Strait Gold Corporation
TSX VENTURE : SRD

Strait Gold Corporation

January 10, 2011 08:30 ET

Strait Gold Intersects Copper-Gold in Every Drill Hole, Extends Mineralized Strike Length at Alicia to 600 Metres

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2011) - Strait Gold Corporation (TSX VENTURE:SRD) is pleased to report further results from the 2010 drilling campaign at its Alicia copper-gold project in southern Peru including Hole ALC10-08 which intersected 50.5 metres (37.2 metres true width) grading 0.64 copper, 0.08 grams per tonne (g/t) gold and 3.2 g/t silver within a wider mineralized intersection of 129.5 metres (94.25 metres true width) grading 0.33% copper, 0.04 g/t gold and 1.8 g/t silver.

High grade (>1% copper) mineralization was intersected in seven of the eight holes drilled over a strike length of approximately 600 metres extending the strike length indicated by results from the first two drill holes in the program announced in a news release dated November 15, 2010. The drill program tested skarn mineralization along the northern contact of the main porphyry intrusive. This contact extends for approximately 3,000 metres surrounding the intrusive. A map and sections of drill results are available on the Company's website at www.straitgold.com.

"We are very excited by the potential demonstrated by these results, our first drilling on this property," said Strait Gold President Jim Borland. "The continuity of mineralization is particularly encouraging and our ongoing drill program will now test the skarn zones on the eastern, southern and western porphyry contacts."

The higher grade mineralization is consistently associated with the development of bornite in the skarn. Associated copper minerals present to varying degrees include chalcopyrite, chalcocite and native copper. Where the skarn is well developed, it is typically graded from green-brown garnet skarn at the porphyry contact out through green garnet to green pyroxene rich skarn closest to the limestone. The highest grades of copper mineralization frequently occur in the garnet skarn.

Hole ALC10-09, which did not intersect high grade mineralization, intersected 0.38% copper, 0.11g/t gold and 7.1 g/t silver over a true width of 1.54 metres indicating continuity of mineralization across the entire 600 metres that have been drill tested.

Porphyry potential

In addition to the skarn mineralization, Hole ALC10-08 intersected 0.11% copper between 19.5 metres and 74 metres in altered quartz feldspar porphyry before entering the skarn. (All holes in the 2010 program were collared in the porphyry intrusive and drilled to the north through the skarn mineralization and into the surrounding limestone.) The main copper mineral is malachite which is associated with quartz-sericite alteration with variable magnetite.

Approximately 250 metres to the southwest of ALC10-08, historical hole AL-02, which was drilled into the quartz feldspar porphyry at an inclination of -70° to the south, intersected 0.11% copper over 100 metres between 52 metres and 152 metres. In contrast to Hole ALC10-08, alteration consisted mainly of potassium feldspar veinlets, and weak biotite again with associated magnetite. Copper mineralization was dominantly in the form of chalcopyrite.

These results demonstrate the potential for porphyry style copper mineralization at Alicia which the Company will investigate in more detail upon completion of the current drilling program.

Hole
#
Total
Depth
(m)
Inclin-
ation
Azimuth From
(m)
To
(m)
Inter-
section
(m)
True
Width
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
AL-01* 300 -60 NA 148.0 152.0 4.0 NA 0.24 0.10 0.9
including       226.0 228.0 2.0 NA 0.15 0.01 0.2
Al-02* 558.6 -70 NA 52.0 152.0 100.0 NA 0.11 0.05 0.9
including       66.0 76.0 10.0 NA 0.46 0.10 3.2
and       126.0 134.0 8.0 NA 0.56 0.17 2.7
AL-03* 195.1 -60 NA No significant values
ALC10-4† 83.5 -45 357 40.6 66.3 25.7 20.4 1.26 0.14 6.7
including       40.6 53.3 12.7 10.3 1.87 0.23 9.5
Including       42.0 48.7 6.7 5.7 2.47 0.34 10.3
including       44.0 47.7 3.7 3.2 3.47 0.46 14.0
and       57.3 60.3 3.0 2.3 1.84 0.15 10.0
ALC10-05† 88.7 -65 357 55.7 88.7 33.0 21.2 1.27 0.13 7.5
including       64.0 75.8 11.0 7.1 1.79 0.13 9.5
Including       65.8 73.8 8.0 5.1 2.39 0.17 12.5
including       67.8 70.8 3.0 2.0 3.15 0.18 16.2
and       79.6 81.6 2.0 1.2 4.35 0.71 33.2
and       83.6 88.7 5.1 3.3 2.17 0.21 11.5
ALC10-06 101.55 -60 350 57.3 60.2 2.9 2.3 0.49 0.08 2.3
        68.6 70.7 2.1 0.9 5.42 0.79 75.3
        75.0 91.0 16.0 11.9 0.58 0.05 4.1
including       76.0 79.0 3.0 1.9 1.78 0.16 14.0
ALC10-07 107.3 -50 357 62.7 66.6 3.9 2.1 0.79 0.03 1.3
including       63.6 64.6 1.0 0.5 2.09 0.04 1.4
        75.6 77.6 1.0 0.8 0.55 0.06 4.7
        83.6 89.0 5.4 4.1 0.37 0.03 2.6
ALC10-08 266.5 -60 0 43.0 172.5 129.5 94.2 0.33 0.04 1.8
including       74.0 124.5 50.5 37.2 0.64 0.08 3.2
including       74.0 83.55 9.55 7.8 1.76 0.21 6.6
and       104.5 109.0 4.5 2.9 1.16 0.16 7.0
        115.5 118.5 3.0 1.9 0.45 0.07 3.2
ALC10-09 65.5 -50 0 18.5 20.2 1.7 1.5 0.38 0.11 7.1
        49.0 53.5 4.5 2.9 0.19 0.02 32.7
ALC10-10 95.5 -50 0 26.0 41.0 15.0 11.2 0.61 0.06 5.4
including       26.0 30.5 4.5 2.2 1.09 0.13 5.7
        43.4 62.7 19.3 13.6 0.32 0.04 18.9
including       43.4 49 5.6 4.0 0.55 0.11 10.5
ALC10-11 110 -65 0 31.4 43.5 12.1 10.7 1.32 0.14 6.4
including       31.4 38.4 7.0 6.2 2.15 0.22 9.8
        46.5 56.0 9.5 8.4 0.13 0.01 4.9
including       46.5 50.0 3.5 3.1 0.20 0.01 3.8
* Historical drill hole
† Previously released hole (see news release dated November 15, 2010)

Drilling has resumed on the project following a brief shut-down for the Christmas holiday season in Peru. The Company plans to conduct a minimum of 1,000 metres of drilling in the first quarter of 2011 to test the remaining skarns surrounding the porphyry.

Historical holes AL-01, AL-02 and AL-03 were drilled by a private company in 2003 and were reported in Strait Gold's NI 43-101 compliant 2009 report which is available on the Company's web site and on SEDAR.

Quality Control and Quality Assurance

Logging, sampling and splitting of the drill core is conducted at Capacmarca by Strait Gold personnel. Samples composed of one half of the split core are securely stored in a locked room prior to transportation to Cusco by Strait Gold Personnel. Samples are delivered to the ALS Chemex office in Cusco and forwarded by ALS Chemex to Arequipa for sample preparation. The resulting pulps are sent to its laboratory in Lima, for analysis. ALS Chemex is an ISO 9001:2000 registered laboratory. Samples are 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. Strait Gold will send approximately five percent of sample rejects to a second laboratory for check analysis.

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.

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