Hy Lake Discovers New Zone of High Grade at Rowan Lake
26.40 g/t gold over 0.50 metres
Toronto, Ontario CANADA, October 26, 2010 /FSC/ - Hy Lake Gold Inc. (HYL - CNSX, HYK - FWB),is pleased to announce drill results from the second 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-10-28 intersected 26.40 g/t over 0.50 metres (0.77 oz/t gold
over 1.64 feet), within a wider zone of 7.28 g/t over 2.0 metres (0.21
oz/t gold over 6.5 feet)
* Hole HYR-10-29 intersected 22.29 g/t over 0.50 metres (0.0.65 oz/t gold
over 1.64 feet), within a wider zone of 10.48 g/t over 1.75 metres
(0.31 oz/t gold over 5.74 feet)
* Hole HYR-10-29 intersected 12.34 g/t over 1.0 metres (0.0.36 oz/t gold
over 3.28 feet)
* Hole HYR-10-32 intersected 12.00 g/t over 1.0 metres (0.35 oz/t gold
over 3.28 feet), within a wider zone of 9.90 g/t over 2.0 metres (0.29
oz/t gold over 6.5 feet)
The newly-discovered Rowan-NT Zone is located approximately 1,400 metres south west of the Rowan target area where holes HYR-10-24 to HYR-10-27 were drilled (See news release dated October 21, 2010). This zone is on trend with Redstar Gold's Newman-Todd zone which extends for an additional 2,000 metres to the south west. The Rowan NT Zone is open at depth and along strike to the north east for approximately 1,800 metres. A complete list of significant assays is provided in Table 1.
Discussion of Results:
The Rowan-NT zone represents a new discovery on the Rowan Lake property. All five holes, totalling 1,147 metres, drilled into this new gold zone intersected wide zones of Iron Carbonate alteration and Silica/sulphide replacement within altered and brecciated volcanic and sedimentary rocks. In addition to intersecting high grade gold within this zone, the holes also intersected wide zones (up to 70 metres) of anomalous gold mineralization (See cross section 1) with potential correlation between them along the Breccia Corridor strike.
Vadim Galkin, Hy Lake's Vice President, Exploration commented: "We are extremely pleased with this new discovery on the Rowan Lake Property. Following Redstar's model of structural control of high grade mineralization on their property, we used the results of Hy Lake's in-house structural study to refine drill targets. 5 holes were successfully drilled into the zone approximately 800 metres north east of Redstar's NE Breccia. The fact that we hit high grade gold with all of the signatures of a large alteration system (Iron-carbonate alteration, silica replacement and sulphide mineralization, wide-spread anomalous gold) leads us to believe that this is a very large system and may extend for at least 1,800 metres to the north east. This zone represents a new style of gold mineralization on the Rowan Lake property and may merge with the Rowan Zones and/or the Porphyry Hill area to the north east. The depth potential of this zone is untested and the potential for additional high grade gold discoveries within this zone is high."
Hy Lake President Robert Seitz added: "The discovery of this important new gold zone at Rowan Lake serves to underscore the enormous potential of Hy Lake Gold's West Red Lake property ownership. The West Red Lake area has remained under explored until now and Hy Lake's renewed exploration potential remains promising. The Mount Jamie, Rowan Lake and Red Summit mine properties are the core assets of our more than 12 kilometres of contiguous, unimpeded exploration horizon along the Pipestone Bay - St. Paul Bay deformation corridor."
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Hole From To Width Au Au Au Au
(m) (m) (g/t) (oz/t) (g/t)* (oz/t)*
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HYR-10-28 46.00 50.00 4.00 3.89 0.11
HYR-10-28 including 46.00 48.00 2.00 7.28 0.21
HYR-10-28 and including 46.50 47.00 0.50 26.40 0.77
HYR-10-28 or 46.50 50.00 3.50 4.37 0.13
HYR-10-28 75.00 80.00 5.00 1.19 0.03
HYR-10-28 243.00 244.00 1.00 2.01 0.06
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HYR-10-29 31.00 33.00 2.00 1.77 0.05
HYR-10-29 56.00 57.50 1.50 2.15 0.06 2.08 0.06
HYR-10-29 including 56.50 57.00 0.50 4.31 0.13 4.11 0.12
HYR-10-29 80.00 83.00 3.00 2.74 0.08 6.38 0.19
HYR-10-29 including 81.25 83.00 1.75 4.25 0.12 10.48 0.31
HYR-10-29 and including 81.25 81.75 0.50 0.49 0.01 22.29 0.65
HYR-10-29 101.00 102.00 1.00 4.93 0.14
HYR-10-29 132.00 133.00 1.00 12.34 0.36
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HYR-10-30 56.00 58.00 2.00 2.43 0.07
HYR-10-30 100.00 101.00 1.00 2.22 0.06
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HYR-10-31 18.00 19.00 1.00 3.76 0.11
HYR-10-31 49.00 86.00 37.00 0.72 0.02
HYR-10-31 including 49.00 55.00 6.00 1.63 0.05
HYR-10-31 and including 49.00 51.00 2.00 2.50 0.07
HYR-10-31 and including 54.00 55.00 1.00 3.17 0.09
HYR-10-31 187.50 188.40 0.90 2.59 0.08
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HYR-10-32 75.00 76.00 1.00 3.07 0.09
HYR-10-32 90.00 94.00 4.00 5.25 0.15
HYR-10-32 including 90.00 92.00 2.00 9.90 0.29
HYR-10-32 and including 90.00 91.00 1.00 12.00 0.35
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* Gold analysis by metallic screen and/or gravimetric finish
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.
Shares Issued: 34,304,195
On behalf of the board:
Mr. Robert B. Seitz, President & CEO
office@hylake.com