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VANCOUVER, Sept. 4, 2012 /CNW/ - Kestrel Gold Inc. ("Kestrel" or the "Corporation") (TSX Venture: KGC) announces the results from a deep 3D-IP
geophysical survey have been processed from Kestrel Gold Inc.'s King
Solomon Dome Property south of Dawson City, in the Yukon Territory.
The Resistivity and chargeability survey using the Volterra-3DIP system
was conducted by SJ Geophysics of Delta, B.C., in late June in
conjunction with a magnetometer survey using 200 metre line spacing
over a 1.6 km x 1.6 km grid.
Significantly, the survey has detected a large chargeability anomaly at
depths to around 350 metres below the topography, and below the main
gold, silver, arsenic and lead soil anomaly associated with the Sheba,
Mitchell, Orekon vein systems (where gold values in rock samples of up
to 17.1 g/t Au were collected in Kestrel's 2011 trenching program).
Highlights of the survey:
Two deep chargeability anomalies totalling over 1 km in width (approx.
300m below surface) are present east and west of the Sheba vein showing
The two deep chargeability anomalies are spatially related to gold,
silver, lead and arsenic soil geochemical anomalies at surface
The two deep chargeability anomalies are generally shallow dipping to
the east (north plunge) and are open to depth
The chargeability anomaly east of Sheba is approximately 800 metres in
strike length (approx. 300 metres below surface)
An additional strong chargeability anomaly is present in the south
western part of the property detected from near surface to 300 metres
below surface and open to depth
Another chargeability anomaly is present in the north eastern part of
the property at depths of 250 metres below surface and open to depth
The 2012 survey follows up on the first phase of geophysical work
conducted in 2011 which was successful in outlining a large chargeable
IP anomaly centred in the area around the Sheba showing and trending
towards the Mitchell Shaft in the north over a distance of
approximately 1.2 kilometres open along strike and extending to depth.
The 2011 survey concentrated on levels generally above 130 metres depth
and covered a longer strike length of the vein system. The 2012 survey
was specifically designed to test the system centred on the Sheba
showing from 130 metres to 400 - 500 metres depth. Confidence levels in
the 2012 data are generally good to about 350 metres below surface.
Magnetometer survey results are interpreted as providing evidence for
possible fault structures that may off-set the generally NNW trending
Klondike vein system and associated gold mineralization. Contrasting
magnetic susceptibilities may also reflect areas where magnetite has
been replaced by pyrite as a result of hydrothermal processes.
Surface mapping suggests that strong gold, silver, arsenic and lead
mineralization occurs in veins and pyrite rich schist (altered) wall
rock near fractures. The relatively deep (and shallow dipping) large
chargeability high below the surface expression of this mineralization
may suggest a sulphide rich litho-tectonic source host.
This provides the highly encouraging prospect that a broad pyritic and
possibly gold enriched litho-tectonic host to the vein system and
historically gold rich placer streams still exists at depth, a
potential deeper source for the metals that were ultimately emplaced in
the discordant D4 vein systems at higher structural levels at King
Interestingly, the main large tabular nearly flat lying chargeability
high is strongest at elevations coincident with the upstream limits of
past and present placer operations of some of the richest gold bearing
creeks in the Klondike.
The deeper geophysical survey work has provided Kestrel with additional
diamond drill targets. The priority of the next phase of exploration
will be to test both the steep dipping vein system and the flatter
potentially sulphide and gold enriched target both open to depth.
Technical aspects of this news release have been reviewed and approved
by W.A. Taylor, P.Geo, hereby designated as a qualified person under
National Instrument 43-101.
About Kestrel Gold Inc. Kestrel is a gold exploration company headquartered in Canada. Its two
principal projects are the King Solomon Dome project in Canada's Yukon
Territory and the Huachi project in Argentina. Kestrel (KGC) is listed
on the TSX Venture Exchange.
Technical aspects of this news release
have been reviewed and approved by W.A. Taylor, P.Geo., hereby
designated as a qualified person under National Instrument 43-101.
Cautionary Statements This news release contains "forward-looking information" within the
meaning of applicable securities laws, including with respect to the
scope and timing of the Survey, potential exploration results
mineralization of KSD and anticipated future exploration of KSD.
Readers are cautioned to not place undue reliance on forward-looking
statements. Forward-looking statements are based on certain key
assumptions made by the Corporation, including assumptions based
anticipated size and scope of the Survey, the timing of the completion
of the Survey and the future exploration activities, potential
mineralization of KSD and assumptions related to obtaining sufficient
financing and other resources to carry out future exploration. Actual
results and developments may differ materially from those contemplated
by these statements depending on, among other things, the inherent
risks involved in the exploration and development of mineral
properties, the uncertainties involved in interpreting exploration
results and other geological and geophysical data and the ability of
the Corporation to obtain the funds and resources required to carry out
further exploration. The forward-looking statements in this press
release are made as of the date of this release and the Corporation
undertakes no obligation to update publicly or revise any forward
looking statements whether as a result of new information or otherwise,
except as required by applicable securities laws. The Corporation
undertakes no obligation to comment on analyses, expectations or
statements made by third parties in respect of the Corporation or its
financial or operating results or (as applicable) its securities.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release. Not
for distribution to U.S. Newswire Services or for dissemination in the
United States. Any failure to comply with this restriction may
constitute a violation of U.S. Securities laws.
Image with caption: "KSD PROPERTY - Sheba Gold Vein System - Looking North toward Mitchell Showing (CNW Group/Kestrel Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20120904_C3386_PHOTO_EN_17450.jpg
Image with caption: "KSD PROPERTY - Interpreted Chargeability - 300 metres below surface (ms) (CNW Group/Kestrel Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20120904_C3386_PHOTO_EN_17449.jpg
Image with caption: "KSD PROPERTY - Interpreted Chargeability (ms) - Section 400N (CNW Group/Kestrel Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20120904_C3386_PHOTO_EN_17451.jpg
SOURCE: Kestrel Gold Inc.
For further information:
Kestrel Gold Inc.
Office: (604) 824-6056 or (604) 799-2456
Macam Investor Relations
Office (403) 452-6600