Strait Gold Corporation
TSX VENTURE : SRD

Strait Gold Corporation

March 04, 2011 09:52 ET

Strait Gold Fast-Tracks Drill-Permit Application for Alicia

TORONTO, ONTARIO--(Marketwire - March 4, 2011) - Strait Gold Corporation (TSX VENTURE:SRD) is pleased to report that it has initiated the permitting process for an expanded 2011 drilling program at its Alicia copper-gold project in Peru.

Laboratory results are pending from the last two holes of the Company's initial 15-hole drill program, which was completed in February, 2011. Under Peruvian regulations, a drill program that anticipates using more than 20 drilling platforms requires a more detailed permit application and involves a more rigourous government review prior to approval.

"Our drill results to date have been very positive, and we see no need to wait for assay results from the final two holes before fast-tracking the permitting process for an expanded program," said Strait Gold President Jim Borland. "There is tremendous activity in this area of Peru, and that puts increasing demands on suppliers and service providers. We are stepping up our exploration plans significantly in 2011, so we need to get this process under way now."

The Company has retained Minconsult SRL of Lima, Peru, to prepare the permit application, which includes baseline environmental, archaeological and social studies as well as a technical review of the planned exploration activity. Meetings with local communities to explain the Company's plans and the nature of exploration in general will be included in the process. Minconsult prepared the Company's original drill permit application and has conducted similar work for other companies working in this area including Antares Minerals (now First Quantum Minerals).

The Company is also planning to conduct airborne geophysics over the entire 26-sq.-km property to complement the ground geophysics conducted over the central portion of the property in 2010 prior to drilling.

Strait Gold has an option to earn a 100% interest in the Alicia copper-gold property situated in the Andahuaylas-Yauri copper belt approximately 500 km southeast of Lima. This belt contains a number of important copper and copper-gold deposits including Las Bambas (about 40 km west of Alicia) and Antapaccay (about 80 km southeast of Alicia) in which Xstrata is investing an aggregate of US$5.7 billion to develop. The belt also includes the Haquira copper project (about 40 km west of Alicia), which was recently acquired by First Quantum Minerals, and the Constancia copper project (about 60 km east of Alicia), which was recently acquired by HudBay Mining.

About Strait Gold Corporation:

Strait Gold Corporation is a Canadian mineral exploration company active solely in Peru and listed on the TSX Venture Exchange. In addition to the Alicia property option, Strait Gold 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.

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