Stay Gold Inc.

Stay Gold Inc.

January 25, 2012 09:56 ET

Stay Gold Inc. Announces Drill Results From the First Hole on the Harrigan Cove Property, Nova Scotia

HALIFAX, NOVA SCOTIA--(Marketwire - Jan. 25, 2012) - Stay Gold Inc. ("Stay Gold" or the "Corporation") is pleased to announce assay results from its first drill hole on the Harrigan Cove Property.

Historic exploration by Torene Gold in the late 1980's on the Harrigan Cove Deposit identified eight gold bearing zones or slate/vein packages on the South Anticline within the central part of the property. From south to north they are known as Zone 50, Zone 60, Zone 70, Zone 80, Zone 90, Zone 100, Zone 110 and Zone 120. Three of the eight zones numbered 60, 70 and 80 are reportedly of greatest interest because of high grade gold intercepts. They all contain gold bearing shoots that occur at the intersection of the veins and high angle shears. These zones all occur within an area of 269 m wide and 350 m in length. All eight of these zones are stratabound slate/vein packages, steeply dipping, that strike approximately east-west and show an en echelon or stacked character.

Utilizing a recently developed 3D model for geological modeling, Stay Gold diamond drill hole (DDH) HC-11-1 was designed to twin historic hole No. TH-47-87, completed in 1987 by Torene Gold which intersected three of eight zones; specifically the most southerly of the identified zones (Zone's 50,60,70). This DDH is part of a proposed larger drilling program, designed to fully test the extent of gold mineralization and provide sufficient verification and validation information to allow the completion of a NI-43-101 resource estimate.

(1)Description of Zones of Interest

Zone 50: This is a fairly wide zone of auriferous mineralization consisting of three individual slate belts of variable widths with intercalcated quartz veins. Auriferous mineralization was intersected in the quartz veins within these belts. Torene Gold drill holes TH-4-86 and TH-13-87 both intersected visible gold in the footwall belt. An intersection of 2.11 oz/ton (72.34 g/t) Au over 1 m in Consolidated Mining & Smelting Co. Ltd.'s Hole No. 1 (1937) is thought to be from this zone, as well as several visible gold intersections from Munroe Archibald's 1902 drilling and a 1.72 oz/ton (58.97g/t) over a 1.5 m intersection in a Millmor Syndicate's 1973 drill hole. Bulk testing of this zone by Harrigan Mining Associates (1978) returned 0.64 oz/ton (21.94 g/t) from an area 2.2 m wide by 44 m in length.

Zone 60: This zone corresponds spatially to the previously mined Slate Belt and consists of a 60 cm slate belt on the hanging wall, with an approximately 10 cm quartz vein. In addition, there is a 1.5 m slate belt on the footwall with variable amounts of quartz Auriferous mineralization is found in small irregular quartz veins. Two mineralized shoots have been identified on this zone.

Zone 70: This zone is represented by approximately 1.2 m of slate between two greywacke units. Auriferous mineralization is found in this belt, as well as in quartz veins in the footwall greywacke near the slate contact. Three mineralized shoots have been identified in this zone. All are raking approximately 25° west; and all are open to depth.

Zone 80: The zone consists of a 1.5 m slate belt, with greywacke on both the hanging wall and footwall. Visible gold was noted in this belt in a 30.5 cm quartz vein with intermixed slate, and pyrrhotite, pyrite and chalcopyrite mineralization is common (Frew, 1988).

Two mineralized shoots have been identified on this zone. An intersection of 0.44 oz/ton Au (15.08 g/t) over 1.5 m was encountered in Millmor Syndicate's Hole H-2 in the zone.

Zones (60,70,80) were part of a Non 43-101 compliant reserve estimate completed in 1988 by a consultant to Torene, Allan Frew. Allan Frew had suggested a reserve, based on three of the eight identified zones, of 162,602 tons (147,496 tonnes) at an average grade of 0.24 oz/ton Au (8.26g/t). This estimate is historic in nature and does not comply with standards set out in NI43-101. Further, the exact methodology used by Frew could not be established from the reports available to the Company.

