Winston Gold Mining Corp.

March 01, 2017 07:30 ET

Winston Drilling Confirms Two New High-Grade Veins; Grades Include 4 ft. of 20.57 g/t Gold and 44.57 g/t Silver

WINNIPEG, MANITOBA--(Marketwired - March 1, 2017) - Winston Gold Mining Corp. ("Winston Gold" or the "Corporation") (CSE:WGC) (OTCQB:WGMCF) is pleased to announce the first set of drill results from its Phase-2 drill program on the Company's wholly-owned Winston Gold Property near Helena Montana.

Historic drill data from the 1980's indicated the presence of a parallel vein located just 100 ft. (30.48 metres) southeast of the historic past producing Custer Vein. Records also indicated there was a minor amount of historic mining from this "Parallel Vein" from the 0 level of the Custer Mine.

Three holes were collared on the same drill pad and were designed to test the Parallel Vein over a strike length of 168 ft. (51.2 metres). Results include:

  • Hole W1727 intersected three separate veins:
    • 3 ft. averaging 0.1 opt (3.43 g/t) gold and 0.6 opt (20.57 g/t) silver starting 105 ft. down-hole.
    • 3.5 ft averaging 0.31 opt (10.63 g/t) gold and 4.8 opt (164.57 g/t) silver starting 357.5 ft down-hole.
    • 2 ft averaging 0.13 opt (4.46 g/t) gold and 0.9 opt (30.86 g/t) silver starting 475 ft. down-hole.
  • Hole W1728 intersected a vein and a void west of the intersection of hole W1727:
    • 3.5 ft. averaging 0.23 opt (7.89 g/t) gold and 0.8 opt (27.43 g/t) silver at 126 ft. down-hole.
    • 5 ft. of a void was encountered at 346 ft. down-hole and is believed to be an old working of the Parallel Vein.
  • Hole W1729 intersected three veins northeast of the intersections made in hole W1727:
    • 4 ft. averaging 0.33 opt (11.31 g/t) gold and 0.4 opt (13.71 g/t) silver starting 99 ft. down-hole.
    • 1.5 ft. averaging 0.30 opt (10.23 g/t) gold and 0.2 opt (6.86 g/t) silver at 321 ft. down-hole.
    • 4 ft. averaging 0.60 opt (20.57 g/t) gold and 1.3 opt (44.57 g/t) silver at 449 ft. down-hole.

"These results prove the existence and high-grade nature of the Parallel Vein but also identify another vein that was outlined over a distance of about 48 ft. (14.6 metres). It has been named the "Block 93" vein," commented Murray Nye, CEO and Director of Winston Gold Mining. "A third vein was also intersected but it appears to be discontinuous and has no known relationship to any other vein. That brings the total number of confirmed veins to four; Edna West, Custer, Parallel and Block 93."

The Parallel Vein strikes northeast, parallel to the Custer Vein, and dips 60 degrees to the northwest. It is projected to intersect the Edna West Vein about 290 ft. southwest of the intercept in hole W1729.

"We are excited to test the area where the Parallel Vein is projected to intersect the Edna West Vein, said Mr. Nye. "Intersecting vein systems are excellent targets for high-grade mineralized shoots."

The historic drill data suggests that the Parallel Vein could have a strike length of about 500 ft. Additional drilling will be required to prove this. Assay results from a few of the vertically drilled rotary holes from the 1980's include:

  • Hole RC76 intersected 20 ft. averaging 0.37 opt (12.68 g/t) starting at 305 ft. down hole.
  • Hole 88-2 intersected 10 ft. averaging 0.21 opt (7.2 g/t) gold starting 390 ft down hole.
  • Hole PC92 intersected 10 ft. averaging 0.89 opt (30.51 g/t) gold and 1.8 opt (61.71 g/t) silver starting 375 ft. down hole.
  • Hole PC-111 intersected 10 ft. averaging 0.80 opt (27.43g/t) gold starting at 385 ft. down hole.

