Shareholder Update: The Road To Bulk Sampling
Shareholder Update: The Road To Bulk Sampling
WINNIPEG, MANITOBA – March 21, 2017 – Winston Gold Mining Corp. (“Winston Gold” or the “Corporation”) (CSE: WGC) (OTCQB: WGMCF) would like to thank all of our current shareholders for their continued support and shared vision. We have set a corporate goal of generating cash flow as quickly as possible through the advancement of high-grade, low-cost mining opportunities.
It has been less than a year since Winston Gold Mining commenced trading on the Canadian Securities Exchange and the OTCQB Venture Market. In that short time, our company not only advanced our namesake flagship asset in Montana, but has also acquired the promising Gold Ridge Project (a high-grade gold asset in Arizona). We look forward to advancing each of these assets towards production.
Acquiring quality assets means nothing without the right team to recognize, evaluate and effectively exploit them. Our technical team, led by Underground Mining Specialist, Harold (Mike) Gunsinger, (Director), and M.Sc. Geologist, Ben Porterfield, (Director), have an impressive track record of success. Together, they have over eight decades of experience in mining and exploration. Their hard work is appreciated and valued as we move towards achieving our corporate goal.
The Company has decided to focus on developing the Winston property. We have successfully completed a first phase drill program consisting of 33 holes totaling 12,428 ft. (3,788 metres). The results of this program not only confirmed the existence of four high grade veins but also determined that they remain open for expansion along strike and at depth.
The Phase 2 and 3 drill programs will continue to outline the lateral and vertical extent of these veins. The Company then intends to identify the most prospective vein systems and determine the best way to access them for follow up underground exploration and bulk sampling.
In concert with these drill programs, management plans to ensure that all necessary permits are in place to allow bulk-sampling and toll milling to commence if drill results continue to be promising.
We are very excited about the drill results received so far. It proves to us that the Historic Custer Mine and the surrounding ground has not been fully exploited or explored.
Summary of work completed to date
On the Winston property, the Company has targeted gold veins which are associated with the late Cretaceous to early Tertiary age Edna Stock, a 1200-by-2400 foot (365.8 by 731.5 metre) granite pluton, which intrudes volcanic rocks of similar age and Cambrian to Cretaceous age sedimentary rocks. Quartz fissure veins contain auriferous pyrite, which has been oxidized near the surface.
The most significant was the Custer Vein, which strikes North 30 degrees East and dips 70 degrees Southeast to 60 degrees Northwest. It averaged one to three feet (0.30-to-0.91 metre) wide and was mined over a strike length of 2,400 feet (731.5 metres) above the 400 level of the mine. Development work went as deep as the 500 level but sulphide ore and water conditions limited the amount of mining at depth. At least 10 other veins have been reported around the Edna granite. The veins are narrow, often 2-to-6 feet (0.61-to-1.83 metres) wide.
Total gold production from the Winston District has been estimated at about 100,000 ounces from 150,000 tons of ore, giving a grade of about 0.66 ounces per ton (22.63 g/t) gold. There is evidence some higher grade ore was shipped to Europe (Earle, 1964; Schell, 1963).
Modern exploration includes over 138,000 feet (42,062 metres) of drilling in 619 drill holes dating from 1984 to 1995. The drilling encountered numerous high grade intercepts and it is clear that there are high grade veins which were not discovered by the early miners.
Most of this mineralization was outlined within 300 feet (91.44 metres) of the surface. Only 10 of the vertical drill holes went deeper than 500 feet (152.4 metres). Mineralization in the vein systems has been classified as a mesothermal-style, which means it may continue to considerable depth. Add to this the fact that some underground mines in the area were as deep as 1,400 feet (426 metres), and it suggests that the mineralization on the property could continue well below the historic mining and drilling activities.
Drill Programs performed by WGM (Please refer to attached drill plan Maps)
After establishing a property position in 2014, a drill program of eleven core holes tested some of the historical drilling intercepts (Please refer to the Company press release dated Oct 24th 2016 for more details). The program had intercepts that included:
- 7 ft. (2.13 metres) averaging 0.193 ounces per ton (opt) or (6.6 g/t) gold,
- 2 ft. (0.61 metre) averaging 3.14 opt (109.5 g/t) gold,
- 4 ft. (1.22 metres) averaging 0.33 opt (11.7 g/t) gold, and
- 8 ft. (0.55 metre) averaging 0.44 opt (15.09 g/t) gold.
Based on these results, a larger program was planned and initiated in 2016. The Phase 1 program drilled 33 holes that were designed to test the west side of the Edna Stock, and to investigate the mineralization below the old workings on the Custer Vein.
West-Edna Vein Highlights
The drill holes on the west side of the Edna stock defined a new vein, called the West-Edna Vein, over a strike of 407 feet. Please refer to Company press releases dated December 26th 2016 and January 23rd 2017 for details. Intercepts from the West-Edna Vein included:
- 3 ft. (0.7 metre) averaging 1.3 opt (44.57 g/t) gold from hole W1633,
- 8 ft. (1.46 metres) averaging 0.303 opt (10.39 g/t) gold from hole W1635,
- 4 ft. (1.22 metres) averaging 0.226 opt (7.75 g/t) gold from hole W1647 and
- 1 ft. (0.30 metre) averaging 0.427 opt (14.64 g/t) gold from hole W1650.
