Newcrest Mining Announces Initial Drill Results on Appaloosa Trend

VANCOUVER - Gunpoint Exploration Ltd. reported the initial drilling results by Newcrest Mining Ltd. on the Appaloosa portion of the Talapoosa gold-silver project in central Nevada. Newcrest, has entered into an option and earn-in agreement with the Company to earn up to 75% in Gunpoint's Appaloosa property.

Newcrest began drilling the Central Target area at Appaloosa in late April. To date, Newcrest has provided data on six diamond drill holes, totaling 1900 meters including partial assay results. Drilling at the Central Target area has returned halo intercepts of gold, silver, and pathfinder elements consistent with the peripheral and upper zones of a low sulfidation epithermal gold-silver system.

Four drill holes intercepted significant thicknesses indicating a shallow dipping, oxidized mineral zone at the contact of two volcanic units suggesting lateral fluid migration. Lateral fluid migration is generally distal mineralization to the main feeder zones within a hydrothermal system. Significant assay intervals reported are apparent widths. True thickness of the mineralized intervals has not been determined, as the geometry of the mineralization to date is not understood.

Geophysics conducted over the property identified a northeast trending structural corridor intersecting the seven-kilometer-long Appaloosa trend. These northeast trending structural sets could represent subtle but important mineralizing conduits, particularly at the intersection with the Appaloosa Trend and will be systematically tested. Newcrest has moved the drill rig to the Antennas Target area located one kilometer northwest of the Central Target for the next fence of drill holes.

P. Randy Reifel, President, said, "We are very encouraged with Newcrest's initial drilling results at Appaloosa. The geological, geochemical, and geophysical results have delineated a large mineralized hydrothermal gold-bearing system within a seven-kilometer-long corridor. In addition to seeking high-grade epithermal gold mineralization at depth, the first holes have identified a shallow, potentially broad zone of oxide mineralization. Exciting early days for Appaloosa with the initial results showing promise of multiple target opportunities for future exploration."