GOG.V
GOLDEN TAG RESOURCES LTD.
114-186 Sutton Place, Beaconsfield, QC H9W 5S3
Phone : (514) 426-8542; Fax : (514) 426-8543; email : pres@goldentag.ca
-NEWS RELEASECOMMENCEMENT
OF DRILLING ON SAN DIEGO PROPERTY, MEXICO
Montreal, Quebec, August 31, 2006 : Golden Tag Resources Ltd. (TSX-V”GOG”) (“the
Company”) is pleased to report the commencement of surface diamond drilling on the San Diego property in Durango State, Mexico. Preliminary road construction has been completed (see
Company news release of August 2, 2006)) and one surface diamond drill has been mobilized to site. The field program is supervised by joint venture partner ECU Silver Mining Inc. (“ECU”).
The initial program of exploration on the property is planned to entail approximately 4,000 meters of drilling focused on testing at least three of the six known vein systems to expand known Resources on the property. The Company must expend a total of $US1.5 million in exploration expenses over three years in increments of US$500,000 per year to earn a 50% interest in the Property from ECU.
Never previously subject to modern exploration, the San Diego property is an historic silver producer boasting at least four major silver-lead-zinc with some gold vein systems with 11 shafts and 10 adits attesting to limited prior silver production with earlier rudimentary mining methods.
Ores from historical mining more than 25 years ago were locally processed and shipped to smelters in Torreon, 1 hour distant by truck. Strong similarities are recognized between the ore and structural environment on the San Diego property with those demonstrated in areas of the ECU operations and focus, approximately 6 km to the west. Potential to expand San Diego Resources is considered excellent.
An NI 43-101 qualified resource statement (Roscoe Postle Associates, July 10, 2005) has initially identified more than 1.11 million oz. silver (and 3,400 oz. gold) as an Indicated Resource – with an additional 1.1 million oz. silver (plus 2,100 oz. gold) in the Inferred Resource category – based
on intensive underground sampling to industry standards. The new drill program will test the depth extensions of the laterally extensive shallowly-mined veins. Its main objective is to significantly increase the size of the present resource.
Quality Control Work on the property is supervised by Ms. Kateri Marchand, P.Geol. and Qualified Person as
defined under NI 43-101 guidelines. Drilled core will be split in half with one half retained for future reference and the other half sent to ERSA laboratory in Torreon, Coahuila, Mexico.
Approximately 25% of samples including all samples with significant assays will be check assayed at SGS new facility in Durango, Mexico. A strict QA/QC program is followed which
includes mineralized standards, blanks and duplicates for each batch of samples.
goldentag.ca
To: vireya who wrote (60432) 9/1/2006 1:38:33 PM
From: zoo york Read Replies (1) of 60556
I bought into GOG right after I got home from visiting the ECU mine at Velardena. The geology at San Diego is the same stuff that hosts the big deposit for ECU, and even the near surface vein material is the same. I am betting that when they get a few drills to test at depth they will show similar characteristics of higher grades and wider veins. Any hint that a large deposit may lurk at depth on San Diego will probably double GOG overnight. The share structure is tight and there are a lot of people with huge cap gains from ECU that are looking for the next big homerun, so its a natural, IMO.
cheers!
COACH247
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