TORONTO, Sept. 29, 2004 (PRIMEZONE) -- Osprey Gold Corp. ("Osprey") (OTCBB:OSGL) is pleased to announce the surface drill results from its recently completed 10,000 foot (19 borehole), Phase 1, program in the eastern area of the Jerome Mine, a successful past producer which yielded an estimated 56,878 oz of Au and 15,104 oz of Ag during a two year period of production ending in 1943. The Jerome Mine consists of 63 patented claims with mineral and surface rights covering 3,010.2 acres and 2 claims with surface rights only covering 125.38 acres for a total of 3,135.58 acres. Following additional staking in Osway Township and the immediately adjacent Townships of Huffman, Potier, Arbutus, Mallard, Esther and Benton, Osprey has extended the strike length of its holdings to an east-west rectangular block 21 miles in length. Previous property owners completed over 250,000 feet of drilling and completed a three-compartment vertical shaft from surface to the 1,100 foot Level and over 11,000 feet of lateral drifts. In addition to the detailed underground sampling programs, numerous surface trenching and geophysical programs were completed.
Alteration, described by early investigators as "porphyritization" has a total strike length of 9,500 feet, approximately 3,000 feet both east and west of the Jerome Mine where the alteration was noted to envelope the mineralization and to continue in intensity to depths beyond the 1,500 foot Level. The alteration and the associated mineralization appear to exhibit a (genetic) relationship to previously unrecognized polyphased felsic porphyries, which include the long recognized Jerome porphyry. The mineralization occurs in three parallel zones, each approximately 100 feet wide, and from north to south referred to as the Main Zone, South Zone Two, and South Zone One. The entire width of the three zones and the intervening altered host rock is 500 feet. The past mining and Osprey's Phase 1 drill program have focused only on the Main Zone, the northernmost of the three zones of mineralization. The other two zones, South Zone Two and South Zone One, reportedly contain greater than 50,000 tons at ore grade; these zones will be further delineated and economically evaluated from underground.
The typical mineralization is a multistaged 'crackle' autobreccia matrixed dominantly by silica with iron sulphides, molybdenite, visible gold, fuchsite and tourmaline and (later) iron carbonates. All of the 19 holes from the Phase 1 (BQ) drilling of the Main Zone of mineralization successfully intersected significant mineralization as indicated by the results tabled below. Nearly all the holes were drilled from south to north at an azimuth of 034 degrees, and dip of -45 degrees. Borehole pierce points are within an area between L 30350 to L 31050 (1,200 feet) and 150 foot Level to 570 foot Level and drilled on 50 foot centers around the detailed sampled development drifts. Calculations are based on current metal values and $400 (US) gold. Silver (Au/Ag ratio of approximately 4/1) has been omitted. For the purpose of comparison, the Climax Molybdenum Company at Climax, Colorado reported (1955) average ore grades of 0.6% to 0.7% MoS2. Previous exploration efforts at the Jerome have reported Au values at the exclusion of all other metals of possible economic interest.
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DDH From To Composite oz Au % MoS2 oz Au
Length Equivalent
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BH-JX-04-1 255.0 ft 258.5 ft 3.5 ft 0.0378 0.0295 % 0.067
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BH-JX-04-2 371.8 ft 393.5 ft 21.7 ft 0.188 0.0966 % 0.261
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Including 371.8 ft 387.4 ft 15.6 ft 0.251 0.1250 % 0.345
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Including 382.4 ft 393.5 ft 11.1 ft 0.357 0.1109 % 0.440
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427.6 ft 431.4 ft 3.8 ft 0.18 0.1585 % 0.299
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443.8 ft 445.0 ft 1.2 ft 0.18 0.1051 % 0.259
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465.0 ft 471.0 ft 6.0 ft 0.06 0.0694 % 0.112
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BH-JX-04-3 363.0 ft 380.0 ft 17.0 ft 0.09 0.0319 % 0.1189
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Including 363.0 ft 370.0 ft 7.0 ft 0.13 0.0651 % 0.179
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BH-JX-04-4 65.5 ft 110.0 ft 44.5 ft 0.012 0.0060 % 0.0195
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289.2 ft 305.0 ft 15.8 ft 0.046 0.0857 % 0.110
