Suparna Gold Corp.

June 05, 2012 08:00 ET

Suparna Gold Update on Drilling at Sara Creek Concession

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2012) - Suparna Gold Corp. ("Suparna" or the "Company") (TSX VENTURE:SUG) is pleased to announce that 2,388 metres of its planned 5,000 metre diamond drill program has been completed on its Sara Creek Property located in the highly prospective Guiana Shield in Suriname, South America which hosts Iamgold Corporation's Rosebel mine and Newmont Mining Corporation's Nassau deposit.

Due to the onset of the rainy season, and having reached this half-way point in the program, drilling has been put on short-term hold. This pause in drilling will allow Suparna to complete various field programs (sampling, geological mapping and ground geophysics), database updates, completion of assaying of all drill core, infrastructure improvements and restocking of drilling supplies. Drilling will recommence as weather permits, expected to be in September 2012.

At the outset of the drilling program, the in-country lab was selected for assay analysis based on slightly lower cost and promised shorter turnaround time. However, it became apparent that the selected lab was difficult to work with, constantly insisting that the Company pay bills owed by an unrelated company prior to completing the assay analysis. Despite working for weeks to resolve matters with the in-country lab, no progress was made and the Company made the decision to move all assay work to Filab Suriname. In order to ensure consistency of reporting, the decision was also made to re-assay all of the early holes in the drilling program. This is currently being done and the results will be included in the Company's future reporting.

To date, fifteen of sixteen diamond drill holes have been geologically and geotechnically logged. Drill core sampling continues with three holes left to be cut and sent to the lab. Diamond drill core samples are taken every 1.5 metres and sample width is reduced where mineralization is expected. Implemented QA/QC procedures for sample assays includes the insertion of standards every 30 samples as well as the insertion of blanks before and after each potentially mineralized zone.

Drill core samples are being sent to Filab Suriname. Reporting of all assays related to the first half of the drilling program will be done once fully reviewed and verified by the Company's "qualified person" and geologists working on the project.

Lithologies intercepted during the drill program include granite and intermediate intrusives within mafic to felsic volcanics. Mineralization noted includes disseminated pyrite (an important indicator mineral within Greenstone Belts of the Guiana Shield) and quartz veining of variable widths.

The geological interpretation from the diamond drill holes, additional ground mapping and sampling, detailed High Resolution Airborne geophysics and planned Induced Polarization (IP) surveys are all being compiled into a master database over the next few months, to assist in optimizing the completion of the diamond drill program. Suparna has identified a geophysical contractor based in Canada to complete an IP survey over target areas generated by the interpretation of a Fixed Wing High Resolution Aeromagnetic Gradiometer, Radiometric & VLF/EM Survey that was previously completed over the property. IP surveys have been used successfully in the Guiana Shield to detect disseminated pyrite, potentially associated with gold mineralization. The IP survey data will be used in combination with soil auger, channel and grab surface sample results and will assist Suparna in delineating drill targets for the remainder of the diamond drill program. This interpretation work is expected to commence in July 2012.

Camp construction has now been completed, including the upgrading of the core shack to allow for the geologists to work efficiently onsite. While road maintenance is an ongoing requirement due to weather, all road upgrades, which allow for ease of movement between target areas, are expected to be completed this week.

The Company's community relations program, commenced eight months ago, calls for the Company to provide 2-4 barrels of fuel per month to the residents of the local village of Lebidoti as well as two nearby villages. Discussions are also underway to assist with water supply upgrades in the village as well as helping to coordinate an end of school festival.

About Suparna Gold Corp

Suparna is an exploration company with its flagship Sara Creek Property located in the highly prospective Guiana Shield in Suriname, South America which hosts Iamgold Corporation's Rosebel mine and Newmont Mining Corporation's Nassau deposit. The Sara Creek project has a large property position in the Guiana Shield covering 56,920 hectares, and is located approximately 150 air kilometres to the south of Paramaribo, the capital city of Suriname.

Mr. Garry Clark, P.Geo., is the "qualified person" as defined in National Instrument 43-101, who has reviewed and approved the technical content in this press release.

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the Company's proposed drilling program, assaying work and other proposed exploration activities. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking statements include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in commodity prices; governmental regulation of the mining industry, including environmental regulation; geological, technical and drilling problems; unanticipated operating events; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for commodities; liabilities inherent in mining operations; changes in tax laws and incentive programs relating to the mining industry; and the other factors described in our public filings available at Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

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.

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