Table of Results for drill holes HC-11-1 - Significant Intersections

Incl. From (m) To (m) Interval (m) Gold grade (g/t)
146.5 147 0.50 36.5
164 164.55 0.55 21.3 (2)
173 174.8 1.8 3.10
202.3 202.6 0.30 0.80
205 206 1.00 0.64
208.6 209.6 1.00 0.49
223.25 227.4 4.15 0.35
Incl. 226.3 227.4 1.10 0.51
231 231.6 0.60 4.05
298.05 298.5 0.45 1.33

True widths is not yet determined. The chart represents core intercepts.

Preliminary analysis shows correlation between mineralized zones identified in TH-47-87 and the results from HC-11-1. The assay results of HC-11-1 confirm that the targeted zones are indeed mineralized, with various sightings of visible gold and anomalous gold assay's corresponding well to previous results (TH- 47-87). This correlation between drill holes builds confidence in the historical drill hole data and the company's gold distribution model.

Future Plans

The company plans further drill testing on the Harrigan Cove deposit with a goal of generating a NI Compliant resource in 2012. Additional exploration holes are also planned, with the objective of extending the known gold bearing packages to the west, as well as targeting a different geological structure (stacked saddle reef style quartz veining) in the northern area of the Harrigan Cove Deposit. A broader evaluation of the Company's other gold prospects in Nova Scotia is ongoing.

(1): For a full description of the zones of interest, including descriptions zones 90-120, please view the company's NI 43-101 report (August 29, 2011) on www.sedar.com

(2): Represents a duplicate value. Sample # 35 returned values of -0.05 and 21.3 Au ppm respectively. See 'Protocols and QAQC', included herein, for additional information.

Protocols and QAQC

Drill hole were spotted by hand held Garmin 60Cx GPS and upon completion were cemented into bedrock. Downhole surveys were performed using the Reflex system.

All drill core from the 2011 program was split on site and shipped to ALS Laboratory Group, Val d'Or Quebec for sample preparation and analyses. Core samples were split from zones primarily of geological interest, sample widths ranged from 0.23 to 1.80 meters and averaged 0.83 meters.

All samples submitted to ALS Laboratory Group for gold analysis used the "Full" Metallic Screen Fire Assay Method (Au-SCR21), details of the Screen Fire Assay Method can be found on the ALS Laboratory Group website.

Blanks and certified standards from Analytical Solutions Ltd, Toronto Ontario were inserted into the sample shipments to ALS Laboratory Group. Blanks were derived from barren greywacke drill core from hole HC-11-01.

Final results for the submitted standards and blanks are considered to be acceptable.

Field Duplicates of 1/2 core samples representing half of the sampled core were also taken. The assay results for five of six field duplicate samples are considered to be acceptable. One field duplicate produced less than acceptable results. The erratic results of this one field duplicate is considered to be caused by a coarse gold "nugget effect" commonly associated with quartz veining. The duplicate sample was noted to contain quartz veining which contained the coarse gold assay result.

Drilling operations were performed by R & J Drilling Services Ltd. of Nova Scotia under the supervision of Lyndon Jensen, P.Geo.

Lyndon Jensen, P.Geo, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this news release.

STAY GOLD INC.

About Stay Gold:

Stay Gold Inc. is a gold focused exploration company with a portfolio of high potential gold prospects. The Corporation's strategic land position, located in the historic gold producing region of Nova Scotia, provides a platform for expedient resource development and new discoveries.

The Corporation's Securities are not listed on any stock exchange and no stock exchange has reviewed or accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information:

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration programs, exploitation activities and events or developments that the Corporation expects, are forwardlooking statements. Although the Corporation believes that the expectations expressed in such forwardlooking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.

Contact Information

  • Stay Gold Inc.
    Brendan Matheson
    President and CEO
    (902) 832-1137