Reservoir Capital Corp.

Reservoir Capital Corp.

October 11, 2011 07:00 ET

Reservoir Reports Exploration Progress at the Deli Jovan Project in Serbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2011) - Reservoir Capital Corp. (TSX VENTURE:REO)(FRANKFURT:ROC)(BERLIN:ROC) ("Reservoir" or the "Company") is pleased to provide a progress report on a recent soil sampling program and an update on progress in the re-opening of access to historical Rusman and Gindusa underground workings at its Deli Jovan Gold Project in eastern Serbia with partner Orogen Gold Plc (AIM:ORE) ("Orogen").


Soil sampling

  • 2,600 soil samples have been collected over the previously unexplored area between the historic Rusman and Gindusa mines;
  • Several gold anomalies have been identified that require additional field work to understand their association with possible extensions of gold mineralization from the known historical mines and workings, or with new occurrences of gold-bearing quartz veins.

Re-opening of access to historic Rusman and Gindusa mines

  • Re-opening of access to the historic Rusman and Gindusa gold mines, through shaft refurbishment and dewatering is progressing to schedule;
  • Access has been secured to the first 30 metre working level at the Rusman mine and detailed mapping and sampling is set to commence. Dewatering continues to expose deeper production levels for further exploration;
  • Re-opening of the Gindusa mine shaft is progressing well, with clearing and refurbishment currently more than half way towards the first 30 metre mining level.

Comments on the results of the Soil Sampling

Reservoir and Orogen geologists have undertaken a program of detailed soil sampling totaling 2,600 samples on a 100 metre x 20 metre grid spacing, covering a five kilometre strike length of the Deli Jovan shear structure, between the old Rusman and Gindusa mine shafts. The aim of the program was to identify previously unknown or unworked gold-bearing veins in the sampled area.

The accompanying maps (to view click on: demonstrate a number of zones containing soil samples that have yielded anomalous gold values; as defined by values greater than 10 parts per billion (ppb) gold. The distribution of enhanced copper and arsenic in the soils is partly coincident with that of the anomalous gold values. Copper and low-level arsenic often accompany gold in the vein systems at Deli Jovan and can be useful pathfinder elements for confirming the presence of mineralized structures. The results include:

  • Several zones of strong gold anomalism occur in an area of approximately 600 x 400 metres in the vicinity of the historic Gindusa gold mine. The strongly anomalous zones are marked by a coherent distribution of samples containing 100 ppb to 1000 ppb gold. Additional field work is required to determine the relationship to potential extensions from the known mineralization, as well as the impact of contamination from the historic mine workings;
  • A zone of soil samples containing 10 to 49 ppb gold with isolated samples in the 50 to 250 ppb gold and one sample peaking at 521 ppb gold extends approximately 500 metres to the northwest of the historic Rusman mine. Several small historic workings are known in this area, including the Seliste copper-gold prospect, where previous grab samples, collected by Reservoir's geologists in 2006 from dump material, have ranged from 0.2 to 41 grams per tonne ("g/t") gold and up to 4.72% copper;
  • In the center of the sample grid, there are two zones with a coherent distribution of anomalous samples (100 to 671 ppb gold) along strike lengths of 100 to 200 m, as well as several additional isolated values in the range 100 to 455 ppb gold.

A follow up program of fieldwork is being planned to determine the possible relationship of the zones of gold-in-soil anomalism with the presence of auriferous quartz veins in bedrock and, if appropriate, subsequent diamond drill testing of confirmed targets.

Work at Deli Jovan is funded by Orogen, which can earn up to a 75% interest in the project by completing $3.5 million in exploration expenditures within 42 months.

Quality Control:

The Company and Orogen follow industry standard quality assurance and quality control procedures for all samples. The QA/QC program includes the insertion of blanks, duplicates and certified standards into the sample stream. Gold and multi-element analysis is undertaken by ALS Chemex at its laboratories in Romania and Vancouver.

Dr. Duncan Large, Chartered Engineer (UK) and Eur. Geol., a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, is responsible for the preparation of the technical information in this release.

About Reservoir

Reservoir is a renewable energy company that is engaged in the development of a 58.4 MW hydroelectric project at Brodarevo in southwest Serbia. Reservoir holds four geothermal exploration licenses in Serbia and has applied for three hydroelectric licenses on the Cehotina River in Bosnia (17.75 MW) and one to develop a 32 MW project from an existing reservoir dam at Vrutci in Serbia. The Company also holds 8 precious and base metal exploration properties in Serbia that, subject to approvals, are to be spun-out into a separately listed company Reservoir Minerals Ltd. (see September 13, 2011 news release). Reservoir's common shares trade on the TSX Venture Exchange (symbol "REO") and on the Frankfurt and Berlin Exchanges (symbol "ROC").

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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