Threegold Resources Inc.
TSX VENTURE : THG

Threegold Resources Inc.

December 02, 2010 07:30 ET

Threegold Resources Inc.: Exploration Update/Fall 2010

VAL-D'OR, QUEBEC--(Marketwire - Dec. 2, 2010) - Threegold Resources Inc. (TSX VENTURE:THG) is pleased to provide its shareholders with an exploration update on its Adanac, South Bay and Lemieux Dome projects. The Company has resumed exploration on all three projects and is preparing for Phase II drilling at Adanac in the Abitibi region.

Adanac

The Adanac Project is located in the heart of the Abitibi Greenstone Belt, directly south of the Cadillac–Larder Lake Break. It is on strike and immediately adjacent to Gold Bullion Development's Granada Project where a preliminary block model shows a potential for 2.4 to 2.6 Moz(1) (goldbulliondevelopmentcorp.com)). Following geochemical and geophysical surveys conducted from 2007 to 2009, Threegold initiated a 4,474-metre, 22-hole diamond drilling program in the fall of 2009 to investigate the most significant targets on the project. Results from this program were announced earlier this year (see press releases of January 18 and February 17, 2010) and were used to outline a 1.8-kilometre gold corridor on the project.

The purpose of the 2009 Adanac program was to verify the lateral extent of the anomalous geochemical gold trend defined by surface soil samples and to obtain key information on the trend and geometry of the structure and mineralization. Having successfully achieved the goal of this preliminary phase, the Company will now be able to target the deeper sections where higher grade gold is more likely to occur. Downhole geophysical surveys and modelling are now underway and will be used to establish the priorities for Phase II drilling, which is scheduled to begin in early 2011.

South Bay

Threegold started work on the South Bay property, some 40 km east of Val-d'Or, during the fall of 2010 to locate historical gold occurrences. Some of the historical trenches have now been found, cleared and stripped using a backhoe. The exposed rocks were felsic to intermediate intrusives exhibiting significant silicification and sericitization, cut by folded quartz veins and veinlets carrying substantial pyrite mineralization. Threegold sampled the surface by cutting channels at various intervals and collecting the material. Two (2) additional areas on the property were also stripped and channel-sampled, and results for these are pending. These other areas are also thought to represent historical occurrences that were previously reported for the project but never properly located.

(1) The potential quantity and grade of gold at Granada is conceptual in nature. Exploration to date is insufficient to define a mineral resource and it is uncertain if further exploration will result in the discovery of a mineral resource.

Fifty (50) channel samples were collected from the first exposure and sent to Actlabs (Activation Laboratories Ltd) for gold assay by conventional fire assay methods with atomic absorption and gravimetric finishes. The results for the channels are presented in the table below:

Channel Sample – North Zone
     
Channel Length Au
(#) (m) (g/t)
2.0 E 1.05 2.36
3.5 E 0.50 4.01
6.8 E 1.10 1.83
11.6 E 4.30 1.88
15.5 E 0.60 1.02
16.5 E 0.75 26.69

A diamond drill was mobilized to the main occurrence and is presently testing the area immediately below the main channels and its lateral extension. Results are expected in the coming weeks.

Lemieux Dome

Exploration has also resumed on the Lemieux Dome Project where the objective for 12 planned diamond drill holes is to reveal the distribution of precious metals (silver and gold) associated with zinc-lead veins around the Brandy South and A4-B4 veins. These holes will also help resolve some questions regarding earlier and sometimes conflicting stratigraphic correlations for the Dome from government studies and geologists at the former Gaspé Copper Mine. It is believed that some of the favourable geological units for hosting significant copper mineralization might be present on the Lemieux Dome Project and may occur closer to surface than originally believed. If this hypothesis proves true, the Company would then be able to target historically unexplored parts of the property with a higher degree of confidence.

The program is now underway and will last until the end of 2010. Results will be divulged upon receipt from the laboratory.

Budget

A budget of $850,000 was prepared and approved by the board of directors to carry out work on all projects during the fall of 2010. The Company has raised a portion of the funds necessary for this exploration and is currently finalizing a private placement to cover the remaining expenses. 

This press release was prepared by Antoine Fournier, P.Geo., vice-president exploration for Threegold Resources Inc. and a Qualified Person as defined by NI43-101

ABOUT THREEGOLD

Threegold Resources is actively pursuing gold discoveries on three projects in prolific mining and exploration camps in Ontario and Québec. The 100% owned Adanac project is immediately adjacent to Gold Bullion's Granada discovery and west of Osisko's 12M ounce deposit in the Abitibi belt. The South Bay Project has yielded a significant surface discovery near Val-d'Or and the Company has recently acquired land in the Shining Tree Camp on the western extension of the Cadillac–Larder Lake Fault Zone. Management is evaluating opportunities to create shareholder value with its recent Rare Earth Element discovery and its Base Metal project in the Gaspé Peninsula.

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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