VANCOUVER, BRITISH COLUMBIA–(Marketwire – July 21, 2011) – Choice Gold Corp. (CNSX:CHF) (“Choice Gold” or the “Company”) is pleased to announce that it has commenced drilling on its Sugarloaf Peak Gold Project in western Arizona (“Sugarloaf Peak” or the “Property”). Sugarloaf Peak is located within 100 km of each of the Mesquite, American Girl, and Copperstone gold mines and has revealed its own gold potential through historical work and recent surface sampling. This 5,000 metre first phase of drilling will target auriferous alteration zones and major structures recognized during the recent surface sampling campaign and will also include deeper holes to test the 2.5 km long chargeability anomaly identified during the Titan 24 ground survey performed in April.
Choice Gold will use the results of this first phase of drilling to better establish targets for the second phase to follow, as per the drilling program announced earlier this year (see the Company’s May 24, 2011 press release). The goal of the first phase is to discover intervals of economical grades, explain the controls of the mineralization, increase the size of the historical geological resource, and establish the gold mineralogical assemblage.
The drilling is being performed by a local contractor, Brown Drilling, which has solid expertise in the district, including previous work on the Property. The core will be brought to the Company’s facilities in Ehrenberg, Arizona where it will be logged and then sampled successively from the top to the bottom of each hole following rigorous QAQC procedures. These QAQC procedures include the insertion of blanks, standards, and duplicates and the non-biased sampling of the core following its realignment. The core will be split in two and samples will then be shipped to a certified laboratory to be pulverised and analyzed for Au by the fire assay method and for a suite of trace elements using the ICP method. A portion of the coarse rejects will be sealed and stored to allow for basic metallurgical studies. Results will be published intermittently when available.
The Company also announces that the expiry date of certain outstanding common share purchase warrants (the “Warrants”) issued on March 18, 2011 has been accelerated.
The acceleration results from Choice Gold’s share price closing at $0.45 or greater per common share on the Canadian National Stock Exchange for 20 consecutive trading days, starting on June 21, 2011 and ending on July 19, 2011. Choice Gold mailed a notice (the “Notice”) to holders of the Warrants on July 20, 2011, advising the holders of the Warrants that the expiry date of the Warrants has been accelerated to August 18, 2011 (the “Accelerated Expiry Date”), being the date that is the twentieth business day after the date of the Notice. The Warrants will expire at 5:00 p.m. (Vancouver time) on the Accelerated Expiry Date, unless exercised in accordance with their terms. If the Warrants are not exercised in accordance with their terms by 5:00 p.m. (Vancouver time) on the Accelerated Expiry Date, the Warrants will expire and be null and void.
Brigitte Dejou, P.Eng., Choice Gold’s Manager of Exploration, is the non-independent, Qualified Person who has reviewed this news release and is responsible for the technical information reported herein.
About Choice Gold Corp.:
Choice Gold Corp. was created to acquire and advance select, high-potential mineral projects and thereby unlock shareholder value. With this goal in mind, the Company has entered an option agreement with Riverside Resources Ltd. (TSX VENTURE:RRI) to acquire a 100% interest in the Sugarloaf Peak Gold Project just west of Quartzsite, Arizona. Sugarloaf Peak covers over 24 km² and was the subject of intermittent drilling and small-scale mining from the 1950s through to the 1990s. The project is the subject of an historical, non-National Instrument 43-101 compliant mineral resource and Choice Gold has a mandate to prove its economic viability. For more information about Choice Gold please visit our website at www.choicegoldcorp.com.
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Choice Gold Corp.
President & CEO
Choice Gold Corp.
Senior Vice President