Precipitate Gold Corp.
TSX VENTURE : PRG

Precipitate Gold Corp.

April 14, 2015 12:15 ET

Precipitate's Ground Magnetic Survey at Ginger Ridge Identifies Mag Low Coincident with Mineralized Trend

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 14, 2015) - Precipitate Gold Corp. (the "Company" or "Precipitate") (TSX VENTURE:PRG) is pleased to announce results and interpretation of a ground magnetics geophysical survey at the Ginger Ridge Zone within the Company's Juan de Herrera project in the Dominican Republic.

As a complement to its Ginger Ridge induced polarization geophysical survey, the Company completed a ground magnetic geophysical survey. The primary goal of the magnetic survey was to aid interpretation of the lithological and structural features of the main target area. The survey covered an estimated 13 grid line kilometres over the main exploration area. See the accompanying magnetic survey map figure and the Company's website for additional compilation illustrations.

The magnetic survey successfully:

  • defined a linear magnetic low measuring about 1,000 metres long coincident with the main sulphide-silica-gold zone and also its strong chargeability high induced polarization anomaly;
  • identified major lithological contacts and possible structural breaks which previously were only inferred or unknown;
  • defined the contact, or thrust, between younger non-magnetic limestone rocks to the west and strongly magnetic Cretaceous Tireo volcanics to the east, by tracing a clear northwest trending contour over the crest of Ginger Ridge itself;
  • provided a useful and inexpensive exploration tool to be utilize elsewhere throughout the project area to attempt to identify similar prospective new anomalies.

Jeffrey Wilson, Precipitate's President and CEO commented that "Regionally within the Tireo Gold Camp, a magnetic low geophysical signature is often a key feature that marks altered and mineralized volcanic rocks. We knew from core measurements that the main Ginger Ridge mineralized zone displayed a similar magnetic low signature noted in other Tireo Gold Camp hydrothermal systems due to magnetite destruction and the lack of magnetics in the main sulphide minerals. The primary purpose of this survey was to help define the boundaries of the rock units at Ginger Ridge, which until now were only inferred due to the sparse outcrop cover and thick vegetation in the area. The survey succeeded in providing a much clearer picture of the location and boundaries of the favorable Tireo volcanic units. In addition, we were encouraged with the magnetic survey's ability to identify and trace the main mineralized trend as a magnetic low. Given our increasing understanding of the target signature, future magnetic surveying over other prospective areas throughout the project could prove to be an inexpensive yet highly effective ongoing exploration tool for identifying new targets elsewhere within the project area."

Cretaceous aged Tireo formation intermediate volcanic rocks host the Ginger Ridge zone's gold mineralization and related non-magnetic pyrite-rich sulphide body. Magnetic susceptibility readings collected from drill core during the late 2014 maiden diamond drill program shows that very low magnetic readings often correlate with a combination of increased sulphide concentrations, silica-quartz veining and elevated gold and/or base metal values. The ground magnetic survey results show that the non-altered Tireo volcanic rocks have a moderate to locally strong magnetic signature and display variably elongated magnetic high lobes, with an apparent northwest orientation paralleling local and regional stratigraphy. Between the volcanic rock magnetic high signatures are moderate to locally strong magnetic lows, which are interpreted to be intercalated sedimentary rocks, structural breaks or in the case of the main gold target zone, sulphide-silica mineralization. The main target sulphide-gold zone is marked by a northwest trending, linear magnetic low extending from near line 14 northwestward to line 4 (a distance of about 1,000 metres). Importantly, the linear magnetic low is largely coincident with the strong chargeability high readings of the induced polarization geophysical survey. The magnetic survey results should prove helpful for future geological mapping and diamond drill testing.

Magnetic survey data was collected at 12.5 metre station intervals over both 100 metre and 200 metre spaced grid lines by a GSM-19 version 7 Overhauser magnetometer, under the supervision of J. Thom P. Geo. Post survey data processing and the generation of various map and figure derivatives were completed by S. Walker of Campbell & Walker Geophysics Ltd.

Michael Moore, VP Exploration of the Company and Qualified Person for purposes of National Instrument 43-101 has reviewed the technical information in this news release.

About Precipitate Gold:

Precipitate Gold Corp. is a mineral exploration company focused on exploring and advancing its mineral property interests in the Tireo Gold Trend of the Dominican Republic. The Company also maintains assets in northern British Columbia and southeast Yukon Territory and is actively evaluating additional high-impact property acquisitions with the potential to expand the Company's portfolio and increase shareholder value.

Additional information can be viewed at the Company's website www.precipitategold.com.

On Behalf of the Board of Directors of Precipitate Gold Corp.,

Jeffrey Wilson, President & CEO

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

This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Precipitate Gold Corp.'s ("Precipitate" or the "Company") current beliefs and is based on information currently available to Company and on assumptions it believes are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Precipitate to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the exploration concessions may not be granted on terms acceptable to the Company, or at all; general business, economic, competitive, political and social uncertainties; the concessions acquired by the Company may not have attributes similar to those of surrounding properties; delay or failure to receive governmental or regulatory approvals; changes in legislation, including environmental legislation affecting mining; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although Precipitate has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Precipitate does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Contact Information