Prosperity Goldfields Corp.

Prosperity Goldfields Corp.

May 29, 2012 13:23 ET

Prosperity Goldfields Corp.: Spring Drill Program Identifies New Gold Zone At Kiyuk Lake, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 29, 2012) - Prosperity Goldfields Corp. (the "Company" or "Prosperity") (TSX VENTURE:PPG) reports that assay results have been received from all twelve holes of the recently completed spring drill program of 2,652 m of drilling on its 100 percent owned Kiyuk Lake gold property (the "Property") located in southern Nunavut.

The last hole of the spring program, KI12-012, (at a new zone named "Amundsen") was sited to test multiple magnetic highs in an area where surface sampling of boulders returned grades ranging from below detection limit to 15 g/t Au with 7 of 14 samples returning greater than 2 g/t Au. The Amundsen hole was abandoned at 212.4 m depth whilst in mineralization, due to a drilling problem. The last part of the hole from 170 m cut a wide variably mineralized zone containing silicified, brecciated and veined conglomerate and siltstone that returned 42.4 m at 0.97 g/t Au including 12 m at 2.3 g/t Au from 170 m (Table 1). The breccia matrix and veins consist primarily of actinolite, chlorite, albite, and calcite, with variable amounts of pyrrhotite and rare biotite. This style of mineralization is similar to that observed at other Kiyuk zones. Further drilling at Amundsen, including deepening Hole KI12-12, is warranted to further assess this new discovery.

Amundsen is now the fourth gold zone at Kiyuk to provide interesting drill results (following Rusty, Cobalt and Gold Point). It is located approximately 1km southwest of the Cobalt gold zone.

In a previous news release dated May 7, 2012, results of the first three holes of the spring 2012 program at the Rusty zone were reported, including 61.5 m at 3.3 g/t Au from 159 m in Hole KI12-003 (Table 1).

The remaining nine holes were drilled at two other known mineralized zones, Gold Point and Cobalt, and two previously undrilled targets, North Snake and Amundsen. Of these, the most encouraging results were from Hole KI12-006 at Gold Point that intersected two mineralized zones which returned 12 m at 2.4 g/t Au from 120 m, and 12 m at 3.9 g/t Au from 163.5 m. Drilling at Cobalt returned encouraging results in Hole KI12-008 including 9 m at 2.05 g/t Au from 57 m and 18 m at 1.36 g/t Au from 73.5 m.

"The spring drill program, which had to be terminated early due to unseasonably warm conditions met our goals of further testing the three drill discoveries made in 2011 and drilling two new targets. The indication of a new discovery at Amundsen is an excellent development. There are now four zones of gold mineralization at Kiyuk which need more evaluation." Comments Adrian Fleming, Prosperity CEO. "Not only did this spring drilling confirm the substantial potential at the Rusty Zone but it has further confirmed that additional exploration needs to be done on other yet to be drill tested targets on the property. We are now planning a summer exploration program which is expected to commence at the beginning of July."

Table 1 summarizes composite assay results from the entire twelve hole 2652 m spring drill program. Table 2 lists the collar coordinate and orientation for each drill hole.

Table 1: Composited assay results from the 12 hole Spring drill program
Hole_ID Zone From (m) Length (m) Au g/t1
KI12-001 Rusty 20.0 15.0 1.08
Rusty 81.5 23.0 1.49
Rusty 115.0 10.5 3.87
Rusty 128.5 10.5 4.56
Rusty 166.1 8.9 5.10
KI12-002 Rusty 137.0 9.0 5.40
Rusty 156.5 18.0 3.47
Rusty 195.5 7.5 2.82
Rusty 218.0 22.5 1.80
KI12-003 Rusty 19.5 19.5 3.49
Rusty 108.0 10.5 7.17
Rusty 159.0 61.5 3.34
Including2 Rusty 169.5 7.5 3.70
Including2 Rusty 181.5 15.0 6.69
KI12-004 Gold Point No significant Au mineralization
KI12-005 Gold Point No significant Au mineralization
KI12-006 Gold Point 120 12 2.43
Gold Point 163.5 12 3.99
KI12-007 North Snake No significant Au mineralization
KI12-008 Cobalt 57 9 2.05
Cobalt 73.5 18 1.36
KI12-009 Cobalt 68 9 1.00
KI12-010 North Snake No significant Au mineralization
KI12-011 Cobalt No significant Au mineralization
KI12-012 Amundsen 170 12 2.33
1 weighted averages calculated using a 0.5 g/t cut off, minimum composite grade of 1.0 g/t, minimum composite length of 6m, and maximum internal dilution length and grade of 3m and 100 ppb respectively.
2 weighted averages for sub intervals calculated using a 1.0 g/t cut off, minimum composite grade of 3.0 g/t, minimum composite length of 6m, and no internal dilution
Table 2: Drill hole collar coordinates
Hole_ID Easting1 Northing1 Elevation (m) Azimuth Dip Total depth (m)
KI12-001 425904 6700019 332 90 50 233.5
KI12-002 425750 6699846 325 90 -50 273.1
KI12-003 425801 6699873 332 90 -50 291.7
KI12-004 419018 6698290 340 155 -50 203.3
KI12-005 419018 6698290 340 -90 264.2
KI12-006 418948 6698318 339 155 -55 191.1
KI12-007 426100 6701328 313 90 -70 245.97
KI12-008 425919 6703474 320 105 -50 172.28
KI12-009 425919 6703474 320 100 -70 197.21
KI12-010 426029 6701179 308 90 -50 178.92
KI12-011 425908 6703538 325 105 -50 188.29
KI12-012 425582 6702576 331 140 -50 212.45
1 Coordinate System: UTM NAD 83, Zone 14N

The Kiyuk Lake property covers 590 square kilometers and contains at least four other targets requiring further exploration and drilling. The exploration program is being directed by Adrian Fleming, CEO and a Director of Prosperity. Additional technical guidance for the program including specialist expertise in geology, geochemistry and geophysics is being provided by Revelation Geoscience Ltd.

A comprehensive QA/QC program is in place to monitor precision and accuracy of assay results. Drill core samples are being submitted with certified reference materials and were analyzed by SGS Minerals Services, Red Lake, Ontario. The QA/QC data are routinely plotted and assessed against industry standard quality assurance guidelines. Gold analyses are by fire assay using a 30g charge and an atomic absorption spectrometry finish. Over-range assays greater than 10 g/t are re-assayed using a gravimetric finish. SGS Mineral Services is ISO 9001 accredited.

Adrian Fleming RPGeo is a Qualified Person and is responsible for the technical content of this press release. Dennis Arne PGeo (BC) is a Qualified Person responsible for the quality of the data referred to in this press release.

Additional information including maps and cross sections displaying these drill results can be viewed on the company web site at


Adrian Fleming, CEO and Director

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Prosperity Goldfields Corp. Statements regarding mineral exploration operations and objectives are subject to risk, including, but are not limited to, exploration and geologic risk, inflation and costs of goods and services, property title issues and regulatory approvals. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Prosperity Goldfields Corp. does not assume the obligation to update any forward-looking statement, except as required by applicable law.

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 news release.

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