Golden Tag, ECU drill 1.25 m of 1,786 g/t Ag in Mexico

2008-04-07 09:43 ET - News Release

See News Release (C-GOG) Golden Tag Resources Ltd

Mr. Marc Carrier of Golden Tag reports

GOLDEN TAG RESOURCES LTD. AND ECU SILVER MINING: CONFIRMATION OF HIGH GRADE SILVER-LEAD-ZINC VALUES IN MAIN VEINS AT SAN DIEGO, MEXICO

Golden Tag Resources Ltd. and ECU Silver Mining Inc. have released additional diamond drill hole results from the exploration program at their jointly held San Diego property, Durango state, Mexico.

Partial drill results from recent holes, SD-07-23 and SD-08-26, drilled in the eastern sector of the property continue to expand mineralization, as well as confirm the high-grade nature of the main Montanez and Cantarranas veins, and subsidiary El Jal veins and Canta-Splay vein.

In addition, recent sampling of old workings conducted on the Porvenir vein confirmed the high-grade potential of this vein.

Results from drilling with true widths are reported in a table.

Highlights from drilling include:

• Montanez vein -- 1,786 grams per tonne silver over 1.25 m (SD-08-26) with 6.38 per cent lead and 4.33 per cent zinc. The vein strikes east-southeast and dips 87 degrees south, and is hosted in the hangingwall portion of the Montanez zone. It has been confirmed over a strike length in excess of 600 metres.
• Cantarranas vein -- 1,365 g/t silver over 0.75 m (SD-08-26) with 21.40 per cent lead and 6.90 per cent zinc; 1,060 g/t silver over 0.55 m (SD-08-26) with 14.95 per cent lead and 3.85 per cent zinc. The vein strikes east-west and dips 80 degrees south with a confirmed strike length of 400 m.
• Canta-Splay vein -- 620 g/t silver over 0.75 m (SD-08-23) with 1.73 per cent lead. This vein is oriented east-northeast and dips 80 degrees northwest and is confirmed over a strike distance of 350 m.
• El Jal vein -- 933 g/t silver over 0.22 m (SD-08-23) with 5.84 per cent lead and 1.74 per cent zinc. The vein trends northeast and dips 60 degrees southeast with a confirmed strike length of 400 m.
• Underground sampling of the Porvenir vein -- 2,012 g/t silver over 0.12 m with one g/t gold, 29.9 per cent lead and 4.3 per cent zinc. This vein, located in the northeastern corner of the property, is east-west oriented and steeply dipping to the south, and can be traced on surface for over 100 m.

Results from current drilling continue to be encouraging for potential resource expansion and lie outside the current area of resource modelling. The holes confirm:

• Further extension to the east-northeast for the Canta-Splay vein (SD-08-23);
• Further extension to 300 m below depth for both the El Jal vein (SD-08-23) and Cantarranas vein (SD-08-26), as well as confirmation of increasing metal grades with depth;
• Presence of a very rich silver area within the Montanez vein (SD-08-26), located only 70 m below surface, that can be linked to last year's DDH SD-07-01 and -01A, situated 120 metres to the west, that respectively returned grades of 3,680 g/t silver over 0.75 centimetre with 7.85 per cent lead and 10.9 per cent zinc, and 1,395 g/t silver over 0.55 cm with 14.8 per cent lead and 8.63 per cent zinc.
• High-grade potential of the Porvenir vein, an east-west-oriented structure (underground sampling).

The San Diego property hosts a well-developed pattern of high-grade silver-lead-zinc tabular veins that show persistent continuity both along strike and at depth. At least two main systems of veins are recognized, an east-west system that includes the Cantarranas, Rata and SD veins, and a northwest-southeast system that includes the Montanez, La Cruz and Trovador veins. The other veins on the property, the northeast-trending El Jal vein and east-northeast-striking Canta-Splay vein, are recognized as subsidiary structures. Together, all of these veins represent the surface expression of a deep-seated epithermal system of mineralization. In some instances, the veins are simple fractures filled with mineralizing fluids like the El Jal vein. In other cases, such as the La Cruz and Montanez, the veins can be associated to fault corridors developed along contact zones between the intrusive rock (diorite/monzonite) and the hosting limestone. Broader zones of sulphide mineralization offering large tonnage bulk mining potential (see company news release in Stockwatch on March 3, 2008) appear to be related to fracturing and replacement near, or along, the contacts of the intrusive bodies, within limestone with skarn alteration and marble contact metamorphism.

Information gathered from completion of hole SD-07-26 further suggests that the Cantarranas vein would, like La Cruz and Montanez veins, be associated to a fault corridor (the Grey Fault zone) located along a diorite/marble contact. This broader Cantarranas structure appears to join with the silver-rich stringers zone identified in hole SD-07-20, hosting silver grades as high as 4,420 g/t silver over 0.58 m (see news release in Stockwatch on March 3, 2008) that is also related to the same diorite/marble contact.

