Josephine Mining Corp.
TSX VENTURE : JMC

Josephine Mining Corp.

September 12, 2011 14:01 ET

Josephine Mining Corp. Provides Drilling Update: Step-Out Drilling Delineates Main Lower Zone With Two Massive Sulfide Intercepts and First Drill Hole Results at Turner Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 12, 2011) - Josephine Mining Corp. ("JMC" or the "Company") (TSX VENTURE:JMC) is pleased to announce a drilling update on the Turner Gold Project. The company continues to fast track its progress with further drilling, logging and assaying at its Turner Gold Project in O'Brien, Oregon.

Significant results include:

  • JMC has completed a total of 9,816.3 feet through the drilling of seven (7) out of twelve (12) planned diamond drill core holes (totalling 7,622.3 feet), with an additional 2,194 feet in two (2) step-out holes.
  • Two additional step-out drill holes (TJM-81 & TJM-82, totalling 2,194 feet) have logged 61 feet and 80 feet cumulative intercepts of massive and semi-massive sulfides, further delineating the south-eastern extent of the Main Lower Zone. Assays results are pending.
  • TJM-69 encountered the Main Upper Zone as expected, with a 158.8 foot continuous intercept of sulfides from 256.2 to 415 feet with average grades of 1.8 g/tonne Au, 22.7 g/tonne Ag, 0.16% Cu and 2.92% Zn, netting a Gold equivalent grade of 3.9 g/tonne over that 158.8 feet.
  • TJM-69 re-entered another continuous Main Upper Zone intercept with 40 feet of expected sulfides from 625 to 665 feet with average grades of 3.7 g/tonne Au, 3.6 g/tonne Ag, 0.74% Cu and 0.18% Zn, netting a Gold equivalent grade of 5.2 g/tonne over 40 feet.

As discussed in the NI 43-101 report titled "Turner Gold Resource and Preliminary Economic Assessment", the proposed drilling program, "...will provide information for a broad range of topics at Turner in addition to geology and assay information.... The intended goal of the drill program is to improve the classification of a portion of the mineral resource, as well as increase the total resource tonnage..." In fulfilment of this commitment, JMC is collecting additional data from the core to be used for developing geotechnical assessments of planned mining areas, hydrological evaluation of ground water quantity and quality, geochemical characterization of the mineralized resource and host rock lithologies, and metallurgical evaluation of the prospective ore. This work is in progress with the assistance of expert environmental and engineering consultants.

Step out drilling intercepts: JMC is pleased to announce two south-eastern step-out drill holes TJM-81 and TJM-82 (see Map, Figure 1), approximately 240 feet South South East and South East of TJM-69 that have intercepted layers of massive sulfides at the Turner Gold Project. TJM-81 has intercepted a significant layer of massive sulfide starting at a depth of 923.5 feet with the intercept extending through 1,012.3 feet of depth. Within this 88.8 feet intercept JMC has logged 61 feet of massive and semi-massive sulfide. Step-out drill diamond drill core hole TJM-82 has intercepted a significant layer of massive sulfides starting at a depth of 829.9 feet with the intercept extending through 970 feet of depth, within this 140.1 feet intercept JMC has logged 80 feet of massive and semi-massive sulfides.

Both intercepts have visible pyrite, chalcopyrite and sphalerite, and are likely connected to the layer zone denoted in the Company's NI 43-101 report on the property (see www.sedar.com) as the MLZ – Main Lower Zone.

To view, Figure 1 Map of Turner Gold Project showing drill hole locations and status (not to scale), please click on the following link: http://media3.marketwire.com/docs/jmc0912a.jpg

TJM-69 update and first assays: As stated in the press release dated June 3, 2011, "Diamond drill hole (TJM-69) has intercepted two significant layers of massive sulfides starting at a depth of 256 feet. The intercept...is likely connected to the zone denoted in the Company's NI 43-101 report (see www.sedar.com) as the MUZ – Main Upper Zone.... The mineral resource is a Cyprus-type, ophiolite-hosted volcanogenic massive sulfide (VMS) gold, copper, and zinc deposit."

