Ann: Gold Intersected in Salmon Gums Drilling , page-3

Thursday, July 01, 2010

Have Triton Gold unearthed another Tropicana?

by Jeff Coote

Triton Gold (ASX: TON) has reported that results from broad spaced reverse circulation and diamond drilling have confirmed the occurrence of primary gold mineralization within its Salmon Gums project in the under-explored and emerging area of Albany-Fraser Province of Western Australia.

Gold grades of up to 5.4 g/t in fresh mafic gneiss was intersected in wide spaced drilling that provides initial indication of primary gold sources underlying extensive soil anomalies.

An area of approximately 11km by 4km encompassing the Lady Penrhyn and Sirius prospects had been defined by strong showings of gold in surface soils and the underlying weathered profile in earlier programmes.

The current drilling results confirm indications of local sources for the surface gold within the underlying fresh bedrock.

Lance Govey, managing director, said we believe that our Salmon Gums, Fraser Range North and Cundeelee projects have strong potential to host world class gold deposits akin to the AngloGold Ashanti (ASX: AGG) and Independence Groups (ASX: IGO) 5Moz+ Tropicana Deposit."

"At Salmon Gums there are still a number of completely untested soil anomalies scattered throughout the 2,000 square kilometre project area and second stage drilling at Fraser Range North has also been completed recently.

The company said the next phase will aim to sharpen the focus for follow up drilling using bedrock alteration zoning patterns derived from the recent RC and diamond drilling, complemented by surface geophysical surveys designed to detect sulphide accumulations within the mineralized system.

Completion of the RC and diamond drilling at Salmon Gums will trigger a decision by Teck Australia Pty Ltd, a wholly-owned subsidiary of major Canadian mining group Teck Resources Limited (TSX: TCK, NYSE: TCK), to give notification if it intends to exercise an option to farm-in to the project.

Under the key terms of the farm-in Teck will be required to manage and fund exploration on the two key tenements at Salmon Gums, and may ultimately earn 70% in the tenements upon completion of a pre-feasibility study.

A strategic alliance formed between the companies in 2007 covers the Salmon Gums, Fraser Range North and Cundeelee tenements, and any other tenure acquired within a pre-defined

http://www.proactiveinvestors.com.au/companies/news/8320/have-triton-gold-unearthed-another-tropicana-8320.html