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340.8 ft 355.2 ft 14.4 ft 0.198 0.130 % 0.3175
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Including 340.8 ft 353.4 ft 12.6 ft 0.22 0.130 % 0.3175
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BH-JX-04-5 460.0 ft 495.0 ft 35.0 ft 0.07 0.0634 % 0.123
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Including 460.0 ft 485.0 ft 25.0 ft 0.055 0.0667 % 0.105
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Including 480.0 ft 485.0 ft 5.0 ft 0.10 0.0884 % 0.166
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Including 485.0 ft 490.3 ft 5.3 ft 0.138 0.123 % 0.251
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Including 490.3 ft 495.0 ft 4.7 ft 0.073 0.0517 % 0.112
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BH-JX-04-6 480.0 ft 485.0 ft 5.0 ft 0.112 0.0934 % 0.182
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BH-JX-04-7 364.4 ft 376.5 ft 12.1 ft 0.07 0.077 % 0.117
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376.5 ft 398.0 ft 21.5 ft 0.088 0.063 % 0.135
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Including 391.5 ft 398.0 ft 6.5 ft 0.138 0.060 % 0.183
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421.6 ft 451.6 ft 30.0 ft 0.199 0.1982 % 0.348
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Including 421.6 ft 431.7 ft 10.1 ft 0.397 0.2325 % 0.571
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452.8 ft 462.0 ft 9.2 ft 0.047 0.0207 % 0.0625
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463.0 ft 469.4 ft 6.4 ft 0.074 0.1218 % 0.1654
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Including 465.0 ft 467.5 ft 2.5 ft 0.146 0.217 % 0.309
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469.4 ft 474.5 ft 5.1 ft 0.002 0.0092 % 0.009
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474.5 ft 509.1 ft 34.6 ft 0.07 0.080 % 0.13
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Including 479.3 ft 489.7 ft 10.4 ft 0.08 0.1134 % 0.165
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Including 501.0 ft 509.1 ft 8.1 ft 0.103 0.312 % 0.337
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BH-JX-04-8 252.8 ft 268.9 ft 16.1 ft 0.016 0.0317 % 0.0398
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268.9 ft 281.4 ft 12.5 ft 0.048 0.080 % 0.108
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Including 268.9 ft 272.3 ft 3.4 ft 0.09 0.1485 % 0.16
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281.4 ft 300.0 ft 18.6 ft 0.03 0.0384 % 0.059
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BH-JX-04-9 341.1 ft 353.1 ft 12.0 ft 0.086 0.0317 % 0.110
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Including 345.7 ft 347.7 ft 2.0 ft 0.369 0.1283 % 0.465
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371.0 ft 386.5 ft 15.5 ft 0.052 0.0384 % 0.081
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BH-JX-04-10 198.8 ft 224.1 ft 25.3 ft 0.04 0.0384 % 0.0713
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Including 211.0 ft 220.8 ft 9.8 ft 0.08 0.0734 % 0.135
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BH-JX-04-11 243.5 ft 248.0 ft 4.5 ft 0.395 0.055 % 0.437
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BH-JX-04-12 658.2 ft 663.3 ft 5.1 ft 0.0926 0.098 % 0.166
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678.7 ft 703.6 ft 24.9 ft 0.0674 0.1046 % 0.1464
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Including 678.7 ft 685.9 ft 7.2 ft 0.0995 0.1851 % 0.238
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Including 685.9 ft 703.6 ft 17.7 ft 0.0544 0.0718 % 0.1083
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703.6 ft 713.2 ft 9.6 ft 0.0608 0.1219 % 0.152
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BH-JX-04-13 655.0 ft 682.0 ft 27.0 ft 0.1033 0.1084 % 0.1867
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Including 655.0 ft 660.6 ft 5.6 ft 0.0665 0.1171 % 0.1543
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Including 660.6 ft 664.1 ft 3.5 ft 0.018 0.1118 % 0.1019
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Including 664.1 ft 682.0 ft 17.9 ft 0.1346 0.1050 % 0.2136
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682.0 ft 686.3 ft 4.3 ft 0.033 0.0334 % 0.058
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BH-JX-04-14 485.3 ft 490.6 ft 5.3 ft 0.0113 0.0161 % 0.0244
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490.6 ft 493.7 ft 3.1 ft 0.046 0.1056 % 0.1252
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493.7 ft 508.8 ft 15.1 ft 0.007 0.0111 % 0.015
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508.8 ft 518.6 ft 9.8 ft 0.059 0.0908 % 0.128
