MGold Resources Inc.
TSX VENTURE : MNI

MGold Resources Inc.

February 06, 2012 10:16 ET

MGold Announces Drill Results for the First Five Holes at the Silver Queen Property, Nevada, USA

MONTREAL, QUÉBEC--(Marketwire - Feb. 6, 2012) - MGold Resources Inc. ("MGold" or the "Company") (TSX VENTURE:MNI) is pleased to announce results for the first five reverse circulation drill holes from the 2011/2012 drilling program at the Silver Queen Property, Nevada, USA.

Pursuant to an option agreement (the "Option Agreement") entered into with Silver Reserve Corp. ("SRC") of Reno, Nevada, a wholly-owned subsidiary of Infrastructure Materials Corp. (OTCBB:IFAM)(TSX VENTURE:IFM) MGold was granted an option to acquire a 50% working interest in the Silver Queen Property by incurring exploration expenditures totaling $4 million over a 30-month period and making cash payments totaling $2 million over a 33-month period (see the detailed press release filed on Sedar on September16, 2011 for more details of the Option Agreement).

The Silver Queen Silver Property (the "Property") is located in the Red Mountain Mining District of Esmeralda County, Nevada and is comprised of 187 unpatented mineral claims. The Property is situated 25 miles west of the historic mining town of Silver Peak, Nevada. This district is characterized by the occurrence of steeply dipping epithermal silver-bearing, quartz-calcite veins, known to carry significant amounts of silver-bearing minerals. The Property is comprised entirely of Tertiary volcanic rocks occurring primarily within the boundary of a collapsed caldera. The Mohawk vein system is located in the southern part of the Property and is reported to have produced 106,448 tons averaging 18.7 oz/t silver (1.87M oz silver) between 1921 and the early 1960's, with limited production from 1980-81 (Bruff & Baker, 1982). In 2008, SRC conducted a very limited drilling campaign consisting of three Reverse Circulation ("RC") and two Diamond Drill Holes ("DDH") in the Mohawk area, as well as four RC holes in the northern part of the property. Two holes near the Mohawk Mine (core hole CM01 and RC hole MOR3) encountered extensive and well mineralized zones of silver within the vein and altered host rock. The highlights are described below:

RC Hole Depth ft. Depth ft. Width ft. Silver Silver
MOR3 From To Total (g/t) oz/t
345 350 5 452.1 14.54
350 355 5 221.4 7.12
355 360 5 220.1 7.08
360 365 5 299.4 9.63

The altered zone in MOR3 returned a 95 ft intersection from 325 to 420 ft (true width estimated to be 60 ft.) grading 126.1 g/t (4.05 oz/t) silver including a higher grade zone with a weighted average of 298.2 g/t (9.59 oz/t) silver over 20 ft (345-365 ft).

Core Hole Depth ft. Depth ft. Width ft. Silver Silver
CM01 From To Total (g/t) oz/t
357 362 5 212.6 6.84
362 367 5 166.5 5.35
367 372 5 147.3 4.74
382 385 3 302.4 9.72
385 390 5 386.8 12.44
390 395 5 277.7 8.93

The altered zone in CM01 returned a 60 ft intersection from 340 to 400 ft (true width estimated to be 38 ft.) grading 146.1 g/t (4.70 oz/t) silver including two higher grade zones with weighted averages of 175.5 g/t (5.64 oz/t) silver over 15 ft (357 to 372 ft), and 325.4 g/t (10.46 oz/t) silver over 13 ft (382 to 395 ft). Both MOR3 and CM01 were drilled to confirm the lateral extent of potential mineralization in the area near the Mohawk Mine.

The current drill program, which began October 14 2011 and comprises approximately 20 reverse circulation holes, is designed to test extensions of known mineralized zones along strike and at depth at Mohawk - Silver Queen. Drill holes planned at the northern portion of the property are designed to test geochemical anomalies derived from recently completed soil sampling programs. To date eight holes have been completed and the ninth hole is currently in progress.

The first two holes of the current drilling program (MOR-4, MOR-5) were targeted to intersect mineralization approximately 150 feet below and along strike of the historic workings in the Mohawk Mine area. It should also be noted that anomalous concentrations of gold have been encountered at deeper levels below the oxide zone in and around Mohawk. Extensive propylitic and siliceous alteration zones and brecciation were encountered in both of these holes. The next two holes in the current program (MOR-6, & 7) targeted northeasterly extensions of the Mohawk vein. Hole MOR-8 targeted the projection of the Luft Chute approximately 150 ft below the historical workings. Hole MOR-6 intersected a very high-grade portion of the Mohawk vein system from 385 ft to 390 ft that returned just over one half a kilogram per ton silver (16.39 oz/t) over 5 ft as shown in the table below. These three holes all intersected varying degrees of alteration and brecciation. The assay highlights from the first five RC Drill holes (all located in the Mohawk area) are shown in the table below; all five holes intersected the mineralized Mohawk vein system over a strike length of just over 550m. Recent mapping and other historical data indicate the Mohawk vein system extends for over 1000 meters in strike length and is interpreted to be open at depth.

RC Hole Depth From Depth From Total
Width
Gold Silver Silver Lead Zinc
(ft) (ft) (ft) (g/t) (g/t) (oz/t) (%) (%)
MOR-4 405 415 10 NA 153.35 4.93 NA NA
775 845 70 0.39 NA NA NA NA
including 790 825 35 NA NA NA NA 1.69
" 790 815 25 NA 33.52 1.07 NA NA
" 800 810 10 NA NA NA 3.14 2.75
" 830 835 5 1.57 NA NA NA NA
845 850 5 NA NA NA 1.26 NA
MOR-5 450 460 10 NA 161.30 5.19 NA NA
MOR-6 385 395 10 NA 289.35 9.30 NA NA
including 385 390 5 NA 509.8 16.39 NA NA
425 430 5 NA 110.8 3.56 NA NA
MOR-7 485 490 5 NA 22.1 6.75 NA NA
MOR-8 130 140 10 1.93 NA NA NA NA
including 130 135 5 3.26 NA NA NA NA
705 710 5 NA 31.2 1.00 NA NA
NA - not anomalous

Drilling is currently ongoing in the northern part of the property.

The Qualified Person ("QP"), as defined in NI 43-101, responsible for the issuance of this press release is Joel Scodnick, P.Geo., President & CEO of MGold.

MGold is engaged in mineral exploration for precious and base metals. The Company also has the Burchell Lake Property, which is prospective for gold, copper, and molybdenum, in the Shebandowan area of Northwestern Ontario. MGold has 36,144,024 issued and outstanding common shares, and 48,136,296 on a fully diluted basis.

For further information, please bookmark www.mgold.ca.

Neither the 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

  • MGold Resources Inc.
    Joel Scodnick
    President and Chief Executive Officer
    (705) 522.4439
    (705) 522.8694 (FAX)
    joelscodnick@me.com

    MGold Resources Inc.
    Marc Poitras
    Chief Financial Officer and Director
    (705) 222-1700
    (705) 222-1701 (FAX)
    marc@poitrasca.ca
    www.mgold.ca