Golden Tag and ECU Silver initiated their phase 3 diamond drilling program in October, 2007. A total of 16 holes have been completed to date for a total of 6,650 m of drilling. Six drill holes have now been reported. Construction of a new drill road in the hilly south portion of the property was completed to allow drilling the highly prospective area east of the central diorite. Hole SD-08-33 was recently completed from this road to follow up on previously reported holes SD-07-20 and 07-22, and test the Montanez zones, and Cantarranas and SD veins. Assay results from hole SD-08-33 are currently unavailable; however, visual observations made on core are very encouraging. The environment of mineralization intersected includes semi-massive and massive sulphides as vein infill with associated sulphide replacement of adjacent marbles; increasing vein widths up to two m (core width) and a new mineralized vein structure at the diorite/marble contact.

Visual results from hole SD-08-33 suggest: continued improvement in the mineralized system at depth, with strong vertical continuity of the main veins, increasing skarn alteration and contact metamorphic effects; and potential for more extensive replacement sulphide zones at even greater depth along the diorite contacts.

Assay results and visual observations from the most recent drill holes point to the need to conduct deeper drilling. The actual drill rig used to complete phase 3 drilling not being adequate to perform deep holes, the joint venture has decided to end the phase 3 program after hole SD-08-33. A minimum 5,000-metre follow-up phase 4 program using a more proficient drill will be undertaken shortly. In the interim, the joint venture partners will review and integrate phase 3 results in a 3-D MineSight model to efficiently structure and develop the deeper phase 4 program. Assay results from the remaining phase 3 program will be released when available.

Quality control

The drilling program is supervised by Kateri Marchand, PGeo, qualified person under National Instrument 43-101 guidelines, and she has confirmed all disclosures in this release. Details of the quality assurance/quality control program followed at San Diego are available in previous news releases. Analyses were performed by ALS Chemex accredited assay laboratories of Guadalajara (Mexico) and Vancouver (Canada), as well as non-certified ERSA laboratory of Torreon, Coahuila.

Conversion factors used to convert to silver equivalents are shown at bottom of the tables. Readers are cautioned that until a prefeasibility study is completed, there are no assurances that these mineralized zones will be economically viable.

                SAN DIEGO JOINT VENTURE PROJECT, DURANGO, MEXICO                     RESULTS FROM THE 2007/2008 DRILL PROGRAM  Hole SD-08-26         From       To   Length      Au      Ag     Pb    Zn  Ag plus Ag                        (m)      (m)      (m)   (g/t)   (g/t)      %     %      equiv.  Montanez             61.05    62.30     1.25   0.218   1,786   6.38  4.33       2,091 Ag stringer zone    229.75   238.75     9.00   0.065     243   2.90  1.09         355 includes Cantarranas (2)     229.75   230.50     0.75   0.212   1,365  21.40  6.90       2,150 Cantarranas (1)     237.60   238.15     0.55   0.154   1,060  14.95  3.85       1,578  Hole SD-07-23         From       To   Length       Au     Ag     Pb   Zn    Ag plus Ag                        (m)      (m)      (m)    (g/t)  (g/t)      %    %        equiv.  Canta-Splay         126.66   127.34     0.68    0.259    620   1.73 0.46           620 El Jal              255.61   255.83     0.22    0.176    933   5.84 1.74         1,143                 ASSAY RESULTS FROM THE PROVENIR VEIN  Porvenir      True width        Au        Ag       Pb      Zn  Ag plus Ag Main vein            (m)     (g/t)     (g/t)        %       %      equiv.                      0.35      0.90        95     1.40    1.25                     0.35      0.80       214     1.01    0.75                     0.12      1.00     2,012    29.88    4.30                     0.40      1.10       178     2.74    2.08 Average             0.31     0.947       345     4.53    1.68         345   Notes: (1) Silver equivalents were calculated using the same commodity prices  and metal recovery factors used in the San Diego 43-101 resource  estimate report: 26.60 g/t silver per 1 per cent lead, 31.21 g/t silver  per 1 per cent zinc. Recovery factors were 76 per cent for silver, 71 per  cent for gold, 75 per cent for lead and 44 per cent for zinc. Commodity  prices of $11.60 (U.S.) per ounce for silver, 60 U.S. cents per pound for  lead and $1.20 (U.S.) per pound for zinc were used. Gold content was not  taken into account in the silver equivalent calculation. Lead and zinc  values were also not included in the silver equivalent calculation for  the Canta-Splay and Porvenir oxide veins. (2) The true widths of the reported intersections are 80 to 85 per cent for both Montanez and El Jal veins; 35 per cent for Canta-Splay vein;  and 60 per cent for Cantarranas vein.