Sonora Gold Corp.

Sonora Gold Corp.

May 03, 2007 00:15 ET

Sonora Gold Corp. Mexican Operations Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 3, 2007) - Sonora Gold Corp. ("Sonora Gold" or the "Company") (TSX VENTURE:SGG)(PINK SHEETS:SGGFF)(FRANKFURT:T9N) is providing a Mexican operations update, including the San Enrique molybdenum-copper-gold-silver exploration project and the sale of the Santa Gertrudis gold property.


Minera Teck Cominco ("Teck Cominco") continues to explore the San Enrique project, located south of the Santa Gertrudis property in Sonora, Mexico which it has under option from Sonora Gold. Teck Cominco has confirmed in their recent summary reports that the 8,492 hectare San Enrique molybdenum-copper-gold-silver option lands retain ample opportunity to contain an economic mineral deposit. Teck Cominco has identified several coincident anomalous areas over a 9 kilometer strike length featuring variable molybdenum, copper, gold, and silver numbers in each. Teck Cominco's work suggests these anomalous zones share multiple geological indicators which suggest they may originate from a common source intrusion. Teck Cominco will continue focusing structural studies, additional vein mapping, and drill testing on and between these zones to test this hypothesis, as well as concentrating on exploring these zones for base and precious metals. Work is now underway to complete a 3D structural model of the Greta gold area, characterized as containing many of the characteristics of a Nevada Carlin Trend style sediment-hosted gold system, including stratigraphic jasperoid development, decalcification and ex-disseminated pyrite. Teck Cominco suggests this area may contain a significant resource originating from a deeper common feeder source, and intends to focus drilling upon this premise. Initially, up to 2,000 meters of drilling in this area is anticipated to begin early June, subject to drill rig availability.

In addition, Teck Cominco has been evaluating the results of past surface and sub-surface work in the Nacho Libre molybdenum-copper-gold-silver target area by considering results from vein characterization and orientation studies, to make sure that previous drilling has not missed better grades. So far, the results are in sub-economic levels as illustrated in the following list:

SE Hole #04-14 which included 195.1 meters grading 0.041% Cu, 0.022% Mo, and 0.05% Zn.

SE Hole #05-15 which included 68.2 meters grading 0.201% Cu, 0.074 Mo and 4.4 gpt Ag, including 27.6 meters grading 0.148% Mo, 0.308% Cu, and 6.7 gpt Silver, and 5.3 meters grading 0.454% Mo, 0.92% Cu, and 21.3 gpt Silver.

RCSE #2 which intersected 292.6 meters grading 456 ppm Cu and 157 ppm Mo over the entire hole.

RCSE #3 which intersected 207.3 meters grading 460 ppm Cu and 214 ppm Mo over the entire hole.

DSE #5 which intersected 8.5 meters grading 1,834 ppm Cu and 2,675 ppm Mo.

Teck Cominco is considering re-logging and re-assaying these and several other previously reported Sonora Gold and Teck Cominco drill cores from the 2004-05-06 drilling programs that were focused on the Nacho Libre target.

To date, Teck Cominco has expended approximately US$1 million on the San Enrique Option Lands and has established a preliminary US$500,000 budget for exploration in 2007. Sonora Gold currently has a 100% interest in the San Enrique property which is under option to Teck Cominco. Teck Cominco may spend US$3.5 million over 5 years to earn a 60% interest and upon earning that interest, may then elect to earn an additional 10% by spending an additional US$3.5 million on the San Enrique property.

Teck Cominco is the Operator of the San Enrique Option Lands and has reviewed and approved the above disclosure.


The Company advises the sale of the Santa Gertrudis property is proceeding as planned. Closing of the transaction is anticipated late May, early June, upon the appropriate regulatory approvals. Deal Capital Ltd. ("the Purchaser"), a Toronto Venture Exchange listed Capital Pool Company ('DCP.P') will pay the Company US$650,000 and issue 1,500,000 common shares to the Company upon closing, subject to an escrow agreement. Three more payments of US$500,000 will be paid to the Company in cash or common shares (at the option of the Purchaser) on the first, second and third anniversaries. This transaction provides an opportunity for the Company to participate in the Purchaser's exploration efforts on the consolidated Santa Gertrudis district.

On Behalf of the Board,

Dave McMillan, President & C.E.O.

Sonora Gold Corp.

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sonora Gold Corp.
    Tom Brady
    Investor Relations
    (604) 685-5851 or Toll Free: 1-888 685-5851
    Sonora Gold Corp.
    Chad McMillan
    Investor Relations
    (604) 685-5851 or Toll Free: 1-888 685-5851
    (604) 685-7349 (FAX)
    Sonora Gold Corp.
    Arthur Ferjo
    Investor Relations
    (705) 743-5042