801-6040
    (604) 801-6075 (FAX)
    or
    Gateway Gold Corp.
    Raju Wani
    Investor Relations
    (403) 240-0555
    or
    Gateway Gold Corp.
    Ron Cooper
    Investor Relations
    (604) 986-0112
    Website: www.gatewaygold.com