ICN Resources Ltd.
TSX VENTURE : ICN

ICN Resources Ltd.

August 12, 2011 18:50 ET

ICN Reports RC Drill Results and Drilling Update for the Goldfield Bonanza Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 12, 2011) - ICN Resources Ltd. (TSX VENTURE:ICN) ("ICN" or the "Company") is pleased to announce the results of the remaining reverse circulation (RC) drill holes completed during its Phase I exploration drill program on the Goldfield Bonanza Project. The Goldfield Bonanza project, under option from Lode Star Gold, Inc., a private Nevada corporation, is located in the historic Goldfield mining district of Nevada. The Goldfield district is well known for multi-ounce, bonanza grade gold ores and has recorded historic production in excess of 4 million ounces of gold. From 1903 through 1912, the District produced 3 million ounces of gold at an average grade of 1.81 oz/ton Au (62 g/t).

RC Highlights:

  • Mineralization extended 250 metres along strike to the north of the high grade Church Zone.
  • Exploration drilling south of the Silver Pick Shaft encountered a brecciated and silicified zone over a strike length of 300 metres in the first known drill testing of this portion of the property.
  • Overall, the RC exploration drill program identified new areas of mineralization over a combined length of 700 metres along the main structural corridor.

RC Holes ICR-004 to ICR-029 were drilled during May and June of this year, for a total of approximately 4,300 metres in 25 holes. Results of the first three (3) RC holes, drilled in the newly identified high grade Church Zone target area, were released on June 9, 2011. The 25 RC holes reported herein are distributed throughout property, and are the first exploration holes ICN has drilled away from previously known mineralized areas, including the high grade Church Zone.

Carl Hering, President and CEO of ICN Resources stated that, "The RC drill results are certainly significant from a geologic standpoint as they are the first exploration holes drilled in the northern and southern portions of the property. The areas tested are covered by post mineral rock, and collar locations were selected based on limited geologic information. Despite this fact, a number of the holes encountered silicified and mineralized zones requiring further drill testing. We are particularly encouraged by encountering mineralization along the north extension of the high grade Church zone, extending the potential strike here to over 250 metres, while remaining open to both the north and south."

The RC drilling was focused on five (5) main target areas as discussed below. Particularly encouraging results were obtained in the area lying immediately to the north of the Church Zone (see ICN News Release of May 17, 2011 for initial results in the Church Zone), and along the southern extension of the Silver Pick workings (see Table 1 below).

The long intervals intercepted north of the Church Zone are indicative of proximity to areas of stronger mineralization. Drill results between the Church Zone and the January-Combination open pit extend the strike of the identified mineralization over 250 m to the north of the high grade ledge at the Church Zone. For example, hole ICR-023 encountered 44.2 m @ 0.58 g/t Au and hole ICR-019 intercepted 12.2 m @ 1.32 g/t Au. Information to date from all previous work suggests that long, low grade intercepts are often found near high grade, multi-ounce ledges.

Table 1: Summary of RC Drill Intercepts ICR-004 to ICR-029
Hole ID Azimuth Inclination TD (m) From (m) To (m) Interval (m) Au (g/t)
Decline Structure - 4 Holes
ICR-005 75 -65 170.7 53.4 64.0 10.7 0.44
ICR-013 75 -70 152.4 143.3 147.9 4.6 0.90
Phelan Shaft - 5 Holes no significant results
Silver Pick Shaft - 7 Holes
ICR-008 255 -70 164.6 122.0 128.0 6.1 0.50
ICR-009 255 -60 170.7 144.8 149.4 4.6 0.57
ICR-012 255 -70 158.5 154.0 157.0 3.0 1.03
ICR-020 255 -75 353.7 99.1 103.7 4.6 0.59
North Extension of Church - 6 Holes
ICR-019 90 -70 158.5 80.8 93.0 12.2 1.32
ICR-021 90 -60 158.5 97.6 108.2 10.7 0.79
117.4 120.4 3.0 0.41
125.0 129.6 4.6 0.88
137.2 140.2 3.0 0.46
ICR-023 90 -60 140.2 71.6 115.9 44.2 0.58
ICR-025 90 -60 164.6 93.0 132.6 39.6 0.43
Geophysical Targets - 4 Holes
ICR-027 270 -60 262.2 74.7 77.7 3.0 0.43
Note: Intervals are calculated using a.01 opt (.34 g/t) cut off over a minimum of 10 feet (3.05 m). True width is unknown, as identified mineralized structural orientations are variable. Holes in number sequence not shown in the above table returned either less significant or no significant results.

Drill holes located south of the Silver Pick shaft were designed to test for the presence of a large, low grade (1 to 4.9 g/t) breccia body reported by Searles (Univ. of Nevada Bull. vol. XLII, no. 5, 1948) as being found between the 271' (82 m) and 500' (152 m) levels of the Silver Pick workings. The ICN RC drilling returned relatively narrow intercepts in the 0.5 to 1 g/t range from a silicified and veined zone. Given the fact that none of these holes encountered old workings or backfilled areas as might be expected from drill hole placement, it appears that there may be a discrepancy in the underground surveys of the 1920's to 1950's and their relationship to the ICN surface survey control. However, the fact that mineralization was encountered in a consistent silicified zone, striking roughly north-south and dipping east as reported by Searles, suggests that we are proximal to the target area. Additional drilling will be completed, particularly further to the south, as drill hole ICR-012, the southern-most drill hole, returned the best gold intercept of 1.03 g/t in the 300 m long silicified and variably mineralized corridor that comprises the Silver Pick target.

The Phelan target is located approximately 100 metres northwest of the Silver Pick shaft, and the five RC holes drilled here also intersected a silicified and veined north-northwest-trending structural zone averaging 13 metres wide in the drill holes. Geologic and the alteration features suggest proximity to the high-grade Phelan ledge (reported to be > 3 opt Au), but none of the holes contained significant assay results. Drill results in the Decline Structure and in the four geophysical targets tested indicate that additional analysis of these target areas is required. Drill hole maps and complete results will be posted on the Company web-site following release of the core hole results early next week.

Drill Planning Update

A specialist has been engaged to complete mineralogical studies on selected core and RC holes using a TerraSpec analytical spectrometer. The purpose of this work is to assist in determining alteration mineral zonation to be interpreted in conjunction with selected trace element analyses. Results from both of these studies will be utilized to focus more precisely on higher grade portions of specific target areas. In addition, a biogeochem survey is being conducted in the areas of post mineral cover. Biogeochem is a similar to a soil survey, with the exception that it utilizes trace element analysis of vegetation samples collected on a grid to detect sub-surface geochemical anomalies in concealed areas that would otherwise be undetectable by conventional soil sampling.

New data developed from the above programs will be integrated into the overall database for the purpose of planning a Phase II drill campaign. The Company is currently planning a Phase II drilling program, to be initiated within the next three to six weeks.

QA/QC

All sampling on the Goldfield Bonanza Project follows NI 43-101 accepted principles and is being conducted by ICN personnel or consultants (National Instrument 43-101 Standards of Disclosure for Mineral Projects). Assays for the RC holes were completed at ALS Chemex in Reno, Nevada, an ISO:9001 certified laboratory and/or by American Assay, Reno, Nevada, also an accredited laboratory. Initial fire assay with atomic adsorption finish is completed for all samples, and subsequently, for samples in excess of 10 g/t Au, a conventional gravimetric assay is conducted. ICN randomly inserts standard reference material, blanks and duplicate control samples to monitor laboratory performance. Results reported herein have been checked and have undergone quality control review.

Tim Percival, CPG and a P.Geo., a Qualified Person as defined by NI 43-101 and Chief Geologist for 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

ICN Resources Ltd.

www.icnresources.com

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. 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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