Sleeper Joint Venture First Progress Report
Tuesday June 1, 9:18 am ET
LONGUEUIL, QUEBEC--(CCNMatthews - Jun 1, 2004) -
- Drilling at West Wood area confirms breccia hosted gold
mineralization
- Bonanza gold grades intersected
- Facilities area drilling hits mineralization
- First results from regional exploration confirm targets for
drilling
The Sleeper Joint Venture partners, New Sleeper Gold Corporation (TSX-V: NWS - News; 50%) and X-Cal Resources Ltd. (TSX: XCL - News; 50%) are pleased to provide a progress report on work completed to date on their Sleeper Gold Project located in north-west Nevada. See NI 43-101 Technical Report dated March 5, 2004 available on New Sleeper Gold Corporation's web site for complete project description.
An aggressive program of exploration has been underway at Sleeper since January 9, 2004 when the Joint Venture acquired Kinross Gold's 50% interest in the Sleeper Gold Project. The object of this work is to confirm and expand the known gold resources and to conduct exploration for new ore-grade mineralization within the 30-square mile Sleeper property. The joint venture is currently expending $US500,000 per month on the sleeper gold project.
Initial exploration efforts have been focused on the West Wood and Facilities (Silica Cap) targets. These are the most advanced exploration targets on the property and offer the best potential for near-term definition of new gold resources. Detailed geological modeling of the bonanza veins previously mined in the Sleeper Pit has also been carried out to investigate the potential for depth extensions below the pit. Exploration mapping and sampling has commenced on a number of targets distal from the main Sleeper mine area.
West Wood
This zone is located on the south western margin of the Sleeper pit. Gold-bearing hydrothermal sulphide breccia was first intersected at West Wood by Amax in 1994 but follow up drilling was not undertaken. X-Cal drilled 22 reverse circulation holes from 1996 to 2003 including a previously reported intersection in WW-02-03 of 30 ft at 0.446 opt Au (9.1m at 15.3 g/t Au).
The objective of the current core drilling program is to confirm the gold grade and distribution of the breccia and to extend it along strike and to depth. Core drilling began on February 25, 2004; to date, 7 holes for 8,529 feet have been completed. Complete assays have been received for 5 holes plus partial assays for hole WW-14-04. From these assays we note the following highlights. Complete assay results are tabulated in Appendix 1.
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Significant Intercepts (Imperial)
Grade
DH No. Interval Length (opt Au)
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WW-08-04 567 - 577 ft 10 ft 0.272
729 - 789 ft 60 ft 0.327
814 - 826.5 ft 12.5 ft 0.455
869 - 886.5 ft 17.5 ft 0.220
WW-10-04 853 - 877 ft 24 ft 0.248
917 - 932 ft 15 ft 0.182
949.5 - 964.5 ft 15 ft 0.260
992 - 1012 ft 20 ft 0.167
WW-14-04 383.8 - 409 ft 25.2 ft 0.171
825.3 - 850.5 ft 25.2 ft 0.877
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Significant Intercepts (metric)
Grade
DH No. Interval Length (g/t Au)
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WW-08-04 172.9 - 175.9 m 3.0 m 9.3
222.3 - 240 5 m 18.2 m 11.2
248.2 - 252.0 m 3.8 m 15.6
264.9 - 270.3 m 5.4 m 7.5
WW-10-04 260.1 - 267.4 m 7.3 m 8.5
279.6 - 284.1 m 4.5 m 6.2
289.5 - 294.0 m 4.5 m 8.9
302.4 - 308.5 m 6.1 m 5.7
WW-14-04 117.0 - 124.7 m 7.7 m 5.9
251.6 - 259.2 m 7.6 m 30.1
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Average gold grades for 5 g/t Au cut-off, 3m minimum length
This first phase of the West Wood core drilling has confirmed that significant intercepts with grades up to 30 g/t Au occur within matrix-supported sulphide breccias. In addition, colloform banded veins hosting visible gold has been intersected, which may indicate a higher grade core to the West Wood breccia. Further drilling to extend the mineralized zone and to confirm the grade distribution is ongoing.
Facilities
The Facilities Area is on the east side of the Sleeper pit. The objective of the drilling program was to test previously-identified mineralization in the area of the Amax mill and crusher. The Joint Venture planned a 30-hole program to follow up widely-spaced Amax drilling in 1987- 1988. Thirteen reverse circulation holes totaling 9,060 ft have been completed. Highlights of the assay results are provided below. Assay values of note for all 13 holes are tabulated in Appendix 2.