Custer Vein Highlights
Ten holes were drilled from three pads located north of the Custer Mine shaft. Please refer to Company press release dated February 9th 2017 for details. Highlights include:
- Hole W1720 hit 4.4 ft (1.34 metres) averaging 0.55 opt (18.86 g/t) gold.
- Hole W1721 hit 6.5 ft. (1.98 metres) averaging 0.19 opt (6.51 g/t) gold.
- Hole W1757 hit 4.5 ft. (1.37 metres) averaging 0.47 opt (16.11 g/t) gold.
Based on the drilling to date, Winston Gold Mining has demonstrated a potentially mineralized strike length of 530 ft. (161 metres) along the Custer Vein from hole W1724 to hole W1721 with a potential vertical extent of as much as 180 ft. (55 metres). Historic reports indicate that the old Custer mine was worked over a strike of 2,400 feet (731 metres).
Current Phase 2 Drill Program
Phase 2 is a 5,000 ft. (1,524 metre) ongoing program. One goal is to test a vein called the Parallel Vein, which is located about 100 feet (30.5 metres) south of the Custer Vein. Seven historic rotary holes had intercepted the vein over a strike of 500 feet (152 metres). Please refer to Company press release dated March 1st 2017 for details of the Parallel and Block 93 vein drill results. The historic intercepts, which were composites, included:
- 20 ft. (6.1 metres) of 0.37 opt (12.68 g/t) gold,
- 10 ft. (3.0 metres) of 0.21 opt (7.2 g/t) gold
- 10 ft. (3.0 metres) of 0.89 opt (30.51g/t) gold and 1.8 opt (61.71 g/t) silver,
- 10 ft. (3.0 metres) of 0.80 opt (27.43 g/t) gold.
Three holes drilled in the Phase 2 program to test this vein. One hole hit a mined out stope; another intersected 3.5 ft. (1.06 metres) of 0.31 opt (10.63 g/t) gold and 4.8 opt (164.57 g/t) silver. A third hole intersected 4 ft. (1.22 metres) of 0.60 opt (20.57 g/t) gold and 1.3 opt (44.57 g/t) silver.
The three holes also encountered another vein, named the Block 93 Vein, south of the Parallel Vein. The three intercepts included;
- 3 ft. (0.91 metre) of 0.1 opt (3.43 g/t) gold,
- 5 ft. (1.06 metres) of 0.23 opt (7.89 g/t) gold,
- 4 ft. (1.22 metres) of 0.33 opt (11.31 g/t) gold.
Phase 3 Drill Program
The Phase 3 program will be designed to continue to expand the Custer Vein below the old workings. We believe that 14 holes with an average depth of 560 ft. (171 metres) for a total of about 7,900 ft. (2,407 metres) would be required to confirm and block out mineralization between the 300 and 500 levels over a strike length of about 500 ft. (152 metres) and a vertical extent of 180 ft. (54.9 metres). As well as confirming mineralization, the drilling would begin to extend the strike of the mineralized vein below the 300 level, another 360 ft. (110 metres) to the west below a historically stoped (mined out) zone.
The Phase 3 program will also test the westward extension of the Parallel and Block 93 Veins.
These two new veins are only about 300 feet (91.4 metres) east of the West vein and there is an opportunity to further explore and potentially test-mine these veins using the same access. There are a number of historic drill intercepts along this trend, including 20 ft. (6.09 metres) of 0.27 opt (9.26 g/t) gold in Hole RC 298, over 1,000 ft. (304.8 metres) to the southwest. Our goal is to define each of the three veins over a combined strike length of 1,500 feet (457 metres) and a vertical extent of 300 ft. (91.4 metres). The results of this program will be used to help plan a decline to access the Edna West Vein.
A total of 12 holes will be drilled from three separate pads near the Edna portal and historic test pit. These holes will have an average length of 400 ft. (122 metres) for a total of 4,800 ft. or (1463 metres). They will be designed to define the Block 93 and Parallel vein’s western extents, and the West-Edna vein’s Eastern extents, to the possible intersection of all three. This drilling will also extend the Eastern extents of the Block 93 and Parallel veins another 100 ft. (30 metres) and 200 ft. (61 metres), respectively.
The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by Dr. Criss Capps PhD. P.Geol., an independent consultant to Winston Gold Corp. Dr. Capps is a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Winston Gold
Winston Gold is a junior mining company focused on advancing high-grade, low cost mining opportunities into production. Towards that end, the Corporation has acquired two under-explored and under-exploited gold/silver mining opportunities, being the Winston Gold project near Helena, Montana, and the Gold Ridge project, near Willcox, Arizona.
On behalf of the Board of Directors of the Company and for further information, please contact:
Murray Nye, Chief Executive Officer and a director of Winston Gold, at:
Suite 201-919 Notre Dame Avenue
Winnipeg, Manitoba, R3E 0M8
Telephone: (204) 989-2434
The CSE has neither approved nor disapproved the information contained herein.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Winston Gold Mining Corp. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.