New Drill Targets At Iron Butte

VANCOUVER - Angold Resources Ltd. has completed surface testing, a structural review and an outline of drill targets on the Iron Butte Project, located in the Battle Mountain Trend of northern Nevada. With these new insights the Company has extended new drill targets along the range-front for over 1.3km from the Red Ridge Zone to the North Zone and toward the Company's newly staked, 100% owned, Elephant Head claims. The Company is planning to commence drilling in the next few months.

CEO, Adrian Rothwell, said, "With historically long intercepts and excellent grades, a deep, intact oxide zone, as well as a total 1,544 hectares of prospective ground and new results demonstrating mineralized structures up to ~30m thick, Iron Butte continues to exhibit evidence of a large system. Excellent potential exists to increase the size of the deposit and historic resource with infill, lateral and deeper drilling."

Geologic mapping at Iron Butte has produced a new structural understanding, resulting in numerous new drill targets. Newly identified structural intersections at Iron Butte allow targeted expansion of the historic resource on the project. There is excellent potential to expand the size of the historic resource by testing areas beyond the currently defined mineralization and by completing infill holes where drilling was too widely spaced to be classified as a resource.

Three target areas are being evaluated for drilling. First, in the Red Ridge resource area, seven structural intersections project below the extent of drilled mineralization and were not fully tested by the historic drilling. Second, a prominent intersection in the North Zone has not been drilled at depth. And third, the gap between Red Ridge and the North Zone contains six structural intersections that have not been adequately drill tested.

Angold has developed a 2,500-meter drill program to target these structural intersections for higher grade and increased tonnage, infill between historic drill holes, to verify historic data for future use in resource calculations, and to extend mineralization along strike. This program may be expanded pending favorable initial results. The next step will be permitting a Notice of Intent to Explore with the Bureau of Land Management.

The Company has completed an initial program of geologic mapping and rock sampling at Iron Butte. The area overlying the historic resource on the project was mapped, focusing on mineralization, alteration, and particularly structural geology of the large mineralized system. The mapping revealed a series of large overlapping quartz veins up to ~30 meters thick, stretching 1.3 km along strike. Most of these large quartz veins have not been previously mapped. The structures are cored by intense silicification accompanying gold mineralization, are zoned outward to clay alteration, and display textures typical of epithermal gold deposits. Thirty-seven surface rock samples have been submitted for gold assay and multi-element analyses. Samples will also be subjected to hyperspectral analysis to identify alteration minerals.

The large quartz veins and the surrounding alteration were drilled by previous operators, resulting in the historic resource on the project. However, the new structural understanding presents drill targets that remain untested. In addition to identifying new large quartz veins, the detailed structural mapping revealed previously unidentified structural intersections in the mineralization. It is the intersections of veins that often form fluid pathways in gold deposits, tending to form higher grades and larger volumes of mineralization.

Gold-silver mineralization is believed to be controlled by a series of north-south, north-northeast and east-west structures that host silicification and epithermal quartz-pyrite-gold-silver mineralization within Pennsylvanian to Permian siltstones and argillites of the Cedars Sequence and Tertiary felsic volcanic rocks. Mineralization is completely oxidized from surface up to 175 meters depth and continues as sulphides to depths beyond 250 meters. Mineralization is also disseminated between veins, silicified structures and brecciated zones, and can occur as silicified breccia zones at the contact between volcanic and underlying sedimentary rocks. Mineralization is thought to be epithermal in nature with some similarities to sediment hosted Carlin type gold systems with jasperoids and opaline silica present.