Northgate Approves Significant Hyland Drill Program for 2004
Wednesday March 10, 5:15 pm ET
VANCOUVER, British Columbia--(BUSINESS WIRE)--March 10, 2004--StrataGold Corporation (TSX.V:SGV) and Northgate Exploration Limited (TSX:NGX - News; AMEX:NXG - News) are pleased to announce the approval of a $700,000 drilling program for the Hyland property, located 70 kilometres (km) northeast of Watson Lake, Yukon.
2004 Work Program
The 2004 field program will commence following spring break up. This will consist of drill target definition ground geophysical surveys in areas that are coincident with geochemical anomalies. These target areas include:
A 1.2 kilometre geophysical/geochemical target southeast of the 2003 drilling;
Cuz Zone geochemical anomaly. A 500 by 500 metre zone of highly anomalous gold, arsenic and bismuth geochemistry, situated 4 kilometres to the south of the Main Zone on the Cuz claims.
Geological/geochemical targets along trend north and south of the 2003 drilling.
Drilling will commence concurrently with the geophysical programs. Initially this will focus on extending the area of gold mineralization defined in the 2003 drill program (joint news releases of August 18th, 2003 and November 25th, 2003). The latter part of the program will test targets in the above-mentioned areas. The 2004 program will total approximately 2,500 metres of drilling in 13 holes.
The Property
The Hyland property has the potential to host a large tonnage, sediment-hosted gold deposit with similarities to the multi-million ounce deposits in the Carlin District in Nevada and the Telfer deposit in Australia. Previous exploration has outlined a 14 kilometre long structural zone within late Proterozoic to early Paleozoic sedimentary rocks. Bulldozer trenching in 1987 and 1988 defined a zone of shallow oxide gold mineralization including trench intervals grading up to 4.8 g/t gold over 30 metres. Percussion drilling in 1990 defined an oxidized gold resource in the Main Zone of 3.2 million tones grading 1.1 g/t gold. (Under current definitions of National Instrument 43-101 the resource would likely be classified as an inferred resource).
The Main Zone oxide gold resource is located immediately south of the core of a large aeromagnetic anomaly. The magnetic low is interpreted to reflect magnetite-destruction of the host sedimentary rocks due to intense silica-clay alteration. The magnetic anomaly corresponds to the north-south and southeast trenching 3,200 metre long zone of highly anomalous gold, bismuth and arsenic soil geochemistry.
Gold mineralization at Hyland is believed to be hosted within the core of an over-turned east verging antiformal fold structure. Mineralization occurs at zones of intense silicification and silica replacement of phyllites and quartzites with 5 to 20% total sulphides.
Superimposed on these zones of silicification is a stockwork of quartz - sulphide veinlets and open space fillings.
Option Agreement
Northgate has an option (the Initial Option) to earn a 51% interest in the Hyland property by incurring exploration expenditures aggregating $5 million over four years. Upon completion of these expenditures, and making cash payments totaling $210,000, Northgate shall have the Additional Option to increase its interest to 60% by completing a feasibility study and making all expenditures related thereto. StrataGold will be the operator of exploration programs during the Initial Option, whereas Northgate will be the operator during the Additional Option and under the Joint Venture upon completion of the Option Period. Additional details were provided in Monday, February 10th, 2003 news release.
About StrataGold
StrataGold Corporation is a precious metal exploration company focused on gold exploration in the America's. The Company is well financed and has significant exploration programs planned giving shareholders an excellent opportunity to participate in the growth of an exciting new gold company. StrataGold continues its pursuit of other gold properties as part of its growth strategy and is expanding its search in the Americas.
About Northgate
Northgate Exploration Limited is a gold and copper mining company focused on operations and opportunities in North and South America. The Corporation's principal assets are the 290,000-ounce per year Kemess South mine in north-central British Columbia and the adjacent Kemess North deposit, which contains an indicated resource of 5.4 million ounces of gold and is currently the subject of a feasibility study.
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