With us today is Frank C. Smeenk President & Chief Executive Officer of KWG Resources Inc. Mr. Smeenk discusses recent conversation with Noront Resources after proposed acquisition of Cliffs Chromite was announced.
Viking Gold commences work on Verneuil gold property
Jul. 13, 2011 (Canada NewsWire Group) --
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
TORONTO, July 13, 2011 /CNW/ - Viking Gold Exploration Inc. (TSX-V: VGC), the "Company", is pleased to announce that it commenced work in June on its property in the Verneuil Township, in the Abitibi area of Quebec, where historical geological gold reserves were established by Freewest Resources Canada Inc. ("Freewest") in the early 1990's. From 10 holes intersecting the Toussaint Shear Zone, geological reserves were estimated at 187,706 tonnes with an average grade of 7.1 g/t Au. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
From 1991 to 1995, Freewest carried out a series of extensive exploration programs resulting in the discovery of several gold-bearing shear zones. These programs consisted of prospecting, geophysics, trenching and diamond drilling. Six mineralized zones were uncovered by trenching with several significant gold values. The results and location of these zones are posted on the Company's website.
Freewest completed a series of 35 diamond drill holes intersecting the Toussaint Shear Zone. Some of the most significant gold intersections are as follows:
10.6 g/t Au over 4.9 m
12.6 g/t Au over 1 m
4.2 g/t Au over 2.5 m
5.2 g/t Au over 4.6 m
5.7 g/t Au over 4 m
20.2 g/t Au over 2.6 m
11.9 g/t Au over 4.2 m
The purpose of the Company's $450,000 initial Verneuil exploration program is to make the historical Freewest's reserves compliant with the National Instrument 43-101 and to generate new exploration targets. The program includes 130 km of line cutting, followed by extensive induced polarization and magnetic surveys and diamond drilling.
To confirm the original Freewest discovery, some old trenches are being cleaned, expanded and covered systematically with channel sampling. In addition, new trenching is being carried out to further expose and sample mineralized shear zones. This will be followed by a limited program of diamond drilling to confirm old results.
The Company plans to follow up its initial fieldwork with a 4500 m drill program to be started later this summer, in order to increase and better define mineral resources and to test the new exploration targets.
Pierre Poisson, P.Geo., an independent "qualified person" as that term is defined in NI 43-101, has reviewed and approved the technical disclosure in this news release.
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 press release.
This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of commodities and other risks identified in the Company's documents filed with the Canadian securities regulatory authorities on SEDAR.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.