HY LAKE GOLD CONTINUES HIGH-GRADE SUCCESS AT MOUNTHY LAKE GOLD CONTINUES HIGH-GRADE SUCCESS AT MOUNT JAMIE MINE Multiple Mineralized Zones Intercepted - Gold Values Include 1.0 Metre of 34.3 g/t Gold
Drilling Confirms Existence of Three Mineralized Corridors With Strong Spatial Continuity
North Vein Trend and Golden Tree Trend Now Linked With Rowan Lake Mine Property
HY LAKE GOLD INC. (CNSX: HYL; FRANKFURT: HYK) is pleased to announce the results of the 2011 winter program of diamond drilling on its 100%-owned Mount Jamie Mine property. The drilling program consisted of 31 drill holes totalling 3,489m and was designed to define the continuity of high-grade intercepts and expand, mainly along strike, the known zones of mineralization on the Mount Jamie Mine property. In addition, several new targets were drilled to test Hy Lake Gold’s exploration concept, which implies mineralization continuity between the Mount Jamie Mine property and the Rowan Lake Mine property.The Mount Jamie Mine Property is located in Todd Township at the western end of the Red Lake Greenstone Belt approximately 25 km west-northwest of Red Lake, Ontario. Rocks in the vicinity of the property form part of the Ball assemblage intruded by a number of ultramafic and quartz-diorite bodies and the property is underlain by a series of Archean volcano-sediments that host several gold-bearing quartz veins.
Results Summary
Drilling confirmed intercepted multiple mineralized intervals in Blocks A, B, C and D with gold assays ranging from 2.2 to 34.3 g Au/t (see Table of Results and Figure 1).
Drilling has also established the existence and strong spatial continuity of three main mineralization corridors (Trends) striking approximately in an east-south-east (AZ 300-120) direction:
? The prominent North Vein Trend (NVT), with a width of 50-100 metres and a current length of approximately 1.8 kilometres, is delineated by recent significant mineralized intercepts in holes (from west to east) HY-11-09, HY-11-14, HY-11-26/27/28, HY-11-15/16/17 and HY-11-19/20/21/22 and is supported by interpretation of historical drilling assays. Block C is located in the central part of NVT and numerous historical and recent intercepts of significant shallow gold mineralization (above 100m) make it suitable for advanced fence (grid) exploration drilling and gold resource estimation.
? Golden Tree Trend (GTT), with a width of 50-100 metres and a current length of approximately 900 metres, is delineated by gold mineralized intercepts, strong carbonate alteration, sulphide mineralization (pyrrhotite, chalcopyrite, pyrite, and sphalerite) and rock brecciation intervals recorded in holes (from east to west) HY-11-23/24/25 and HY-11-29. In the east, GTT coincides with one of the east-southeast trending conductive zones mapped by an Induced Polarization Survey (1995) and Ground Magnetic & VLF surveys (1996) carried out by Placer Dome. The historical West Red Lake Zone, situated on the Rowan Lake Mine property, may represent either the easterly extension or a south splay of this Trend.? West Mount Jamie Trend (WJT), with a width of 50-100 metres and currently traced for about 250-300 metres, is delineated by gold mineralization intercepts in holes HY-11-01 thru HY-11-08 and by historical intercepts and assays.
All drill holes were logged and sampled at Hy Lake Gold’s Mount Jamie field camp. Certified gold reference standards, blanks and field duplicates were routinely inserted into the sample stream as part of Hy Lake Gold’s quality control/quality assurance program. Assaying was done by ActLabs at their laboratory in Red Lake. Gold analyses were performed by fire assay, however higher grade (>5 g/t Au) samples were analyzed with a gravimetric finish.
Discussion of the Results
Gold mineralization at the Mount Jamie Mine property is generally hosted by thin quartz veins and/or veinlets associated with zones of medium to strong carbonate and sericite-chlorite (sometimes fuchsite) alteration and sulphide mineralization. In sections, mineralized intervals line up into nearly vertical narrow zones 20-60 metres long (see Figure 2). Due to the limited and relatively shallow drilling, dip extension remains undetermined and open. Gold mineralization was encountered at levels as shallow as 3 m (HY-11-10) and as deep as 100 m (HY-11-28).