To date, JMC has completed a total of 9,816.3 feet through the drilling of seven (7) out of twelve (12) planned diamond drill core holes (totalling 7,622.3 feet), with an additional 2,194 feet in two (2) step-out holes. Eight (8) holes have been logged, split, sampled and seven (7) are still in queue for pending assay results.

The following Table gives relevant available assay information for diamond drill hole TJM-69, which was completed to a depth of 1,370 feet (417.6 meters) and intercepted zones of semi-massive and massive sulfides associated with both the Main Upper Zone (MUZ) and Main Lower Zone (MLZ). The assay information has been reported over two specific intercepts from 256.2 – 415 feet and from 625-665 feet (both related to the MUZ). The data have been averaged over those two specific intervals and converted to an equivalent gold grade for each interval using the following assumptions: $1,200 oz/ton Au, $30 oz/ton Ag, $3/lb Cu and $.75/lb Zinc as stated in our current 43-101 compliant presentation.

Drill hole TJM-69 encountered the Main Upper Zone with a 158.8 feet continuous intercept of expected sulfides from 256.2 to 415 feet with average grades of 1.8 g/tonne Au, 22.7 g/tonne Ag, 0.16% Cu and 2.92% Zn, netting a Gold Equivalent grade of 3.9 g/tonne over that 158.8 feet.

Drill hole TJM-69 re-entered another continuous intercept Main Upper Zone with a 40 feet intercept of expected sulfides from 625 to 665 ft with average grades of 3.7 g/tonne Au, 3.6 g/tonne Ag, 0.74% Cu and 0.18% Zn, netting a Gold Equivalent grade of 5.2 g/tonne over 40 ft.

Table 1 TJM-69 Assays: Main Upper Zone intercept

Start
(ft)
End
(ft)
Interval
(ft)
Au
(g/tonne)
Ag
(g/tonne)
Cu % Zn %
256.2 260 3.8 3.5 25.0 0.19% 0.23%
260 265 5 1.5 28.0 0.27% 1.27%
265 270 5 2.1 33.0 0.34% 8.12%
270 275 5 1.8 18.9 0.28% 0.39%
275 280 5 1.8 33.0 0.33% 5.93%
280 285 5 3.2 23.0 0.27% 0.17%
285 290 5 1.3 54.0 0.21% 1.04%
290 295 5 0.7 34.0 0.27% 2.02%
295 300 5 1.1 34.0 0.07% 5.61%
300 305 5 0.8 39.0 0.14% 2.59%
305 310 5 0.9 32.0 0.15% 2.46%
310 315 5 1.5 26.0 0.18% 0.31%
315 320 5 1.1 20.1 0.12% 1.57%
320 325 5 1.1 43.0 0.09% 8.57%
325 330 5 1.4 26.0 0.19% 4.73%
330 335 5 1.7 17.5 0.09% 3.04%
335 340 5 1.5 15.2 0.08% 2.49%
340 345 5 1.7 29.0 0.19% 5.46%
345 350 5 1.8 31.0 0.14% 2.93%
350 355 5 0.7 24.0 0.13% 5.13%
355 360 5 2.0 24.0 0.10% 5.13%
360 365 5 4.6 20.2 0.15% 3.77%
365 370 5 1.6 11.9 0.09% 4.31%
370 375 5 1.2 8.5 0.05% 3.07%
375 380 5 1.4 8.1 0.20% 1.29%
380 385 5 2.3 6.6 0.10% 2.14%
385 390 5 2.9 7.7 0.15% 0.80%
390 395 5 2.7 5.9 0.09% 0.66%
395 400 5 2.8 7.0 0.06% 1.49%
400 405 5 1.8 16.0 0.12% 3.85%
405 410 5 2.0 15.6 0.09% 1.40%
410 415 5 2.9 10.2 0.06% 0.93%
625 630 5 3.6 3.9 0.78% 0.45%
630 635 5 2.3 4.6 1.09% 0.17%
635 640 5 9.4 3.4 0.45% 0.11%
640 645 5 3.3 4.1 0.62% 0.29%
645 650 5 3.0 3.1 0.69% 0.10%
645 650 5 0.0 0.0 0.00% 0.00%
650 655 5 4.5 5.0 1.18% 0.19%
655 660 5 5.1 4.2 1.16% 0.21%
660 665 5 2.4 3.8 0.70% 0.08%
Note: 1 Troy Oz/Short Ton = 34.2857 ppm

