Stronghold Metals Inc.
TSX VENTURE : Z

Stronghold Metals Inc.

March 23, 2011 09:01 ET

Stronghold Metals Announces Major Drilling Program at Eagle Mountain Gold Project in Guyana

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2011) - Stronghold Metals Inc. ("Stronghold" or the "Company") (TSX VENTURE:Z) The Company is pleased to announce that final preparations are underway for a major mineral resource outline drilling program at the Eagle Mountain Gold Project ("Eagle Mountain" or the "Project"), located in Guyana, South America. The Project comprises an area of approximately 5050 Ha (12,480 acres) in central Guyana, 200km southwest of the capital Georgetown and 45 kilometres from the historic Omai Gold Mine, which was in production from 1993 to 2005. In Sept 2010, Stronghold entered into an Earn-In and Joint Venture Agreement with a subsidiary of IAMGOLD Corporation, under which the Company has been granted the right to acquire in stages up to 95% interest in the Property.

The diamond drilling program will commence not later than March 31, 2011 and will consist of a minimum of 15,000 metres and at least 120 holes. One drilling contract with Orbit Garant Drilling Services Inc. of Quebec, Canada has already been executed and their drill rig is on site. As the program ramps up, the Company expects a second, in this case man-portable diamond rig, to be mobilised to the site by early May 2011. Discussions with additional drilling companies are currently in progress.

The Company's primary focus is currently the accelerated development of the advanced exploration stage Eagle Mountain Gold Project. In November 2010, the Company filed an NI 43-101 reporting an Inferred Mineral Resources of 18Mt @ 1.27 g/t gold, containing 733,500 ounces of gold (using a 0.5 g/t Au cut-off grade). More than 250,000 ounces of contained gold in this inferred mineral resource is hosted by oxide material (saprolite). The Project is on track to produce a preliminary economic assessment report or scoping study. Our primary focus at Eagle Mountain is to enhance this NI43-101 compliant mineral resource with advanced exploration drilling and mineral resource definition drilling.

This 15,000 meters drilling program will have the following three objectives:

  • Expand the Inferred mineral resource by in-fill drilling and step-out drilling along and across strike in three directions.
  • Confirm historic records of gold mineralised horizons by twinning older historic holes. With success, that gold mineralization can be brought into the mineral resource estimate.
  • Upgrade the Inferred resources to Indicated resources with closely spaced in-fill drilling.

The program is expected to take 6 to 8 months to complete. A preliminary drill plan is available to be viewed at the Company's corporate web site at www.strongholdmetals.com. The total meterage and final position of the drill holes will be determined by access and future information gained from the programme.

Mr. Yannis Tsitos, President and CEO of Stronghold stated: "Stronghold is now in the exciting position to initiate an aggressive mineral resource outline drilling program of significant size at Eagle Mountain. As mentioned last year at the conclusion of our joint venture with IAMGOLD, we will effectively build upon the strong foundation established by IAMGOLD in Guyana and intensify the exploration work program with the objective to expand and advance the current mineral resource estimate at Eagle Mountain. We believe there is significant blue sky potential beyond the currently identified gold resource and want this drilling program to become the foundation in establishing whether the Eagle Mountain Gold Property can sustain a profitable independent mining operation in the future."

The exploration program in Guyana is supervised by Stronghold's local Guyanese geological team, which is headed by Ms. Anne Casselman, Country Manager, and Mr. Paul McGuigan, a Director of the Company. Mr. Paul McGuigan, P. Geo., a Qualified Person under NI 43-101, has reviewed and verified the data disclosed in this news release.

On behalf of The Board of Directors of Stronghold Metals Inc.

Ioannis (Yannis) Tsitos, President, CEO & Director

This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporations control which may cause actual results, performance or achievements of the corporation's to be materially different from the results, performance or expectation implied by these forward looking statements.

Neither the 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

  • Stronghold Metals Inc.
    Ioannis (Yannis) Tsitos
    President, CEO & Director
    +1 604.806.0916
    +1 604.806.0956 (FAX)
    www.strongholdmetals.com