Favourable geology and alteration (carbonate and sericite-chlorite) as well as various sulphide mineralization were encountered in all of the 31 drill holes along with encouraging gold values (with the exception of HY-11-18). The lower value gold intercepts accommodate the connection of areas of higher gold assays and establish the main, property-scale mineralization Trends. Although drill holes HY-11-30 and HY-11-31 also have lower gold mineralization values, the data is currently insufficient to draw any conclusions on spatial connectivity of these intercepts.
Gold presence is apparently independent of host rock type. Such vein-type superimposed mineralization is well known in many other parts of Red Lake Greenstone Belt, including at the most prolific Goldcorp gold mines in the east end of the Red Lake Camp.
The drilling program was designed largely based on the interpretation of the 3-dimensional database, built on the historical data available, and on Hy Lake Gold’s property-scale in-house structural study conducted last summer
by Dr. Vadim Galkin, the Company’s VP Exploration. The results of this drilling decisively confirm the validity of the extensive modelling. They also show definite spatial correlation of all three gold-bearing Trends on the property with secondary, property-scale, E-S-E oriented linear structures identified by the study. Stripping, mapping and sampling of other perspective areas at Mount Jamie resulting from the structural study are planned as a follow-up to the recent drilling.
Drilling in the central part of the North Vein Trend, Block C, returned the highest gold assay of 1.0 metre of 34.3 Au g/t (3.28 feet of 1.17 Au oz/t). This zone represents a first priority target for advanced exploration drilling, particularly in view of the close proximity to the past producing Mount Jamie Mine Main Shaft and related underground infrastructure. Both open pit and underground mining concepts may currently be taking into consideration since the downward extension of mineralization in this area has not been tested deeper than 40-50 metres.
Another geologically significant result of the drilling program was the discovery of the much more extensive presence of diorites/granodiorites in the central part of the Mount Jamie property. Diorites were intersected in holes HY-11-08 thru HY-11-14 (all holes in Block B) and through the total length of hole HY-11-28, drilled between Block B and Block C. Associated vein gold mineralization in diorites, and in the host rocks near the contact, makes the structural environment look very similar to the Red Summit Mine property where Hy Lake Gold has recently finished a drilling program (assays results pending). At Red Summit, mineralized envelopes containing the vein sets lie mainly within a zone of lithological contacts between intrusive bodies of quartz diorites and mafic metavolcanics.
The existence of the several kilometre long linear structure marked by diorite intrusives with associated mineralization underscores once again the importance of the Pipestone Bay – St Paul Bay Deformation Corridor as a structure which controls spatial distribution of gold deposits in the West Red Lake area. This discovery also confirms and expands Hy Lake Gold’s exploration concept that "...Rowan Zones, West Rowan Lake Zone, Headache Zone, Mount Jamie Zones and the North Jamie Zone may belong to the single family of nearly vertical, east-west and/or ESE-WNW trending gold-bearing vein systems" (see news release November 2, 2010 Hy Lake). The Red Summit Mine property may represent yet another member of this family and there exists a very high probability of discovering additional gold mineralization between the known deposits, including the Rowan Main Zones. Hy Lake Gold’s current unimpeded exploration horizon along these vein systems, within the deformation corridor, is approximately 12 kilometres.
Hy Lake Gold President Robert Seitz stated: "In addition to continued expansion of the high-grade zones at our Mount Jamie Mine property, this drilling program conclusively confirms our exploration concept and strengthens the confidence in our targeting models. We have now clearly defined three distinct gold-bearing Trends at Mount Jamie, each with several mineralized vein systems. We are extremely pleased with these results and look forward to the pending results from recent drilling at our Red Summit Mine property as we continue to connect the dots on the West Red Lake Mine Trend."
Vadim Galkin, P.Geo., VP Exploration for Hy Lake Gold, who is a qualified person under the definition of National Instrument 43-101, has reviewed the technical information contained in this press release.
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.
Shares Issued: 40,124,148
On behalf of the board:
Mr. Robert B. Seitz, President& C.E.O.
office@hylake.com