(via Thenewswire.ca)
February 29th, 2012 - Winnipeg, MB - King's Bay Gold Corporation (TSX-V: KBG) is pleased to provide its shareholders with a review of its 2010 and 2011 exploration results and an outlook of its continued exploration plans for 2012 at its 100% owned and operated Menary Gold Project.
The Menary Gold Project is located in the Townships of Menary, Claxton, McClarty and Senn in the Kenora Mining Division of north-western Ontario. The claim units are located approximately 20 kilometres southeast of the Town of Nestor Falls, Ontario and can be accessed along Road 404, east of Highway 71 which runs between Kenora and Fort Frances, Ontario. The project is located roughly fifteen kilometers northeast of the Richardson Township Project owned by Rainy River Resources Limited (TSX.V: RR) and within 12 kilometres of the recent discovery by Bayfield Ventures Corp. (TSX.V: BYV). The property is adjacent to and along strike to the Rainy River Resources Limited drilling that has been conducted on their Off Lake Gold Project. The property consists of the original core group of 4 un-patented mining claims acquired by an option agreement in January 2010; an additional acquisition of 6 un-patented mining claims by an option agreement in August 2010; and the staking of 6 un-patented mining claims in October 2011. The Menary Gold Project now consists of 16 claims for approximately 4,320 acres (or approximately 1,728 hectares) in a single contiguous land package and is subject to annual payments of stock and cash and NSRs on future gold production for all of the optioned claims only. The Corporation expended a total of $518,639 in 2010 and a total of $587,319 in 2011 on the exploration and development of this project.
2010 and 2011 Diamond Drilling Results
Given the positive results obtained from holes MIN 10-01 to MIN 10-16 at the Wagg Gold Occurrence during the Spring and Fall of 2010, the Company announced in a news release dated May 11th, 2011 that it had mobilized its geologist and diamond drilling contractor. On November 23rd, 2011, the Corporation reported in a news release that it had now completed its 2011 diamond drilling program for a total of 33 BQ holes at its Menary Gold Project. In 2010 and 2011, a total of 29 BQ holes for 3,508 metres were completed at the Wagg Gold Occurrence, 3 additional BQ holes for 478 metres were drilled at the Galbraith "A" Occurrence and one additional BQ hole for 61 metres was drilled at the southern end of the property close to Road 404 to test a sulfide zone for mineralization.
The table on the following pages summarizes the results for holes MIN-10-01 to MIN-11-29 (29 holes) at the Wagg Gold Occurrence, holes GAL-A-11-1 to GAL-A-11-3 (3 holes) at the Galbraith "A" prospect and hole MIN-S-11-1 (1 hole) located at the south end of the property. The drilling at the Wagg Gold Occurrence was focused within an approximate 100m wide x 200m long x 100m deep geologically productive area.
In the late Fall of 2011, the Corporation started drilling the Galbraith "A" showing, located approximately 900 metres north of the Wagg occurrence. With successful drilling results at both the Wagg and at the Galbraith prospects, the company plans to conduct trenching and sampling between these occurrences to see if continuity exists between them. At Galbraith "A", historical grab samples collected by prospectors employed by Western Troy Capital Resources Inc. yielded 2.42 Au g/t and 94.48 Au g/t (Source: Ontario Ministry of Northern Development and Mines Assessment Files, verified by Russell Crosby, M.Sc., P.Geo.). Grab samples collected by King's Bay Gold personnel in August 2011 at the 4' x 4' x 3' Western Troy blasted pit at Galbraith "A" yielded 8.96 Au g/t and 15.78 Au g/t.
True widths are unknown due to the irregular shapes of the gold bearing quartz veins.