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Significant Intercepts (Imperial)
Grade
DH No. Interval Length (opt Au)
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FAC-01-04 570 - 595 ft 25 ft 0.037
including 575 - 580 ft 5 ft 0.120
FAC-05-04 170 - 270 ft 100 ft 0.019
FAC-06-04 460 - 570 ft 110 ft 0.042
including 500 - 510 ft 10 ft 0.173
FAC-07-04 130 - 215 ft 85 ft 0.027
225 - 305 ft 80 ft 0.016
FAC-11-04 480 - 530 ft 50 ft 0.062
including 485 - 495 ft 10 ft 0.151
FAC-12-04 85 - 130 ft 45 ft 0.095
including 90 - 100 ft 10 ft 0.306
145 - 170 ft 25 ft 0.035
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Significant Intercepts (metric)
Grade
DH No. Interval Length (g/t Au)
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FAC-01-04 173.8 - 181.4 m 7.6 m 1.3
including 175.3 - 176.8 m 1.5 m 4.1
FAC-05-04 51.8 - 82.3 m 30.5 m 0.6
FAC-06-04 140.2 - 173.8 m 33.6 m 1.4
including 152.4 - 155.5 m 3.1 m 5.9
FAC-07-04 39.6 - 65.5 m 25.9 m 0.9
68.6 - 93.0 m 24.4 m 0.6
FAC-11-04 146.3 - 161.6 m 15.3 m 2.1
including 147.9 - 150.9 m 3.0 m 5.2
FAC-12-04 25.9 - 39.6 m 13.7 m 3.2
including 27.4 - 30.5 m 3.1 m 10.5
44.2 - 51.8 m 7.6 m 1.2
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Average gold grades at 0.34 g/t cutoff, 3m minimum length.
Results to date indicate potential for one or more pods of oxide/sulphide mineralization located in structural corridors similar in style to that mined by Amax in the Office Pit. Further targeted drilling, instead of the regular grid pattern originally envisaged, is required at Facilities and will be undertaken in the near future.
Below Pit Potential
A detailed review of Sleeper Pit drilling and geological information has been undertaken to assess the potential for extensions of higher grade and bonanza style gold mineralization below the pit. Careful reconstruction of blast hole data for the pit shows plunging shoots of mineralization that are open ended and extend beyond the limit of the pit. In addition there are drill holes below the pit which have higher gold grade intercepts including 12 holes with greater than 1 opt intercepts. Three targets which have been identified as warranting drill testing are the Wood Vein, the Sleeper Vein and unnamed bonanza grade material at the north end of the pit. A program of core drilling has just commenced to test for the presence of shoots at depth. It is anticipated that wedging and directional drilling procedures will be required in addition to conventional core drilling.
Other Exploration
The 30 square mile Sleeper claim block contains a number of previously identified exploration targets that have been defined by ground based mapping, geochemistry and geophysics. These targets lie both east of the Sleeper Pit in exposed bedrock of the Slumbering Hills and west of the pit which is covered by pediment sands and gravel up to 500 ft thick. The Joint Venture Partners have reviewed past exploration work and ranked exploration targets in both areas. Follow up surface work on ranked targets is underway. Encouraging results are being realized particularly for Area 1 and the Alma Mine area. Several targets below the pediment are being considered for drilling and others require further refinement using geophysics. The first pediment-covered target at Sleeper South will be drill tested in the near future.
Comment
Shawn Kennedy, president of X-Cal Resources said, "We are pleased with the initial results from the Sleeper Joint Venture program. A solid technical foundation is in place. We see exceptional district scale potential at sleeper."
"The initial results from the drilling at West Wood and Facilities are gratifying, we are also particularly encouraged by the results from our exploration work and the targets that we now plan to drill," said James Crombie, President of New Sleeper Gold.
Quality Assurance
The Sleeper Joint Venture has put in place a rigorous QA/QC program consistent with National Instrument 43-101 and using best industry practice. A manual outlining the QA/QC procedures for the Sleeper Project was compiled at the beginning of the 2004 drilling program. This manual has been reviewed and accepted by Qualified Persons at Mine Development Associates of Reno, Nevada, a well-known consulting Mine Engineering Services Company. Elements of the JV's QA/QC program include chain of custody of samples, standard and blank samples submitted to the laboratory with each batch of samples and a check assay program on a proportion of sample pulps with a second laboratory. Results from the QA/QC program have to date been satisfactory.
Qualified Person
Mr. Adrian Fleming, New Sleeper Gold Corporation's qualified person as required under NI 43-101 has reviewed the technical information contained in this press release. Mr. Fleming is the Exploration Manager of New Sleeper Gold LLC, the operator of the Joint Venture.