We have provided historical data of two nearby drill holes (TAB-13 and TAB-23) to TJM-69 that were used in the 43-101 resource estimate. They are provided in the press release to give context to this newly announced TJM-69 data in the JMC drilling program. JMC looks forward to reporting several additional drill hole assays in the near future as soon as complete assay results become available.

Table 2 Turner Gold Project historical drill hole TAB-13 assay data

Start
(ft)
End
(ft)
Interval
(ft)
Au
(g/tonne)
Ag
(g/tonne)
Cu % Zn %
290 295 5 0.6 28.5 0.12% 4.70%
295 300 5 2.0 14.7 0.95% 2.20%
300 305 5 2.7 8.2 0.81% 6.60%
305 310 5 1.4 31.9 0.33% 3.10%
310 315 5 2.4 32.6 0.49% 2.30%
315 320 5 3.1 0.7 1.18% 6.50%
320 325 5 4.0 39.1 1.46% 1.10%
325 330 5 3.2 0.7 2.80% 2.30%
350 355 5 0.2 0.7 0.07% 10.40%
405 410 5 4.1 0.7 0.58% 0.32%
410 415 5 3.6 0.7 0.77% 0.34%
415 420 5 3.2 0.7 0.95% 0.44%
420 425 5 4.3 0.7 1.55% 0.47%
425 430 5 3.4 0.7 0.47% 0.34%
430 435 5 7.8 0.7 0.42% 1.05%
435 440 5 4.0 0.7 0.36% 0.25%
440 445 5 6.0 3.8 1.05% 0.19%
465 470 5 2.5 4.5 0.68% 1.10%
470 475 5 4.2 4.1 0.75% 0.41%
475 480 5 4.3 4.1 1.10% 0.14%
480 485 5 1.9 5.1 0.95% 0.20%
550 555 5 3.6 0.7 0.45% 0.02%
565 570 5 3.6 0.7 1.25% 0.22%
570 575 5 4.6 0.7 0.62% 0.13%
630 635 5 2.7 0.7 0.37% 2.85%
665 670 5 2.1 0.7 0.67% 0.49%
695 700 5 1.1 3.8 1.75% 0.60%
760 765 5 3.3 0.7 0.59% 0.22%
765 770 5 2.7 0.7 0.87% 0.26%
878.5 880 1.5 3.6 56.9 0.28% 5.40%
880 885 5 2.4 16.8 0.52% 3.80%
890 895 5 4.6 67.5 1.45% 5.70%
895 900 5 2.1 35.7 0.48% 1.35%
900 905 5 3.7 64.8 0.48% 2.45%
905 910 5 2.9 18.9 0.82% 0.36%
910 915 5 2.2 26.1 1.10% 4.70%
915 920 5 2.3 13.4 1.50% 0.88%
934.4 937.7 3.3 7.1 18.9 3.50% 0.18%
975 980 5 3.5 6.2 1.35% 0.33%
985 990 5 2.5 1.0 0.37% 0.55%
995 1000 5 2.1 2.7 0.60% 3.25%
1000 1005 5 2.1 6.9 0.53% 3.35%
1010 1015 5 1.8 6.5 0.76% 2.05%
1015 1020 5 1.9 7.9 0.64% 2.30%
1020 1025 5 4.6 5.8 1.60% 1.60%
1030 1035 5 1.4 1.4 1.20% 1.60%
1035 1040 5 2.9 5.1 1.35% 1.80%
1040 1045 5 4.0 0.7 2.75% 2.05%
1045 1050 5 3.6 0.7 1.70% 1.15%
1050 1055 5 7.0 0.7 3.20% 2.50%
1055 1060 5 1.7 0.3 0.69% 1.40%
1105 1110 5 6.7 0.7 2.85% 0.71%
1110 1115 5 1.6 2.4 0.73% 4.20%
1180 1185 5 3.8 2.4 0.40% 0.07%
1200 1205 5 3.4 0.7 0.32% 0.24%
1215 1220 5 3.1 61.4 1.30% 12.0%
1235 1240 5 3.1 0.7 0.58% 0.04%
1255 1260 5 9.6 4.8 2.60% 1.55%