--------------------------------------------------------------------- |Prospect |Drill Hole |Dip |Grade |Intercept |From (m)|To (m)| | | | | |Length | | | |-------------------------------------------------------------------| |Wagg |MIN-10-01 |-45o|13.57 g/t |over 2.68m|11.89 |14.57 | |-------------------------------------------------------------------| | |including | |80.96 g/t |over 0.43m|14.14 |14.57 | |-------------------------------------------------------------------| | | | |0.40 g/t |over 1.03m|158.49 |159.52| |-------------------------------------------------------------------| | |including | |1.30 g/t |over 0.24m|158.73 |158.97| |-------------------------------------------------------------------| | | | |1.69 g/t |over 0.61m|166.71 |167.32| |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-02 |-45o|0.59 g/t |over 3.87m|14.11 |17.98 | |-------------------------------------------------------------------| | |including | |4.71 g/t |over 0.43m|16.49 |16.92 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-03 |-45o|0.13 g/t |over 0.30m|59.43 |59.73 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-04 |-45o|0.32 g/t |over 0.30m|23.86 |24.16 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-05 |-45o|0.20 g/t |over 1.52m|29.71 |31.23 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-06 |-45o|0.34 g/t |over 2.43m|17.96 |20.39 | |-------------------------------------------------------------------| | |including | |0.87 g/t |over 0.30m|19.08 |19.38 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-07 |-45o|0.15 g/t |over 0.46m|18.59 |19.05 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-08 |-45o|No | | | | | | | |significant| | | | | | | |assays. | | | | | | | |assays | | | | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-09 |-45o|0.35 g/t |over 0.61m|9.75 |10.36 | |-------------------------------------------------------------------| | | | |1.46 g/t |over 0.37m|18.52 |18.89 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-10 |-45o|0.71 g/t |over 4.66m|0.61 |5.27 | | | | | | | | | |-------------------------------------------------------------------| | |including | |3.83 g/t |over 0.24m|4.72 |4.96 | |-------------------------------------------------------------------| | | | |6.5 g/t |over |9.60 |19.65 | | | | | |10.05m | | | |-------------------------------------------------------------------| | |including | |34.62 g/t |over 1.16m|11.39 |12.55 | |-------------------------------------------------------------------| | |and | |57.55 g/t |over 0.25m|14.62 |14.87 | | |including | | | | | | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-11 |-45o|1.18 g/t |over 4.08m|1.10 |5.18 | |-------------------------------------------------------------------| | |including | |5.07 g/t |over 0.30m|2.31 |2.61 | |-------------------------------------------------------------------| | | | |0.45 g/t |over 4.26m|12.19 |16.45 | |-------------------------------------------------------------------| | |including | |2.40 g/t |over 0.30m|12.49 |12.79 | |-------------------------------------------------------------------| | |and | |2.37 g/t |over 0.39m|15.14 |15.53 | | |including | | | | | | |-------------------------------------------------------------------| | | | |6.37 g/t |over |61.57 |73.60 | | | | | |12.03m | | | |-------------------------------------------------------------------| | |including | |141.52 g/t |over 0.15m|63.48 |63.63 | |-------------------------------------------------------------------| | |and | |95.11 g/t |over 0.51m|66.29 |66.80 | | |including | | | | | | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-12 |-45o|0.34 g/t |over 3.56m|5.57 |9.14 | |-------------------------------------------------------------------| | |Including | |0.67 g/t |over 0.30m|7.31 |7.61 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-13 |-45o|1.59 g/t |over 1.67m|1.53 |3.20 | |-------------------------------------------------------------------| | | | |1.34 g/t |over 0.61m|14.02 |14.63 | |-------------------------------------------------------------------| | | | |2.41 g/t |over |23.31 |24.38 | | | | | |10.07m | | | |-------------------------------------------------------------------| | | | |1.49 g/t |over 1.22m|75.59 |76.81 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-14 |-45o|0.51 g/t |over 0.34m|32.58 |32.92 | |-------------------------------------------------------------------| | | | |0.10 g/t |over 0.61m|84.73 |85.34 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-15 |-45o|0.17 g/t |Over 1.10m|18.93 |20.03 | |-------------------------------------------------------------------| | | | |1.56 g/t |over 3.11m|23.28 |23.39 | |-------------------------------------------------------------------| | |including | |8.38 g/t |over 0.37m|25.35 |25.72 | |-------------------------------------------------------------------| | | | |0.11 g/t |over 0.24m|85.56 |82.80 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-10-16 |-45o|0.44 g/t |over |54.55 |65.52 | | | | | |10.97m | | | |-------------------------------------------------------------------| | | | |0.14 g/t |over 0.24m|73.23 |73.47 | |-------------------------------------------------------------------| | | | |0.29 g/t |over 0.30m|81.68 |81.98 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-17 |-45o|0.45 g/t |over 11.0m|54.5 |65.5 | |-------------------------------------------------------------------| | |including | |1.41 g/t |over 0.3m |57.0 |57.3 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-18 |-45o|16.99 g/t |over 6.3m |75.4 |81.7 | |-------------------------------------------------------------------| | |including | |63.29 