Staccato Gold Resources Ltd.
TSX VENTURE : CAT

Staccato Gold Resources Ltd.

October 26, 2006 13:13 ET

Staccato Increases Gold Resource at Lookout Mountain, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2006) - Staccato Gold Resources Ltd. (TSX VENTURE:CAT) is pleased to announce that an evaluation of the Lookout Mountain deposit gold resource block model has been completed. The core drilling program conducted from late 2005 through the first half of 2006 was successful in better defining the high-grade gold at the Lookout Mountain pit as well as discovering new mineralization and significantly increasing the gold resource.

The Staccato evaluation was prepared by independent consultant Leslie Creel (P.Eng) of Elko, Nevada using 494 drill holes including 20 core holes drilled by Staccato. The Measured and Indicated resources have increased from 273,000 ounces to 545,000 ounces. Inferred resources have increased from 177,000 ounces to 336,000 ounces.

The core drilling along an 800 foot section of the 2.5 mile long Ratto Ridge structure at the Lookout Mountain pit has also defined a coherent high-grade deposit within the overall resource containing approximately 201,000 ounces of gold at 0.24 opt grade (at a 0.10 oz Au/st cutoff), and a working exploration model was constructed. Core drilling has also shown in this case to be a relatively cost effective method of better defining a gold resource. The cost of converting the 201,000 high-grade ounces from lower grade resource (2005-06 drill program) was approximately US$6.50 per ounce.



Table 1
Lookout Mountain Pit High-Grade Gold Resource Comparison
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Data Set Total Short Tons Average Grade Total Measured &
Oz/ton Indicated Ounces
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Pre-2005 RCR & Conv.
Rotary Holes 519,000 0.18 93,420
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2005 & 2006 Core Holes
Only 836,000 0.24 200,640
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A comparison of the Mine Development Associates (MDA) and Staccato gold resource estimates for the South Eureka project is shown in Tables 2A and 2B. The resource is defined along approximately 3,000 feet of the Ratto Ridge structural zone. The resource estimate using a 0.010 oz/ton cutoff is highlighted for each gold resource model.



Table 2A
Lookout Mountain Gold Resource Estimate - MDA, May 5, 2005
RCR And Conventional Rotary Data Only
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Measured Indicated
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Cutoff Oz Au Short Oz/ton Oz Au Tons Oz/ton
Oz/ton Tons Au Au
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0.005 98,100 4,998,100 0.020 178,900 8,507,300 0.021
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0.010 96,100 4,753,500 0.020 176,900 8,268,700 0.021
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0.015 77,100 3,184,200 0.024 139,800 5,232,000 0.027
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Inferred
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Oz Au Tons Oz/ton Au
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177,200 9,322,600 0.019
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177,100 9,309,300 0.019
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129,500 5,646,200 0.023
------------------------------


Table 2B
Lookout Mountain Gold Resource Estimate - Staccato, October 15, 2006 - RCR,
Conventional Rotary And Core Data
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Measured Indicated
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Cutoff Oz Au Short Oz/ton Oz Au Tons Oz/ton
Oz/ton Tons Au Oz/ton Au
---------------------------------------------------------------------------
0.005 267,663 9,358,890 0.029 360,580 16,590,160 0.022
---------------------------------------------------------------------------
0.010 240,585 5,490,350 0.044 304,300 8,550,330 0.036
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0.015 219,050 3,696,025 0.059 264,810 5,259,750 0.050
---------------------------------------------------------------------------

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Inferred
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Oz Au Tons Oz/ton Au
------------------------------
436,858 25,557,680 0.017
336,270 11,188,410 0.030
270,645 5,719,780 0.047
------------------------------


Looking specifically at the Lookout Mountain pit area where Staccato drilled 20 core holes (see drill hole location map on the Staccato website at www.staccatogold.com) the definition of a coherent high-grade resource is the most important result achieved through the core drilling. Examining high-grade ounces only and using the same search parameters, at a 0.10 oz Au/st cutoff, the resource model from reverse circulation and conventional rotary drill holes is approximately 93,000 ounces at a grade of 0.18 oz Au/st. The resource estimate from the core only data, using the same criteria and a 0.10 oz Au/st cutoff is approximately 201,000 ounces at a grade of 0.24 oz Au/st (Table 1).

The number of high-grade ounces has more than doubled with a significant increase in grade over the material formerly sampled by the reverse circulation and conventional rotary holes. The major shift in modeled resource ounces toward more high-grade ounces appears to be primarily due to better sampling with core drilling. Most of the rock containing gold has a physical character of broken, generally soft material with abundant fine-grained sulfides.

The 2005-2006 drilling program has extended and demonstrated the continuity of the high-grade breccia-hosted gold mineralization beneath and southward along strike from the approximate center of the Lookout Mountain pit. Thick sections of lower grade gold have also been partially defined west of the high grade breccia and flanking it in thinner zones to the east. Core drilling has repeatedly demonstrated the stratabound nature of the gold mineralization in thick zones of collapse breccias within carbonate rocks flanking the Ratto Ridge structural zone. This exploration model will be applied to future exploration in the Lookout Mountain area.

The Staccato resource estimate uses the same parameters that Mine Development Associates (MDA) used in its resource estimate for Staccato in 2005, including cutting all gold values greater than 0.9 oz/ton back to 0.9 oz/ton. MDA completed a Lookout Mountain resource evaluation for Vista Gold in 2004 and for Staccato in May, 2005. The MDA data set was limited to reverse circulation and conventional rotary holes (474 holes) that had been drilled up to that time by several different companies. The Staccato evaluation utilizes all those holes and the 20 core holes recently drilled by Staccato. The only difference in the methods of estimation is that MDA used a krieging model and Staccato uses inverse distance squared drill-hole valuations. Core drill data at the Lookout Mountain pit served to significantly tighten the assay intervals by providing better sampling.

The Company has retained MDA to complete a third party NI43-101-compliant resource estimate that will include the core hole data. Staccato also plans to resume core drilling at Lookout Mountain as soon as a core drill is available, currently estimated to be the first week in December. The new drill sites will be constructed as soon as the BLM has granted approval.

The Company's 100% owned property position comprises an area of over 17,600 acres (27 square miles) and is one of the largest gold exploration target opportunities held by a junior gold exploration company in Nevada. The property is located in the Eureka Mining district within the Battle Mountain - Eureka Trend, also referred to as the Cortez Trend. Barrick's Archimedes (Ruby Hill) mine is located approximately 7.2 kilometers (4.5 miles) north of the Staccato claim block and is expected to commence production during this year. Historic production from the district is in excess of 2 million ounces. Staccato's South Eureka property has a rich history of gold production and is near several open pits including the Windfall Mine, one of Nevada's first open pit heap leach mines.

R.H. Russell, M.S. Geo and Qualified Person has approved and is responsible for the contents of this press release and for quality assurance and quality control of exploration undertaken at the Lookout Mountain project, Nevada.

On behalf of the Board of Directors

STACCATO GOLD RESOURCES LTD

Greg Hryhorchuk, Vice-President & CFO

About Staccato Gold Resources Ltd: Staccato Gold is a junior gold exploration company with resources and advanced exploration assets exclusively in Nevada. The Company has assembled a portfolio of five gold prospects in the dominant gold trends in Nevada and has a joint venture agreement in place on its ICBM property in the Cortez Trend with Barrick.

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.


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

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