Gossan Resources Limited

Gossan Resources Limited

October 27, 2006 16:20 ET

Gossan Identifies Drill Targets at Sharpe Lake

WINNIPEG, MANITOBA--(CCNMatthews - Oct. 27, 2006) - Gossan Resources Limited (TSX VENTURE:GSS)(Frankfurt/Freiverkehr:GSR) has received a National Instrument 43-101 Report on its Sharpe Lake Property which was prepared by Jens C. Pedersen, P.Geo. The Report compiles the work that has been conducted on the property and recommends a drill program to investigate gold mineralization at the Bear Showing at the west end of Sharpe Lake. Gossan intends to seek a joint venture partner to undertake the drill program. The Manitoba Securities Commission has recently completed a review of the Report which has now been posted on SEDAR (www.sedar.com).

Over the past 16 months, Gossan has focused its attention at the property on the Bear Showing at the west end of Sharpe Lake. This summer, Gossan has completed a second MMI geochemical survey, the results of which are pending, to expand the survey area at the Bear Showing with the goal of identifying additional drill targets. Based on the success of a field program in the summer of 2005 which identified a favourable a gold-copper MMI geochemical anomaly, a two phase program was conducted over the past winter. In March, 2006, a geophysical program was undertaken consisting of a 30.7-line km induced polarization - resistivity survey and a 48-line km magnetic survey which resulted in the identification of co-incident geophysical-geochemical anomalies. In January 2006, a 50.4-km grid was cut on 200m spacing at the Bear Showing and additional claims, totaling 799 hectares, were staked outside the existing exploration permits. In addition, data from a 3510 line-km airborne magnetic survey conducted over the properties in early 2004 has been reprocessed and enhanced. Results from these programs have now been compiled in a National Instrument 43-101 Report.

Pervasive and intense alteration at the Bear Showing is highly significant and reflective of major hydrothermal fluid migration. With a minimum strike length of six kilometres bounded by bifurcations of the Stull Lake-Wunnummin Fault Zone (SWFZ), a major crustal break, the Bear zone is considered a high priority target for economic gold deposits. The geology at the Bear Showing has been re-interpreted as a young felsic intrusive bounded by a broad 50-100 metre wide breccia zone to the south and bounded to the north by linear magnetic anomalies and gold and copper MMI soil geochemical anomalies associated with a pronounced topographic creek-hosted linear. Alteration in the leucotonalite is likely associated with internal hydrothermal processes, which could be potentially introducing or remobilizing gold, both internally in the intrusion and outward to structural traps. To date, five targets have been identified with four being multiple anomalies including a 4000 metre long co-incident Au-Cu MMI - IP - Magnetic anomaly along the projected fault contact between the felsic intrusive leucotonalite and mafic volcanics.

Gossan's Sharpe Lake Properties are located between the formerly-producing God's Lake Gold Mine and adjacent to Rolling Rock Resources' (formerly held by a Wolfden-Bema Gold Joint-venture) Monument Bay Project which straddles the Ontario border, approximately 560-km northeast of Winnipeg. Gossan's Sharpe Lake Properties are currently comprised of three exploration permits and 6 new claims acquired over the past winter which cover 24,152 hectares (59,680 acres) along 40-km of strike length. Wolfden Resources Inc. previously reported an initial inferred resource of 1.07 million tonnes grading 15.36gpt gold at Monument Bay.

Jens C. Pedersen, P.Geo. is a Qualified Person and he has approved this news release.

Gossan Resources Limited is engaged in mineral exploration in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty metals, tantalum, chromium, titanium and vanadium. The Company also has a large deposit of magnesium-rich dolomite and a silica sand prospect. Gossan trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and has 19,719,901 shares outstanding, excluding the shares issuable in a previously announced private placement (24,118,677 shares fully diluted).

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

Contact Information

  • Gossan Resources Limited
    Douglas Reeson
    Chairman & CEO
    (204) 943-1990 or Toll Free Toll Free: 1-800-462-4283
    (204) 942-3434 (FAX)
    E-mail: info@gossan.ca
    Website: www.gossan.ca