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News Releases
| | October 02, 2006
JOINT VENTURE - High-Grade Gold Zone Discovered at Jumping Josephine "JJ" Property
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| | Kootenay Gold Inc. (KTN-TSX.V) is please to announce that its joint venture partner Astral Mining Corporation (AST-TSX.V) has received the first set of trench results from the Jumping Josephine "JJ" property in British Columbia. Assays demonstrate that an exciting new discovery of high-grade gold mineralization in a zone that extends over a strike length of 150 metres (m) and is open to the north and south. Highlights of channel samples from the first three of six trenches are listed below (also see Table 1), and an expanded trenching program will begin within the next two weeks.
21.43 g/t* gold over 5m in Trench 2 (0.63 opt** over 16.4 feet)
5.00 g/t gold over 10m in Trench 3 (0.15 opt over 32.8 feet)
3.99 g/t gold over 3m in Trench 1 (0.12 opt over 9.8 feet)
*grams per tonne **ounces per ton
The JJ property also contains a number of other exciting new gold showings and Astral is planning a greatly expanded work program that will include continued trenching, soil sampling and rock chip sampling. Astral has applied for a drilling permit and is seeking a drilling contractor.
The JJ property is located in the West Kootenay region of southeastern British Columbia. The Rossland/Republic mining district has had historical production in excess of 9 million ounces of high-grade gold, yet has remained under-explored since prior to World War II. New gold showings were discovered in several areas of the JJ Property during 2003 by Kootenay Gold Inc. through intensive prospecting and after road building for logging activity exposed new mineralized structures. They subsequently assembled a claim position in the area surrounding and including several small past-producers in the Granville Mountain (Bonanza Pass) area.
Kootenay has an option agreement with Astral whereby Kootenay has granted Astral the right to earn a 60% undivided interest in the 11,785 hectare Jumping Josephine (JJ) Property located in the Nelson Mining Division of southern British Columbia. The JJ Property consists of mineral claims held 100% by Kootenay and straddles Highway 3, north of the town of Rossland and west of Castlegar. To fulfill the terms of the option agreement Astral must spend $2.1 million on exploration and issue 400,000 shares over 5 years. Subsequent to exercise of the earn-in, Astral and Kootenay will form a 60/40 joint venture.
Technical Summary
A total of six trenches (T01-06) totaling 560m were completed at the JJ Main prospect (Figure 1). Mineralization at JJ Main is associated with a northeast-trending shear zone and comprises quartz stockworks, vein-breccias, ladder-veining and parallel sheeted veins within mid Jurassic granodiorites. Subcropping quartz-stockwork material was previously grab sampled by Kootenay Gold (maximum assay value of 19 g/t gold). Trenches 01-05 were dug at 50m intervals across the strike of the main zone (Figure 2) and Trench 06 tested quartz veining exposed in a road cut 200m further north. Quartz stockwork was encountered in all four southern trenches (T01-04) though assays for T04 are still pending. The quartz stockwork has been traced in the trenches for 150m.
North-south trending faults occur throughout the prospect and post-date mineralization. This faulting appears to offset, and possibly repeat, the JJ Main zone as two silicified stockwork zones were observed in Trench 03 (assays pending for second zone). Mineralization was not exposed in T05 as thick forest prevented backhoe access to excavate the projected strike extension (Figure 2).
Trenches were dug by rubber-tired backhoe, cleaned out by hand and washed down using a water tank and pump. Metre intervals were measured with fibreglass tape and marked with spray paint. Sampling was completed using a gas-powered, diamond-blade cutoff saw, providing a representative channel sample for each metre. Sample sites were marked at each location with aluminium tags.
Due to the possibility of coarse gold, high-grade intervals have been selected and will be re- analyzed by using the metallic sieve analysis technique.
Table 1 -- Significant Trenching Results at JJ Main
Trench From (m) To (m) Interval (m) Grade (g/t)
T01 41 43 2 1.86
T01 32 35 3 3.99
T02 20 25 5 21.43
(including) 21 24 3 34.67
T03 16 26 10 5.00
(including) 25 26 1 28.70
All samples were collected by Astral staff and submitted to Acme Analytical Laboratories Ltd, Vancouver for analysis. Exploration work reported in this release was completed under the supervision of Astral's Project Geologist Dale Brittliffe B.Sc. Technical information contained in this release has been reviewed by Dr. David Terry, P.Geo., Director and Vice President of Exploration for Astral Mining Corporation, a Qualified Person as defined in National Instrument 43-101.
About Kootenay. Kootenay is a mineral exploration company focused on acquiring 100% interests in precious metals properties through property acquisitions and exploration discoveries. During the past four years Kootenay has successfully made four new mineral discoveries in the Rossland Republic Gold Trend of British Columbia known as the JJ North, JJ South, Connor Creek and the Sunrise Properties. In addition to its mineral discoveries, the company acquired the Santa Lucia and the Sabina Property in Northwest Mexico. Kootenay continues to fund prospecting ventures in the Rossland Republic Gold Trend of British Columbia and the Northwest Region of Mexico.
For further information, please contact:
James McDonald, CEO at 403- 238-6986
or
Ken Berry, President at 604-683-2214
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. |
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| | You can view the Next News Releases item: Mon Oct 16, 2006, <html><FONT COLOR="0066CC"><b>JOINT VENTURE - </b></font></html> Parallel Zone on JJ Main Assays 10.55 g/t Gold
You can view the Previous News Releases item: Tue Sep 26, 2006, <html><FONT COLOR="0066CC"><b>JOINT VENTURE - </b></font></html> First Phase Exploration Program Identifies Several Significant Anomolies on Jumping Josephine Property
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