Stockholm, 2011-11-07 08:56 CET (GLOBE NEWSWIRE) --
Drilling continued in the third quarter of 2011 with holes completed on the Gord, Ezen and Camp Zones.
Gord Zone
Drilling was carried out on a 25 by 50 metre grid in the centre of the Gord Zone to fulfill Russian Mineral Authorities Reserve and Resource report requirements. Six holes were drilled to a depth of ~120 metres, for a total of 769 metres. Drill holes intersected quartz – sericite alteration at the expected depth. Assay results are pending.
Ezen Zone
Third quarter drilling targeted previously identified mineralization at the Ezen prospect, where five holes were completed. Following are some of the better intersections from the Ezen Zone drilling:
- KB-084 - 15.5 g/t Au over 2.1 metres, including 25.5 g/t Au over 1.1 metres
- 5.3 g/t Au over 10.7 metres, including 21.2 g/t Au over 2.3 metres
- 1.8 g/t Au over 10.2 metres
- 1.6 g/t Au over 5.0 metres
- KB-085 - 7.7 g/t Au over 2.1 metres
- KB-088 - 2.3 g/t Au over 4.0 metres
- 9.6 g/t Au over 5.8 metres including 50.3 g/t Au over 1 .0 metres
Drilling at the Ezen prospect will continue in the fourth quarter of 2011.
Camp Zone
Fifteen holes were completed to follow up on mineralization first identified in drilling completed in 2010.
The drilling to date has returned results similar to the 2010 drilling and assay results with high Au grades (up to 100 – 200 g/t Au) over narrow intervals (1-2 metres). The main fault zone was traced and intersected in all fences. The alteration zones vary from 2 to 18 metres and are quartz – sericite - carbonate-pyrite assemblages – typical of the Kara Beldyr prospect. Visible gold was recorded in 50% holes on more than one horizon.
Following are some of the better intercepts from the Camp Zone:
- KB-090 - 157.4 g/t Au over 2.1 metre including 299.9 g/t Au over 1.1 metres
- 15.9 g/t Au over 10.7 metres including 36.0 g/t Au over 1.4metres
- 31.5 g/t Au over 2.0 metres
- KB-091 - 4.4 g/t Au over 17.7 metres
- 8.9 g/t Au over 3.0 metres
- 23.7 g/t Au over 0.9 metres
- 5.4 g/t Au over 2.0 metres
- 1.7 g/t Au over 11.7 metres
- KB-092 - 3.3 g/t Au over 9.5 metres
The Camp Zone is open in both directions to the NE and SW; where there are Au anomalies in both soil and grab samples. Additional drilling is planned to test the potential extensions of the zone.
To view the complete drill results discussed in this news release, please visit the Company's web site at:
http://www.centralasiagold.ru/eng/our_project/kara_beldyr_ore_area/
Short name: CAG
ISIN-code: SE0001337213
Website: www.centralasiagold.se, Postal and visiting address: Engelbrektsplan 2, 4tr
SE-114 34 Stockholm
Central Asia Gold AB is a Swedish mining company focused on gold production and exploration in Russia in the central parts of Asia. In 2010, totally 730 kg of gold was produced. As of the beginning of May 2011, the company’s assets were estimated to encompass some 1,000,000 oz of C1/ C2 Russian gold reserves (around 32 tons).
Since July 19, 2010, Central Asia Gold´s shares are traded on First North Premier at the NASDAQ OMX Nordic Exchange under the short name CAG. For more information please visit www.centralasiagold.se. Mangold Fondkommission is Certified Adviser to CAG, for more information please call +46 8 503 015 50 or visit www.mangold.se.
Cautionary Statement: Statements and assumptions made in this report with respect to Central Asia Gold AB’s (“CAG”) current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of CAG. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where CAG operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) CAG’s continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. In the light of the many risks and uncertainties surrounding any gold production and exploration company at an early stage of its development, the actual results could differ materially from those presented and forecast in this report. CAG assumes no unconditional obligation to immediately update any such statements and/or forecasts
This press release shall not, directly or indirectly, be released, published or distributed in or to the United States, Australia Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action as a whole or in part is subject to legal restrictions. Nothing in this press release should be considered as an offer to invest or otherwise trade in shares of Central Asia Gold AB (publ). The proposed issue will not be directed at residents or those living in the United States, Australia, Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action would require further prospectus, other offering documentation, registration or other measures beyond those required by Swedish law. No securities will be registered under the United States Securities Act of 1933, a similar law in any state in the United States, or under any provincial law in Canada, nor under the applicable law of another country.
Preston Haskell, CEO in Central Asia Gold AB, tel: +46 76 890 5549
E-mail: preston.haskell@centralasiagold.se