Additional Information
The figures included in this press release are not indicative of nor do they qualify as Mineral Resources or Mineral Reserves under NI 43-101. Further exploration is required in order to define Mineral Resources and it is not certain that such further exploration will result in the discovery and definition of a Mineral Resource at the Sleeper project.
Further information about the Sleeper project is available on New Sleeper Gold Corporation's web site at www.newsleepergold.com and on X-Cal Resources Ltd web site at www.x-cal.com.
New Sleeper Gold Corporation is a gold exploration company with a 50% interest in the Sleeper gold project in Nevada. New Sleeper's shares trade on the TSX Venture Exchange (TSX-V) under the symbol "NWS".
X-Cal Resources Ltd. is a gold exploration company with a 50% interest in the Sleeper gold project and a 100% interest in the Mill Creek gold projects in Nevada. X-Cal's shares trade on the TSX under the symbol "XCL". Additional information including X-Cal NI 43-101 Technical Report and previous press releases can be downloaded from its web site at www.x-cal.com.
Forward Looking Statements
Statements relating to exploration work at Sleeper and the expected results of this work constitute forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks rela
ted to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold reserves and resources; the possibility that required permits may not be obtained in a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unantici
pated expenses in the work program; the risk of environmental contamination or damage resulting from the Sleeper Joint Venture operations and other risks and uncertainties.
Forward-looking statements are based on the beliefs, estimates and opinions of the Sleeper Joint Venture's management on the date the statements are made. New Sleeper Gold and X-Cal Resources undertake no obligation to update these forward-looking statements management's beliefs, estimates or opinions, or other factors, should change.
This news release has been authorized by the undersigned on behalf of New Sleeper Gold Corporation and X-Cal Resources Ltd. respectively.
Appendix 1. Drill Results, Sleeper West Wood Area
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Significant Intercepts (Imperial)
Grade
DH No. Interval Length (opt Au)
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WW-08-04 567 - 577 ft 10 ft 0.272
729 - 789 ft 60 ft 0.327
814 - 826.5 ft 12.5 ft 0.455
869 - 886.5 ft 17.5 ft 0.220
WW-09-04 783 - 791 ft 8 ft 0.401
WW-10-04 853 - 877 ft 24 ft 0.248
917 - 932 ft 15 ft 0.182
949.5 - 964.5 ft 15 ft 0.260
992 - 1012 ft 20 ft 0.167
WW-11-04 1048 - 1055.5 ft 7.5 ft 0.231
WW-12-04 1171 - 1176 ft 5 ft 0.182
WW-13-04 pre-collar completed
WW-14-04 383.8 - 409 ft 25.2 ft 0.171
825.3 - 850.5 ft 25.2 ft 0.877
850.5 - 1,018 ft 157.5 ft assays pending
WW-15-04 pre-collar completed
WW-16-04 hole completed, assays pending
WW-17-04 in progress, assays pending
WW-18-04 in progress, assays pending
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Significant Intercepts (metric)
Grade
DH No. Interval Length (g/t Au)
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WW-08-04 172.9 - 175.9 m 3.0 m 9.3
222.3 - 240 5 m 18.2 m 11.2
248.2 - 252.0 m 3.8 m 15.6
264.9 - 270.3 m 5.4 m 7.5
WW-09-04 238.7 - 241.2 m 2.5 m 13.7
WW-10-04 260.1 - 267.4 m 7.3 m 8.5
279.6 - 284.1 m 4.5 m 6.2
289.5 - 294.0 m 4.5 m 8.9
