Precipitate Gold Corp.
TSX VENTURE : PRG

Precipitate Gold Corp.

April 08, 2014 11:00 ET

Precipitate's IP Survey Indicates Strong Chargeability Highs Extend to depth below Surface Gold Anomalies

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 8, 2014) - Precipitate Gold Corp. (the "Company" or "Precipitate") (TSX VENTURE:PRG) is pleased to announce the results of its recently completed induced polarization ("IP") geophysical survey at the Ginger Ridge Zone within the Company's Juan de Herrera concession in the Dominican Republic.

The Ginger Ridge IP geophysical survey was conducted on five parallel grid lines at 200 metre intervals centred over the middle of the zone's gold-silver geochemical anomaly. The geophysical survey covered approximately 800 metres strike length within the central core of the 2,000 metre long surface gold anomaly and achieved the following noteworthy results:

  • contiguous chargeability and resistivity highs coincident with surface gold anomalies identified across the entire strike of the 800 metre survey grid;

  • marked chargeability high starting at surface coincident with previously reported surface trench sampling results of 32.5 metres of 1.0 g/t gold and 18 g/t silver;

  • strongest chargeability readings (up to 10 mv/v) reported from the northernmost line (L1000), leaving the anomaly open to the northwest;

  • entire chargeability anomaly remains open along strike to northwest and southeast and to depth below the estimated survey depth limit of 200 metres; and

  • sufficient technical data has now been compiled to commence planning for an initial diamond drill program

See the accompanying figures and the Company's website for additional compilation illustrations.

Jeffrey Wilson, Company President & CEO stated, "We are very pleased with the Ginger Ridge IP results as they provide precisely the kind of geophysical data we were hoping to attain. The strong correlation between surface gold and silver sample results and underlying chargeability anomalies increases our confidence in Ginger Ridge's potential. Given the successful precedent established by others in the region in applying this technology, the results of our survey provide compelling targets for drill testing. It's additionally encouraging that the most noteworthy geophysical anomalies at Ginger Ridge, in terms of chargeability and resistivity, are very near bedrock surface and remain open along strike and at depth, providing potential for future expansion through additional IP and/or drilling. In short, we're excited that the results of this geophysical survey have provided significant technical assistance in delineating targets for a first phase drill program, currently being planned."

The Ginger Ridge IP geophysical survey covers an area measuring about 1,000m by 800m and is aligned over the central portion of the multi-element surface geochemical anomaly, which drapes over the northeast facing slope of Ginger Ridge. Elevated chargeability readings correlate well with the surface trace of the northwest trending gold-in-soil anomalies, likely marking zones of increased sulphide concentrations within the host Tireo volcanic rocks. Significantly, the survey identified a marked chargeability high on line 1400 which correlates well with the previously reported surface rock chip channel sampling results of 32.5 metres of 1.0 g/t gold and 18 g/t silver; including 23.0 metres of 1.3 g/t gold and 22 g/t silver.

Moving from north to south, elevated chargeability readings start at bedrock surface and are strongest on the northernmost line 1000 (up to 10mv/v), then over the 800 metre long survey extent tend to project deeper to the southeast and have a reduced relative strength at the southernmost survey line 1800 (up to 4.5 mv/v). Importantly, the primary elevated chargeability anomalies remain open on strike, both to the northwest and southeast and also at depth. Together, the resistivity and chargeability readings appear to map major rock types and structures. On the western side of the survey area, a regionally mapped thrust fault is inferred to dip vertically to steeply to the northeast, marking the structural contact between older limestone rocks and the overlying gold-silver enriched Tireo volcanic lithologies.

The induced polarization/resistivity survey was conducted by Insight Geophysics Inc. of Oakville Ontario. The survey used a 10 kW Time Domain IP system using the Elrec Pro receiver with an "n" spacing equal to 25 metres, which provided quality subsurface resolution for each Insight section array.

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 and Sonora State, Mexico. 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.

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