SOURCE: Hunt Gold Corporation

February 23, 2009 07:50 ET

Hunt Gold Corporation -- Initial Assay Reports Prove Gold Reserves

Company Releases the Initial Assay Reports From Its First Drilling Program and Proves Gold Mineralization in Each of Its Core Samples

NEW YORK, NY--(Marketwire - February 23, 2009) - Hunt Gold Corporation (PINKSHEETS: HGLC) announces the assay results from the first five drill holes of its first recently completed drill campaign at the Company's "Mockingbird" Gold Project in Arizona. The assay work was done by Jacobs Assay of Tucson, Arizona.

- All of the first five drill holes encountered Gold Mineralization.

- Management considers these Assay initial results to be solid and positive but is of the opinion that the Assay Results from the remaining three drill holes to be of a far higher grade and Jacobs Assay has elected to place the assays for the other 3 drill holes in "EXCEPT" meaning that 3 or 4 intervals in the "ore zone" are listed as "pending." Management is of the opinion that Jacobs Assays has higher gold values for these intervals, and to that end, they are re-running the tests to ensure that these higher grade Assay Results are as expected by your Management Team. These additional Assay Results will be announced shortly.

- Based upon proven historical geological and drilling and Assay Results and data supported by the current ongoing exploration work at the Company's "Mockingbird" Gold Property, Management is of the opinion the new extensive drilling and exploration campaign will yield considerably higher grades than detailed in this announcement and considers this substantial investment to be justified.

- Initial Assay Results clearly prove that Management's decision to embark upon the Company's new "Non Stop" Drilling Campaign at considerable expense is justified based upon the initial phase of drilling and the subsequent Assay results announced today. Management considers its decision to authorize the US$10 million in Convertible Bonds to be sound and sensible given the proven Gold Mineralization of its small initial drilling campaign; now allowing for a massive drilling program to commence without delay.

- New Drilling Contracts to be announced this week and to commence without delay. Bids for 5,000 feet of reverse circulation (RC) drilling have been solicited from the final two preferred drilling companies. The Company is currently in the second round of this bidding. This RC drilling will be at a dramatically lower cost per foot than the core drilling done for the first drill campaign.

- An additional 320 acres of mining claims have been staked this week, bringing the Company's "Mockingbird" Gold Project claims to almost 3,000 acres.

All five drill holes encountered gold mineralization. Two holes at the Company's "Great West Gold Mine" on the "Mockingbird" Gold property encountered especially encouraging gold intervals: GW-08-1, 110 feet to 115 feet, .070 ounces of gold per ton and GW-08-04, 105 feet to 110 feet, .041 ounces of gold per ton. Open pit gold mines in the Arizona / California / Nevada region have profitably mined gold that assayed as low as .02 ounces per ton, although establishment of the cutoff grade for mining at Mockingbird will need to await preparation of the feasibility study, which will require several more rounds of drilling.

Hunt Gold Corporation's CEO, Michael G Saner stated that "We are very pleased that the initial drill results confirm the Company's view that its 'Mockingbird' Gold Property is a gold bearing system. Furthermore, the potential gold ore is in the zones predicted by the Company's geologists, which means that we are gaining an understanding of the gold mineralization at what is at present our flagship Gold Property." Mike Saner added that "I am proud of all of the extensive, intensive and methodical work being done by the entire team to prepare for this second and hugely extensive drilling campaign. This is a big property, with dozens of mineralized outcrops, and we intend to drill in all of the right places for all of the right reasons."

As previously announced, the Company is well underway in establishing a geochemical control grid at the property. Over 50 rock chip samples have been taken so far from numerous historic workings throughout the 4+ square mile property. Upon completion of this work, the anomalous values for gold, silver and copper (a pathfinder element at the Company's "Mockingbird" Gold Property) will be mapped, contoured and used to select drill sites for the next drill campaign.

The main targets for the next round of drilling will be in the vicinity of the low-angle Mockingbird Detachment Fault, which is a sub-horizontal interface between the older Precambrian rocks and the younger overlying upper plate Tertiary volcanic rocks. This zone was mined at the Mockingbird Mine itself and hosted a majority of the Mockingbird District's historic production of 15,000 ounces of gold.

The assay results for gold and silver for the first five holes are:

Hole Number       Interval (feet) Gold (ounces / ton) Silver (ounces / ton)
----------------  --------------- ------------------- ---------------------
Great West Mine
GW-08-1            70 - 95         < .001             < .05
                   95 - 100        < .001               .05
                  100 - 105          .002               .05
                  105 - 110          .005               .05
                  110 - 115          .070               .10
                  115 – 120          .001             < .05

GW–08-2            80 – 85         < .001               .05
                   85 - 90           .001               .05
                   90 – 100        < .001               .05
                  100 – 105        < .001               .10
                  105 – 115        < .001               .05
                  115 – 120          .001               .10

GW-08-03           37 – 40           .002               .05
                   40 – 45         < .001               .10
                   45 – 50           .003               .15
                   50 – 55           .003               .05
                   70 – 75           .004               .05
                   75 – 80           .006               .25
                   80 – 85         < .001               .05
                   85 – 90           .002               .05
                   90 – 95           .001               .05
                   95 – 100        < .001               .05
                  100 – 105        < .001               .10
                  105 - 110        < .001               .15
                  110 – 115          .001               .05
                  115 – 120        < .001               .15



GW-08-04           45 – 55         < .001             < .05
                   55 – 65         < .001               .05
                   65 – 70         < .001               .10
                   70 – 75         < .001               .05
                   75 – 80         < .001               .10
                   80 – 90         < .001             < .05
                   90 – 95         < .001               .15
                   95 - 100          .002               .10
                  100 - 105          .001               .15
                  105 – 110          .041               .15
                  110 – 120        < .001               .05
                  140 – 150          .001               .15
                  150 – 155        < .001               .20
Pocahontas Mine
P-08-1
                  107 - 110.5      < .001             < .05
                110.5 - 115          .003             < .05
                  115 - 120          .001             < .05
                  120 - 125          .006             < .05
                  125 - 130          .003             < .05
                  130 - 135          .001               .10

Hunt Gold Corporation provides an additional update on its aggressive exploration program at the Company's "Mockingbird" Gold Project in Arizona.

Over the past two weeks, the Company's Head Project Geologist, Ed Huskinson and his team have sampled existing mine workings throughout the project's 4 square mile area. Approximately 40 of these samples were shipped out yesterday to an independent assay office; that being Skyline Labs of Tucson, Arizona. Workings with encouraging gold values in the samples will be considered for inclusion in the next round of drilling.

Some of these historic mine workings were located outside the Company's claim block. As a result, an additional 320 acres of mining claims have been staked this week, bringing the Mockingbird Project total claims to almost 3,000 acres.

Project management is in the process of preparing a new Notice of Intent to file with the BLM for the second round of drilling. The Company has completed reclamation of the minor surface disturbance from the first phase of drilling, so it will be able to transfer the BLM bond from the first phase of drilling to the second program.

In order to drill in Section 22 (where the historic Mockingbird Mine is located), the Company will need a special use permit from the State of Arizona. The State is requiring an archaeological survey prior to issuance of the permit. The Company is in the process of arranging for the archaeological survey, which is a routine requirement for operations on State of Arizona lands. As a result, the Company may start the second round of drilling with drill sites located on BLM ground, and drill in Section 22 later in the campaign once the State permit is obtained.

ABOUT HUNT GOLD CORPORATION

Hunt Gold Corporation is a Gold Mining & Exploration Company focused on the development and exploration of its Gold properties, namely "Mockingbird," "Ambassador," "Golden Eagle," "Gladstone Lookout," "Lady Alde," "Williamson," "Blue Copper Mine," "Starlight," "American Flag," "Venezia," "Stormcloud," "Cherry," "Buffalo Limecap," "Red Cloud" and "Federal." The Company has completed the sale of its "American Molygold" interests and will be distributing the entire sale proceeds through a Stock Dividend to its stockholders. The Company has disposed of its "Lookout" Silver Projects and will be retaining an amount of US$65 million in quoted stock from that disposal.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.

Contact Information

  • For further information contact:

    MDM Worldwide Solutions, Inc. (Investor Relations Enquiries)
    E Mail: Email Contact
    Telephone: (646) 961-4458
    Contact: Richard Hausig

    Hunt Gold Corporation (Corporate Enquiries)
    E Mail: Email Contact
    Telephone: (954) 840-6956
    Contact: Mr. Michael G Saner