Mar. 4, 2011 (Marketwire Canada) --
TORONTO, ONTARIO -- Crown Gold Corporation ("Crown" or the "Company") (TSX VENTURE:CWM) is pleased to announce preliminary assay results from its 1300 m winter drilling programme at its McKenzie Island property in the Red Lake district of north-west Ontario.
A total of 10 holes were drilled to test extensions of a 100 m strike interval of an exposed quartz vein along the north-west trending Bishop's Break shear zone. Extensive surface sampling here in mid-2010 yielded assays between 3.2 g/t and 122.4 g/t gold over true widths between 0.31 to 1.21 m. (News Release 10.16.10). An initial 1000 m drill program in the fall of 2010 testing down dip to the east returned assay results up to 65.5 g/t over 0.46 m (News Release 11.17.10).
The latest drilling tested this zone further along strike and down dip together with a new target, Perfect Storm, located 300 m further north-west at the intersection of the Bishop's Break and the east-west MacAndrews trends. The Bishop's Break quartz vein target occurs in a granodiorite adjacent to, and west of, the contact with a mafic dyke in a composite shear zone, originally prospected by shallow trenches and drilled in the 1930s.
Of the 10 holes drilled on the Bishops Break zone, 9 intersected the quartz vein with 4 assaying in excess of 8g/t Au over true widths between 0.7 and 1.15 m. Significant results are tabulated below.
Eleven short holes drilled into part of the vein that produced high grade gold values in trench samples has extended that sector of the zone. True widths intersected range between 0.30 and 2.3 meters, assaying between 0.85 and 22.9 g/t gold. A series of 3 holes were drilled on the Perfect Storm Target with one intersecting 3.4 g/t gold over a true width of 0.5 m.
Crown's Red Lake property consists of six patented claims on McKenzie Island, approximately 4 km southwest of the former McKenzie Red Lake Mine that produced more than 651,000 ounces of gold at an average grade of 9.5 g/t. Total production from the whole Red Lake Camp to December 31, 2010, is 28 million ounces of gold.
Crown Gold, formed by the amalgamation of Crown Minerals and Gold Summit, explores for high-grade gold and silver deposits in Nevada and high-grade gold deposits in Ontario.
In north-west Ontario, Crown has two other gold properties in addition to McKenzie Island. At Tabor Lake, sampling and previous drilling at the old Sakoose Mine confirm that extensions of previously mined grades of 14 g/t gold are present down plunge and open at depth. Drilling of this property is planned in early 2011. A large property package at Surprise Lake in the Uchi Belt, east of Red Lake, contains a large number of gold occurrences, all classic greenstone gold targets. In north-east Ontario, the company holds strategic land positions adjacent to Trelawney's Cote Lake discovery, at the old Stairs Mine near Matachewan and in the Timmins camp. Evaluation of drill targets on these properties will continue.
In Nevada, Crown has NI 43-101 compliant inferred resources of approximately 300,000 ounces of gold and indicated resources of 37,000 ounces of gold at its Monte Cristo and Sugarloaf properties at a cut-off grade of 1 g/t. These are the most advanced of five, high-grade, epithermal vein systems controlled by the company. The existing resources at Monte Cristo and Sugarloaf remain open along strike and at depth. Planning for further exploration and development, either underground or by surface drilling, is underway. The three other properties, Blue Sphinx, Gold Springs and Black Warrior, all contain well-defined and essentially, undrilled, targets.
All drilling and sampling were completed under the direct supervision of Scott Franko, Consulting Geologist to Crown Gold and a registered Professional Geologist in Ontario and Manitoba, designated as the Qualified Person under National Instrument 43-10 who reviewed and approved this release.
All assays reported in this release are from half sawn 51 mm diameter NQ2 core samples, analyzed by standard fire assay/AA or fire assay/gravimetric methods at SGS Laboratories in Red Lake. Crown's QA/QC protocol includes the introduction of standard, blank and replicate samples. Further assay results are pending and will be released when available.
VISIT us at the PDAC in Toronto March 6-9...We are at booth 3004
Forward-looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that Crown believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward- looking statements are subject to a variety of risks and uncertainties beyond Crown's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement, speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Crown disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Crown believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.
Historical information, such as the reported assay results for the McKenzie Island property from the 1930s, pre-dates NI 43-101 and, accordingly, is not compliant with the requirements of NI 43-101; such historical 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 news release.
Crown Gold Corporation
President and CEO
Crown Gold Corporation