Prosper Gold starts drilling, surveying at Sheslay

2013-09-03 10:47 ET - News Release

Mr. Peter Bernier reports

PROSPER GOLD CORP. RESUMES TRADING; STARTS DRILLING AT SHESLAY PORPHYRY COPPER GOLD PROJECT-BRITISH COLUMBIA

Effective at the opening of trading on the TSX Venture Exchange today, Sept. 3, 2013, the common shares of Prosper Gold Corp. will resume trading under the trading symbol PGX. This follows the previously announced qualifying transaction (May 7, 2013 news release) in which Prosper Gold may acquire up to an 80-per-cent interest in certain mining claims on the Sheslay porphyry copper gold property located in northwestern British Columbia.

Prosper Gold has commenced a phase one diamond drill program on the Star discovery and will complete a deep-penetration induced polarization survey over the entire 12-square-kilometre target area, covering a cluster of five copper-gold-bearing porphyry targets.

The property

The property is located within the Stikine arch, a region that hosts a number of significant porphyry copper-gold deposits, including: the Red Chris deposit with proven and probable reserves of 301.5 million tonnes grading 0.359 per cent copper and 0.274 gram per tonne gold, plus a measured and indicated resource of 936.2 million tonnes grading 0.374 per cent Cu and 0.385 g/t Au; and the Galore Creek deposit with proven and probable reserves of 528 million tonnes grading 0.6 per cent Cu, 0.32 g/t Au and 6.02 g/t silver, plus a measured and indicated resource totaling 287 million tonnes at a grade of 0.33 per cent Cu and 0.27 g/t Au. Colorado Resources Ltd.'s North Rok property, where discovery hole NR 13-001 intersected 242 m at 0.63 per cent Cu and 0.85 g/t Au, is also located within the Stikine arch. The company's qualified person has not verified the above published information and cautions that it is not necessarily indicative of the mineralization on the Sheslay property.

Porphyry copper-gold mineralization occurs on the Sheslay property, defined by significant historical work completed by different operators from the 1970s to 2007. Five drill-ready targets have been identified to date: Star, North Star, East Star, Copper Creek and Pyrrhotite Creek. Four of the five porphyry-style targets are permitted for drilling and clustered within a 12-square-kilometre Star target area. There are multiple distinct porphyry-style targets also occur in the Pyrrhotite Creek area located to the southwest.

Star target

• Drilled between 2004 and 2007, 23 holes for a total 4,469 metres covering approximately a 400 m by 400 m surface area. The Star target is open for extension in all directions with historical copper- and gold-in-soil geochemical anomalies suggesting a target size at least twice the drilled area to date;
• Most holes intersected Triassic-aged subvolcanic monzonite intrusive. It is not yet known if this is a multiphase intrusive system;
• Historical drill result summary is shown in the table;
• Discovery hole CC2004-05 graded a weighted average of 0.44 per cent Cu and 0.32 g/t Au over 242.3 metres. The deepest hole, CC-2007-01, averaged 0.35 per cent Cu and 0.17 g/t Au over 337.4 metres;
• The Star target, based on historical exploration geophysical, geochemical and drill data, covers an approximate 700 m by 500 m area. The discovery is open to depth and extension laterally in all directions beyond this confirmed area. Mineralization is not restricted to specific rock types. Both the porphyry and bounding volcanic rocks are mineralized;
• Copper/gold ratios demonstrate notable consistency;
• Mineralization starts at the surface. Chalcopyrite occurs mainly as fine-grained disseminations with pyrite and pyrrhotite, with lesser fracture controlled mineralization;
• Anomalously high gold- and copper-in-soil anomalies directly coincide with historical defined chargeability and elevated magnetic geophysical anomalies. The 2013 IP and magnetic survey is designed to fully define each porphyry target laterally and to depth;
• Star surface trench results from 2004 graded 0.43 per cent Cu and 0.25 g/t Au over 216 metres;
• Approximately 300 metres southwest of the historical drill sites, two additional trenches encountered mineralization within porphyritic intrusive, including 70 metres of 0.33 per cent Cu and 24 metres of 0.51 per cent Cu, and 0.14 g/t Au occur within the same host porphyry rock.

                      SHESLAY HISTORICAL DRILL RESULTS
                                                           
Hole                   From          To    Interval          Cu          Au
                         (m)         (m)         (m)         (%)       (g/t)

CC2004-01              3.00      239.90      236.90        0.32        0.18
CC2004-02              0.00      173.10      173.10        0.41        0.17
CC2004-03              0.00      240.80      240.80        0.23        0.06
CC2004-04              0.00      108.50      108.50        0.19        0.06
CC2004-05              0.00      242.30      242.30        0.44        0.32
CC2004-06              0.00      190.20      190.20        0.41        0.22
CC2004-07              1.00      330.40      329.40        0.32        0.11
CC2005-08              3.80      145.10      141.30        0.36        0.27
CC2005-09              3.00      145.08      142.08        0.44        0.25
CC2005-10              3.65      124.05      120.40        0.28        0.11
CC2005-11              1.50      118.87      117.36        0.34        0.14
CC2005-12              1.58      122.53      120.95        0.33        0.22
CC2005-13              1.50      118.87      117.37        0.21        0.09
CC2005-14              0.91      120.40      119.49        0.06        0.06
CC2005-15              1.52      158.50      156.98        0.29        0.22
CC2005-16              3.66      134.72      131.06        0.26        0.15
CC2005-17              2.20      106.05      103.85        0.36        0.21
CC2005-18              0.00      106.68      106.68        0.32        0.28
CC2005-19              6.10      102.11       96.01        0.26        0.09
CC2007-01(1)           2.74      337.41      334.67        0.35        0.17
CC2007-02(1)           2.74      223.10      220.36        0.42        0.21
CC2007-03              0.00      128.66      128.66        0.37        0.13
CC2007-04(1)           3.04      293.21      290.17        0.41        0.19

(1) Includes hole extensions; note that overlapping footages has occurred 
in some cases, due to re-entering holes in badly fractured ground.  

A drilling update is anticipated in the early part of October that will contain the initial assay results of the first diamond drill holes.

Brokerage fees correction

The company announces a correction to the TSX Venture Exchange Aug. 30, 2013, Prosper Gold private placement release. The text should read Axemen Resource Capital Ltd. and not Dundee Securities Ltd. in relation to agent fees and warrants.

Qualified person

The scientific or technical information in this news release has been reviewed by Dr. Dirk Tempelman-Kluit, PhD, PGeo, a qualified person under National Instrument 43-101.

For a detailed overview of Prosper Gold please visit the company's website.

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