Independence Gold Corp.
TSX VENTURE : IGO

Independence Gold Corp.

January 20, 2012 08:00 ET

Independence Gold Increases Resource Estimates for 3Ts Project, BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2012) - Independence Gold Corp. (TSX VENTURE:IGO) ("Independence Gold" or "the Company") is pleased to announce an increased National Instrument ("NI") 43-101 compliant Inferred Resource estimate for three mineralized veins on its 100% owned 3Ts Project.

The 3Ts Project is located approximately 120 kilometres southwest of Vanderhoof and consists of twelve mineral claims covering approximately 4,583 hectares in the Nechako Plateau region of central British Columbia. The 3Ts Project covers an epithermal quartz-carbonate vein system within which more than a dozen individual mineralized veins, ranging up to 650 metres ("m") in strike length and up to 20 m in true width, have been identified.

Well-mineralized vein float boulders at the Ringer Target area (as described in the Company's NI 43-101 technical report filed on SEDAR December 23, 2011) and in other parts of the property indicate potential to discover new mineralized veins within the 3Ts Project area.

The Tommy, Ted and Mint veins contain the Inferred Resources detailed below. These veins remain open at depth and along strike.

3Ts Inferred Resource Estimates
Gold Silver
Au Cut-off Tonnes Grade (g/t ) Ounces Grade (g/t ) Ounces
Tommy Vein
0.5 g/t 1,614,810 3.99 207,089 39.65 2,058,936
1.0 g/t 1,490,415 4.25 203,816 41.92 2,008,768
1.5 g/t 1,370,715 4.52 199,028 44.32 1,953,354
2.0 g/t 1,181,727 4.96 188,542 47.99 1,823,604
Ted Vein
0.5 g/t 2,654,676 1.86 159,001 105.98 9,046,031
1.0 g/t 1,813,573 2.37 138,287 124.43 7,256,227
1.5 g/t 1,358,246 2.75 120,041 127.96 5,586,009
2.0 g/t 888,914 3.36 94,303 105.45 3,014,157
Mint Vein
0.5 g/t 310,084 5.24 52,279 63.17 629,840
1.0 g/t 310,084 5.24 52,279 63.17 629,840
1.5 g/t 310,084 5.24 52,279 63.17 629,840
2.0 g/t 309,367 5.25 52,245 63.26 629,304
Total
0.5 g/t 4,579,570 2.84 418,370 79.69 11,734,806
1.0 g/t 3,614,072 3.39 394,383 85.15 9,894,835
1.5 g/t 3,039,045 3.80 371,348 83.60 8,169,203
2.0 g/t 2,380,008 4.38 335,090 71.44 5,467,065

Using a 1 gram per tonne gold ("g/t") gold grade cutoff, the total Inferred Resource for the Tommy, Ted and Mint veins is 3,614,072 tonnes grading 3.39 g/t gold and 85.15 g/t silver for 394,383 contained ounces of gold and 9,894,835 contained ounces of silver.

The updated Inferred Resource estimates represent a significant increase from the historic NI 43-101 compliant Inferred Resource estimates at the 3Ts Project. The increase in the resource estimates is due to utilizing a lower cutoff grade, and incorporating the results of additional diamond drilling on the property (see the Company's NI 43-101 technical report filed on SEDAR December 23, 2011).

The 3Ts mineral resource estimates are based on a database of 176 drill holes (32,773 m) with 3,278 assay values collected through 2011. The resource estimates are categorized as Inferred as defined by the Canadian Institute of Mining and Metallurgy guidelines for resource reporting. Mineral resources do not demonstrate economic viability, and there is no certainty that these mineral resources will be converted into mineable reserves once economic considerations are applied.

GeoVector Management Inc. ("GeoVector"), an Ottawa, Ontario based consulting firm specializing in resource estimation, project assessment and project management, verified drill hole collar locations, downhole surveys and assay values against drill logs and assay certificates. The mineral resources were estimated using 1.0 m composites of the assay values, with zero grade inserted into intervals that were not sampled.

Geological models were constructed of the mineralized Tommy, Ted and Mint veins. The models were used to constrain the composite values chosen for interpolation, as well as the ore blocks reported in each mineral resource. Block models were constructed using 2 m x 5 m x 5 m blocks in the x, y and z directions respectively. Grades for gold and silver were interpolated into the blocks by the inverse distance squared method using a minimum of 2 and a maximum of 20 composites to generate block grades.

Allan Armitage, Ph.D., P.Geol. of GeoVector, a Qualified Person as defined in NI 43-101, performed the Inferred mineral resource estimates. Dr. Armitage is independent of the Company and has reviewed and approved the technical information in this news release.

A NI 43-101 technical report will be finalized and filed on SEDAR within 45 days of the date of this news release.

An exploration program including diamond drilling is currently being planned for the 3Ts Project in 2012.

David Pawliuk, P.Geo., the Company's Qualified Person as defined by NI 43-101, for the 3Ts Project has reviewed the technical information in this news release.

INDEPENDENCE GOLD CORP.

Randy Turner, President & CEO

Neither the 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.

Contact Information

  • Independence Gold Corp.
    Investor Relations
    604-687-3959
    604-687-1448 (FAX)
    info@ingold.ca