Stroud Resources Ltd.
TSX VENTURE : SDR

Stroud Resources Ltd.

March 08, 2012 17:37 ET

Stroud and St. Andrew Mutually Terminate Hislop Option Agreement/Drill Results Include 38.7g/t Gold Over 1.0 Metre

TORONTO, ONTARIO--(Marketwire - March 8, 2012) - Stroud Resources Ltd. (TSX VENTURE:SDR) ("Stroud" or the "Company") announced that the Company and St. Andrew Goldfields Ltd. (TSX:SAS) ("St. Andrew") have by mutual agreement terminated the previously announced option granted by Stroud to St. Andrew to earn up to a 60% interest in its Hislop gold property located near Timmins, northern Ontario.

Under the terms of the option agreement, St Andrew could have earned an interest in the Hislop property by increasing measured and indicated resources through exploration by at least approximately 50% (see Stroud press release dated April 28, 2011 for additional details). In furtherance of the option agreement, St. Andrew completed 6,894.85 metres of drilling in twelve diamond drill holes. The table below provides the assay results from the twelve holes drilled by St. Andrew.

Previous drill programs had traced a mineralized system on the Hislop property over a strike length of approximately 650 metres, and to a depth of approximately 400 metres. The St. Andrew drill programme intersected the mineralized system down to a vertical depth of 480 metres. The mineralized system consists of a system of quartz veins trending northwest with a dip of approximately 70 degrees to the south. The gold mineralization is closely associated with grey veins, which in turn are associated with multiple silica events carrying fine-grained pyrite, and cutting earlier quartz vein and silicified volcanics.

Structure
Hole
Depth
From
(m)
Depth
To
(m)
Length
(m)
Gold
(g/t)
Section 3855E DDH S11-279 350.30 353.15 2.85 1.652
Section 3880E DDH S11-280
Grey vein system
450.0 452.68 2.68 3.123
Incl. 451.5 452.68 1.18 5.683
Incl. 451.5 452.14 0.64 8.2
Section 3800E DDH S11-281
Discrete grey veins
322.5 325 2.5 1.99
396.5 397.9 1.4 2.965
400.0 400.75 0.75 2.6
401.55 401.9 0.35 3.8
412.0 414.5 2.5 5.6
Incl. 413.34 414.5 1.16 7.75
Incl. 414.0 414.5 0.5 9.27
430.36 433.6 3.24 2.457
464.0 464.8 0.8 5.649
Section 3725E DDH S11-282
Stringer grey veins
73.5 75.0 1.5 2.54
161.5 163.3 1.8 1.583
361.5 362.78 1.28 5.277
412.55 413.06 0.51 6.64
416.25 417.0 0.75 2.78
423.5 425.2 1.7 2.796
Section 3750E DDH S11-283
Intersected Grey veins
213.75 214.5 0.75 4.01
298.5 300.0 1.5 4.9
Incl. 298.5 299.25 0.75 7.64
307.2 307.8 0.6 2.559
488.0 489.0 1.0 3.03
509.84 510.2 0.36 6.479
Section 3690E DDH S11-284 335.0 341.9 6.9 1.389
538.5 539.47 0.97 2.799
DDH S11-285 518.66 519.2 0.54 3.689
Incl. 519.2 519.7 0.5 14.1
522.45 522.92 0.47 2.13
536.25 537.0 0.75 2.22
DDH S11-286 309.0 310.0 1.0 2.51
316.88 317.76 0.88 4.1
319.5 320.5 1.0 38.7
DDH S11-287 169.2 170.7 1.5 3.022
380.4 381.0 0.6 2.589
412.6 414.27 1.67 3.753
DDH S11-288 362.22 363.3 1.08 2.03
420.0 427.5 7.5 2.182
432 432.5 0.5 4.35
591.25 592.0 0.75 2.71
DDH S11-289 501.75 502.5 0.75 2.57
506.25 507.8 1.55 5.033
515.0 516.0 1.0 1.92
DDH S11-290 519.0 519.75 0.75 5.3
540.8 541.73 0.93 3.999
545.5 546.0 0.5 14.1
550.85 552.4 1.55 7.017
593.25 593.8 0.55 7.9
596.0 596.43 0.43 4.3
597.0 597.75 0.75 3.8

The mineralized zones within the drill holes were re-logged by Stroud so that the geological information could more readily be incorporated into Stroud's database. In some cases the mineralized zones were re-sampled in order to more accurately reflect the nature of the mineralization.

George Coburn, President and CEO of Stroud commented: "The holes drilled intersected a number of mineralized zones that yielded very encouraging assay results. The drilling also extended the down dip extension of the mineralization by an additional eighty meters and, subject to financing, we intend to continue to move the project forward through "in fill" drilling, metallurgical work and baseline environmental studies intended to lead to a Preliminary Economic Assessment of the project.

The Hislop property contains NI-43-101 compliant indicated resources of 483,500 tonnes at an average grade of 6.61 grams gold per tonne and inferred resources of 367,700 tonnes at an average grade of 5.90 grams gold per tonne. The project is well located to required infrastructure and close by potential custom milling facilities.

Drilling, Assaying and QA/QC

Surface drilling was carried out by Orbit Garant under the supervision of St. Andrew. SGS Canada Inc. in Toronto was utilized for the assay work by both St. Andrew and Stroud. St. Andrew utilized a quality control/quality assurance program consisting of a number of sample standards and blanks that were inserted in the sample string, which represented approximately 5% of the total population. Stroud utilized a similar system when re-sampling the core.

George Coburn, P.Geo., President and CEO of Stroud, is a qualified person within the meaning of National Instrument 43-101, and has reviewed and approved all of the scientific and technical data contained in this news release.

For additional information please visit: www.stroudresourcesltd.com

Stroud is a debt-free exploration company focused on the discovery and exploration of silver and gold deposits in Mexico and Ontario. Stroud owns a 100% interest in the Santo Domingo epithermal silver-gold project in central Mexico. In addition to the Santo Domingo project, Stroud also owns a 100% interest in the Hislop gold property, near Timmins, Ontario and the Leckie gold property, near North Bay, Ontario. Stroud also generates cash flow from a 3.75% interest in six natural gas, and natural gas condensate wells in central Alberta.

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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