2011-06-21 09:27 ET - News Release
Dr. E. Baker reports
GUNPOINT COMPLETES PRELIMINARY DRILL PROGRAM AT TALAPOOSA IN NEVADA
Gunpoint Exploration Ltd. has recently completed a preliminary 1,300-meter reconnaissance diamond drill program of eight holes at its wholly owned Talapoosa gold project, located in northwest Nevada. The program was primarily designed to drill test IP targets peripheral to the existing resource at Talapoosa and within the southeast end of the Appaloosa structure (approximately two kilometres to the north of Talapoosa).
Five holes were drilled on the southeast end of the Appaloosa structure, the most deeply eroded part of the epithermal system with outcropping high-grade epithermal veins. Due to difficulties encountered in drilling through a hangingwall fault, the first two holes on the Smokey Vein system failed to reach the target depth. Two alternative holes located below the fault, which targeted the veins at a shallower level, only returned anomalous gold values over several metres. The fifth hole at Talapoosa Gulch, which targeted a five-metre-wide high-grade vein that assayed 16 grams per tonne gold over three metres, did not intersect the mineralized structure. This drill hole passed through the flaring edge of a dacite flow into the underlying tuffs and sediments, which appear to be an unfavourable host for epithermal veining. The remaining 80 per cent of the Appaloosa structure to the northwest, consisting of shallow-level vent breccias and associated sinters with anomalous gold and pathfinder elements, remains untested.
Three additional holes were drilled to the north and west of the existing resource at Talapoosa, targeting extensive IP anomalies below a thin cover of younger basalt. The intersected IP targets appear to be carbon-rich tuffs and sediments rather than disseminated/breccia-hosted mineralization.
The company is currently permitting a program of 12 inclined PQ diamond drill holes to re-evaluate the grade of the existing resource at Talapoosa. Preliminary investigations by the company and Mine Development Associates of Reno, Nev., comparing the gold and silver grades of inclined holes versus vertical holes (the majority of holes drilled to date) suggest that the inclined holes are higher grade. Management believes that the most likely explanation for the observed increase in grade with the inclined drill hole subset is due to a preferred intersection of steeply dipping higher-grade domains, which are largely missed by vertical drill holes, within an overall moderately dipping low-grade mineralized body. The planned 12 drill holes together with the existing inclined holes should enable the company and MDA to evaluate just how significant an increase in grade could be expected by re-evaluating the resource with the inclusion of additional inclined drill holes. In the current program, two deeper holes will be extended to test the possibility of a high-grade feeder system underlying the existing resource.
Mine Development Associates of Reno, Nev., has estimated an NI 43-101-compliant measured and indicated resource of 23 megatons averaging 0.027 ounce per ton (0.84 gram per tonne) gold (632,000 ounces) and 0.357 ounce per ton (11.2 g/t) silver (8,226,000 ounces), and an inferred resource of 12.6 megatons averaging 0.026 ounce per ton (0.813 g/t) gold (326,000 ounces), and 0.338 ounce per ton (10.6 g/t) silver (4,257,000 ounces) based on historical drill data (see news release dated Oct. 12, 2010). The listed resources are at a cut-off of 0.015 ounce per ton (0.46 g/t) gold equivalent.
In addition, the board of directors of Gunpoint has granted Ed Devenyns a total of 50,000 options at a price of $1.40 per share. Mr. Devenyns, based in Reno, Nev., is a consultant retained to maintain Gunpoint's tenements and assist with the company's Nevada projects.
E. Max Baker, BSc (honours), PhD, is the qualified person as defined by National Instrument 43-101 and is responsible for the preparation of this news release. Mine Development Associates has reviewed this news release.
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