Jan. 14, 2011 (TheNewswire.ca) --
King's Bay Gold Corporation (TSX.V: KBG)("King's Bay Gold") has been informed by Mega Precious Metals Inc. (OOTC:MPRXF) (TSXV:MGP) (TSX: MGP)("Mega") that, following a December 16th, 2010 shutdown, drilling has resumed on King's Bay Gold's optioned Headway Project in Red Lake Ontario. On October 5th, 2009, Mega signed a definitive option agreement to acquire a 100% interest in the Headway Project from King's Bay Gold.
In a Mega news release dated January 13th, 2011, Mega reported the following progress on the drilling program at the Headway Project:
"The Headway drilling to date has confirmed the geological model and Mega will continue to push both drill holes to the deep target horizon. On November 2, 2010, Mega announced that MH1002 had passed through the unconformity and was in Balmer mafic volcanics at 1,952m and MH0901 was at a depth of 2,603m in an inter-bedded mixture of variably altered mafic to felsic volcanics that are commonly called "Rhyolitic-Andesite". This is an aluminosilicate altered mine unit commonly found in the Hanging wall of high grade zones. As we approach the target horizon at MH0901, there has been an increasing presence of black line faults, biotite and silica altered mafic inter-beds and sporadic quartz-tourmaline ± ankerite (iron carbonate) veins containing arsenopyrite and pyrite."
"The Headway program is based on the presumption that the Red Lake Gold Mines mineralized horizon continues down plunge to the south west within the deep rooted north east extension of the Madsen Trend. The alteration described above is geological evidence that MH0901 has entered the upper portion of the mineralized target horizon. The overall confirmation of the model geometry and the presence of increasing structure in this hole support the theory that a high grade zone may be present."
"Operationally, both drills have made little progress since the November update due to technical drilling issues that include the increase in structure at the bottom of MH0901 and methane in MH1002. These rock properties further support the structural and ore fluid genetics of the geological model. Since their return in January, the drillers have made excellent progress in addressing the technical issues in both holes. The big rig on MH0901 is capable of depths in excess of 3,500m and we expect that it will reach management's target depth of 3,000m. The remaining 400m to the bottom of the planned MH0901 drill hole will test the modeled High-Grade Zone target area."
"The Headway property abuts Goldcorp's (TSX:G''G) (NYSE:GG) (TSX:G) Red Lake Gold Mines southern border and lies just 2 kilometres (km) south west of the Goldcorp "High Grade Zone". Deep drilling technology is allowing Mega to explore for high grade, bonanza, replacement-type zones below the unconformity, in the underlying Balmer Rocks. Drilling of the first hole (MH0901) commenced on November 6th, 2009, and the second deep hole (MH1002) commenced drilling July 10, 2010. While technical navigational challenges have slowed the progress, we are pleased that the drill holes will provide for an excellent test of the deep target horizon. The 2011 exploration plan is to complete the 2 current drill holes (1500m) and then review the program requirements. The current budget is to drill a total of 6,000 metres in 2011."
Jim Rogers, Mega's President and CEO, is the Qualified Person for the information contained in Mega's press release of January 13th, 2011 and is a Qualified Person for the Headway Project as defined by National Instrument 43-101.
About King's Bay Gold Corporation (TSXV:KBG)
King's Bay Gold Corporation is a very active Canadian mineral exploration and development company with mineral projects located in two of Canada's main gold camps - the Red Lake, ON and Rainy River, ON gold camps.
KBG Shares Outstanding: 84,986,902
King's Bay Gold Corporation
John Archibald
President & CEO
info@kingsbaygold.com
www.kingsbaygold.com
This news release includes certain forward-looking statements concerning the future performance of King's Bay Gold Corporation's business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking statements and readers are cautioned against placing undue reliance thereon.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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