Evolving Gold Corp.: Drill Hole CAR-009 Intersects 171.8 Meter Gold Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - 07/27/10) - Evolving Gold Corp. (TSX-V:EVG - News)(Frankfurt:EV7 - News) (the "Company") announces that drill hole CAR-009 on its Carlin project has intersected 171.8 meters at 0.31 gpt Au (564 feet at 0.009 opt Au). This is the thickest gold zone so far intersected in the Company's drilling on the Carlin project. The intersection includes 1.1 meters at 7.79 gpt Au (3.5 feet at 0.227 opt Au) which is hosted by a highly altered igneous dike.

 

--  Drill hole CAR-009 is located approximately 185 meters (600 feet)
    southeast of hole CAR-007, which intersected 18.3 meters at 11.7 gpt Au
    (60 feet at 0.340 opt Au), and 405 meters (1,320 feet) northwest of hole
    CAR-002, the first Evolving Gold drill hole to intersect gold
    mineralization at Carlin.

--  CAR-009 intersected gold mineralization in favorable stratigraphic units
    similar to the gold bearing units in previous drill holes.

--  The highest grade encountered in CAR-009, 1.1 meter at 7.79 gpt Au (3.5
    feet at 0.227 opt Au), is hosted by a highly altered igneous dike.

--  The Company interprets the gold mineralization in CAR-009, along with
    highly anomalous arsenic and antimony, as potentially peripheral or halo
    mineralization to higher grade gold mineralization, such as was
    intersected in CAR-007.

--  All four of the Company's core holes, drilled along a strike length of
    about 800 meters of the Carlin Trend have intersected significant gold
    mineralization, including high grades in drill hole CAR-007. These drill
    holes have tested the first of 24 targets that Evolving Gold has
    identified on its large land package of approximately 145 square
    kilometers (56 square miles).

Quinton Hennigh, President and Chief Geologist comments, "The consistent presence of gold in our drill holes at Carlin is extremely encouraging. We interpret the widespread and thick zones of gold, regardless of the grade of the intersections, as demonstrating the presence of a large scale gold system. The high grades associated with the altered igneous dike are particularly encouraging, as they suggest the potential for a major deep-seated structure, a possible feeder zone."

Hole CAR-009 was completed on June 22 at a depth of 1,307.5 meters (4,289 feet). Evolving Gold currently holds one of the largest land positions on the Carlin Trend. Approximately one third of this land is part of the Carlin project, subject to an agreement with subsidiaries of Newmont Mining Corporation. The remaining two thirds of the land package constitute the Humboldt project which is controlled 100 percent by Evolving Gold.

"We recently completed a detailed gravity survey covering the entire property, both the Carlin and Humboldt projects," continues Hennigh. "This survey identified at least 24 additional targets for initial drill testing. We have a long way to go to properly test our very large land package, but we are very encouraged by what we have seen in our drilling to date."

The Company is presently drilling its first hole on the 100% controlled Humboldt project, with completion expected within a month. As a result of the recently completed placement with Goldcorp, the Company will expand its drill program this summer with an additional drill rig, and plans to drill at least seven additional high priority targets this year on the Carlin and Humboldt projects.

True widths of mineralization in this drill hole, at this stage of exploration, are not precisely known. Gold assays were completed by SGS Canada Inc. in Toronto, using a 30 gram charge, fire assay, with an ICP finish.

Carlin and Humboldt Project Property Acquisitions:

The Company has completed two property transactions, acquiring seventy Federal Lode Mining Claims in the Carlin and Humboldt project areas. Annual payments for the combined agreements escalate to a maximum of US$45,000 per year. In the case of both agreements, the Company has the option to issue the lessor 50,000 Evolving Gold shares on the fifth anniversary, to maintain the agreements, and an additional 100,000 Evolving Gold shares upon the initiation of commercial production.

 

Mineralized Intervals:
-----------------------------------------------------   ------------------
                From        To  Interval         Gold   Length        Gold
Drill Hole   (meters)  (meters)  (meters) grams/tonne    (feet) ounces/ton
-----------------------------------------------------   ------------------
CAR-009       1135.7    1307.5     171.8         0.31    564.0       0.009
-----------------------------------------------------   ------------------
 includes     1193.6    1208.8      15.2         1.03     50.0       0.030
-----------------------------------------------------   ------------------
 includes     1249.4    1260.7      11.3         1.22     37.0       0.036
-----------------------------------------------------   ------------------
 includes     1258.2    1259.3       1.1         7.79      3.5       0.227
-----------------------------------------------------   ------------------

All averages are weighted averages, weighting each assay interval according to the core length for that assay interval. All assay intervals are included in the average, with no bottom cut-off.

Rattlesnake Hills Update:

Three core rigs are presently operating at Rattlesnake Hills. Approximately two thirds of planned 2010 drilling will be infill and step-out at North Stock and Antelope Basin, and one third will test additional targets, including the porphyry zone discovered in 2009 in drilling southeast of North Stock.

 

--  The Company has completed approximately 25% of its planned 20,000 meter
    (65,600 feet) diamond drill program in the Rattlesnake Hills. Twenty
    holes totaling approximately 5,000 m (16,400 feet) have been drilled,
    mainly testing extensions of the North Stock and Antelope Basin zones.

--  Regulators recently approved an expansion of the Company's drill permit,
    which will allow the Company to commence road and pad construction on
    several of the new exploration targets.

--  The Company has initiated the first deep drill test of the porphyry
    target southeast of North Stock. This will follow up on stockwork
    mineralization in schist grading as high as 7.0 gpt gold in the bottom
    of drill hole RSC- 006, and mineralized porphyry dikes grading as high
    as 8.2 gpt gold in drill hole RSC-027.

--  Coupled with the distribution and intensity of potassic alteration and
    the nearby mineralized porphyry dikes in RSC-027, the mineralization at
    the bottom of RSC-006 is interpreted as potentially peripheral to a
    mineralized porphyry.

Assays for 2010 drilling at Rattlesnake Hills are still pending. Results for groups of drill holes will be released on a regular basis once they are reviewed and compiled.

Incentive Stock Options:

As part of its regular compensation program for directors, officers, employees and consultants, on July 13, 2010 the Company has granted 300,000 incentive stock options at a price of $0.84. The options have a five year term, and the vesting schedule is 1/3 vesting immediately, 1/3 after six months, and 1/3 after twelve months. All option grants are subject to regulatory approval.

About Evolving Gold Corp.

Evolving Gold is focused on exploring its significant discovery at Rattlesnake Hills, Wyoming, an alkalic gold system, similar to the Cripple Creek gold district in Colorado, and on gold properties in and adjacent to the productive Carlin district of northern Nevada.

For more information about Evolving Gold please visit: www.evolvinggold.com. To receive regular updates or to receive a follow-up call from Investor Relations please sign up at: http://evolvinggold.com/sign-up.php.

In compliance with National Instrument 43-101, Quinton Hennigh, Ph.D., P.Geo., is the Qualified Person responsible for the accuracy of this news release.

On Behalf of the Board of Directors EVOLVING GOLD CORP.

Robert Barker, CEO and Director

FORWARD LOOKING STATEMENTS:

This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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.

 
Contacts:
Investor Relations
Shiro Rae
778-331-2095
[email protected]
Investor Relations
Leo Karabelas
416-543-3120
[email protected]