Golden Goliath Resources Ltd.
TSX VENTURE : GNG
PINK SHEETS : GGTHF

Golden Goliath Resources Ltd.

January 12, 2011 09:30 ET

Golden Goliath Resources Ltd.: Drilling and Sampling Results Show Bulk Tonnage Deposit Potential at Los Hilos

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2011) - Golden Goliath Resources Ltd. (TSX VENTURE:GNG)(PINK SHEETS:GGTH-F) -

  • Twenty five diamond drill holes totaling 3,441m were completed to define Filo de Oro zone mineralization.

  • Drilling finds bulk tonnage mineralization over an area that is 1390m long, 540m wide and 340m vertical within the Filo de Oro zone.

  • Surface and underground sampling beneath the Filo de Oro zone returned very encouraging assays including 759.5 g/t silver and 0.36 g/t gold over 1.25m including 1565 g/t silver and 0.619 g/t gold over 0.60m.

  • Agnico-Eagle Mines has signed a Letter of Intent for an Option and Joint Venture on the Los Hilos/Las Bolas Properties.

Summary of Los Hilos Drilling

The focus of Los Hilos drilling was to confirm the potential for a large bulk tonnage, near surface disseminated gold/silver deposit along the Filo de Oro trend. This objective has been achieved.

The bulk tonnage potential is "sweetened" by the existence of higher grade veins, such as those encountered in drill hole LH-6c, which returned 47.6m of 2.05 g/t gold and 20 g/t silver (2.38 g/t gold equivalent*)with a high grade section over 2.85m of 4.58 g/t gold & 31g/t silver (5.09 g/t Gold equivalent), and those at the San Luis workings which lies east and below the Los Hilos tunnel, where recent surface and underground sampling returned 759.5 g/t silver and 0.36 g/t gold over 1.25 m (13.01 g/t gold equivalent), including 1565 g/t silver and 0.619 g/t gold over 0.6m (26.70 g/t gold equivalent) (complete assays from this area are included at the end of this news release).

In addition, the deeper potential for porphyry related mineralization has also been established as a result of drilling in the southern end of Filo de Oro where holes such as LH-18 encountered a mineralized intrusive porphyry (1.55 g/t gold with 14.4 g/t silver or 1.71 g/t gold equivalent). This makes the Los Hilos property an outstanding target on its own and it is only one portion of the Las Bolas/Los Hilos property which is a part of our larger Uruachi Camp (to see map please click on: www.goldengoliath.com/images/Final%20map%20for%20press%20release%201.pdf).

The Filo de Oro trend encompasses many zones of mineralization identified by the Company through previous surface and underground sampling. Twenty five widely spaced drill holes were completed and results have confirmed wide spread mineralization, mainly from surface, but also at depth. Further, drilling intercepted other higher grade vein systems enhancing the potential of the Property and confirming the Company's geological model it has been developing. The natural lay-out of the ridge forming the Filo de Oro trend makes it an ideal location for open pit mining.

Orito Zone: Diamond drill hole DD-LH-27 is a 60m step out from previous drilling in the Orito zone and is reported in the chart below along with results from previous drilling in this zone. Two prior drill holes 100m apart (LH-14 and 15) demonstrated consistent mineralization from surface. A third drill hole (LH-20) from the same set up as LH-14 was completed to confirm mineralization between these holes. Encouraging results led to a 60m step out drill hole (LH-27).

ORITO ZONE
Drill Hole From (m) To (m) Width (m) Gold g/t Silver g/t Gold Eq* Comments
LH-27 3.72 39.16 35.44 0.30 31 0.817 g/t  
LH-14 0 44.25 44.25 0.752 72 1.95 g/t Previously released
LH-15 0 51.85 51.85 0.41 42 1.12 g/t Previously released
LH-20 0 42.10 42.10 0.91 54 1.81 g/t Previously released
Including
LH-20 8.55 9.95 1.40 3.90 92 5.44 g/t Previously released
8.55 9.4 0.85 9.65 130 11.82 g/t Previously released
* Gold Equivalent = gold + Silver / 60

Agnico-Eagle Agreement:

While the Company has signed a Letter of Intent and reached mutually acceptable terms for an option and joint venture agreement with a Mexican subsidiary of Agnico-Eagle Mines Ltd. ("Agnico") (TSX:AEM)(NYSE:AEM), for the exploration and development of the Company's Las Bolas and Los Hilos properties, the Company had yet to receive final drill and surface/underground assay results from its most recent program on the properties.

