Enter your name and email address to receive Gunpoint newsletters
Vancouver, BC – Gunpoint Exploration Ltd. (GUN-TSX.V) (“Gunpoint”or the “Company”) recently completed a preliminary 1,300 meter (eight drill holes) reconnaissance diamond drill program at its wholly owned Talapoosa gold project, located in northwestern Nevada. The program was primarily designed to drill test IP targets peripheral to the existing resource at Talapoosa and within the southeast end of the Appaloosa structure (approximately two kilometers to the north of Talapoosa).
Five holes were drilled on the southeastern end of the Appaloosa structure, the most deeply eroded part of the epithermal system with outcropping high-grade epithermal veins. Due to difficulties encountered in drilling through a hanging-wall fault, the first two holes on the Smokey Vein system failed to reach the target depth. Two alternative holes, located below the fault, and targeting the veins at a shallower level only returned anomalous gold values over several meters. The fifth hole at Talapoosa Gulch, which targeted a five meter wide high-grade vein that assayed 16 g/t Au over three meters, did not intersect the mineralized structure. This drill-hole passed through the flaring edge of a dacite flow into the underlying tuffs and sediments, which appear to be an unfavorable host for epithermal veining. The remaining 80% of the Appaloosa structure to the northwest, consisting of shallow-level vent breccias and associated sinters with anomalous gold and pathfinder elements, remains untested.
Three additional holes were drilled to the north and west of the existing resource at Talapoosa targeting extensive IP anomalies below a thin cover of younger basalt. The intersected IP targets appear to be carbon rich tuffs and sediments rather than disseminated/breccia-hosted mineralization.
The Company is currently permitting a program of 12 inclined PQ diamond drill holes to re-evaluate the grade of the existing resource at Talapoosa. Preliminary investigations by the Company and Mine Development Associates (MDA) of Reno, Nevada, comparing the gold and silver grades of inclined holes versus vertical holes (the majority of holes drilled to date), suggest the inclined holes are higher grade. Management believes that the most likely explanation for the observed increase in grade with the inclined drill hole sub-set is due to a preferred intersection of steeply dipping higher-grade domains, which are largely missed by vertical drill holes, within an overall moderately dipping low-grade mineralized body. The planned 12 drill holes together with the existing inclined holes should enable the Company and MDA to evaluate just how significant an increase in grade could be expected by re-evaluating the resource with the inclusion of additional inclined drill holes. In the current program, two deeper holes will be extended to test the possibility of a high-grade feeder system underlying the existing resource.
Mine Development Associates of Reno, Nevada has estimated an NI 43-101 compliant Measured + Indicated Resource of 23.0 Mt averaging 0.027 oz/ton (0.84 g/tonne) gold (632,000 ounces) and 0.357 oz/ton (11.2 g/tonne) silver (8,226,000 ounces), and an Inferred Resource of 12.6Mt averaging 0.026 oz/ton (0.813 g/tonne) gold (326,000 ounces), and 0.338 oz/ton (10.6 g/tonne) silver (4,257,000 ounces), based on historical drill data (see news release dated October 12, 2010). The listed resources are at a cutoff of 0.015 oz/ton (0.46 g/tonne) gold equivalent.
In addition, the Board of Directors of Gunpoint has granted Ed Devenyns at total of 50,000 options at a price of $1.40 per share. Mr. Devenyns, based in Reno Nevada, is a consultant retained to maintain Gunpoint’s tenements and assist with the Company’s Nevada projects.
E. Max Baker B.Sc (Hons) PhD, Member AustIMM is the Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of this News Release. Mine Development Associates has reviewed this news release.
For additional information please contact:
Dr. E. Max Baker, President, Gunpoint Exploration Ltd. 604-408-8829
Visit the Company’s website at http://www.gunpointexploration.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements:
This news release contains certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward looking statements.
Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Gunpoint’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change, except as required by law.
