TSX.V: KGC    Last: 0.09    Chg: 0    Vol: 147100

Current as of 2020-10-23 - 15:47:38 with a 15 minute delay



Kestrel Gold Inc. Announces Results from Geochemical Soil Surveys on Two of the King Solomon Dome Group of Properties, Yukon- Gold Run and Dominion

November 18, 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 18, 2011) - Kestrel Gold Inc. ("Kestrel" or the "Corporation") (TSX VENTURE:KGC) is pleased to announce that soil geochemical results have been received and processed for the Gold Run and Dominion Properties from its KSD group of properties south of Dawson City in the Yukon.

At the Gold Run Property, Kestrels 2011 soil sampling program has significantly increased the area with anomalous values of 30 ppb (and greater) gold, well beyond the previously defined zones of the Kentucky West shaft, Doron NW and Doron. A total of 1612 auger samples were taken mainly from the C horizon through the extent of the property.

A broad belt of 30 ppb (and greater) gold soil anomalies trending northeast through the central part of Gold Run has been identified by Kestrel. Overall, the belt of scattered anomalies is about 200 to 400 metres wide and 2,000 metres long, lying mainly on the GR 36, 38, 40, 42 and 44 claims with some continuous areas up to 155 metres in length identified within this grouping. This anomalous belt is centred approximately 800 metres north of the Kentucky West shaft.

A new anomalous gold zone has also been discovered 250 metres east of Doron NW on the GR18 claim at the head of an un-named creek that drains into Gold Run Creek, an active placer mining stream. Three values of 50 ppb (and greater) gold are present at this location and 600 metres further downstream another new anomalous zone of 30 ppb (and greater) gold has been discovered on the south bank of the creek.

At the Doron Zone in the south east part of the Property, Kestrels 2011 soil sampling program has confirmed the previously defined anomalous gold in soil on the GR 10 and GR 12 claims. The area of 30 ppb (and greater) gold has been extended by a further 60 metres to the north and south of the Doron Zone trenches (this area of trenching returned values in rock samples of 2.242 g/t gold over 18.2 metres width - see Kestrel Gold Inc news release: December 8, 2010). Continuity of soil anomalies for over approximately 600 metres suggests a northward trending anomalous gold zone onto the GR 11 claim. In addition the highest soil sample value from Kestrels 2011 program at Gold Run was 200 ppb gold, obtained on the western part of the Doron Zone on the GR 10 claim.

Newly discovered isolated gold anomalies of 30 (and greater) ppb gold are also present in other parts of the property and will be assessed with regard to related proximal pathfinder elements, for further follow up exploration.

Two 50 ppm (and greater) lead and 150 ppm (and greater) zinc anomalous regions have also been newly defined on the Gold Run Property, one in the central area to the north of the Kentucky West shaft trending north-south, and the other in the western portion of the property trending WNW/ESE. The western zinc anomaly is 1300 metres long and up to 250 metres wide. The central zinc anomaly is over 700 metres long and 150 metres wide. Anomalous copper (120 ppm and greater) occurs in zones near these regions and anomalous silver (0.8 ppm) occurs in zones to the east and south. Arsenic anomalies (20 ppm and greater) are generally present to the south and around the Kentucky West shaft as elongate, mainly northwest trending zones.

The elongate trends of the base metal and arsenic anomalies are significant in that they may be reflecting a pattern of structures that could have an important bearing on the gold mineralization on the Gold Run property and this will be investigated further by Kestrel.

At the Dominion Property, a new gold geochemical anomaly of 30 ppb (and greater) gold has been discovered in the northern portion of the property. This anomaly has values of up to 90 ppb gold and extends for over 400 metres with an undetermined and possibly variable width. The NW/SE trend of this new anomaly parallels the NW/SE trending belt of 30 ppb (and greater) gold anomalies to the west, higher up the slopes of Dominion Mountain Ridge. The scattered anomalies within this belt are well distributed over an area approximately 1200 metres by over 200 metres, the central portion of which was mainly defined by previous soil sampling programs.

Two significant lead anomalies have been discovered near the western most tributaries of Caribou Creek at the northern end of the property. The larger of the two lead anomalies 50 ppm (and greater) lead, covers an area of 200 metres by 300 metres and returned values of up to 540 ppm lead. Spot anomalies of gold 30 ppb (and greater) are present in close proximity. Several other smaller gold and lead anomalies are also present on a wider regional scale and represent good follow up exploration targets. The presence of lead is important, as it is believed to be a good pathfinder element for gold in this part of the Klondike Schist.

Four new zinc soil anomalies (150 ppm and greater) have also been outlined, one in the lead enriched zone to the north, but also near the peak of Dominion Mountain and trending northwest along Dominion Ridge and lower slopes where there are also associated copper anomalies (120 ppm and greater).

It should be noted that the 509 (mainly C horizon auger) soil samples taken on the Dominion Property were taken in the northern half of the claims and that large areas of the property remain unexplored on a regional scale.

By using a threshold limit of 30 ppb gold to outline anomalies, Kestrel geologists have distinct zones on which to focus next year's exploration activity, as well as a number of good outlying regional follow- up targets.

All soil samples were collected by All-Terrane Mineral Exploration Services with a QA/QC procedure involving the insertion of known standard values typically followed by "blank" samples at regular intervals. All analytical work was completed at Eco Tech Laboratory Ltd (Stewart Group Geochemical and Assay - registered for ISO 9001:2008), in Whitehorse, Yukon and Kamloops, B.C. Soil samples were dried and sieved to -80 mesh and then analysed for 35 elements by AA digestion, ICP-AES finish. Gold was analysed by fire assay with AA finish, with a 30g sample utilized.

Geochemical soil survey result data from the KSD and Gulf properties, as well as result data from Kestrels trenching program on the KSD property is currently being compiled. Kestrel has also completed a total of 36 line kilometres of ground IP/resistivity surveys conducted by Peter E. Walcott & Associates Limited, on all four of its Yukon properties. Kestrel will be announcing the results once the data has been duly processed.

Maps illustrating the content of this release are to be posted on the Corporation's website.

Technical aspects of this news release have been reviewed and approved by W. A. Taylor, P. Geo, hereby designated as a qualified person under National Instrument 43-101.

Cautionary Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to certain explorations activities, including the contemplated future exploration of the Properties and reporting of exploration results. Readers are cautioned to not place undue reliance on forward-looking statements. Forward-looking statements are based on certain key assumptions made by the Corporation, including assumptions related to sufficient financing and other resources to carry out planned future exploration programs. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, insufficient funds or other resources to carry out the planned exploration programs. The forward-looking statements in this press release are made as of the date of this release and the Corporation undertakes no obligation to update publicly or revise any forward looking statements whether as a result of new information or otherwise, except as required by applicable securities laws. The Corporation undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Corporation or its financial or operating results or (as applicable) their securities.

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 release.

Contact Information

Kestrel Gold Inc.
Kevin Nephin
604-824-6056 or 604-799-2456
[email protected]