g/t |over 1.7m |77.5 |79.2 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-19 |-45o|0.14 g/t |over 0.9m |67.0 |67.9 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-20 |-45o|1.28 g/t |over 0.3m |40.8 |41.1 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-21 |-45o|12.40 g/t |over 4.8m |0 |4.8 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-22 |-45o|5.95 g/t |over 1.9m |10.8 |12.7 | |-------------------------------------------------------------------| | |including | |57.27 g/t |over 0.2m |12.2 |12.4 | |-------------------------------------------------------------------| | | | |1.90 g/t |over 0.4m |41.3 |41.7 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-23 |-45o|0.39 g/t |over 0.6m |15.5 |16.1 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-24 |-45o|No | | | | | | | |significant| | | | | | | |assays. | | | | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-25 |-45o|No | | | | | | | |significant| | | | | | | |assays. | | | | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-26 |-45o|0.73 g/t |over 0.6m |12.6 |13.2 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-27 |-45o|0.18 g/t |over 0.30m|14.3 |14.6 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-28 |-45o|0.10 g/t |over 0.30m|41.0 |41.3 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Wagg |MIN-11-29 |-60o|0.13 g/t |over 0.20m|62.7 |62.9 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Menary S |MIN-S-11-01|-45o|0.117 g/t |over 1.60m|37.7 |39.3 | |South | | | | | | | |South | | | | | | | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Galbraith A|GAL-A-11-01|-45o|No | | | | | | | |significant| | | | | | | |assays. | | | | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Galbraith A|GAL-A-11-02|-45o|0.217 g/t |over 1.8m |33.2 |35.0 | |-------------------------------------------------------------------| | | | | | | | | |-------------------------------------------------------------------| |Galbraith A|GAL-A-11-03|-45o|7.941 g/t |over 0.5m |35.7 |36.2 | ---------------------------------------------------------------------
The above analytical work was done at Accurassay Laboratories Limited, an ISO-Certified laboratory facility in Thunder Bay, Ontario using the fire assay method. Half of the drill cores were sent in for analysis, along with accompanying standards, duplicates and blanks. The remaining cores are being stored and archived for future testing or verification.
New Shear Zone
On October 26th, 2011 King's Bay Gold announced in a news release that it had increased its land position at its Menary Project by staking 6 mining claims totaling 44 units to the north and northeast of the Company's existing land package. In this area gold showings occur in the greenstones within about 2 kilometres of the geological contact with the Sabaskong batholith. These 6 mining claims were staked to cover available open ground along this contact. This resulted in the claim group being enlarged by 704 ha (about 70%) from 1,024 ha to 1,728 ha and a doubling of the contact zone now controlled by King's Bay Gold.
A new, gold-bearing vein/shear zone was discovered approximately 50m east of the original Galbraith "A" blasted pit showing. The vein is about 180m long, up to one metre wide, boudinaged / sheared, and gold-bearing in a WNW-ESE trending shear zone in mafic volcanic rocks. In the new shear zone, the fine-grained, sugary texture of the quartz and the intermittent hematitic red staining are similar to that which occurs in the quartz veins on surface at the Wagg gold occurrence located approximately 1 kilometre south of the Galbraith "A" occurrence. However, the Galbraith "A" quartz vein, in 2 dimensions at surface is comprised of a strongly boudinaged and sugary-textured quartz vein of up to 1 metre in width with intermittent red hematite staining in a shear / fault zone. This sugary quartz and red coloration also mimics what is also found at the Wagg Occurrence. It also pinches and swells, and, in places pinches out altogether. Where this happens, following the zone of shearing leads us to more sugary-textured quartz with intermittent red hematitic staining.
Red, sugary-textured quartz also occurs in a quartz vein swarm found at about the 73 metre depth mark in the -45 degree, 152.4 metre-long hole identified as Gal-A-11-03. When projected to surface, this quartz vein swarm is located approximately 41 metre horizontally NE from the above mentioned gold-bearing quartz vein in the shear zone.
After further excavator work (pictures are available on the company's website at http://www.kingsbaygold.com/properties/menary-twp/ ) and the washing of trenches in the area, smoky quartz was found in some felsic dykes in the Galbraith "A" area.
A total of 34 grab samples were taken at various points along this newly discovered shear system with a width of up to 4 metres and a length of over 150 metres long on surface. The assay results obtained from wall rock and quartz vein grab samples ranged from a low of <0.005 g/t Au to a high of up to 40.52 g/t Au. The most significant gold values, in grams per tonne, are as follows: 1.26, 1.98, 4.17, 4.71, 6.37, 11.14, 22.24, and 40.52. These grab samples are selective by nature and are unlikely to represent average grades for the deposit. The 34 grab samples from the newly discovered shear zone were processed and analyzed by Accurassay Laboratories Limited located in Thunder Bay, Ontario. Accurassay Laboratories is an ISO-Certified laboratory that performed the gold fire assays with AAS finish following assay code ALFA1 using 30 grams of rock after it has been crushed and powdered.
