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| January 14, 2010 --- Vol. 4, No.02 | January 2010
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British Columbia
POLYMETALLIC – Pinnacle Mines Ltd. Jan. 11 said it has received a commissioned NI 43-101 Preliminary Economic Assessment Report for its Silver Coin gold project located near Stewart, B.C., in Northwest British Columbia. The report, produced by engineering firm Tetra Tech Inc. of Golden, Colo., presents a preliminary economic assessment, including an updated resource calculation based on a total of 714 drill holes totaling 85,844 meters. The project is a joint venture with Mountain Boy Minerals Ltd. and includes 26 contiguous claims with a net area of 1,255 hectares, or 3,100 acres. Pinnacle owns 70 percent of the presently modeled gold project with the option to earn a larger percentage. The base case model includes production of a sulfide flotation concentrate, which would be cyanide leached in a closed circuit process resulting in a directly saleable gold-silver doré product. At a 10 percent discount rate this model results in pre-tax net present value of US$58.3 million at a gold price of US$850 per ounce and an NPV of US$88.46 million at a gold price of US$900/oz for the Silver Coin project. The data indicate a combined measured and indicated resource of 12.32 million metric tons grading 1.89 grams per metric ton gold for a total of 749,000 ounces of gold, 3.18 million ounces of silver and 87.76 million pounds of zinc. An additional 750,000 ounces of gold are included in the inferred resource, with 15.34 million tons grading 1.52 g/t gold. Pinnacle also said significant progress has been made regarding metallurgical testing. Rougher flotation recoveries for gold vary between 93.8 percent and 99.3 percent. Open circuit cleaner flotation tests resulted in gold recoveries of between 85 and 95 percent. A locked cycle test resulted in 94.7 percent overall gold recovery into a fourth cleaner concentrate grading 110 g/t gold, and demonstrates that relatively high gold recoveries and upgrading could be anticipated from a continuously operated flotation circuit designed to regrind and recycle intermediate products. “The results clearly show that Silver Coin is a significant gold deposit in the Stewart Camp with a very large upside potential for the discovery of more gold mineralization,” said Pinnacle Mines President and CEO Lawrence Dick. “Our understanding of the controls of mineralization at Silver Coin forms the basis for anticipated drilling this next field season, with the objective of following the gold-mineralized trend towards the north to add gold ounces to the growing inventory.” The company is proceeding with refining the project economics, and these data will be made available as they are completed, Dick said. Also ongoing are environmental studies, which will include potential mine permitting.
GOLD – Skygold Ventures Ltd. Jan. 12 reported results from drilling at Thunder Ridge on its Spanish Creek Project located about 50 kilometers, or 31 miles, northeast of the town of 100 Mile House in central British Columbia. Skygold completed 1,825.76 meters in six holes in October. Among highlights of the results: Hole SC019, which intersected 19.30 grams per metric ton gold over 1.5 meters and a second zone of 0.67 g/t gold over 21.40 meters, including 0.87 g/t gold over 14.50 meters; and Hole SC021, which intersected 1.42 g/t gold over 14.75 meters, including 4.54 g/t gold over 3.80 meters, and a separate intersection of 705 g/t silver over 1.25 meters. Gold mineralization at Thunder Ridge occurs at the intersection of southwest and northeast trending structures and vein systems. Gold mineralization encountered within holes SC019 and SC023 occurs within one of these vein-structure systems. The holes are located 400 meters apart. Mineralized zones remain open in all directions. Gold mineralization has now been encountered over a strike length of at least 800 meters. All drilling to date was targeted within a larger gold geochemical anomaly which extends for over 1.5 kilometers. The company said it believes there is good potential to expand the extent of the currently defined mineralized corridor. Skygold is planning for further drilling in 2010 to follow up the results and to test geophysical targets generated from an airborne geophysical survey completed last fall.
Separately, Skygold Ventures said it received approval from the TSX Venture Exchange to change its name to Spanish Mountain Gold Ltd. In connection with the name change, the trading symbol for common shares of the company will change to “SPA,” effective Jan. 14, 2010. The Company also said it will re-locate to new offices. Its
new address and contact information will become effective Jan. 25.
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