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518.6 ft 522.8 ft 4.2 ft 0.027 0.085 % 0.091
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BH-JX-04-15 540.5 ft 551.3 ft 10.8 ft 0.0315 0.0519 % 0.0705
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Including 540.5 ft 545.0 ft 4.5 ft 0.0265 0.0478 % 0.0625
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Including 545.0 ft 551.3 ft 6.3 ft 0.035 0.0548 % 0.076
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BH-JX-04-16 482.1 ft 485.0 ft 2.9 ft 0.059 0.0586 % 0.103
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493.3 ft 501.6 ft 8.3 ft 0.06 0.0161 % 0.076
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507.4 ft 516.8 ft 9.4 ft 0.1151 0.1039 % 0.1930
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Including 507.4 ft 512.3 ft 4.9 ft 0.0255 0.025 % 0.045
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Including 512.3 ft 516.8 ft 4.5 ft 0.2126 0.1898 % 0.355
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BH-JX-04-17 371.4 ft 379.3 ft 7.9 ft 0.232 0.2318 % 0.4059
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Including 371.4 ft 376.8 ft 5.4 ft 0.067 0.1674 % 0.1927
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Including 376.8 ft 379.3 ft 2.5 ft 0.5884 0.3668 % 0.8635
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BH-JX-04-18 98.2 ft 107.1 ft 8.9 ft 0.06 0.625 % 0.107
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302.6 ft 307.2 ft 4.6 ft 0.137 0.0372 % 0.165
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335.0 ft 353.7 ft 19.2 ft 0.115 0.0613 % 0.161
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BH-JX-04-19 106.7 ft 116.5 ft 9.8 ft 0.16 0.057 % 0.203
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Including 110.4 ft 116.5 ft 6.1 ft 0.251 0.052 % 0.2897
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330.0 ft 364.3 ft 34.3 ft 0.148 0.0654 % 0.197
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Including 330.0 ft 338.4 ft 8.4 ft 0.305 0.076 % 0.3626
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Including 346.6 ft 364.3 ft 17.7 ft 0.14 0.0856 % 0.204
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The exploration results to date have enabled reclassification and upgrading (as per NI 43-101 guidelines) of previous ore reserves reported to be 583,068 tons (Millard, 1989, Muscocho Exploration; Puskas, 2004), all categories, at a grade of 0.203 oz Au (i.e. 118,362 oz Au and 31,958 oz Ag) down to the 800 foot Level. Following the Phase 1 drilling, the proven/probable grade ore totals 86,269.5 oz Au (or oz Au equivalent) to the 700 foot Level. The known extensions of mineralization will be investigated and is fully expected to be similarly upgraded during the immediately following, Phase 2 drill program of 30,000 feet, which is expected to cost approximately C$2-3 million. Phase 3, which includes 15,000 feet of in-fill drilling, will follow before the final assessment of reserves is made.
The drilling program was supervised by the Company's Qualified Person, Frank Puskas. Osprey Gold Corp has employed core logging procedures, which employ detail microscopic examination. Core cut by diamond saw is sampled, bagged and shipped by bonded carrier to Actlabs in Ancaster, Ontario. Pulps of each sample are analyzed for Au plus 48 elements using 4 acid "near total" digestion and ICP (Inductively Coupled Plasma) with Atomic Spectroscopy finish and INAA (Neutron Activation). Actlabs maintains a quality assurance program according to the guidelines set out by ISO/IES Guide 25. The analytical processes are monitored by the use of reference material and replicate analysis. Osprey Gold Corp will be periodically requesting total metallics analysis on 500 to 1,000 grams of various representative samples.
Osprey Gold Corp. specializes in acquiring and consolidating large advanced exploration-stage properties with near-term production potential and future growth through exploration discoveries. Its acquisition and development emphasis is focused on properties containing gold and other strategic minerals located in Canada. Osprey holds interests in exploration properties located in the province of Ontario.
This press release includes statements which may constitute "forward-looking statements". These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These factors include, without limitation, future trends in mining prices, the availability of capital for development in the mining sector, competitive factors and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission.