SOURCE: Hunt Gold Corporation

February 13, 2009 09:18 ET

Hunt Gold Corporation - Update on Assay Results

Company Updates Its Stockholders on Assay Results & Expectations of Gold Deposits

NEW YORK, NY--(Marketwire - February 13, 2009) - Hunt Gold Corporation (PINKSHEETS: HGLC) today addresses the questions that investors have been asking about why it is taking so long to release assay results for the recent and initial drill campaign at the Company's "Mockingbird" Gold Property in Arizona. As your Company's Project Geologist Ed Huskinson often states, "Quality results take time."

Before the assay process even begins, the drill core needs to be logged, split, placed in sample bags and shipped to the Assay Laboratory. Splitting the core involves taking an electric saw and sawing end to end through hundreds and hundreds of feet of drill core. The core from this drilling program was mostly gneiss (altered granite), a very hard rock indeed.

The splitting of the core took weeks of effort by Mr. Huskinson and his team. While the core from the very first hole was split and sent to the Assay Laboratory in late December of 2008, this process was not completed for the final and eighth drill hole until the end of last week.

Once at the Assay Laboratory, the drill core is processed at time frames which are at the Assay Laboratory's discretion and your Company's Management is in their hands, from a timeframe perspective. While current economic conditions have resulted in significantly less exploration activity by other mining companies, our work is not the only work undertaken at the Assay Laboratory. Once the Assay Laboratory started on our work on our core samples, the pulps are prepared from the split core. They are then put through the fire assay process, which is still the preferred choice for laboratories all over the world. Typically, the samples are mixed with fluxing agents including lead oxide, and fused at high temperature. The lead oxide is reduced to lead, which collects the precious metals. Once cooled, the lead remains at the bottom, while a glass-like slag remains at the top. The precious metals (Your Company is having its samples assayed for both gold and silver) are then separated from the lead by cupellation. The final technique used to determine the gold and other precious metals contents of the residue can range from a balance (for very high grade samples), to AAS, ICP-AES or ICP-MS. Finally, the gold and silver content of the remaining residue is determined.

The Assay Laboratory then checks its calculation before releasing the assay results. This whole process can and does take over a month. The recent drill campaign was interrupted by the worst snow storm in the Las Vegas area since 1979; this coupled with the Assay Laboratory closed for the Holidays, so no assay work (other than preliminary sample preparation) was begun by the Assay Laboratory lab until January of 2009.

Hunt Gold's Management will not know definitively of any gold in the drill core until the assay results are in from the Assay Laboratory, however, Management has proven historical data verifying that the four mines at the Mockingbird Property historically produced gold. Please be aware that Your Company's Management has, collectively, over 200 years of experience between them, and we would not be expending enormous sums of money and energy on these projects unless we were convinced that our efforts are based on provable numbers, and that we have the wherewithal to significantly increase our productivity, as well as our reserves.

The tailings of all four mines, plus the Williamson and Blue Copper Mines, all forming part of the Company's "Mockingbird" Gold Mine were previously sampled by Geologist John McIntyre. These samples were taken from the waste rock piles and represented mineralization that the previous miners regarded as too low grade to send through the mill, so they should not be viewed as representative of the remaining unmined deposit. These tailings may in fact prove to be an as of yet unrecognized significant additional asset, due to more modern refinery capabilities than were previously employed.

Jacobs Assay at that time, released the following results for McIntyre's sampling (values in ounces per ton):

Mockingbird Mine:

Sample #        gold            silver

37              .004             .30
38              .009             .75
39              .026             .30
40              .008             .10
41              .003             .15
42              .002             .25

Great West Mine:

43              .003             .35
44              .271             .65
45              .067             .40
46              .002             .10

Pocahontas Mine:

47              .003             .30
48              .001             .05
49              .025             .05
50              .003             .05

Dandy Mine:

51              .003             .10
52              .004             .10
53              .063             .25
54             2.024            1.10
55              .005             .05
56              .022             .20

Williamson Mine:

1               .026             .35
2               .049             .25
3               .050             .40
4               .005           < .05
5             < .001           < .05

Blue Copper Mine:

                .024           < .05

Of these 26 samples, all but one had detectable gold, and all but 3 had detectable silver. While your Company will not know the cut-off grade for what is considered "ore" until a feasibility study is completed following drilling out of the project, open pit gold deposits in the Arizona, Nevada and California area have profitably mined ore with a grade as low as .02 ounces of gold per ton, so 11 of the 26 samples had a potentially economic gold grade. Finally, two of the samples could be considered "high grade," with a gold content over .1 ounce per ton (one sample at the Dandy mine was over 2 ounces per ton).

In summary, your Company has no doubts whatsoever that there is gold at the Mockingbird Property. Whether the first 8 drill holes encountered gold will only be known when the assay results are received.

In the interim, we shall be announcing the awarding of the drilling contract; the recipient of this contract(s) will be drilling on a number of your Company's Gold properties' drill sites continually being selected by our Professional Geologists. This will be a "non stop" drilling process with no breaks whatsoever in drilling, (barring adverse weather conditions); using a "state of the art," faster and less costly drilling process. The present intention is to use a track-mounted or rubber tire (buggy) rig capable of reverse circulation (RC) drilling. RC drilling is much more economical on a per foot basis than core drilling and will permit the next drill campaign to dramatically increase the footage drilled. Using such a drill rig minimizes the need to construct drill roads, thus operating in a much more environmentally friendly manner with minimum disturbance, and having the added benefit of greatly reducing BLM bonding requirements.

Hunt Gold Corporation's Project Geologist Ed Huskinson initiated a comprehensive reconnaissance sampling program at the Company's "Mockingbird" Gold property. Numerous additional mineralized areas were discovered during the recent drill campaign, and this program is inventorizing and sampling the surface outcrops in a very thorough and scientific manner. Soil geochemical samples are being taken on a 200 foot grid over priority areas, most notably the 56 recently staked claims in the former Anaconda project area. Geochemical results will be posted onto a map and contoured, thus generating "bulls-eye" targets for the next phases of drilling.

This approach by the Company is a very "fast track," yet scientific approach designed and calculated to produce enormous amounts of data over this year with daily drilling results and ongoing Assay Results being published from our various Gold Mining properties. We will be continually drilling throughout this year to expand our gold resource and to advance our gold properties toward production. Nonstop exploration is at the heart of Hunt Gold's business model. Drilling will be expeditious and at best cost. Drill targets will continue to be selected in a prudent and geologically sound manner. Announcement of assay results will be regular and periodic as an ongoing part of the business.

Stockholders are reminded that their Company has only performed initial drilling on very small sections of its "Mockingbird" Gold property.

The new drilling campaign commencing this month will focus on a wide range of carefully selected drill sites over a large number of sections on the majority of Hunt Gold Corporation's Eleven principal Gold Mining properties. Exploration will be done during 2009 primarily at but not limited to your Company's "Golden Eagle," "Ambassador," "Venezia," "Starlight" and "American Flag" Gold Mining properties, as well as the continued "fast track" exploration taking place at our extensive "Mockingbird" Gold Project.

Hunt Gold Corporation's CEO, Mike Saner, stated that "Hunt Gold Corporation's exploration program at its 'Mockingbird' Gold Project is expanding as we continue to learn important new details about this exciting gold property. Exploration will be done in a systematic way in order to maximize 'Mockingbird's' potential for Hunt Gold Corporation and its shareholders." He added that "The new policy of nonstop but systematic drilling on numerous sections of the Company's Gold Mining properties are expected to significantly add to Hunt's Gold Resources and given the return of the Gold Price to a number now well in excess of US$900/oz; the value of the Company's Gold properties would continue to escalate rapidly."

Your Company is committed to strict compliance with any and all environmental requirements. As noted above, we are designing our exploration program to minimize environmental disturbance. Your Company is also committed to mine safety. In cooperation with the BLM and the Arizona State Mine Inspector, numerous former shafts, adits and other workings on the Mockingbird Gold property have been safety fenced, and official warning signs have been posted.

Your Team of Professionals at Hunt Gold looks forward to continually updating its shareholders about our progress in these exciting and timely endeavors.

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 companies' 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