302.4 - 308.5 m 6.1 m 5.7
WW-11-04 319.5 - 321.8 m 2.3 m 7.9
WW-12-04 357.0 - 358.5 m 1.5 m 6.2
WW-13-04
WW-14-04 117.0 - 124.7 m 7.7 m 5.9
251.6 - 259.2 m 7.6 m 30.1
WW-15-04
WW-16-04
WW-17-04
WW-18-04
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Appendix 2. Drill Results, Sleeper Facilities Area
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Significant Intercepts (Imperial)
Grade
DH No. Interval Length (opt Au)
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FAC-01-04 435 - 445 ft 10 ft 0.062
570 - 595 ft 25 ft 0.037
including 575 - 580 ft 5 ft 0.120
FAC-02-04 No significant intercepts
FAC-03-04 No significant intercepts
FAC-04-04 175 - 200 ft 25 ft 0.017
225 - 255 ft 30 ft 0.014
FAC-05-04 170 - 270 ft 100 ft 0.019
FAC-06-04 230 - 250 ft 20 ft 0.035
295 - 340 ft 45 ft 0.013
350 - 370 ft 20 ft 0.012
460 - 570 ft 110 ft 0.042
including 500 - 510 ft 10 ft 0.174
585 - 625 ft 40 ft 0.015
640 - 690 ft 50 ft 0.025
FAC-07-04 130 - 215 ft 85 ft 0.027
225 - 305 ft 80 ft 0.016
FAC-08-04 260 - 285 ft 25 ft 0.024
415 - 460 ft 45 ft 0.028
575 - 590 ft 15 ft 0.047
FAC-09-04 275 - 330 ft 55 ft 0.010
350 - 390 ft 40 ft 0.012
495 - 505 ft 10 ft 0.062
515 - 550 ft 35 ft 0.028
600 - 615 ft 15 ft 0.035
630 - 640 ft 10 ft 0.035
FAC-10-04 150 - 175 ft 25 ft 0.014
315 - 345 ft 30 ft 0.017
370 - 415 ft 45 ft 0.020
450 - 495 ft 45 ft 0.012
FAC-11-04 480 - 530 ft 50 ft 0.062
including 485 - 495 ft 10 ft 0.151
FAC-12-04 85 - 130 ft 45 ft 0.095
including 95 - 105 ft 10 ft 0.301
145 - 170 ft 25 ft 0.035
FAC-13-04 340 - 385 ft 45 ft 0.031
405 - 415 ft 10 ft 0.081
including 410 - 415 ft 5 ft 0.147
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Significant Intercepts (metric)
Grade
DH No. Interval Length (g/t Au)
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FAC-01-04 132.6 - 135.6 m 3.0 m 1.8
173.8 - 181.4 m 7.6 m 1.1
including 175.3 - 176.8 m 1.5 m 3.5
FAC-02-04
FAC-03-04
FAC-04-04 53.3 - 61.0 m 7.7 m 0.6
68.6 - 77.7 m 9.1 m 0.5
FAC-05-04 51.8 - 82.3 m 30.5 m 0.6
FAC-06-04 70.1 - 76.2 m 6.1 m 1.2
89.9 - 103.7 m 13.8 m 0.5
106.7 - 112.8 m 6.1 m 0.4
140.2 - 173.8 m 33.6 m 1.4
including 152.4 - 155.5 m 3.1 m 6.0
178.3 - 190.5 m 12.2 m 0.5
195.1 - 210.4 m 15.3 m 0.9
FAC-07-04 39.6 - 65.5 m 25.9 m 0.9
68.6 - 93.0 m 24.4 m 0.6
FAC-08-04 79.3 - 86.9 m 7.6 m 0.8
126.5 - 140.2 m 13.7 m 1.0
175.3 - 179.9 m 4.6 m 1.6
FAC-09-04 83.8 - 100.6 m 16.8 m 0.4
106.7 - 118.9 m 12.2 m 0.4
150.9 - 154.0 m 3.1 m 2.1
157.0 - 167.7 m 10.7 m 1.0
182.9 - 187.5 m 4.6 m 1.2
192.1 - 195.1 m 3.0 m 1.2
FAC-10-04 45.7 - 53.4 m 7.7 m 0.5
96.0 - 105.2 m 9.2 m 0.6
112.8 - 126.5 m 13.7 m 0.7
137.2 - 150.9 m 13.7 m 0.4
FAC-11-04 146.3 - 161.6 m 15.3 m 2.1
including 147.8 - 150.9 m 3.1 m 5.2
FAC-12-04 25.9 - 39.6 m 13.7 m 3.2
including 27.4 - 30.5 m 3.1 m 10.3
44.2 - 53.4 m 9.2 m 1.2
FAC-13-04 103.7 - 117.4 m 13.7 m 1.1
123.5 - 126.5 m 3.0 m 2.8
including 125.0 - 126.5 m 1.5 m 5.0
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Contact:
New Sleeper Gold Corporation
James Crombie
President & CEO
Phone: (450) 677-2585
Fax: (450) 677-2601
james_crombie@newsleepergold.com
or
New Sleeper Gold Corporation
Susie Bell
Manager Investor Relations
Phone: (450) 677-2585
Fax: (450) 677-2601
susie_bell@newsleepergold.com
www.newsleepergold.com
or
X-Cal Resources Ltd.
Shawn Kennedy
President
Phone: (604) 662-8245
Fax: (604) 688-7740
invrel@x-cal.com
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