ICN Resources Ltd.
TSX VENTURE : ICN

ICN Resources Ltd.

May 04, 2011 13:55 ET

ICN Updates Goldfield Bonanza Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2011) - ICN Resources Ltd. ("ICN" or the "Company") (TSX VENTURE:ICN) is pleased to provide the following brief update on exploration activities at its newly acquired Goldfield Bonanza Project, located in Nevada's historic Goldfield mining district. As previously announced, ICN finalized a Definitive Agreement with Lode Star Gold, Inc., a private Nevada corporation, in March to explore 31 patented claims lying in the western portion of this historic mining district. The claims optioned by ICN lie adjacent and immediately west of the ground currently being drilled by International Minerals Corporation.

During the time the Definitive Agreement was being finalized, ICN contracted with Zonge Geosciences, Inc. to complete a CSAMT (Controlled Source Audio Magnetotelluric) survey over the entire Property (approx. 200 ft. or 60 m line spacing). The field portion of this geophysical survey is complete, and the data is presently being interpreted and integrated into a comprehensive GIS database. Preliminary results demonstrate that this geophysical technique is quite effective at identifying key structural elements lying beneath the shallow post-mineral cover that overlies approximately two thirds of the claims. The CSAMT preliminary results indicate a potential strike length of over 5,000 feet (1500 metres) for the significant structural zone on the Property (<300 m of strike tested to date). Final interpretation of the data will aid in identifying exploration targets beneath the post mineral cover for drill testing in the near future. In addition to the CSAMT survey, Zonge recently completed a ground magnetic survey over the entire property, and this data will also be integrated into the final interpretation.

As the CSAMT survey was being completed, a core rig was mobilized to the Property to begin drill testing in areas of previously identified mineralization. Initial holes were designed to twin some of the historic drill holes to verify this historic, non 43-101 compliant data. Additionally, some of the ICN core holes have been angled across areas of previous shallow vertical drilling to aid in geologic interpretation of mineralized zones. Eleven core holes have been completed to date, for a total of 4,550 feet (1400 metres). All assays are being completed by ALS Chemex in Reno, Nevada, an ISO certified laboratory, and initial assay results are anticipated within 5 to 10 days.

More recently a RC (Reverse Circulation) rotary drill arrived on site. RC drilling is a faster and more cost effective method of completing drilling on exploration targets. Initially, the RC rig also twinned a few holes for comparative purposes, but it is now drilling on exploration targets identified from historic literature and summaries of historic mining at the Silver Pick, Phelan, January and Church workings. Following completion of the CSAMT interpretation, RC drill holes will test specific geologic and geophysical targets in order to complete initial exploration in areas of untested potential. Assay results from the first RC drilling should be available towards the end of May.

The core rig will continue drilling through May, while the RC rig has been contracted for a minimum of 15,000 feet (4,600 m). Results of the initial core and RC drilling will aid in verification of the historic data and generate information on new exploration targets. This initial drilling will assist in more detailed geologic interpretation of previously identified zones, as well as generating information on any new zones of mineralization encountered.

The Goldfield District was discovered in 1903 and has produced intermittently since that time, with the last recorded production coming from open pit operations conducted during the 1980's. According to Nevada Bureau of Mines and Geology Bulletin 78 (1972), the Goldfield District has recorded production in excess of 4.19 million ounces of gold from high grade quartz-alunite ledges, with some historic stopes grading in excess of 1 oz/ton Au (>34 g/tonne). Average grade of recorded gold production exceeded 0.5 oz/ton (>17 g/tonne). The Goldfield District is a classic, epithermal, high sulfidation gold system, hosted by volcanic rocks of Tertiary age. A large portion of the ICN-LSG Property is covered by a thin veneer (<130 feet (40 metres)) of post mineral volcanic rocks, and consequently yields untested exploration targets. During the past ten years, Lode Star drilling has encountered gold intercepts of multiple ounces per ton from their underground drilling, and they only tested < 1000 feet (300 m) along the main structure which has a potential strike length of > 5,000 feet (1500 m). ICN's year one work commitment is US$1 million.

Carl Hering, President and CEO of ICN Resources, stated that, "The GF Bonanza Project is an exciting new project, and we are pleased to initiate exploration drilling to further advance our understanding of the geologic and structural controls of the identified high grade gold mineralization. We firmly believe that our initial drilling will generate significant and potentially high grade gold assays for subsequent follow-up as this Project advances. The potential to identify new zones of mineralization in untested areas lying beneath the post-mineral cover based on utilization of the geophysical data could be important in the overall evaluation of project potential."

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 in Nevada. ICN plans to explore for the high-grade feeder zones associated with large low-grade gold and silver systems, primarily in western Nevada, but is looking for other opportunities in established metallogenic environments elsewhere in the United States. The ICN management and geologic team have extensive experience and discovery history worldwide as well as in Nevada and will utilize 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.

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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