ICN Resources Ltd.
TSX VENTURE : ICN

ICN Resources Ltd.

May 17, 2011 10:53 ET

ICN Reports Initial Drill Results From Goldfield Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 17, 2011) - ICN Resources Ltd. ("ICN" or the "Company") (TSX VENTURE:ICN) is pleased to announce initial drill results from their current flagship project, the GF Bonanza project, which is under option from Lode Star Gold, Inc., a private Nevada corporation and is located in the historic Goldfield mining district of Nevada.

Core hole ICN-003 intercepted 45.6 metres of 96.3 g/t Au (uncut).

The intercept contains an upper portion assaying 1,454.3 g/t Au over 2.9 metres, followed by a lower grade interval of 42.7 metres of 4.2 g/t Au (see Table 1 below). If the three highest grade intervals of 1.22 metres @ 2,710 g/t Au (79.1 opt), 1.68 metres @ 541 g/t Au (15.8 opt) and 1.98 metres @ 57 g/t Au (1.6 opt) are cut to 1 opt (34.3 g/t), the intercept becomes 45.6 metres of 5.1 g/t (cut to 1 opt).

TABLE 1: Summary Core Hole Results
Hole IDAzimuthAngleFrom (m)To (m)Interval (m)Au (g/t)Location - Twin Hole
ICN-001Vertical*-24.143.919.80.65Church (Twin TG-107)
51.574.723.210.51
including59.861.61.83119.3
80.5123.242.71.40
140.9149.18.21.03
ICN-002Vertical*-21.024.13.01.79Church (Twin TG-40)
36.345.49.14.08
55.869.814.00.55
ICN-003Vertical*-16.962.545.696.3Church (Twin TG-113)
including16.919.82.91454.3
and19.862.542.74.18
ICN-004270*- 60°22.163.040.91.41Church (across zone)

* Note: True width is unknown, but in the vertical holes, true width is most certainly less than the overall interval lengths reported. All intercepts were calculated using a 0.01 opt cutoff (0.343 g/t).

The 1 opt cut was selected because this is the historic average grade mined during the early history of the district (1903-1914), and it should be noted that there is no statistical basis for the selection of this value. Multi-ounce gold ore was mined historically in the Goldfield district, with some stopes carrying values in excess of 1,000 opt Au.

Hole ICN-003 intercepted, an upper high grade zone of mineralization, followed by a longer interval of lower grade material, at shallow depth, beneath post mineral cover. The high grade encountered is located at the contact of the post mineral cover rock and the underlying units typical of the mineralized sequence in the main Goldfield district. The fact that the third hole located an example of classic "main district style" mineralized material occurring just beneath post mineral cover, confirms ICN's exploration strategy that post mineral rocks (previously interpreted as contemporaneous with mineralization) do in fact mask high grade quartz-alunite ledges similar to what was mined in this historic + 4M oz district.

Carl Hering, President and CEO of ICN Resources commented that, "These initial results are extremely encouraging. While we are targeting high grade mineralization in our overall exploration program, it was not anticipated that we would be this successful in the first few drill holes. It is necessary to complete additional drilling in order to fully understand the significance of these initial results. Nonetheless, it is important to recognize that the results do validate our exploration model in the district, exploring for high grade "main district" style mineralization under the post mineral cover. ICN is continuing exploration with both a core rig and a RC rig currently on-site, and numerous untested exploration targets remain both north and south of the Church area."

The core program, still on-going, was designed to twin historic, non-43-101 compliant drill holes, as well as angle across the old vertical holes (Hole ICN-004) to facilitate geologic interpretation of the shallow Church vein zone. Holes ICN-001, 002 and 003 are all twins of historic, vertical, conventional rotary drill holes and lie within 50 m of each other. Hole ICN-004 was a west directed angle hole, drilled from the same pad as hole ICN-003 which crossed the historic, vertical holes.

Hole ICN-001 also encountered a multi-ounce intercept of 1.83 m of 119.3 g/t Au included within a longer interval of 23.2 m of 10.5 g/t or 3.5 g/t cut (see Table 1). In the three historic TG holes (1979-1981) twinned by ICN, the mineralized intercepts average 1.5 metres, and the highest grade interval reported is 13 g/t Au (0.38 opt). The interval in hole TG-113 that corresponds to the 2.9 m of 1,454 g/t Au encountered by twinning with ICN-003, reported 3.05 metres of 4.5 g/t Au. It is presently unclear why the new ICN core hole twins don't match grades in the historic holes particularly well, nor why the ICN holes encountered several multi-ounce intervals where none were reported in the historic holes. Possible reasons for the poor grade correlation between the twin holes may be the result of the generally known poor recovery and sampling methodology typical of "pre-reverse circulation", conventional rotary drilling, and/or, it may reflect the highly variable nature of mineralization in high sulfidation gold systems of the type found in the Goldfield main district. More work is currently being completed to resolve this discrepancy and to determine the potential significance of the high grade zones encountered in ICN's initial drilling.

It should also be noted that check assays on the entire interval reported herein for hole ICN-003 were completed at a second laboratory prior to releasing results as a precautionary measure given the high grade mineralization. All of the original results compare favorably with the check assay results, except for the highest grade interval containing 2,710 g/t Au (79.1 opt). The check assay on this sample returned a value of 2,410 g/t Au (70.3 opt). Native gold, which was not common in the historic district, was identified in the core from this interval and may account for the discrepancy. Additional assay work is required (metallic screen assay in process) in order to determine a more precise value. The second highest grade sample, which originally assayed 541.7 g/t Au (15.80 opt) by gravimetric method, re-assayed at the second lab as 553.0 g/t Au (16.13 opt), thus indicating less of an issue with particulate gold in this interval.

All sampling on the GF Bonanza Project follows best practice 43-101 accepted principles and is being conducted by ICN personnel or consultants. Original assays were completed at ALS Chemex in Reno, Nevada, and the check assays were completed by American Assay, also located in Reno, both of whom are certified laboratories. At both labs, an initial fire assay with atomic adsorption finish was completed for all samples, and subsequently, for samples in excess of 10 g/t, a conventional gravimetric assay was conducted. For the higher grade samples reported herein, at least three different samples (pulps), separately prepared from the original coarser material, were analyzed. ICN randomly inserts standards, blanks and duplicate control samples to monitor laboratory performance. Results reported herein have been checked and undergone rigorous Quality Control review.

Tim Percival, CPG and a P.Geo., a Qualified Person as defined by National Instrument 43-101, and a consultant to the Company, has reviewed and approved the technical information contained in this news release.

About ICN Resources

ICN is primarily focused on exploration for volcanic-hosted precious metal deposits in western Nevada, emphasizing targets with geological similarities to Sleeper, Sandman, Hollister, Midas and Aurora. ICN plans to explore the feeder zones associated with large low-grade gold and silver systems, as well as explore for high grade deposits at the new Goldfield Bonanza Project located in western Nevada. ICN continues to evaluate opportunities in established metallogenic belts elsewhere in the United States. The ICN management and geological team have extensive experience in Nevada and worldwide, utilizing this experience to generate prime opportunities for ICN shareholders.

On Behalf of the Board of Directors of ICN Resources Ltd.

Carl Hering, President & CEO

The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, ICN does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by law. By its very nature, such forward-looking information requires ICN to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

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

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