These intervals were reported as composites and most likely were averaged over longer intervals. Original assay receipts are no longer available. In addition, since these holes were drilled vertically into steeply dipping vein systems the intervals are not true widths.

Refer to chart below for details of the drill holes discussed in this release.

Hole Vein UTM North (m) UTM East (m) Elevation (m) Azimuth Dip From (ft.) To (ft.) Interval
True Width
Gold (opt)/(g/t) Silver
W1727 Block 93 448,833 5,144,463 1401.7 318° -45° 105 108 3 0.91 -- 0.1 3.43 0.6 20.57
Parallel 357.5 361 3.5 1.06 2.51 0.31 10.63 4.8 164.57
unknown 475 477 2 0.61 -- 0.13 4.46 0.9 30.86
W1728 Block 93 448,833 5,144,463 1401.7 304° -45° 126 129.5 3.5 1.06 -- 0.23 7.89 0.8 27.43
Parallel 346 351 5 1.52 3.35 *Stope *Stope
W1729 Block 93 448,833 5,144,463 1401.7 335° -45° 99 103 4 1.22 -- 0.33 11.31 0.4 13.71
unknown 321 322.5 1.5 0.46 -- 0.30 10.23 0.2 6.86
Parallel 449 453 4 1.22 2.30 0.60 20.57 1.3 44.57
*Stope = Intersected mined out historic workings - no results
** Dip of Block 93 Vein unknown at this time so true width cannot be determined

The Winston Gold Project is central to a historic precious and base metal mining district in which most of the mineralized material was mined from tightly structurally controlled high angle fissure veins and lode/replacement zones. Reports indicate that more than 100,000 ounces of gold was recovered from these underground mines in the late 19th to early 20th century from about 150,000 tons of mineralized material. (Earle, 1964; Schell, 1963).

Sampling Methodology, Chain of Custody, Quality Control and Quality Assurance

All sampling was conducted under the supervision of the Company's project geologists and the chain of custody from the drill to the on-site sample preparation facility was continuously monitored. The samples are crushed, pulverized and the sample pulps digested and analyzed for gold using fire assay fusion and a 50 gram gravimetric finish. Blank or certified reference materials are inserted randomly. Check Assays are sent to Bureau Veritas Minerals, in Reno Nevada.

Qualified Person

The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by Dr. Criss Capps PhD. P.Geol., an independent consultant to Winston Gold Corp. Dr. Capps is a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Issuance of Stock Options

The Company is also pleased to announce that the board of directors of the Company has granted a total 100,000 incentive stock options to an employee of the Corporation to purchase a total of 100,000 common shares at an exercise price of $0.20. The options expire on March 1, 2022. The options vest at a rate of 25% upon grant and 25% every three months thereafter.

Termination of Non-Binding LOI

The Company also announces that, further to its news releases dated October 27 and 28, 2016, it has terminated a non-binding letter of intent with the Gunsinger Group, Inc. to acquire 22 unpatented mining claims hosting the Golden Jubilee project in Granite County, Montana. Management of the Company feels its resources should be allocated towards the Company's Winston Gold property and further exploration of the four confirmed veins at this point in time.

About Winston Gold

Winston Gold is a junior mining company focused on advancing high-grade, low cost mining opportunities into production. Towards that end, the Corporation has acquired two under-explored and under-exploited gold/silver mining opportunities, being the Winston Gold project near Helena, Montana, and the Gold Ridge project, near Willcox, Arizona.

On behalf of the Board of Directors of the Company,

Murray Nye, Chief Executive Officer and a director of Winston Gold

The CSE has neither approved nor disapproved the information contained herein.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Winston Gold Mining Corp. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Contact Information

  • Winston Gold Mining Corp.
    Murray Nye
    Chief Executive Officer and a director of Winston Gold
    (204) 989-2434