Hy Lake Gold Resumes Drilling at Rowan Lake Mine Property
Toronto, Ontario CANADA, August 10, 2010 /FSC/ - Hy Lake Gold Inc. (HYL - CNSX, HYK - FWB),is pleased to announce that it will resume drilling on its Rowan Lake Mine property under option from Red Lake Gold Mines ("RLGM"), an affiliate of Goldcorp Inc. (see news release dated December 13, 2007). To date Hy Lake has spent approximately $2,300,000 of its option commitment. The fully funded budget for the current phase of drilling is $350,000. The program will focus on further delineating a series of 5 sub-parallel,high-grade gold zones to east of the Rowan Mine shaft and to also testthe northeast extension of a high-grade mineralizedstructural zoneat Redstar Gold's Newman-Todd property.
Since late 2009, Hy Lake has been compiling drilling and geological data for the Rowan property with the assistance of RLGM. As a result, the Rowan Mine zones model has been re-established and updated. The updated model has allowed for the creation of new sets of longitudinal sections, which are the basis for target generation and future resource development. Robert Seitz, Hy Lake President stated: "We are extremely pleased with the results of this initiative and are grateful for the level of cooperation of RLGM and their geotechnical staff. Past exploration work at the Rowan Mine property, including Hy Lake's, has outlined a large gold-bearing structure with several steeply dipping high-grade gold veins. Our current modeling work suggests that the Rowan project has several geological characteristics (including the highly prospective Balmer Unconformity) in common with the major gold deposits in the Red Lake Camp. We will continue to build on this substantial foundation and further develop our complex structural model of the West Red Lake area. Our goals at Rowan are to publish a new, 43-101 compliant, resource in the near term and to ultimately discover a major gold deposit at depth."
Hy Lake's current program will focus on two areas of interest. Firstly, drilling will target the Rowan Main Zones. Examination of the longitudinal sections for the 3-8, 3-6, 3-5, 3-2, and SXZ zones have identified the stronger gold trends and the current program will focus on expanding these areas (see Figure 1). Current drilling will attempt to expand the mineralization down dip and between historic drill holes RW-85-61 and RW-85-62 (see Table 1).
Secondly, drilling will target the northeast extension of a large geological structure discovered on the Newman-Todd property south of the Rowan property. The northeast trending Newman-Todd Structural Zone hosts high-grade gold zones over a two kilometer strike to a depth of over 300 metres. Hy Lake intends to trace this gold system on to the Rowan property where iron formations continue to the northeast, towards the Rowan Creek Zone, in close proximity to the Golden Arm ultramafic structure, a primary control for gold mineralization in the Red Lake Camp.
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 will be cut in half using a diamond cutting saw and will be 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 will be routinely inserted into the sample stream as part of Hy Lake's quality control/quality assurance program.
Chibougamau Diamond Drilling Ltd. of Chibougamau, Quebec has mobilized a drill rig to the property and has begun drilling the initial 3,000 metres of the 2010 Rowan program. Initial results are expected to be received and analyzed by the Company by the end of August.
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 main shaft, 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.
Additionally, a complex structural study and analysis of the West Red Lake area has been commissioned by Hy Lake and will supplement existing data. The study is being conducted by Vadim Galkin, Ph.D., Dr.Sc. and will include all of Hy Lake's Red Lake properties including the Mount Jamie, Rowan Lake and Red Summit mine properties. Dr. Galkin is a full professor at Moscow State University, Geological Dept., Dynamic Geology Faculty and is a Research Associate at the University of Toronto, Faculty of Geology. In September 2000, Dr. Galkin was a semi-finalist of The Goldcorp Challenge gold discovery contest. Using his original technique of lineament analysis, regions and lineament orientation can be predicted. This will aid future exploration efforts.
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.
On behalf of the board:
Mr. Robert B. Seitz, President& C.E.O.
office@hylake.com