Partner Aviva continues work at the Kakamega Project
Advance Gold Corp. (the "Company") is pleased to announce results and exploration updates from its earn-in Option with Aviva Corporation Ltd. ("Aviva") on the 64 km2 Kakamega project areas in Kenya West Africa.
- Hole ASRC024 intersected a significant intercept and ended in mineralisation of greater than one gram per tonne gold (g/tAu). The hole returned 57.00 metres (m) of 0.67g/t Au from a depth of 49m including 9.00m of 1.75g/t Au and 9.00m of 1.47g/t Au from 97.00m ending in mineralisation.
- Hole ASRC023 was abandoned at 36m after drilling into a cavity. The hole however did intersect a mineralised zone before entering the cavity. The hole returned 7.00m of 0.89g/t Au from 29.00m including 2.00m of 2.33g/t Au.
Under the terms of the agreement Aviva has the right to earn a 75% interest in three prospective Special Licences in Western Kenya namely: SL265 Bukura, SL266 Sigalagala and SL267 Rosterman. Aviva is the operator on the project.
Aviva has completed the following on the three licences:
- Collection and compilation of regional data sets -- ALOS, ASTER, Magnetics, BRGM data. Regional mapping and interpretation as part of Aviva's West Kenyan regional evaluation.
- Preliminary prospect scale mapping, focusing on the regional setting and position in terms of the Nyanzian--Kavirondian boundary. The contact and associated reactivated syn-sedimentary extensional structures are believed to be important controls to gold mineralisation.
- Soil sampling at 1080 sites for Au and multi-elements on SL267 Rosterman and 265 Bukura.
- 2 RC holes (1 abandoned before target depth) completed into the Bukura workings with the following results:
|including||9.00m||1.47g/t Au||ending in mineralization|
|ASCC023||7.00m||0.87g/t Au||To end of hole at 36m|
"We are quite happy with the progress that Aviva has made with the sampling and drilling on the 3 Advance Gold licences," says Jim Gillis, President of Advance Gold. He adds, "A 57 metre mineralized intersection in an area where traditionally artisans and Colonial Miners have exploited only meter size veins is significant." Aviva plans to follow up the intersections at Bukura with more RC and core drilling. Aviva will also drill some RC holes at the Sigalagala licence where it will follow up anomalous soil and stream sediment sampling.
SL 267 Rosterman
The most northerly of the three licences hosts the historic Rosterman mine, which is reported to have produced in excess of 200,000oz Au at a grade of 13g/t. (Information with respect to historical drill results comes from historical records and has not been independently verified by Advance or Aviva). Rosterman was subject to significant exploration activity during the mining period up until 1952 but since then very little exploration appears to have been done. The potential for residual ore, more lodes and the value of selvedges to mined lodes justifies immediate further exploration activity.
Recent structural mapping has highlighted a major long lived structure on the northern flank of the Kakamega Dome combined with a number of occurrences of gold in stream anomalies that appear never to have been followed up.
SL 265 Bukura and SL 266 Sigalagala
The southern licences, Bukura and Sigalagala, in addition to hosting numerous historical colonial mines and areas of active artisanal mining, lie along the western portion of the Liranda lineament. The Sigalagala prospect appears to lie on a structure to the north of the main Liranda lineament.
The key terms of the Option and Earn-In Agreement for Aviva to earn a portion of the 3 Advance Gold Licenses (the "Special Licenses") are as follows:
- Aviva will spend a minimum of $100,000 in exploration expenditures on the 3 licences within 12 months of signing the agreement.
- At the end of the initial 12 month period Aviva will make a US$100,000 cash payment to the Company to secure an option to earn up to 75% of the Special Licences.
- First Earn-in Period - Aviva can move to 51% ownership by spending a further US $500,000 on the Special Licenses over a period of 12 months.
- Second Earn-in Period -- Aviva can move to 75% by solely funding exploration expenditures of an additional US $1,000,000 over a period of 24 months.
- Once Aviva has reached 75%, the Company may elect to contribute to the expenditures or have its interest diluted to 10% after which Aviva may convert the Company's interest in the property to a 3% net smelter royalty.
The technical content of this news release has been prepared under the supervision of Jeffrey Ackert who is a Qualified Person under National Instrument 43-101.
For further information, please contact:
Jim Gillis, President
Telephone: (250) 314-0186
This news release contains certain statements that may be deemed "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. Forward looking statements are based on the beliefs, estimates and opinions of the Company'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.
Neither the 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 news release.
|Prospect||Hole ID||Depth of Hole||East||North||Azi||Dip||From||To||Interval||Au|
|Hole Abandoned at 36m|
Table 2: Details of the intersections from holes ASRC023 and ASRC024
Note: Intervals shown are downhole. True widths are in many cases unknown. Both single meter and three meter composites of individual meters from RC drilling have been used. Samples composited through riffle splitter. Sample preparation and analysis conducted by ALS Chemex South Africa or Mwanza, Tanzania. Au determination by 50g Fire Assay with AA finish for Au >5g/t Au determination by 50g Fire Assay with gravimetric finish (Au-GRA22). For Au Au-AA24 results have been used unless there is an Au-GRA22 result in which case this has been used. Results have not been averaged. As is typical of high grade samples, duplicate analysis show some variability which reflects sample heterogeneity or "nugget effect". Rigorous QA/QC consisting of blanks, standards and repeat analysis has been adopted -- at this stage no duplicate coarse reject or pulp re-assays have been undertaken. Collars have been located using a hand held GPS and reported in WGS84 Zone 36 North coordinate.