CALGARY, May 18 /CNW/ - The technical committees of StrikePoint Gold Inc. (SKP-TSXV) and San Gold Corporation (SGR-TSXV) have recently reviewed geological and specific drill targeting data and have approved the initial 2010 Strike Point property drill program, scheduled to commence before the end of May, 2010.
The Strike Point property is held 100% by StrikePoint Gold and is subject to an option agreement whereby San Gold Corporation can earn a 50% interest by performing exploration work (Press Release January 15, 2010). StrikePoint is the operator of the Strike Point property exploration program and will submit cash calls to San Gold as required.
During 2009, an airborne LiDar survey was flown over the Rice Lake belt in order to delineate structural features that were favourable for gold concentration. In early 2010, a ground magnetometer survey was performed on the Strike Point Project, covering an area of about 450 ha at the southern end of the property, adjacent and to the west and northwest of San Gold's current Hinge, L13 and 007 high-grade gold zones. The objective of this survey was to identify certain rock types and specifically oriented structural features that are known to be associated with the nearby high-grade gold zones and deposits recently discovered by San Gold. Of particular interest are the Type-16 vein structure orientations that provide prolific gold accommodation zones in the Rice Lake mine and the new high grade hanging wall zones and deposits on the adjacent San Gold mine lease.
Overall, the magnetic survey data shows very good correspondence and continuity with the geology mapped on the adjacent San Gold mining lease. Moreover, very distinct rock unit and structural feature intersections present themselves as attractive drill targets. The prominent lithological features are interpreted as basalt and/or gabbro units possibly similar to the main gabbro unit that hosts the Rice Lake ore deposit or minor mafic units with altered contacts such as those hosting one of the near surface high-grade hanging wall deposits on the adjacent San Gold mine lease. One of these features is a 1.5 km long, roughly east-west trending magnetic high that is cut at three places by northeasterly, Type-16 oriented cross-fractures. Magnetic lows associated with these intersections are interesting since the injection of sulphides by gold-bearing fluids often converts magnetite, a magnetic oxide mineral, to pyrite, a non-magnetic sulphide mineral, resulting in patches of low magnetic intensity.
In the southern part of the survey area, another mafic unit is tentatively interpreted as a distal northwestern extension of the subvolcanically injected gabbro that hosts the Rice Lake and adjacent Cartwright deposits. Importantly, this southernmost mafic unit is also cut by the same regional Type-16 structures that are caused by the late stage deformation event that appears to have mineralized the entire central part of the Rice Lake greenstone belt.
Both of these strong magnetic zones are located in topographic valleys that have not been well prospected due to a lack of outcrops in these areas. This is evident when the magnetic data is overlain on high resolution LiDar topographic data.
The objective of the initial Strike Point property drill program is to investigate the extension of structures that contain gold mineralization on the adjoining San Gold mine lease, specifically, as noted above, the Type-16 vein orientations that cut rock units with high magnetic intensities and exhibiting magnetite destruction where the two features intersect. The two major rock units are intersected by 4 Type-16 vein structures resulting in eight target areas. Structure 1 contains two Priority 1 targets, one Priority 2 target and two Priority 3 targets; Structure 2 contains one Priority 1 target, Structure 3 contains one Priority 4 Target: and Structure 4 contains one Priority 5 target. The three Priority 1 targets will be drilled first, subject to normal logistic factors.
Magnetic and LiDar data maps, as well as structural interpretations and target area locations will be made available at strikepointgold.com
Initial drill hole orientations will be at of 160 degrees, dipping at 45 degrees to intersect the structures at 50-100 m below bedrock. Depending on visual results, additional drilling could be at steeper dips from the same location or along strike. The initial program is tentatively budgeted at 1600m of drilling to be carried out on Structures 1 and 2 to focus on the Priority 1 and 2 targets identified by magnetic patterns. This should allow for about eight holes of 200m for a total budget of $400,000 at an all inclusive price of $250/m. According to the option agreement, San Gold's remaining first year commitment is approximately $400,000. StrikePoint has the right to accelerate exploration by spending its own funds and in doing so will generate additional and equal commitments on the part of San Gold. StrikePoint is currently well financed and intends to aggressively explore throughout 2010.
Poundmaker Joint Venture Exploration Update
StrikePoint is pleased to announce that it has completed its first year Poundmaker option agreement work commitment by the completion of a 1,600 metre drill program on the Rio Zone. The program, consisting of 14 holes drilled from 7 setups was designed to identify local structure and identify gold-bearing vein structures. A total of 550 samples have been submitted for analysis and the results of the program will be announced following receipt of complete assay results and the reporting of such results to the Wildcat Exploration Ltd., the optionor of the property.
This press release has been reviewed by Daniel A. Beauchamp, B.Sc., P.Geol., StrikePoint Gold's Qualified Person under National Instrument 43-101.
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.
SOURCE StrikePoint Gold Inc.
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