Hy Lake Intersects More High Grade Gold at Rowan L10/21/2010 8:55 AM - FSC
Toronto, ON October 21, 2010
FSC / Press Release
Hy Lake Intersects More High Grade Gold at Rowan Lake
168.34 g/t gold over 0.50 metres within 42.44 g/t gold over 2.0 metres
Toronto, Ontario CANADA, October 21, 2010 /FSC/ - Hy Lake Gold Inc. (HYL - CNSX, HYK - FWB),is pleased to announce drill results from the first of two targets recently drilled on it's Rowan Lake Property (see news release dated October 12, 2010) under option from Goldcorp's Red Lake Gold Mines (see news release dated December 13, 2007).
Highlights include:
* Hole HYR-10-27 intersected 168.34 g/t over 0.50 metres (4.91 oz/t gold
over 1.64 feet), within a wider zone of 42.44 g/t over 2.0 metres (1.24
oz/t gold over 6.5 feet)
* Hole HYR-10-25 intersected 25.71 g/t over 1.0 metres (0.75 oz/t gold
over 3.28 feet), within a wider zone of 9.15 g/t over 3.0 metres (0.27
oz/t gold over 9.84 feet)
* Hole HYR-10-25 intersected 27.43 g/t over 1.0 metres (0.80 oz/t gold
over 3.28 feet)
* Hole HYR-10-26 intersected 19.20 g/t over 0.50 metres (0.56 oz/t gold
over 1.64 feet)
* Hole HYR-10-24 intersected 14.06 g/t over 0.80 metres (0.41 oz/t gold
over 2.62 feet)
All four holes, HYR-10-24 - HYR-10-27, totalling 1,509 metres intersected the high grade gold zones within the Rowan Main Zones structural corridor. At present, this corridor has a strike length of over 800 metres and remains open along strike, both east and west, and at depth. The current estimated exploration horizon of this trend is over 3500 metres and has been explored to a depth of less than 500 metres. A complete list of significant assays is provided in Table 1.
Assay results for the five holes targeting the Newman-Todd structure have been received by the Company and will be released following compilation and analysis by Hy Lake geologists.
Discussion of Results:
The Rowan corridor is host to at least five separate high grade gold bearing veins; the MSZ, 3-2, 3-5, 3-6 and 3-8 zones. These structures are interpreted to be near vertical, cross-cutting several lithological units. All four of the holes were collared within the northern sediments and drilled to the south. In addition to intersecting high grade mineralization within volcanic sequences on trend with existing zones, these holes also intersected high grade mineralization within the sedimentary sequence. This Calc-Silicate zone (CS zone) is believed to be a new parallel zone to the north of the known vein zones. Future drilling will further delineate this new zone's lateral and dip extension as well as determine its structural definition as being vein or breccia.
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Hole ID From To Width Au Au Width
(m) (m) (g/t) Oz/t (ft)
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HYR-10-24 10.50 12.00 1.50 7.80 0.23 4.92
HYR-10-24 Including 10.50 11.30 0.80 14.06 0.41 2.62
HYR-10-24 67.00 68.00 1.00 7.20 0.21 3.28
HYR-10-24 108.00 110.50 2.50 3.33 0.10 8.20
HYR-10-24 including 108.00 108.50 0.50 13.03 0.38 1.64
HYR-10-24 124.00 126.00 2.00 3.42 0.10 6.56
HYR-10-24 201.00 202.00 1.00 2.04 0.06 3.28
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HYR-10-25 2.60 4.00 1.40 3.52 0.10 4.59
HYR-10-25 27.00 29.00 2.00 8.65 0.25 6.56
HYR-10-25 Including 27.00 28.00 1.00 13.71 0.40 3.28
HYR-10-25 157.00 167.00 10.00 3.09 0.09 32.81
HYR-10-25 Including 157.00 163.00 6.00 4.82 0.14 19.69
HYR-10-25 and including 160.00 163.00 3.00 9.15 0.27 9.84
HYR-10-25 and including 160.60 161.60 1.00 25.71 0.75 3.28
HYR-10-25 294.80 302.00 7.20 4.38 0.13 23.62
HYR-10-25 Including 298.00 302.00 4.00 7.48 0.22 13.12
HYR-10-25 and including 298.00 299.00 1.00 27.43 0.80 3.28
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HYR-10-26 28.25 28.75 0.50 10.63 0.31 1.64
HYR-10-26 45.00 46.00 1.00 11.83 0.35 3.28
HYR-10-26 Including 45.00 45.50 0.50 14.06 0.41 1.64
HYR-10-26 87.00 88.00 1.00 3.93 0.11 3.28
HYR-10-26 185.00 185.50 0.50 19.20 0.56 1.64
HYR-10-26 285.00 286.00 1.00 3.92 0.11 3.28
HYR-10-26 Including 285.00 285.50 0.50 5.03 0.15 1.64
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HYR-10-27 118.00 120.00 2.00 42.44 1.24 6.56
HYR-10-27 Including 118.75 119.25 0.50 168.34 4.91 1.64
HYR-10-27 213.00 214.00 1.00 8.22 0.24 3.28
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Table 1. Significant Assays
Bob Singh, P.Geo., who is a qualified person under the definition of National Instrument 43-101, has reviewed the technical information contained in this press release which was provided by Hy Lake Gold Inc. Core samples from the Rowan program were cut in half using a diamond cutting saw and were sent to SGS Minerals Services, an accredited mineral analysis laboratory in Red Lake, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods. Certified gold reference standards, blanks and field duplicates were routinely inserted into the sample stream as part of Hy Lake's quality control/quality assurance program.
