NewsCrownSamples 3.57 Ounces Gold/Ton at Red Lake
September 16, 2010
Crown Gold Corporation ("Crown" or the "Company")(TSX VENTURE:CWM) is pleased to announce assays from recent channelsampling of a well-exposed quartz vein on its McKenzie Islandproperty at Red Lake in northwestern Ontario.
Individual channel samples on two segments of the vein assayed up to122 g/t gold (3.57 ounces/ton) over 0.5 m with most samples (8 out of14) returning assays greater than 8 g/t gold. Selected channel assayresults are tabulated below. Channels CC-05 to CC-16 are sequentialalong a 25-m segment of vein, while adjacent channels CC-23 and CC-24are approximately 4 m apart on a vein segment about 45 m to the NNW.Widths are horizontal and approximately 97% of true widths. The segmentsoccur within a 90-m strike length of exposed shearing with quartzveining.
McKenzie Island Trench Selected Channel Assay Results
|
channel | | metres | | g/t Au |
|
CC-05 | | 0.40 | | 3.18 |
CC-06 | | 0.55 | | 8.40 |
CC-07 | | 0.60 | | 31.37 |
CC-08 | | 0.75 | | 21.85 |
CC-09 | | 0.55 | | 15.09 |
CC-10 | | 0.50 | | 5.70 |
CC-11 | | 0.32 | | 4.61 |
CC-12 | | 0.35 | | 18.87 |
CC-13 | | 0.45 | | 16.46 |
CC-14 | | 0.65 | | 0.01 |
CC-15 | | 0.80 | | 1.79 |
CC-16 | | 0.40 | | 1.34 |
| | | | |
CC-23 | | 0.50 | | 122.42 |
CC-24 | | 1.25 | | 12.04 |
All assays reported in this news release were performed on sawnchannel samples generally weighing between 0.5 and 1.9 kg. All sampleswere analyzed by standard fire assay/AA or fire assay/gravimetricmethods at SGS Laboratories in Red Lake. Crown's QA/QC protocol includesthe introduction of standard, blank and replicate samples. QA/QCprotocols included the introduction of standards, blanks and replicatesamples.
The prominent mineralized quartz vein segments occur mostly in agranodiorite adjacent to, and west of, the contact with a mafic dyke in aNNW striking, composite shear zone, all recently exposed by mechanicaltrenching and stripping along 200 m of strike. These quartz-goldoccurrences were originally prospected by shallow trenches and drilledby short holes in the 1930s when assays as high as 43.2 g/t (1.26 oz/t)gold across 1.2 m were reported. Surface geophysical data completed byCrown earlier this year indicates that a strong linear conductive trend,probably coincident with the shear, and a magnetic anomaly reflecting amafic dyke adjacent to the quartz veining, extend 900 m NNW across theproperty.
The McKenzie Island property also contains an east-west trendinggold-bearing quartz vein system, the "MacAndrew Trend", representinganother target not yet examined in detail by Crown. Drilling of themineralized zone is planned to start within a few days.
Crown's Red Lake property consists of six patented claims on McKenzieIsland, approximately 4 km southwest of the former McKenzie Red LakeMine, which produced more than 651,000 ounces of gold at an averagegrade of 9.5 g/t (0.277 oz/t) from veins in the McKenzie Stock, a verysimilar overall geological setting. Crown's property is situated withinand near the northern edge of the Dome Stock, similar in age to theMcKenzie Stock. Total production from the whole Red Lake Camp toDecember 31, 2009, is 25.5 million ounces of gold at an average grade of0.46 oz/ton (15.8 g/t).
Crown Gold, formed by the recent amalgamation of Crown Minerals andGold Summit, is exploring for high grade gold and silver deposits inNevada and high grade gold deposits in both Nevada and Ontario.
In Nevada, Crown has NI 43-101 compliant inferred resources ofapproximately 300,000 ounces of gold and indicated resources of 37,000ounces of gold at its Monte Cristo and Sugarloafproperties at a cut-off grade of 1 g/t. These are the most advanced offive, high-grade, epithermal vein systems controlled by the company. Theexisting resources at Monte Cristo and Sugarloaf remain open alongstrike and at depth. Planning for further exploration and developmenteither underground or by surface drilling is underway. The three otherproperties, Blue Sphinx, Gold Springsand Black Warrior, all contain well-defined andessentially undrilled targets.
In northwestern Ontario, Crown has two other gold properties inaddition to McKenzie Island. At Tabour Lake, samplingand previous drilling at the old Sakoose Mine confirm that extension ofpreviously mined grades of 14 g/t gold are present down plunge and openat depth. Drilling of this property is planned in early 2011. A largeproperty package at Surprise Lake in the Uchi Belt,east of Red Lake, contains a large number of greenstone gold occurrencesand surface work is planned in 2011 to identify drill targets. Theseare all classic greenstone gold targets.
In northeastern Ontario, the company holds strategic land positionsadjacent to Trelawney's Chester discovery, at the old Stairs Mine and inthe Timmins camp. Evaluation of drill targets on these properties willcontinue.
Data concerning the McKenzie Island project in this press release hasbeen reviewed by Robert Kuehnbaum, P.Geo., who is the Qualified Person(as defined by NI 43-101) for Crown's McKenzie project.
Forward-looking Information: This news release may contain orrefer to forward-looking information. All information other thanstatements of historical fact that address activities, events ordevelopments that Crown believes, expects or anticipates will or mayoccur in the future are forward-looking statements. Theseforward-looking statements are subject to a variety of risks anduncertainties beyond Crown's ability to control or predict that maycause actual events or results to differ materially from those discussedin such forward-looking statements. Any forward-looking statement,speaks only as of the date on which it is made and, except as may berequired by applicable securities laws, Crown disclaims any intent orobligation to update any forward-looking statement, whether as a resultof new information, future events or results or otherwise. AlthoughCrown believes that the assumptions inherent in the forward-lookingstatements are reasonable, forward-looking statements are not guaranteesof future performance and, accordingly, undue reliance should not beplaced on these forward-looking statements due to the inherentuncertainty therein.
Historical information, such as the reported assay results forthe McKenzie Island property from the 1930s, pre-dates NI 43-101 and,accordingly, is not compliant with the requirements of NI 43-101; suchhistorical information should not be relied upon.
Neither the TSX Venture Exchange nor its Regulation Service Provider(as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or contents of this newsrelease.
For more information, please contact
Crown Gold Corporation
Mr. Stephen Dunn
President and CEO
(416) 822-3343
or
Crown Gold Corporation
Dr. Anthony Taylor
Executive Chairman
(775) 843-5838