30-Jun-04 High Grade Gold and Silver Mineralization Encountered at the Sleeper Joint Venture
Wednesday June 30, 9:16 am ET
LONGUEUIL, QUEBEC--(CCNMatthews - Jun 30, 2004) -
- New high grade gold and silver assays for West Wood core hole 14
- West Wood core hole 18 also returns encouraging gold and silver
grades
- West Wood zone extended to the East
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 additional results from ongoing drilling at their
Sleeper Gold Project in Humboldt County, Nevada. See NI 43-101
Technical Report dated March 5, 2004 available on New Sleeper Gold
Corporation's web site for complete project description.
In a previous release dated June 1, 2004 only partial assay results
were available for core drill hole WW-14-04 in the West Wood zone.
The remaining assay results for WW-14-04 have now been received as
well as results for an adjacent core hole WW-18-04. Hole WW-18-04 is
located 100 ft north of WW-14-04 as shown on the attached plan.
Highlights of the assays from holes 14 and 18 are provided below and
other assay results received since the June 1 release are provided
below in Appendix 1.
WEST WOOD DRILL INTERCEPT SUMMARY - SIGNIFICANT MINERALIZED ZONES
(assays received to 6/25/04)
Core
(Imperial)
FROM Length Au Ag
HOLE-ID (ft) TO (ft) (ft) (opt) (opt)
WW-14-04 383.8 409 25.2 0.171 3.24 (i)
825.3 852.1 26.8 0.856 0.92 (ii)
924.6 947.1 22.5 0.543 29.40
969.6 984.6 15 0.428 9.77
WW-18-04 656 683.5 27.5 0.277 3.30
691 721 30 0.520 4.72
728.5 738.5 10 0.168 2.43
Core
(Metric)
FROM Length AU AG
HOLE-ID (m) TO (m) (m) (g/t) (g/t)
WW-14-04 117.0 124.7 7.7 5.9 111.1 (i)
251.6 259.7 8.1 29.3 31.5 (ii)
281.8 288.7 6.9 18.7 1007.8
295.5 300.1 4.6 14.7 334.8
WW-18-04 199.9 208.3 8.4 9.5 113.2
210.6 219.8 9.2 17.8 161.7
222.0 225.1 3.1 5.7 83.3
(i): intervals included in Progress Report of June 1, 2004
(ii): interval expanded from Progress Report of June 1, 2004
Average gold grades for 5 g/t Au cut-off, 3m minimum length, up
to 0.75m internal dilution
The high grade intervals shown above are contained within a
continuous zone of mineralization, as shown in the following table
which uses a 3 g/t Au cut off rather than a 5 g/t Au cut-off.
WEST WOOD DRILL INTERCEPT SUMMARY - SIGNIFICANT MINERALIZED ZONES
(3 g/t Au cut-off)
Core
FROM Length Au Ag
HOLE-ID (ft) TO (ft) (ft) (opt) (opt)
WW-14-04 825.3 1004.6 179.3 0.35 6.9
WW-18-04 648.8 738.5 89.7 0.3 3.11
Core
HOLE-ID FROM (m) TO (m) Length (m) AU (g/t) AG (g/t)
WW-14-04 251.5 306.2 54.6 12.1 239.4
WW-18-04 197.8 225.1 27.3 10.6 106.6
Average gold grades for 3 g/t Au cut-off, 5m minimum length, up to
2.5m internal dilution
Assay results for West Wood core holes using a 3 g/t Au cut-off are contained in Appendix 2, below.
Continued core drilling of the West Wood breccia zone has both confirmed and extended the intersections of higher grade gold mineralization. In addition, very high grade silver mineralization has been intersected in the deeper part of WW-14-04. The unusually high silver grades encountered in holes WW-14-04 and WW-18-04, (individual 2.5 ft samples assaying as high as 2,500 g/t Ag), are a new development at Sleeper. Previous Ag:Au ratios were more typically in the range of 1-10:1. The new high grade silver zone is associated with breccia that is more intensely silicified and sulphidized than those in the upper levels at West Wood. Further drilling is underway to test the dimensions and orientation of this new high grade zone. The plan appended below shows the location of all 2004 core drill holes completed at West Wood and proposed holes as of the date of this release.
Further core drilling is underway at West Wood as well as core and reverse circulation drilling on other targets within the 30 square mile claim block held at Sleeper by the Joint Venture partners.
Comments
James Crombie, President of New Sleeper Gold, said, "These holes enhance the tenor of the West Wood zone. The very high silver grades are an interesting new development which we are following up with further drilling."
Shawn Kennedy, President of X-Cal, said, "The consistency of the new results underlines previous written comments by Ken Snyder PhD and Larry Kornze PEng on the overall potential at Sleeper. We wish to thank our JV Partner and field crew for long hours and good work."
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. The QA/QC program plan being implemented by New Sleeper Gold 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.
The samples with high-grade silver values from the West Wood holes were analysed using a fire-assay method with gravimetric finish appropriate for grades of this magnitude. Check analyses by a second accredited laboratory have confirmed both the high-grade silver and the gold assays from holes WW-14-04 and WW-18-04. Check analyses are pending for the other drill holes.
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 project 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.
A map of West Wood Drill Location Plan and WEST WOOD DRILL INTERCEPT SUMMARY Appendix I AND II are available on CCNMatthews's website at: www2.ccnmatthews.com/database/fax/2000/nws0629.pdf
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