Gitennes acquires Gold and Copper Projects in Nevada

VANCOUVER, May 5 /CNW/ - Gitennes Exploration Inc. (TSXV: GIT) is pleased to announce that it has reached agreements to acquire exploration rights to two important properties situated on the Battle Mountain - Eureka Trend near Ely, Nevada. Both properties are accessible year round by paved highway and local roads leading south from Ely.

Silver King Property - Copper, Gold, Silver

The Silver King property comprises 19 original claims that the Company has now increased to 164 claims (by staking) and is 1,300 hectares in size.

The project area is underlain by thick sections of Paleozoic carbonate rocks which elsewhere host many of Nevada's open pit gold mines. At Silver King these carbonate rocks are intruded by a northwest-trending belt of Tertiary, multi-phase porphyry intrusive rocks that are thought to be directly related to mineralization.

The original Silver King mine was sporadically developed in the 1870 to 1930's by selective mining of high grade silver, lead and zinc mineralization along narrow veins adjacent to highly altered dykes. Select dump samples from the workings have been reported to contain up to 0.11 oz/ton Au, 55 oz/ton Ag and 1.7% Cu, along with significant Zn and Pb values. The geological relationships indicate that the silver-lead mineralization is likely evidence of a much larger porphyry copper-skarn system at depth, which was confirmed in 1980 when Anaconda Company drilled five core holes at Silver King testing geophysical anomalies. The holes were widely scattered. However, two of these holes intersected well developed copper mineralization in both skarn and intrusive porphyry.

  • Hole SK1 intersected 83.8 metres of mineralization from 143 to 469 m grading 0.21% copper (including 0.38% copper, 0.24% zinc and 6.2 g/t silver over 27.7 m)
  • Hole SK2 was mineralized from 151 to 506 m including 0.17% copper, 0.13% zinc and 11 g/t silver over 110 m

The two holes are approximately 300 metres apart and were never followed-up due to Anaconda winding-down its exploration operations. The holes were not analysed for gold at the time. However, the core was re-located and selected intervals re-analysed by later operators. Gold was detected in most samples with peak values of 490 ppb. Accordingly, it appears a critical potential economic aspect to the discovery remains unknown. This mineralization is associated with one of the granodiorite porphyry intrusive units and is thought to be part of a larger copper-gold porphyry system. The other Anaconda drill holes were drilled further south and east, and while containing little copper mineralization they did intersect porphyritic rocks with abundant secondary biotite, suggesting a favourable multi-phase intrusive system with potassic enrichment.

Subsequent exploration by junior exploration companies involved ground geophysical surveys (IP and magnetics), shallow drilling (less than 100 metres) and soil geochemical surveys. Geophysical surveys detected two northwest-trending anomalies that are at least 600 metres long and each over 100 metres wide, one of which was intersected in the 1980 drill programme. Reconnaissance soil surveys suggest the target may be extended a further 500 metres to the northwest.

Silver King Agreement

Gitennes can earn a 100% interest in Silver King by meeting financial obligations that include yearly lease payments starting at US $21,000 and increasing to US $36,000 per annum until the Company exercises its option to buy the property with a single payment of US $350,000. If the Option to Purchase the Property is exercised then the lease payments cease and be replaced by advance Net Smelter Returns ("NSR") royalty payments of US$ 50,000 per annum. The vendors will retain a 2% NSR Royalty payable if and when the Property is placed into commercial production. A portion of the royalty (0.5%) may be purchased by the Company at any time for US $1,000,000.

Plans

The information on the property is largely historical and cannot be confirmed by Gitennes. The Company expects to explore Silver King through the course of 2011 with a programme of geological mapping, advanced soil geochemical techniques and possibly a contemporary geophysical survey. Several sites for drilling are already identified, and it is anticipated that the additional pre-drilling work will strengthen and increase the potential of the project.

Cross Property

The Cross is located 11km south of the Silver King within a similar geological setting. The property comprises 34 claims.

The Cross property is a sediment-hosted gold target. Gitennes' interest in the property is based in part upon the success by Fronteer Gold (now absorbed by Newmont Mining Corporation) at Long Canyon. At Cross gold mineralization is associated with hematite-stained and highly fractured dolomite domains within a thick limestone formation. Also present are cross-cutting bodies of siliceous breccia ("jasperoid"). Both are highly anomalous in pathfinder elements and locally well mineralized with peak values of 5 g/t gold reported. A 3,000 metre long by 100 metre wide corridor has been outlined by rock chip sampling and 24 scattered and variably-oriented reverse circulation drill holes. Drill results are highly variable with a mix of low grade to weakly mineralized intervals, the best of which are reported to be 29 metres of 287 ppb gold and 13.7 metres grading 265 ppb.

Based upon a review of the historical results at Cross it is anticipated that the property will become important in context of the successful new exploration models now being applied in eastern Nevada, and by Gitennes' own programme of systematic exploration drilling.

Cross Agreement

Gitennes can earn a 100% interest in Cross subject to meeting financial obligations that include yearly lease payments starting at US $15,000 and increasing to US $30,000 per annum until the Company exercises its option to buy the property with a single payment of US $350,000. If the Option to Purchase the Property is exercised then the lease payments cease and will be replaced by advance Net Smelter Returns ("NSR") royalty payments of US$ 50,000 per annum. The vendors will retain a 3% NSR royalty payable when the Property is placed into commercial production. A portion of the royalty (1%) may be purchased by the Company at any time for US $1,000,000.

Plans

The technical information on the property has been obtained from disclosure documents prepared by previous project operators and have not been confirmed by Gitennes. The Company expects to explore Cross through the course of 2011 through a programme of geological mapping, advanced soil geochemical techniques and drilling.

The technical information in this release has been reviewed by J. Blackwell (P.Geo.), a Qualified Person as defined by National Instrument 43-101.

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.

This news release includes certain statements, other than historical information, that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements regarding future plans and objectives of the companies are forward-looking statements that involve various risks and uncertainties. Although Gitennes 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 or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include general economic, market or business conditions, and other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Mineral exploration and development of mines is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. Historical information necessarily is not current and is provided for your reference only. No warranty whatsoever is made that any of the historical information is accurate, precise, or up-to-date. For more information on Gitennes and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

This press release does not constitute an offer to sell or a solicitation 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 law and may not be offered or sold in 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.

SOURCE Gitennes Exploration Inc.

For further information:

Jerry Blackwell, President


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