Strait Gold Corporation
TSX VENTURE : SRD

Strait Gold Corporation

November 15, 2010 12:29 ET

Strait Gold's First Two Holes at Alicia Intersect 25 Metres of 1.26% Copper Plus 0.14 g/t Gold, 33 Metres of 1.27% Copper Plus 0.13 g/t Gold

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2010) - Strait Gold Corporation (TSX VENTURE:SRD) is pleased to report assay results from the first two holes of an initial drill program at its Alicia Project in southern Peru. Highlights include 25 metres of 1.26% copper, 0.14 grams per tonne (g/t) gold and 6.7 g/t silver in hole ALC10-4 and 33 metres of 1.27% copper, 0.13 g/t gold and 7.5 g/t silver in hole ALC10-05 and are summarized below. (To view a section of these holes, click here - http://media3.marketwire.com/docs/aliciapropertymap.pdf.)

Hole ID Total
Depth (m)
Inclination Azimuth From
(m)
To
(m)
Intersection
(m)
True
Width
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
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

The Company is conducting a 1,200-metre drill campaign as the second phase of an exploration program that began in June, 2010. Results from Phase 1 indicated geophysical anomalies associated with surface skarn zones. Surface sampling of more than nine skarn zones at Alicia indicated elevated copper, gold and silver values with a range of 0.03-13.05% copper, 0.005-3.55 g/t gold and 0.3-100.0 g/t silver (see news releases of July 7, 2010 ,and September 22, 2010). The current drill program is testing several of these skarn zones and associated geophysical anomalies.

Discussion of results

Hole ALC10-04 was drilled to the north at an inclination of 45° and intersected approximately 45 metres of weakly altered quartz porphyry, before hitting the skarn mineralization at 45.7 metres. Copper mineralization is dominantly in the form of bornite and chalcocite, with minor malachite and graded 1.26% Cu over a true width of 20.4 metres. The hole intersected limestone at 65.3 metres, and was stopped at 83.5 metres.

Hole ALC10-05 was drilled to the north at an angle of 65° from the same collar as ALC10-04, and intersected 65.8 metres of quartz porphyry prior to reaching the target skarn mineralization. The mineralization, comprised of bornite, chalcocite and minor malachite, and grading up to 4.35% copper, 0.71 g/t gold, and 33.2g/t silver over 1.2 metres, was intersected over a true width of 21.2 metres before the hole was abandoned while still in the skarn mineralization, due to poor ground conditions.

"Assay values from these first two holes are in line with our surface sampling and clearly indicate a deposit outcropping at surface, but a great deal more work will be required to determine its full extent," said Strait Gold President Jim Borland. "One hole of our current drill program will also test the strongest of several geophysical anomalies which may indicate a sulphide zone at greater depth below Zones 7 and 8."

The Alicia Project is located within the emerging Andahuaylas-Yauri belt of mineralization that stretches across much of southern Peru. This belt 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 and Antares Minerals' Haquira deposit with a measured and indicated resource of approximately 561 million tonnes grading 0.49% copper and 0.33 g/t gold, both located within approximately 40 km of Alicia.

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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