Threegold Resources Inc.

Threegold Resources Inc.

July 21, 2011 11:00 ET

Threegold to Resume Work on South Bay Gold Project

VAL-D'OR, QUÉBEC, CANADA--(Marketwire - July 21, 2011) - Threegold Resources Inc (TSX VENTURE:THG) is pleased to report that work is about to resume on its South Bay Project, located some 40 km east of Val-d'Or along the Cadillac–Larder Lake Break. The current field program will continue testing the lateral and vertical extents of the drill-tested North Zone gold occurrence that was investigated last year (see press release of November 22, 2010).

Threegold started its first work program on the South Bay property in the fall of 2010 to locate historical gold occurrences. The main occurrence, the North Zone, consists of felsic to intermediate intrusives exhibiting significant silicification and sericitization, cut by folded quartz veins and veinlets carrying substantial pyrite mineralization. Threegold sawed channels at various intervals across the rock surface to collect samples for assaying. Initial results, announced previously, are summarized as follows:

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

Based on the positive results for the North Zone, Threegold initiated a diamond drill program to obtain geological information on the near-surface context of the mineralization. The program consisted of five (5) short holes aimed at intersecting the structure down to a depth of 25 metres below surface and laterally using 25-metre step-outs. The main objective was to gain a better understanding of the geometry of the zone as well as the geology and alteration. The program was highly successful in demonstrating the continuity of the main zone and the potential for wider zones. Drill hole geology reflected the surface occurrence: pervasively altered felsic to intermediate intrusive rock intensely sheared and cut by quartz veins and veinlets. The following table summarizes the most notable drilling results from 2010:

Hole Gold (g/t) Width (m) From (m) To (m)
SB10-01 1.06 5 8 13
including 2.64 0.8 8.7 9.5
SB10-02 0.87 3.1 15.6 18.7
SB10-03 1.2 3.1 16.9 20
including 1.5 1.45 16.9 18.35
SB10-04 1.73 5.3 19.5 25.8
including 2.28 3.1 19.5 22.6
including 6.76 0.9 19.5 20.4
SB10-05 1.39 4.5 18.3 22.8

While conducting its work program, Threegold acquired all claims considered geologically pertinent to the discovery in order to cover the eastern and western extensions. The company also entered into an option agreement with Plato Gold Corporation (TSX VENTURE:PGC) for their adjacent Vauquelin and Hop O' My Thumb properties (926 ha). The South Bay project now encompasses 5,336 hectares, representing a significant increase over the original 176 ha claim block. In January of 2011, a 1,125-line-km airborne magnetic and electromagnetic survey was flown over the entire project and the final results have greatly improved the interpretation of the subcropping geology and assisted in targeting areas with potential mineralization over the rest of the project.

The 2011 field program will resume with a trenching program on the other occurrences (South and Silver Zones) and additional trenching on the North Zone to increase the exposed area. The entire property and the ground under option will also be covered with systematic prospecting focusing on potential targets outlined by the airborne geophysical survey. A diamond drilling program targeting the best or most promising targets will follow in the fall of 2011.

Victor Goncalves, President and CEO, commented on the Company's progress: "South Bay has rapidly evolved from a nearly forgotten anomaly sitting directly in the Val-d'Or camp to a significant gold target. It confirms Threegold's technical ability to target and advance prospects to generate high-profile projects".

Antoine Fournier, P. Geo., Vice-President Exploration for Threegold Resources Inc and a Qualified Person as defined by National Instrument 43-101, prepared this press release and supervised the 2010 diamond drilling and sampling program. Samples were assayed by Actlabs in Ancaster, Ontario, for gold, silver and 32 elements by INAA. Gold assays were performed by Techni-Lab of Ste-Germaine using conventional fire-assay on a 30-g split with ICP finish. Samples grading above 1 g/t Au were re-assayed by fire-assay with a gravimetric finish. Routine checks and duplicates are performed by the laboratory as part of their internal controls and procedures.

About Threegold

Threegold has established itself as one of the premier exploration companies in Québec. The Company has a highly qualified technical team with extensive exploration experience, including previous gold discoveries in Québec, and management with financing and public company expertise.

Threegold aims to create shareholder wealth through the discovery of new deposits with a focus on Canadian assets, mainly in Québec. Threegold offers investors a portfolio of high-quality exploration projects and the potential to take part in a major discovery.

With a strategic property portfolio and solid partnerships, like the one with Osisko Mining Corporation, Threegold's goal is to discover a low-cost, multi-million ounce gold deposit in Québec.

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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