Key Gold Holding Inc.
TSX VENTURE : KGH

Key Gold Holding Inc.

May 31, 2011 09:35 ET

Key Gold Holding Drills Souart Gold Project, Quebec: Visible Gold in Quartz Veins

QUEBEC CITY, CANADA--(Marketwire - May 31, 2011) - Key Gold Holding Inc. (TSX VENTURE:KGH) ("Key Gold") is pleased to announce it has successfully drilled 10 of 15 drill holes at the Souart Gold Project. To date 2750 metres are complete. Assay results for the first ten holes are expected shortly. Drilling started in the East Zone and will end in the West Zone. The remaining five holes will be drilled as soon as ground conditions permit.

The objective of the drill program is to confirm and expand the historical non-compliant gold resources and bring them to a 43-101 compliant status. Highlights of the historical drilling include:

  • 564,000 tonnes grading 6.2 g/t gold (approximately 110,000 oz gold)

  • Four gold zones identified: East, Central, and West-New* Zones

  • Best intersections**:

    • West Zone – 0.30 m grading 120.69 g/t and 5.00 m grading 13.03 g/t gold

    • New Zone – 0.50 m grading 17.83 g/t and 0.30 m grading 21.26 g/t gold

    • Central Zone – 6.25 m grading 7.89 g/t gold and 1.01 m grading 39.77 g/t gold

    • East Zone – 1.00 m grading 5.49 g/t gold and 0.52 m grading 6.62 g/t gold

(*The relationship between New and West Zones is not yet defined; New appears to be a subsidiary structure)

(** list of historical intersections is available in the KGH NI43-101 Technical Evaluation Report on the Souart Property, May 2011 on Sedar)

The Souart Gold Project

Key Gold holds an option to earn a 100% interest in the Souart Gold Project from Glen Eagle Resources (TSX VENTURE:GER). The property consists of 56 claims (876 Ha) strategically located in the vicinity of the Metanor Barry deposit (18 Mt containing 780,000 oz gold, 43-101 report 2011 on Sedar) located 100 km east of Lebelle-sur- Quevillon in the Province of Quebec. Access to the Souart Project is by a regional and lumber roads found throughout the Urban-Barry greenstone belt.

The Urban-Barry greenstone belt area is the site of renewed interest following the release of excellent drill results by Eagle Hill Exploration Corporation (Eagle Hill) who reported 19.61 g/t Au over 33 m (Eagle Hill news release of March 10, 2010) and Noront Resources Ltd. (Noront) who previously reported grades of 800.1 to 1,792.9 g/t Au over 4.8 m (Noront news release of December 1, 2006) and of 27.3 g/t Au over 14.4 meters (Noront news release of June 8 2006). This belt hosts a number of gold deposits including the Lac Rouleau (Beaufield) and the Barry deposit (Metanor) both the northeast.

On the Souart property a quartz veined corridor of alteration is recognized at the contact between metamorphosed felsic tuff and sediments. Within the alteration zone gold- bearing smoky-quartz veins feature pyrite, pyrrhotite, chalcopyrite and observations of visible gold mineralization. Corridor alteration comprises tourmaline breccia and sericite schist: both are mineralized although a broad halo of disseminated pyrite is also recognized outside of the altered corridor.

A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. The issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.

About Key Gold Holding Inc.

Key Gold Holding Inc. is a mineral exploration company that is mainly focused on the acquisition, exploration and development of gold and copper properties.

Shares outstanding: 24,622,053

Forward looking Statement

This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporation's control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements.

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

Contact Information