NEW - More Gold in Carlin
Grandcru drills 55 feet of 0.012 opt Au at Danny Boy
2006-01-04 17:14 ET - News Release
Mr. W. Glen Zinn reports
NEVADA PHASE I DRILL RESULTS FROM DANNY BOY PROJECT
Grandcru Resources Corp. has released the results of the company's recently completed phase I core drilling program at the Danny Boy gold property in the Tuscarora area of Elko, Nev.
Highlights:
over 2,600 feet of drilling with strongly anomalous gold and silver in four of six holes;
gold and silver values persist over entire length of two holes, suggesting a strongly mineralized system extending to depth;
strong association between gold and arsenic common to Carlin-type deposits;
identical age with Carlin trend gold deposits; and
untested shallow Paleozoic sedimentary host rocks on the property.
Results
Six holes were drilled totaling 2,603 feet. Two holes were drilled on Beard Hill (DB05-1 and DB05-6). One hole was drilled at the Berry basin mercury prospect (DB05-2) and three holes were drilled in the core area (DB05-3, 4 and 5).
Anomalous gold mineralization was encountered in four of the six holes, associated with quartz veinlets and stringers, silicification, pyrite, and broad halos of sericite and/or quartz sericite alteration. The best mineralization was found at Beard Hill. Drill hole DB05-1 intersected 55 feet grading 0.418 gram per tonne gold (0.012 ounce per ton) from 61 feet to 121 feet and five feet grading 0.366 gram per tonne gold (0.011 ounce per ton) from 302 to 307 feet. DB05-6 encountered multiple intervals grading 0.100 to 0.300 gram per tonne gold.
The Beard Hill drilling defines a zone approximately 300 feet wide that is strongly anomalous in gold. This zone strikes north-southwest, dipping 80 degrees to the west. The drilling confirms the grades of gold mineralization encountered at the surface and DB05-1 demonstrates broadening of the mineralization and an increase in grade with depth. Drilling also demonstrates that there are multiple mineralized structures east of the main Beard Hill structure that are not exposed at the surface. Additional structures may exist to the east of the drilling pattern where a large soil anomaly defines the target area.
Drill holes DB05-3, 4 and 5 tested a portion of the core area. Drill hole 3 was drilled west of the mineralized zone. Drill holes 4 and 5 were lost because of extremely heavy artesian flow before testing the extent of the targets. Drill Hole DB05-5 intersected 15 feet grading 0.358 gram per tonne gold (0.010 ounce per ton) from 78 to 93 feet and five feet grading 0.414 gram per tonne gold (0.012 ounce per ton) from 123 to 127 feet. Drill hole DB05-4 encountered five feet grading 0.418 gram per tonne gold (0.012 ounce per ton). Arsenic concentrations in these holes are extremely high (100 to 3,000 parts per million). No anomalous gold was found in the Berry basin mercury prospect.
Phase I drilling has defined the orientation and general configuration of the mineralized zones at Beard Hill and the core area. Permits are in place for phase II drilling to be conducted in the spring of 2006.
At Beard Hill, the company plans to:
offset the broad gold intercept encountered in DB05-1 at depth;
drill additional holes along strike; and
explore the untested structures on the east side of Beard Hill.
In the core area, drill sites have been permitted to test the central target area from higher locations on the hill, minimizing the affects of the artesian flow.
Large-tonnage target recognized
The drill-tested epithermal gold system at Danny Boy may be underlain by a large-tonnage gold deposit hosted by sedimentary rocks. The known part of the Danny Boy system is hosted by volcanic rocks of the 39.9 Ma Mount Blitzen volcanic centre, a feature equal in age to the gold deposits of the nearby Carlin trend.
On the Danny Boy property, these Carlin-age volcanic rocks form thin capping-over calcareous siltstones, argillite, oil-bearing limestone, chert and quartzite of the Paleozoic Vinini formation. This formation can comprise good host rocks for large-tonnage disseminated gold deposits. Published geologic maps over the Danny Boy property show these host rocks less than 200 feet below surface immediately adjacent to the Beard Hill gold system. The company now recognizes that the known gold-bearing system at Danny Boy may pass downward through highly receptive calcareous host rocks at an easily accessible depth.
Downhole geochemical results from the latest Danny Boy drilling show the strong association between gold and arsenic typical of sediment-hosted Carlin gold deposits. Nothing in the latest drilling program suggested that the bottom of gold mineralization has yet been found. In fact, in each of the holes showing gold, scattered high gold values continue throughout the entire length of the holes, suggesting a strong mineralizing system continuing with depth.
The company believes that this large-tonnage target warrants drill testing. The recently completed drill holes at Danny Boy are short by current Carlin drilling standards, where 2,000-foot holes are rather common. The upcoming drilling campaign will include one or more deeper holes designed to test this large tonnage target.
About Danny Boy
The company's Danny Boy gold property is located in Northern Nevada. At Danny Boy, gold mineralization occurs in dacitic volcanic rocks and breccias of the Tertiary Pleasant Valley volcanic sequence. Mineralization is associated with silicification, quartz, adularia and breccia. The company is the operator and is earning a 70-per-cent joint venture interest in the Danny Boy project, subject to a 30-per-cent interest held by Consolidated Global Minerals Ltd. The qualified person on this program is Brian Jones, BSc, MSc.
Private placement closing
Further, the company has now completed its non-brokered private placement offering, originally reported in Stockwatch on Sept. 19, 2005, as amended Dec. 8, 2005, of a total of 3,366,667 units at a price of 15 cents per unit, to raise gross proceeds of $505,000.05. Each unit consists of one common share and one-half of one non-transferable share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of 25 cents for a period of 12 months following closing, expiring Dec. 15, 2006. All of the securities issued by the company in connection with this offering are subject to a hold period, which expires on April 16, 2006.
Incidental to the private placement, the company paid 8-per-cent cash finders' fees to the following parties: Diversified Financial Solutions Inc., Haywood Securities Inc. and Canaccord Capital Corporation of Vancouver, B.C.