About the Rowan Lake Mine Property
The 117-claim Rowan Lake Mine property was optioned from Goldcorp's Red Lake Gold Mines in December 2007. Hy Lake Gold is earning a 60% interest, as operator, in the property by spending $2,500,000 over three years (see news release dated December 13, 2007).
The Rowan property has been explored for gold since the Red Lake Gold Rush of the late 1920's. As a consequence, several surface gold showings have been discovered, the Rowan mine veins are considered the most prospective and therefore the most developed. On the eastern portion of the property near Martin Bay other commodities including base metals, silver and tungsten were also found.
The property lies within a regionally defined northwest trending structural feature known as the Pipestone Bay - St Paul Bay Deformation Zone. This zone has within it three advanced gold occurrences including the Red Summit, Rowan and the Mt. Jamie mines. The prized Balmer-Confederation aged unconformity occurs both on the northern and southern portions of the Rowan property as are folded iron formations and ultramafic units that have been shown to be prime hosts for the deposition for gold in the Red Lake Camp. Recently, the interpretation of sets of intersecting structures has created several new, high priority targets. The interference patterns produced by the intersection of multiple structures are potential dilation traps. The Golden Arm ultramafic structure and the Pipestone Bay - St. Paul Bay Deformation Zone is one such set. Another set includes two anticlines that converge at the fold closure to the east of the Rowan shaft zones. Mineralized intersection of structures, proximity to regional unconformity and favourable associated lithologies, such as iron formations and ultramafics, draw strong comparisons between Rowan Lake and the discoveries in the east part of the Red Lake Camp.
The property hosts the past producing Rowan Mine site, which was in development from the late 1930s to the 1950s. It consisted of a vertical shaft and three levels including an adit on the 1st level. During this time underground exploration consisted of drifting/raising along five (5) separate veins. In 1984, a bulk test was conducted on the central portion of the main shaft zone from the adit level to surface using a 91 cm wide shrinkage mining method. This bulk test was processed at Dickenson Mines Limited mill in Balmertown and returned 610 ounces for a recovered grade of 0.25 ounces per ton. From this test, the main shaft zone vein (MSZ) returned an average vein graded of 40 gpt (1.27 opt) from 602 samples. Dickenson Mines continued to evaluate the economics of extracting these resources and concluded a mineable reserve of 34,850 tons at 0.37 ounces per ton cut over 3.3 feet. A mine plan was developed by Strathcona Minerals accessing the deposit using a ramp/decline. Five longitudinal sections were created of the known zones and these zones and their extensions were targeted during subsequent exploration efforts.
In 1989-1990 Chevron Minerals had the property under an option agreement and drilled several holes testing the depth and strike continuity of this system. An inferred resource of 798,000 tonnes at 4.7 gpt grade over a 1.5 metre diluted width contained within 10 zones was calculated. Since then, Goldcorp Inc., Kings Bay and Hy Lake Gold Inc. have drilled to either find new mineralized zones or extend known zones along strike and dip.
Currently, Hy Lake Gold has an option on the property from Goldcorp/RLGM. The 2008 drilling program conducted by Hy Lake has shown that several zones including the MSZ, 3-2, 3-5, 3-6 and 3-8 zones are still open at depth over portions of the vein system. They are also in the process of producing a 43-101 compliant resource estimate using 2, 3 and 4 gram per tonne cut offs.
About Hy Lake Gold Inc.
Hy Lake Gold is a well financed Toronto-based mineral exploration company focused on the gold exploration and development business in the prolific Red Lake Mining District of Northwestern Ontario, Canada. Hy Lake Gold has assembled several significant property packages totalling approximately 3,300 hectares in west Red Lake. The properties cover a 12 kilometre distance along the west Red Lake Trend, containing 3 former producing gold mines, and the Company continues to explore these properties both along strike and at depth. To find out more about Hy Lake Gold Inc. (CNSX: HYL; FRANKFURT: HYK) visit our website at www.hylake.com.