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Highland Resources begins Rickaby drill program

2010-02-01 13:06 NT - News Release

Mr. Roger Blair reports

HIGHLAND COMMENCES 4,000 METRE DRILL PROGRAM ON RICKABY PROPERTY IN THE BEARDMORE-GERALDTON GOLD BELT

Highland Resources Inc.'s drilling has started on gold mineralized targets on the Rickaby property in the Beardmore-Geraldton gold camp of the Thunder Bay mining district. Targets were initially defined by positive channel sampling results from October and November, 2009, work, but have now been greatly expanded along strike by encouraging IP anomalies directly associated with the known mineralization. IP was chosen for the survey method as it was expected to have good response to the disseminated pyrite associated with the gold mineralization.

The property, consisting of 88 mineral claims over approximately 18,624 acres in the Beardmore-Geraldton gelt of the Thunder Bay mining district, Ontario, is situated adjacent to Kodiak Exploration's Hercules gold project, where drill results have included 15.59 grams per tonne gold over 16.60 metres (Kodiak, see news in Stockwatch Sept. 19, 2006), and channel sampling up to 32.96 g/t gold over 11.60 m (Kodiak, see news in Stockwatch Oct. 1, 2007) has been reported.

The drill target areas were initially defined by positive channel sampling results from October and November, 2009, work (see news in Stockwatch Jan. 5, 2010). These targets have now been greatly expanded along strike by encouraging IP anomalies that appear to be directly associated with the known mineralization.

Zeus

As noted previously trenching on Zeus exposed approximately 15 metres of strike length on an intense shear with quartz veining and containing gold grades up to 27.20 g/t in channel samples. Geophysical surveying on this target has defined an IP anomaly that is directly coincident with the trenched zone, and has a strike length of greater than 300 metres, extending to the limits of the surveyed area. The IP anomaly has greater strength approximately 100 metres to the west of the channel sampled area, and this is considered encouraging for a possible increase in pyrite content on the mineralized structure. Three drill holes have been planned on this target.

In addition to the main IP anomaly a weaker subparallel IP anomaly trend was defined with at least 500 metres of strike length across the complete survey area. This anomaly is located approximately 200 metres north of the known zone of mineralization, and the anomaly trend has no outcrop. It is considered a promising parallel target, and two drill holes will intersect this anomaly.

Foisey Larson

This area has historic reports of a wide shear zone with low-grade Au mineralization. Mechanical trenching in November, 2009, covering 45 m of shear strike length (north-northwest) over 25 m of shear thickness exposed mineralized shear and quartz veins over a 10 to 15 m width over the entire 45 m strike length exposed with gold grades in channel sampling up to a maximum of 2.73 g/t Au. In addition to gold results, the zone also has silver and molybdenum content.

Geophysical surveying on this excellent Au/Ag/Mo target has defined a 1.2-kilometre-long IP anomaly with a coincident magnetic anomaly. The IP and magnetic anomaly is also coincident with the gold zone exposed by trenching. Along the IP anomaly trend several areas show much higher IP response than the area that was trenched, and these are being preferentially targeted for follow-up drilling. A total of seven holes are planned to intersect the IP anomalies defined along the Foisey-Larson trend.

KRK zone

Channel sampling results reported in 2009 included values of 1.07 g/t gold over 1.50 m and 1.07 per cent Pb and 1.59 per cent Zn over 1.50 m in massive sulphides in a felsic fragmental volcanic and 0.11 per cent zinc and 1.08 g/t silver over 12 metres in disseminated sulphides within fragmental volcanics. Historical drilling (hole R98-22) returned 0.74 per cent Cu over 71 metres. Geophysical surveys defined strong IP targets proximal to the mineralized stratigraphy, and four holes have been targeted on these anomalies. In addition airborne geophysical surveys in 2008 defined several EM anomalies and these will also be targeted for drilling.

Koch-Daneff

This area is next to the historic Orphan mine which was mined briefly in the 1930s and produced 3,525 tons of ore grading 0.689 ounce per ton gold. Channel sampling in 2009 included 17.1 g/t gold over 1.20 m and 1.82 g/t gold over 1.0 metre. Geophysical surveying did not define a strong IP target, but a magnetic anomaly seems to coincide with the known mineralization. This anomaly also crosses a historic drill hole which intersected 15.77 g/t over 3.5 m. Drilling on this target will be focused on stepping out from this known mineralization in the trenches and the drill hole to expand the strike of this promising target.

Zeus North

A geophysical grid located approximately 0.5 km north of the Zeus area was designed to cover a strong negative magnetic anomaly. This target has the characteristic signature of some ultramafic dikes that sometimes contain significant PGE deposits. The area is a topographic low with no outcrop. The geophysics grid focused on an area of strong structural offset on the magnetic feature. The geophysics has further defined the magnetic feature and revealed a coincident weak IP anomaly. This area will be targeted with two drill holes.

Highland has contracted the services of Bradley Bros Drilling of Rouyn-Noranda, Que., to carry out a 4,000 m drill program. Currently drill access roads and collar locations have been constructed by local contractors.