Yale drills 11.5 m of 2.08 g/t Au at Guadalupe
Ticker Symbol: C:YLL
Yale drills 11.5 m of 2.08 g/t Au at Guadalupe
Yale Resources Ltd (C:YLL)
Shares Issued 71,541,879
Last Close 12/14/2010
.11
Wednesday December 15 2010 - News Release
Mr. Ian Foreman reports
YALE DRILLS 11.50 M OF 2.09 G/T GOLD AND 382.7 G/T SILVER AT GUADALUPE
Yale Resources Ltd. has discovered a new gold/silver zone at the Guadalupe property located in Zacatecas state, Mexico. Holes 6 and 7 of the recently completed drill program successfully intersected multiple targets. Drilling at Guadalupe was performed by Yale on behalf of its partner Silver American Mining who is currently funding all work on the property.
Drill hole 7 discovered a previously unknown mineralized multiphase breccia with a weighted average of 1.31 g/t gold and 254.1 g/t silver over 18.6 metres including 11.50 metres with a weighted average of 2.09 g/t gold and 382.7 g/t silver. The highest silver and gold grades were returned from separate intervals of 1.3m with 3.26 g/t gold and 1.2m grading 920.0 g/t silver. The new mineralized zone is located approximately 50 metres north of the Santa Rosa Vein and is open in all directions.
Photos of the breccia can be viewed on the Yale Resources website at
https://www.yaleresources.com/s/Guadalupe_Photos.asp
Drill From To Width(1) Au Ag AgEq(2)
hole Target (m) (m) (m) (g/t) (g/t) (g/t)
GPE10-07 Breccia No. 1 50.90 61.60 10.70 0.25 32.0 44.7
Discovery breccia 67.80 86.40 18.60 1.31 254.1 319.7
including 74.90 86.40 11.50 2.09 382.6 487.3
including 76.75 85.20 8.45 2.75 454.8 592.5
including 76.75 82.50 5.75 2.98 538.5 687.5
Santa Rosa vein 115.30 115.85 0.55 0.13 200.0 206.5
(1) Drill holes were planned to cut the mineralization as close to perpendicular
as possible, however, true widths have not been determined at this time.
(2) Silver equivalent has been calculated using $1,200 per ounce gold and $24 per
ounce silver (or a ratio of 50:1) and assumes recovery to be 100 per cent and the
net smelter returns royalty (NSR) to be zero.
Drill hole 6 was located approximately 200 metres east of hole 7 and intersected the Santa Rosa mine workings. A wide zone in the footwall below the workings returned 14.95 metres with a weighted average grade of 0.19 g/t gold and 63.8 g/t silver.
Drill From To Width(1) Au Ag AgEq(2)
hole Target (m) (m) (m) (g/t) (g/t) (g/t)
GPE10-06 Santa Rosa vein 221.00 223.00 Mined working -- no values
Santa Rosa -- footwall 223.00 237.95 14.95 0.19 63.8 73.3
including 225.75 237.95 12.20 0.16 73.2 81.4
including 229.40 237.95 8.55 0.11 78.5 83.9
including 233.45 237.95 4.50 0.12 95.0 101.2
(1) Drill holes were planned to cut the mineralization as close to perpendicular as
possible, however, true widths have not been determined at this time.
(2) Silver equivalent has been calculated using $1,200 per ounce gold and $24 per
ounce silver (or a ratio of 50:1) and assumes recovery to be 100 per cent and the
net smelter returns royalty (NSR) to be zero.
Seven holes were drilled at Guadalupe totaling a combined 2,502.05 metres. Results from holes 1 and 2 were previously released in a news release dated Nov. 16, 2010. Holes 3, 4 and 5, located in the north end of the property, targeted a series of veins with numerous workings. Assays from outcrop and dumps in the area returned several assays grading greater than 200 g/t silver but the holes did not intersect any significant values.
About the Guadalupe Property:
The Guadalupe property contains two historically significant mines - the Santa Rita and San Antonio mines - and is located in one of Mexico's oldest mining districts, roughly 9 kilometres north of the Fresnillo (Proaño) Mine, the world's richest underground silver mine, operated by Fresnillo plc. Roughly 11 kilometres to the southwest of the Guadalupe Property is the Juanicipio Joint Venture between MAG Silver Corp. and Fresnillo plc.
Historic records containing references to the Santa Rita and San Antonio mines suggest that both mines were important and reached their height of production between 1910 and 1920 but were last in production in the 1980s.
To earn a 90% interest Silver America is required to pay Yale US $ 900,000, spend US $ 2,000,000 on exploration expenditures and issue 1,000,000 shares to Yale over four years. Cash payments will be due every six months and will increase to a final payment of US $355,000. Should the earn-in be completed Yale will retain a 10% participating interest in the property as well as a 2% NSR, which can be bought out in entirety for US $ 2,000,000. Yale will act as the operator for the project. The next payment due to Yale is on Dec. 30, 2010.
Samples from the Guadalupe property were prepared and analyzed by Stewart Labs in their facilities in Mexico and Kamloops, respectively. Samples generally consisted of 1-3 kg of material. Gold and silver analyses were performed by 30 gram fire assay with an AA finish. Samples with greater than 1% copper, lead and/or zinc are re-analyzed using their ore grade analysis. Samples with greater than 100 g/t silver were re-assayed using gravimetric methods.
Ian Foreman, P.Geo., is Yale Resources' Qualified Person, as defined by National Instrument 43-101, for the Guadalupe property. The Guadalupe property is an early stage project with no reported resources that requires additional sampling and geological mapping to fully determine the project's potential.
We seek Safe Harbor.
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