United Reef Limited

United Reef Limited

April 07, 2011 08:45 ET

United Reef Releases Results and Terminates Option on Nixon Bartleman Property, West Timmins Area

TORONTO, ONTARIO--(Marketwire - April 7, 2011) - United Reef Limited (TSX VENTURE:URP) ("United Reef" or the "Company") said it has received and evaluated the assays from the seven hole, 597 metre drilling program recently completed on its Nixon Bartleman property in the West Timmins area. Six of the drill holes completed targeted the historic Nixon Bartleman prospect near the center of the property which the Company had believed to be highly prospective. The seventh hole in the program was drilled to test for the eastward projection of unrelated auriferous quartz veining associated with a quartz-porphyry body which had been intersected by previous explorers.

Four of the six holes targeting the Nixon Bartleman showing intersected a mafic dike zone lying directly beneath the exposed surface vein system of the showing and all four also intersected a deformed and altered zone along the south margin of this dike. The altered zone (K-spar, mica, silica and sulphides) contains contorted quartz veining similar in appearance to the gold-bearing zone observed in surface channel samples on the showing. The best gold intersection in these holes was from Hole UR-11-02, which assayed 19.36 g/t over a width of 0.30 metres within a 6.5 metre wide zone of lesser gold values (ranging from 0.008 to 0.162 g/t, Au). The alteration zone contains only weakly elevated gold values in the other 3 holes, ranging from 0.006 to 1.117 g/t, the latter over a 0.40 m wide interval in Hole URP-11-01.The other two holes were drilled in an overburden covered area to the east of the three metre deep Nixon Bartleman shaft where narrow quartz veining was intersected but contained no significant gold mineralization.

The last hole, UR-11-07 (197 metres), was drilled to test for gold mineralization associated with a quartz-feldspar-porphyry body that was intersected by previous explorers. The hole collared in an intense deformation zone consisting of talc-carbonate-quartz-magnetite along with several sulphide and quartz vein zones before entering a wide zone of tuffaceous volcanic rocks. Between these two rock types was a 5.8 metre wide deformed and potassic altered zone containing narrow quartz stringers and weakly elevated gold (0.005 to 0.257 g/t). The targeted quartz-porphyry unit was not intersected.

The drilling program was designed to test the Nixon Bartleman showing's main mineralized vein system between surface and a historic drill hole intersection with reported high grade gold and silver values at a vertical depth of 100 metres. Following a review and evaluation of the program results, the Company has decided to terminate its option for the property.

The Company will now focus on advancing an initial exploration program on our prospective Santa Maria gold property in the Dryden area of Ontario. The Santa Maria property consists of 19 contiguous unpatented mining claims encompassing an area of approximately 1,392 hectares. The property hosts at least six known and documented gold occurrences with reported gold values ranging from trace to 0.82oz/ton (28.0 g/t) with visible gold observed in at least three of the zones. There has been very little exploration completed in the area covered by the claims which cover a series of strongly developed, deeply seated east-west structures that lie along the north flank of a major northwest trending fault zone. The property also hosts intense carbonate alteration and quartz zones. These geological features and the presence of known gold mineralization suggest that the Santa Maria property has excellent potential to host an economic gold deposit and warrants an aggressive exploration program. 

The Nixon Bartleman drilling program utilized a quality assurance/quality control (QA/QC) program that included the insertion of blanks, standards and duplicates into the sample sequence. A summary of the collar locations and other details relating to the drill holes was provided in our press release dated March 2, 2011. All drill core is securely stored for future reference including half of the core from sampled intervals. Mr. Seymour Sears, B.A., B.Sc., P.Geo., of Sears, Barry & Associates Limited supervised the drilling program and has reviewed the technical content of this Press Release.

The Company is continuing to advance its strategy as a Canadian focused gold explorer as we plan for an active year of exploration on our gold projects. For further information about United Reef please visit our website at www.unitedreef.com.

Shares issued: 88,909,980

Fully diluted: 104,423,980

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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