"We are extremely pleased with the drilling results from Los Hilos," said Paul Sorbara, President of Golden Goliath. "The fact that Agnico-Eagle made an offer to option the property prior to the completion of drilling, I believe, demonstrates the potential of the property and a confidence in the work we are doing. What makes the potential for the property most exciting, apart from the encouraging results and Agnico-Eagle's interest, is the fact that all the drill holes completed on Los Hilos were mineralized, mineralization was encountered near surface in all but one of the drill holes and mineralization is open in all directions."

Final results from the Las Bolas part of the Company's recent drill program are expected shortly. The drilling at Las Bolas was designed to expand upon its existing resource and define the extent of other known mineralized areas identified by the Company which, while not included in the Company's 43-101 resource calculation, are areas previously developed and/or mined over 100 years ago.

Las Bolas is roughly in the centre of The Company's extensive land holdings in the Uruachic Camp, which is an emerging new gold–silver district in Mexico. Fresnillo PLC's new multi-million ounce Orisyvo gold/silver deposit, one of that company's flagship new discoveries, lies only a few kilometres to the southeast of Golden Goliath's property boundary and considerable surrounding ground has been acquired by Peñoles. Golden Goliath has recently signed a Letter of Intent with a Mexican subsidiary of Agnico Eagle Mines regarding an Option/Joint Venture on the Las Bolas/Los Hilos property. Golden Goliath has other very attractive targets in the area, some even closer to Orisyvo, and owns all of that ground 100% (see website for maps).

About Golden Goliath

Golden Goliath Resources Ltd. is a junior exploration company listed on the TSX Venture Exchange. The Company, in conjunction with Agnico-Eagle Mines which has agreed to option portions of the Company's property, is focused on exploring and developing the gold and silver potential of an historic mining camp located in the world famous Sierra Madre Occidental Mountains of northwestern Mexico. The Qualified Person who has reviewed and approved this release is J. Paul Sorbara M.Sc., P.Geo.

San Luis Surface and Underground Channel Sample Assays
  Weighted Average
Sample WIDTH (m) Au ppm Ag ppm Au ppm Ag ppm Width (m)
179001 0.50 0.029 40.5 0.07 99.6 1.25
179002 0.75 0.099 139
179003 0.85 0.005 39.6 0.04 61.9 2.15
179004 0.70 0.091 123
179005 0.60 0.026 22.3
179006 1.00 0.021 53.5 0.02 63.8 1.70
179007 0.70 0.03 78.4
179008 0.75 0.049 50.2      
179009 0.55 0.007 22 Single Sample
179010 0.60 0.025 20.3 0.02 21.1 1.30
179011 0.70 0.013 21.7
179012 1.00 0.005 11.6 0.01 12.2 1.60
179013 0.60 0.005 13.3
179014 0.70 0.009 30.3 0.01 38.6 4.75
179015 0.85 0.021 20.8
179016 0.65 0.033 167
179017 0.90 0.005 32
179018 1.15 0.007 7.6
179019 1.20 0.013 16.5
179020 0.90 0.02 8.5 Single Sample
179021 0.55 0.2 24.4 0.19 18.0 2.25
179022 1.05 0.186 18.3
179023 0.65 0.172 12.1
179024 0.90 0.088 12.3 Single Sample
179025 0.65 0.257 115 0.26 86.6 1.30
179026 0.65 0.264 58.1
179027 0.50 0.424 18.3 0.34 14.3 1.25
179028 0.75 0.281 11.6
179029 0.80 0.211 28.3 Single Sample
179030 0.80 0.354 30.4 0.27 19.6 1.55
179031 0.75 0.178 8
179032 0.65 0.184 76 0.22 66.2 1.20
179033 0.55 0.271 54.6
179034 0.70 0.133 51.5 Single Sample
179035 0.75 0.174 58.6 0.20 42.2 1.60
179036 0.85 0.215 27.8
179037 0.60 0.005 133 0.14 115.6 1.60
179038 0.50 0.172 61.4
179039 0.50 0.265 149
179040 0.90 0.127 26.7 0.22 33.2 1.55
179041 0.65 0.344 42.3
179042 0.90 0.204 114 Single Sample

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

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