Val-d’Or, Québec, Canada – October 6, 2011 – Threegold Resources Inc (“Threegold” or “the Company”) (THG: TSX Venture Exchange) is ready to start a fall exploration program on its South Bay gold project located some 40 km east of Val-d’Or, Québec. The program will advance exploration through a detailed induced polarization (IP) survey on the main occurrence and stripping on several new zones discovered during the summer prospecting program, followed later this fall by at least 1,500 metres of diamond drilling.
Threegold has awarded the IP survey contract to Abitibi Geophysics, who will use their proprietary IPower 3D method. The survey will commence shortly and cover the extensions of the main occurrence. Results will be used to help locate the most favourable targets to drill, thus reducing the amount of drilling required to locate the core of the mineralization and its projected extensions.
Elsewhere on the project, the company has applied to the MRNF for work permits to strip areas where gold was found by prospecting during the summer (see press release of September 20, 2011), namely a zone 900 metres to the north for which grab samples graded 1.71 g/t, 1.02 g/t, 0.81 g/t and 0.73 g/t Au. Stripping is also planned about 250 metres along strike east of the main occurrence, mainly in areas where surface prospecting outlined a new mineralized area with gold and silver in grab samples ranging up to 5.9 g/t Au and 135 g/t Ag. Further exploration is required to validate these results since grab samples are selective by nature and unlikely to represent average grades.
The surveying and stripping activities will provide valuable geological information for the upcoming diamond drilling program later this fall. The drilling program will consist of 1,500 to 2,000 metres using 17 to 22 short holes targeting mineralization just below the surface. The goal of the program is to locate near-surface mineralization amenable to bulk mining.
Threegold has been exploring the South Bay property since the fall of 2010 with the objective of locating and testing historical gold occurrences and obtaining geological information about the near-surface context of mineralization at the main zone. The initial program consisted of five short holes aimed at intersecting the structure down to a depth of 25 metres below surface and laterally using 25-metre step-outs, and was highly successful in demonstrating the continuity of the main zone mineralization and the potential for wider zones (see press release of July 10, 2011).
Antoine Fournier, P. Geo., Vice-President Exploration for Threegold and a Qualified Person as defined by National Instrument 43-101, prepared this press release and supervised the 2010 diamond drilling and sampling program. All assays were performed at Techni-Lab in Ste-Germaine using conventional fire-assay on a 30-g split with ICP finish. Samples grading above 2 g/t Au and 20g/t Ag were re-assayed by fire-assay with a gravimetric finish. Routine checks and duplicates are performed by Techni-Lab as part of their internal quality control and quality assurance protocol.
In connection with the execution of a letter of agreement dated February 11, 2011 with Osisko Mining Corporation ("Osisko"), as announced by press release on February 15, 2011, and pursuant to which Osisko could earn a 51% undivided interest in the Duverny gold property, Canaccord Genuity Corporation ("Canaccord") was instrumental and has facilitated the transaction by having presented Osisko to the Company, and a finder's fee agreement was executed between Canaccord and the Company. A tranche of 303,409 common shares of the Company at a price of $0.11 per share will be issued to Canaccord as partial payment of a finder's fee in the amount of $33,375.
Threegold has established itself as one of the premier exploration companies in Québec. The Company has a highly qualified technical team with extensive exploration experience, including previous gold discoveries in Québec, and management with financing and public company expertise.
Threegold aims to create shareholder wealth through the discovery of new deposits with a focus on Canadian assets, mainly in Québec. Threegold offers investors a portfolio of high-quality exploration projects and the potential to take part in a major discovery.
With a strategic property portfolio and solid partnerships, like the one with Osisko Mining Corporation, Threegold’s goal is to discover a low-cost, multi-million ounce gold deposit in Québec.
For further information, please contact:
Mr. Victor Goncalves
Mr. Antoine Fournier, P. Geo.
You can also visit our website: threegold.ca
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.
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