Wildcat Exploration Ltd.

Wildcat Exploration Ltd.

March 23, 2011 10:14 ET

Wildcat Extends Mike Power Gold-Bearing Structure, Updates Jeep Drilling

WINNIPEG, MANITOBA--(Marketwire - March 23, 2011) - Wildcat Exploration Ltd. (TSX VENTURE:WEL) is pleased to announce assay results from recent drilling on the Mike Power project and to provide an update of drilling on the Jeep property, both of which are in the Rice Lake greenstone belt near Bissett, Manitoba.

The Mike Power project is comprised of 24 contiguous claims covering 3,029 hectares located approximately 3.5 km west of the Rice Lake mine site of San Gold Corporation which hosts the Rice Lake Mine and new gold discoveries at the Hinge and 007 zones. The property straddles the Gold Creek Shear Zone (GCSZ) which is interpreted to represent the western extension of the Normandy Creek fault. The GCSZ is strongly altered and may host gold mineralization similar to that currently being mined by San Gold at its Rice Lake Mine.

A total of 1,810 metres of drilling in nine holes has been completed on the project during the 2011 winter program. These holes targeted interpreted structural traps favourable for gold deposition based on Wildcat and government mapping, geophysical interpretation, underground tours at the Rice Lake Mine, and informative and encouraging discussions with area geologists.

Wildcat's initial drill hole on the property encountered a wide quartz-sulphide shear zone of intermittent, anomalous gold mineralization in diamond drill hole ("DDH") MP–11–01 (see news release February 4, 2011). To follow this up, Wildcat drilled two flanking holes to DDH MP-11-01. The easterly drill hole, DDH MP-11-06, intersected intermittent concentrations of up to 0.8 g/t gold across 1.4 metres. The mineralized zone contained discontinuous gold concentrations over an assayed core length of 150 metres. Fifteen of the assays returned greater than 100 ppb gold. Diamond drill MP–11–07 was collared 100 metres west of the discovery hole, in the quartz-sulphide shear zone, and intersected eight core intervals that returned assays greater than 100 ppb gold with the most significant assay returning 370 ppb gold.

The gold-bearing structure has been intersected along 180 metres of strike length in three holes. More work is required to understand the implications of the structure and possible sites for improved gold concentrations. To follow up on this lead, Wildcat is planning a program of detailed geological mapping and sampling in the vicinity of the newly discovered shear zone. Following this work, further drilling is required in the area of the shear zone, and on other untested sites favourable for gold deposition on the property.

In addition, Wildcat geologists are interested in continuing the Mike Power exploration approach onto the adjoining Poundmaker property, after regaining management control from StrikePoint Gold Inc. (see news release March 22, 2011). The Poundmaker property is also under-explored and is considered to host favourable geology similar to that of Mike Power.

Commenting on the results, Tom Lewis stated, "The Mike Power Property, contiguous to the western boundary of the San Gold operations in Bissett, MB, has been very under-explored due to extensive bedrock cover. Wildcat geologists believe these recent results demonstrate that gold-bearing structures exist on the Mike Power property, and the property may host a westerly extension of the gold bearing geological units that are being mined at the Rice Lake Mine. This initial program of exploration has advanced our understanding of the property and will greatly assist our ability to focus future exploration on the favourable structural and chemical traps for the gold in this vicinity of the property, and along this significant structure."

The Jeep property encompasses 4,016 hectares and is located 14 km east of Bissett, Manitoba. It is host to multiple WNW trending gold-bearing vein systems that were mined between 1949-1951. The property hosts the past producing Jeep gold mine with historical production of approximately 18,000 tons of ore at an average gold grade of 0.78 oz/ton (non-compliant with NI 43-101).

A total of 945 metres of drilling in 6 holes was completed on the project during the 2010/11 winter drilling program. Diamond drill hole JP–10–24 intersected 0.29 metres grading 55.1 g/t gold (see news release February 4, 2011). The mineralization was interpreted to occur within a northeasterly structure, cross cutting the main mine trend structure, which strikes south easterly in this area of the property. Previous drilling by Wildcat, along the main mine trend, returned gold mineralization from a quartz vein with visible gold assaying 109.5 g/t Au over a core length of 0.78 meters, intersected in drill hole JP-06-05 from 219.12 to 219.9 meters depth. The two flanking holes were completed during the latest drill program to check the continuity of the gold mineralization encountered in JP-10-24 along the interpreted northeasterly structures, however no significant results were obtained. Additional modeling of the results obtained from these holes is ongoing, with a view to establishing the relationship between the recent discovery and the previous programs conducted by Wildcat on the property.

Tom Lewis commented, "Although our main focus in our winter Rice Lake drill program was to advance the Mike Power project, our Jeep program continues to encourage, and we are discussing additional techniques that we can deploy to assist us in targeting our next round of drilling on the property."

The expanded drilling on the Mike Power and Jeep properties includes approximately 1,055 metres that were reallocated, following the Company's decision to defer the planned drill programs on its Siderock property in the Rice Lake greenstone belt and the Burntwood property in the Thompson nickel belt. The rescheduling of the Siderock program allowed the Company's geologists to further investigate encouraging initial drill results encountered at Mike Power and Jeep. The Company is considering a summer drill program at Siderock and the Burntwood drilling is now scheduled for the 2011/12 winter drill season.

Wildcat's exploration programs are managed by Tom Lewis, P.Eng., a Qualified Person as defined by NI 43-101, who has reviewed all technical information in this release.

About Wildcat Exploration Ltd.

Wildcat Exploration Ltd. is a Winnipeg-based company exploring for gold and base metals in Canada. Its portfolio includes: (1) several gold projects in the Rice Lake greenstone belt in Manitoba, (2) the McVicar gold property in the Uchi Subprovince of Ontario, (3) the Reed base metal and PGE project in the Flin Flon-Snow Lake greenstone belt in Manitoba, (4) the Burntwood nickel project in the Thompson nickel belt in Manitoba and (5) the Foster zinc-lead-silver project in Saskatchewan. The Company seeks to continuously upgrade its property portfolio through exploration and accretive transactions.

For further information on the Company please visit our website at www.wildcat.ca or contact us at info@wildcat.ca.

The Company's public filings, including its most recent audited consolidated financial statements, can be reviewed on the SEDAR website (www.sedar.com).

This news release may contain "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to Wildcat's exploration program and plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "believes", "plans", "seeks", "expects", "budget" or variations of such words or statements that certain actions, events or results may, could, will, will be, would be or are expected to be. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wildcat to be materially different from those expressed or implied by such forward-looking information.. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information. Wildcat does not undertake to update any forward- looking information, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.

Contact Information

  • CHF Investor Relations
    Chris Haldane
    Account Manager
    (416) 868-1079 ext. 237
    (416) 868-6198 (FAX)
    CHF Investor Relations
    Cathy Hume
    (416) 868-1079 ext. 231
    (416) 868-6198 (FAX)
    Wildcat Exploration Ltd.
    John Knowles
    President & CEO
    (204) 944-8916
    (204) 944-8918 (FAX)
    Wildcat Exploration Ltd.
    Suite 203, 1780 Wellington Avenue
    Winnipeg, Manitoba, R3H 1B3