News
Strait Gold provides corporate update, reviews exploration activity
October 29, 2008
Strait Gold is pleased to provide a corporate update and review of its recently completed 2008 exploration activities in Peru.
The Company currently has 23.0 million shares issued and outstanding (25.6 million fully diluted), approximately $1.4 million in working capital, current liabilities of less than $70,000 and no long-term debt. Exploration has been advanced on two of the Company’s five projects in 2008. Permit application and community relations initiatives have proceeded on both of those projects as well as on two additional projects, while one property was inactive.
“Strait Gold is in sound financial shape and exploration on our key projects in Peru is advancing despite the challenges posed by current market conditions” said President Jim Borland. “While we did not mount a drill campaign during the current field season as originally budgeted, we completed important surface exploration work and proceeded with the rigorous permitting process now required in Peru prior to drilling, including solidifying community agreements according to the new regulatory standards.”
At Pallcamachay, a porphyry copper-molybdenum project, the Company completed a Phase 1 exploration program consisting of ground magnetic and IP geophysical surveys, property-scale mapping and prospecting, an alteration study and surface assaying. Pallcamachay is located 33 km northwest of the Pierina gold mine (Barrick Gold Corp) and 60 km south-southeast of the Pashpap porphyry copper deposit (Northern Peru Copper Corp.). The Company has an option to earn up to a 100% interest (news release dated November 6, 2007).
Results at Pallcamachay have allowed the Company to identify numerous drill targets with coincident IP-magnetic, alteration and geochemical anomalies. The Company has initiated the permitting process for a 1,500-2,500-metre drill program. Relations with the local population are excellent, and an initial agreement was signed with the community in April 2008 permitting surface exploration on the property. Further community engagement is required by Peruvian mining regulations prior to drilling
Further details on exploration at Pallcamachay are included below, and maps of the property geology, alteration, geochemistry, IP and magnetic geophysics can be viewed on the Company’s website at www.straitgold.com/pallcamachay.html.
At Letra Rumi South, 2008 exploration activity consisted of further detailed mapping of the two gossanous zones along with planning and permitting for a 1500- 2000-metre drill program. The drill program is designed to test three chargeability anomalies identified in a 2007 IP survey. Due, in part, to permitting delays resulting from recent changes to Peruvian mining regulations, the Company did not mount a previously proposed drill program at Letra Rumi South in 2008. The Company holds a 100% interest in the property.
At Culebrilla, the Company focussed on re-evaluating further targets, specifically on those outside of the main Culebrilla-Alalaj area which was drilled in 2007. Reclamation of drill platforms and access roads used in the 2007 drill program began in early 2008 and is ongoing. Community relations efforts continue at Culebrilla in anticipation of future exploration activity. The Company holds a 100% interest in the property.
At San Jorge, an epithermal silver-gold property in Ancash Department, a ground magnetic survey totalling 51 line kilometres was completed by Fugro Ground Geophysics to identify possible western extensions to the known veins across a large valley. Results of the survey were inconclusive,due to deep valley fill masking the bedrock magnetic signature. The Company continues to work with the community to formalize a surface rights agreement allowing for further early-stage exploration. The Company has an option to earn a 100% interest in the property (news release dated November 6, 2007).
At Vera Luz, a property staked by the Company in 2007 based on satellite colour anomalies, the Company conducted initial mapping and sampling in 2007 but did not conduct further exploration acitivity in 2008. The Company holds a 100% interest in the property.
Exploration details from Pallcamachay
Bedrock mapping at Pallcamachay indicates the existence of several high-level
quartz-feldspar porphyry plugs and dykes cutting Calipuy Group intermediate
volcanic tuffs and flows which overlie a large biotite-bearing Tertiary
granite stock with porphyritic and aplitic phases. The entire sequence
is strongly altered to a phyllic assemblage of illite-quartz which is
exposed over a large area of approximately six square kilometres. Terraspec
analysis of 254 surface grab samples indicate that the phyllic alteration
system is flanked by propylitic margins and local argillic-silicic-potassic
phases. Alteration vectors point to the quartz-feldspar porphyry intrusions
as being the centre of the hydrothermal system.
A ground magnetic survey, conducted by Fugro Ground Geophysics, was carried out on 100-metre-spaced grid lines at 10-metre stations across the principle area of alteration for a total of 62 line kilometres. Results of the survey outline a two-square-kilometre area of low magnetic response coincident with extensive phyllic alteration. At the centre of this magnetic low is a 0.2-square-kilometre linear magnetic high interpreted to be the centre of the porphyry system and possibly reflecting buried magnetite-bearing potassic alteration.
The IP geophysical survey, also conducted by Fugro Ground Geophysics, was carried out on 200-metre-spaced lines at 100metre stations in a 3D pole-dipole array, for a total of 33.3 line kilometres. The survey identified numerous shallow chargeability anomalies which form a semi-continuous arc 150-300 metres wide by approximately 3.8 kilometres long around the core of the alteration system. A deeper (greater than 400 metres depth) chargeability anomaly open to the east and at depth was identified along the eastern edge of this shallower chargeability arc.
The IP survey also identified a broad, deep zone of low resistivity located in the core of the alteration system, continuing from surface to beyond the depth capacity of the survey (greater than 400 metres depth). This anomaly is located within the centre of the chargeability arc.
A total of 285 surface grab samples were collected along 200-metre-spaced grid lines at roughly 50-metre-spaced sample stations within the area of alteration. All samples were shipped to ALS Chemex labs in Lima, Peru, for analysis. Samples were run for gold by fire-assay with a AAS finish, and for 34 trace elements (including silver, copper and molybdenum) using aqua regia digestion with a ICP-AES finish. Internal standards were inserted into the sample stream for quality assurance.
Results of the geochemical survey indicate anomalous molybdenum (greater than 20 ppm), copper (greater than100 ppm) and silver (greater than 5 ppm) values within a roughly circular pattern centered over the core of the phyllic alteration system, and largely coincident with the high chargeability arc and large magnetic low defined in the IP and magnetic surveys respectively.
Ryan Weston, P.Geo., is the Qualified Person as defined by NI 43-101 for the purpose of this press release and has reviewed its technical content.
About Strait Gold Corporation:
Strait Gold Corporation is a Canadian mineral exploration company active in Peru and listed on the TSX Venture Exchange. To learn more about Strait Gold, please visit our website at www.straitgold.com.
For further information:
Jim Borland, President
Tel.: 416-223-9970
info@straitgold.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