Table 3 Turner Gold Project, historical drill hole TAB-23 assay data

Start
(ft)
End
(ft)
Interval
(ft)
Au
(g/tonne)
Ag
(g/tonne)
Cu % Zn %
175 180 5 2.3 0.7 0.99% 8.20%
310 315 5 1.9 7.2 0.12% 3.90%
330 335 5 1.9 0.7 0.23% 3.70%
340 345 5 5.5 0.7 0.11% 1.55%
345 350 5 3.6 0.7 0.36% 2.20%
425 430 5 9.3 0.7 1.60% 1.30%
430 435 5 2.5 0.7 1.03% 0.85%
435 440 5 3.2 0.7 1.90% 0.56%
440 445 5 2.8 0.7 1.95% 0.29%
470 475 5 2.6 0.7 0.54% 0.16%
480 485 5 2.4 0.7 0.61% 0.06%
495 500 5 3.8 0.7 0.46% 0.11%
530 535 5 4.4 0.7 0.56% 0.06%
540 545 5 4.4 0.7 0.63% 0.09%
550 555 5 2.9 0.7 0.52% 0.14%
560 565 5 2.4 0.7 0.66% 0.23%
575 580 5 3.4 0.7 1.01% 0.26%
580 585 5 2.2 0.7 0.76% 0.25%
590 595 5 1.7 0.7 0.87% 0.50%
595 600 5 1.4 0.7 1.15% 1.80%
605 610 5 3.3 0.7 0.72% 0.21%
610 615 5 3.0 0.7 0.82% 0.45%
630 635 5 3.1 0.7 1.20% 0.30%
680 685 5 3.8 0.7 0.07% 0.02%
720 725 5 3.2 0.7 0.46% 0.13%
725 730 5 3.6 0.7 0.47% 0.15%
730 735 5 4.1 0.7 0.10% 0.06%
740 745 5 5.1 0.7 0.08% 0.06%
1200 1205 5 2.3 0.7 1.03% 0.43%
1315 1320 5 4.7 0.7 0.17% 0.10%

In summary, drilling at JMC's Turner Gold Project is continuing and there has been substantial progress to date on the diamond core drill program and assaying. Assays results will continue to be released on a rolling basis throughout the rest of this year. We expect to complete a new resource update in the fourth quarter 2011 after the drilling is complete and assay data has been received. Again, JMC is collecting additional data from the core to be used for developing geotechnical assessments of planned mining areas, hydrological evaluation of ground water quantity and quality, geochemical characterization of the mineralized resource and host lithologies, and metallurgical evaluation of the prospective ore.

Investors may look forward to further updates on the Turner Gold Project as management remains committed to maximizing shareholder value through a focused development, permitting, and acquisition plan.

Michael Strickler of LithoLogic Resources, LLC, a qualified person under NI 43-101, has reviewed the contents of this press release.

Disclaimer for Forward-Looking Information

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events, such as the statements regarding mineralization and assay results. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.

These forward-looking statements reflect management's current views and are based upon certain expectations, estimates and assumptions that may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, such as the current economic conditions and the state of mineral exploration and mineral prices in general. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. The Company can offer no guarantee that the goals and objectives detailed above will be accomplished, in part or at all.

These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks Factors" section in the Filing Statement of the Company dated October 10, 2010 and available on www.sedar.com.

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.

Contact Information