Strait Gold Corporation
TSX VENTURE : SRD

Strait Gold Corporation

October 13, 2010 14:35 ET

Strait Gold Completes Phase 1 at Alicia Copper-Gold Project, Receives Approval for Drilling to Test Depth Potential

TORONTO, ONTARIO--(Marketwire - Oct. 13, 2010) - Strait Gold Corporation (TSX VENTURE:SRD) is pleased to provide a summary of the recently completed Phase 1 exploration program at its Alicia copper-gold project in southern Peru and to report that it has received approval from the Ministry of Energy and Mines to conduct a drill program on the property.

Results from Phase 1, detailed more fully below, indicate geophysical anomalies at depth associated with surface skarn zones that returned copper and gold grades up to 13% copper and up to 3.55 grams per tonne (g/t) gold. A geophysical anomaly associated with Zones 7 and 8 on the north arc of the main area of interest was particularly strong and may indicate sulphide mineralization at depth. The drilling program will test the skarn zones and the geophysical anomalies.

"We've mobilized a rig and expect drilling to commence shortly," said Strait Gold President Jim Borland. "Of particular interest are the strong geophysical anomalies that indicate potential for sulphide mineralization at depth. Our conceptual model is of a zone or series of zones of relatively high-grade oxide skarn mineralization occurring at the contact of a porphyry intrusive and the surrounding limestone, with a transition to sulphide mineralization at depth indicated by geophysics."

The Alicia Project is located within the emerging Andahuaylas-Yauri belt of mineralization that stretches across much of southern Peru and hosts numerous porphyry and skarn deposits, including Xstrata's Las Bambas deposit with indicated and inferred resources of 1.1 billion tonnes grading 0.77% copper located approximately 40 km from Alicia.

A NI-43-101-compliant report on Alicia prepared for the Company in October, 2009, recommended a two-phase exploration program. Phase 1 consisted of a program of community engagement, detailed mapping of the outcropping skarn zones, a grid sampling program and geophysical surveys. Phase 2 will consist of drilling up to 1,200 metres that will test the depth of copper-gold skarn mineralization.

Approval to conduct drilling required reaching an agreement with a community located about 12 km from the project, preparing baseline archaeological and environmental studies, and obtaining water-use approval.

Strait Gold has an option to earn a 100% interest in the Alicia property, subject to a 2% NSR royalty.

Results From Phase 1 Exploration

During the Phase 1 program at Alicia, the central area of interest was mapped and sampled in detail and ground magnetic and induced polarization/resistivity surveys were conducted over the area. Sampling of the skarn zones largely confirmed the historical results from trenching undertaken in 2000 and 2002.

The rock sampling was conducted on a grid system across the porphyry, skarn and surrounding limestone, with a sample interval of 50 to 100 metres, with samples more closely spaced in the outcropping mineralized areas.

All nine known skarn zones were sampled, as well as several smaller mineralized skarns that are not numbered. Copper, gold and silver values are typically elevated in samples taken from the skarn mineralization with a range of 0.03-13.05% Cu, 0.005 to 3.55 g/t gold and 0.3-100.0 g/t silver. Highlights of the sampling for each zone are shown in table 1 below.

Table 1. Summary of copper, gold and silver content of skarn zones
Zone Copper (%) Gold (g/t) Silver (g/t)
  From To From To From To
1 1.35 3.45 0.127 0.187 5.9 16.8
Extension 1.22 12.85 0.131 2.020 5.4 100.0
2 0.67 1.46 0.069 0.228 3.4 9.4
3 0.13 2.14 0.016 0.661 0.4 14.5
4 0.12 2.70 0.015 3.550 2.7 16.1
5 0.92 3.61 0.114 0.668 3.8 26.4
6 0.60 4.52 0.087 0.979 4.1 42.4
7 0.03 2.10 0.006 0.276 0.2 15.1
8 0.67 9.27 0.078 0.847 4.8 69.2
9 0.14 7.67 0.005 0.362 4.0 78.9
Other 0.052 13.05 0.006 1.805 0.3 94.6

Quality Control and Quality Assurance

Samples consist of rock chips collected from outcrop either in a channel typically two to three metres in length or in a panel covering four to six square metres. Samples were transported to ALS Chemex preparation facilities in Arequipa by Strait Gold personnel. Following sample preparation, samples were couriered to ALS Chemex facilities in Lima, Peru, for analysis. ALS Chemex is an ISO 9001:2000 registered laboratory. Samples were analyzed for gold by fire assay followed by atomic absorption spectroscopic (AAS) finish and by gravimetric finish for samples exceeding the upper limit of analysis (over limit). Silver, copper, lead and zinc, together with 30 other elements, were assayed by inductively coupled plasma-atomic emission spectrometry (ICP-AES) following aqua regia dissolution. Over-limit silver (>100 ppm), and copper (>10,000 ppm) samples were re-assayed by AAS. Strait Gold routinely carries out a program of quality assurance/quality control (QA/QC) that includes insertion of blanks, standards and duplicates into the sample stream to verify results prior to dissemination.

All of the company's exploration programs are prepared by, or prepared under the supervision of, Dr. Roger Moss, P.Geo., who serves as the Qualified Person as defined by NI 43-101, and is a Director of the Company. Dr. Moss has reviewed the technical content of this news release.

About Strait Gold Corporation:

Strait Gold Corporation is a Canadian mineral exploration company active solely in Peru and listed on the TSX Venture Exchange. It has an option to earn a 100% interest in the Alicia copper-gold property in Cusco Department approximately 500 km southeast of Lima, the capital of Peru, and holds a 100% interest in both the Letra Rumi South copper-silver property and the Culebrilla gold-silver property, both in Ancash Department approximately 250 km north of Lima. To learn more about Strait Gold, please visit our website at www.straitgold.com.

Neither 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 release.

Contact Information