VANCOUVER, April 30, 2012 /CNW/ - StoneShield Capital Corp. (STS - TSX Venture Exchange; 5XS - Frankfurt Stock Exchange) ("StoneShield" or the "Company") is pleased to provide shareholders with an update on exploration activities at the Company's Goldtooth project in Inyo County, CA. The Goldtooth project consists of two separate claim blocks, located 11 kilometers apart, bookending Atna Resources' Briggs Gold Mine.
The Company is in the process of modifying an existing Plan of Operations (the "Plan") permit for drilling in the South Goldtooth claim block. This drill permit was originally issued in 2004 by the Bureau of Land Management ("BLM"). Modifications to the Plan include adding 12 new holes in the northernmost portion of the claim block directly south of the Briggs Gold Mine. Some of these new holes are as close as 150 meters to the final perimeter of the Briggs Goldtooth Pit, which is currently under expansion. Some previously permitted holes are being moved to existing roads or logistically friendlier locations to minimize disturbance, and five previously planned holes have been removed from the drill plan due to poor access. The total number of holes will be increased from 18 to 25. Other modifications include the ability to use of a track-mounted drill rigs in addition to a buggy-mounted drill rig and the ability to drill with mud. The modified 25 hole program will have a disturbance of less than one acre.
This modified drill program has been recently staked and flagged in the field by Stoneshield's Chief Geologist in preparation for archaeological and wildlife/botanical clearance surveys to be performed during May. Proposals for these surveys are currently being evaluated and contractors will be selected by the end of April. The field surveys and reports are expected to be finalized by the end of May 2012 and will be submitted to the BLM in anticipation of a fall drill program at Goldtooth.
StoneShield also recently engaged Rio Rico Land Survey to stake an additional 31 claims at the Jackpot claim block to the north of the Briggs Gold Mine. The staking crew is currently in the field completing the work. The purpose of this new staking is a) to add ground in the northern Jackpot boundary in an area of known mineralization outlined by surface rock samples; b) to add ground along the main, mineralizing Goldtooth fault along the eastern boundary; and c) to fill gaps between the southern boundary and competitor's claims to the south to cover portions of the Goldtooth fault, altered areas and ground near the old Goldbug mine which has been in small scale production from 1893 to the present.
StoneShield previously announced its exploration plans over the next year for the Goldtooth project. In the Jackpot claim block, Company geologists have recommended a 30 kilometer Ground Magnetic Survey over the northern block to be performed in conjunction with a 30 kilometer Gradient Array Induced Polarization program to outline new drill targets. A minimum 4,500 meters of reverse circulation drilling is planned to test for gold mineralization at depth in the northern block. Prior drilling in the southern portion of the Jackpot claim block saw half of the historic drill holes intercept significant gold mineralization, including 20 meters of 2.33 g/t gold, 15 meters of 1.6 g/t gold and 24 meters of 1.16 g/t gold and 1.5 meters of 18.4 g/t gold.
The South Goldtooth claim block has significant structural preparation, alteration, favorable host rocks and gold mineralization intermittently exposed near the range front along its entire length. Stoneshield's claims are within 400 meters of the existing Goldtooth open pit and within 150 meters of Atna's proposed pit expansion. A minimum 3,000 meter reverse circulation drill program is anticipated to begin in the fall of 2012. A 9.5 kilometer Dipole-Dipole Induced Polarization program is planned at South Goldtooth to help plan a second phase of drilling.
This news release has been prepared on behalf of the Company's board of directors, who accept responsibility for its contents. Technical information has been reviewed and approved by Peter J. Butterfield, P. Geo, a Qualified Person as defined by National Instrument 43-101.
StoneShield is a publicly traded exploration company focused on the discovery of high-value precious metals deposits in North America. The Company's experienced management team boasts multiple discoveries, and brings over 145 years of combined experience in the mining and exploration sector. Please visit the Company's web site address at www.stoneshieldcapital.com .
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ON BEHALF OF THE BOARD OF DIRECTORS OF
STONESHIELD CAPITAL CORP.
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.
For further information:
Benjamin Curry, investor relations at (604) 689-2881 or toll free at 1-877-689-2881.