SOURCE: Little Squaw Gold Mining Company

July 10, 2006 09:28 ET

Little Squaw Notes Chandalar Progress

SPOKANE, WA -- (MARKET WIRE) -- July 10, 2006 -- Little Squaw Gold Mining Company (OTCBB: LITS) ("Little Squaw" or "the Company") notes its 2006 summer field gold exploration program on its Chandalar, Alaska mining claims, which began on May 26th, continues largely on track. The property is located 200 miles north of Fairbanks, Alaska.

On the logistical front, a 20-man exploration and drilling camp has been set up under contract with Taiga Ventures of Fairbanks, specialists in arctic field services. The Squaw Lake airfield has been reconditioned and upgraded to accommodate heavy loads on multiengine aircraft, and an adjacent bulk fuel offloading and storage depot has been established. Tester Drilling Services of Anchorage has been contracted to drill the exploratory holes. Their drill is scheduled to be flown to Squaw Lake on July 14th. Eleven initial drill sites have been prepared -- seven on the Little Squaw Vein, and four on the Rock Glacier quartz vein system, and others are being worked on.

The Company's plans for this summer include at least 10,000 feet of reverse circulation type drilling as thirty or more holes on ten of the thirty-one gold quartz vein showings on the twenty-two square mile property.

On the technical front, contract geological mapping by Pacific Rim Geological Consultants of Fairbanks started on June 28th, with the objective of producing a district map linking gold mineralization to specific geological features. Meanwhile, the Company's own survey crew has been busy conducting detailed mapping as well as sampling of some eighteen different gold quartz vein prospects, having so far taken 235 soil samples and 15 rock samples. This work, which is focused on proving-up the continuity of the quartz veins, indicates that many of the previously reported thirty-one individual gold quartz vein prospects are linked, forming sets comprising nine separate vein systems.

Drilling start-up will be a little delayed due to unseasonably poor weather conditions, including spring blizzards, late snow melt, and then continual rains, which have caused water related ground stabilization problems throughout the operational area (see the Company's Press Release 7-06 of June 7, 2006.). Significantly, a section of the main road necessary for drilling access was blocked by an extensive mudslide, requiring the Company to build a detour route.

Chandalar project manager, Jim Barker, reported from the bush camp: "We shoveled a lot of snow and we are now wallowing in mud, but despite these weather induced impediments, we have busted our butts and are more or less on track with the scheduled program through the shear mettle of our crew."

About the Company: Little Squaw Gold Mining Company (OTCBB: LITS) is a 47-year-old, publicly-traded junior mining company with new management, an infusion of capital, and a new vision going forward. The Company is committed to exploring the gold deposits on its wholly owned Chandalar mining property in Alaska. Information on the Company, its Chandalar property and the gold showings thereon is available on the Company's website at www.littlesquawgold.com. Additional information on the Company and its plans may be found in the Company's SEC filings, specifically its Form 10-KSB/A annual report for 2005, which can also be accessed through the Company's website.

Richard Walters, President and Susan Schenk, Manager of Investor Relations of Little Squaw Gold Mining Company, are responsible for this news release. For further information please contact Ms. Schenk at (509) 535-6156, or at ir@littlesquawgold.com.

Cautionary Note Regarding Forward-Looking Information -- Information set forth in this press release may involve forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the Company's plans to complete at least 10,000 feet of drilling on its Chandalar, AK property in 30 or more holes and any anticipated results of its exploration program on the Chandalar property, and the Company's ability to file SEC forms in a timely manner. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company's actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements.

Contact Information

  • Contact:
    Susan Schenk
    Manager of Investor Relations of Little Squaw Gold Mining Company
    (509) 535-6156
    ir@littlesquawgold.com