James Rogers, King's Bay Gold's Chairman, stated on October 26th, 2011: "This discovery of another vein system with mineralization and alteration that look identical to the Wagg showing is very exciting. I am optimistic that King's Bay Gold's systematic approach to field exploration may uncover new economic opportunities for discovery".
On December 12th, 2011 the Corporation reported that it had received additional channel sample results from its Menary Gold Project. The channel samples, mainly one metre in length, were taken, nominally at 2 metre intervals, at various points along approximately 181 metres of the newly discovered shear system that has a width of up to 4 metres and a length of over 200 metres long on surface.
The assay results obtained from wall rock and quartz vein combined channel samples ranged from a low of <0.005 g/t Au to a high of 243.00 g/t Au and averaged 3.39 g/t Au. The top 30 most significant gold values from the 146 channel sample results received and reported to date, in grams per tonne, as seen in the table below, are as follows: 243.00, 45.38, 18.20, 17.97, 14.82, 14.78, 14.21, 12.94, 12.70, 9.47, 8.30, 8.21, 7.53, 6.31, 6.30, 4.75, 4.33, 4.06, 3.34, 3.17, 2.37, 2.34, 1.87, 1.64, 1.55, 1.52, 1.51, 1.47, 1.46 and 1.41. Distances are from the initial NW starting point (i.e., Nail #1). The following table contains all 63 channel samples having a gold grade of 0.090 g/t or better from the 146 samples collected from the quartz-bearing shear zone.
-------------------------------------------------------------------- |Distance|Sample |Gold |Length| | |Distance|Sample |Gold |Length| | |# |(g/t) |(m) | | | |# |(g/t) | | | | | | | | | | | |(m) | |------------------------------------------------------------------| |10.2m |1014736|0.090 |0.5m | | |87.8m |1014585|2.340 |1.0m | |NW | | | | | |SE | | | | |------------------------------------------------------------------| |9.1m NW |1014735|0.788 |0.5m | | |88.7m |1014588|0.566 |1.0m | | | | | | | |SE | | | | |------------------------------------------------------------------| |7.0m NW |1014734|1.639 |1.0m | | |92.9m |1014596|0.090 |1.0m | | | | | | | |SE | | | | |------------------------------------------------------------------| |4.1m NW |1014733|243.000|1.0m | | |98.5m |1014597|2.365 |1.0m | | | | | | | |SE | | | | |------------------------------------------------------------------| |6.3m SE |1014505|0.897 |1.0m | | |100.1m |1014598|1.546 |1.0m | | | | | | | |SE | | | | |------------------------------------------------------------------| |9.5m SE |1014509|3.341 |1.0m | | |102.8m |1014599|1.470 |1.0m | | | | | | | |SE | | | | |------------------------------------------------------------------| |11.2m |1014511|0.319 |1.0m | | |104.7m |1014600|14.817|1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |12.4m |1014513|0.107 |1.0m | | |106.5m |1014601|6.311 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |14.1m |1014515|3.170 |1.0m | | |107.8m |1014602|0.146 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |16.7m |1014519|0.678 |1.0m | | |112.6m |1014604|0.456 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |19.0m |1014522|4.328 |1.0m | | |115.0m |1014606|0.109 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |21.4m |1014523|0.495 |1.0m | | |117.1m |1014607|1.458 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |23.7m |1014524|0.941 |1.0m | | |118.6m |1014608|1.290 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |28.0m |1014526|1.058 |1.0m | | |120.8m |1014609|17.966|1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |29.5m |1014527|0.621 |1.0m | | |121.9m |1014610|9.473 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |30.5m |1014528|0.097 |1.0m | | |123.6m |1014611|8.302 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |32.6m |1014529|0.674 |1.0m | | |126.9mSE|1014750|12.703|0.5m | |SE | | | | | | | | | | |------------------------------------------------------------------| |34.3m |1014532|0.378 |1.0m | | |127.9m |1014751|12.936|0.5m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |36.2m |1014534|0.511 |1.0m | | |128.8m |1014753|1.518 |0.5m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |39.1mSE |1014536|0.586 |1.0m | | |131.6m |1014754|4.747 |0.5m | | | | | | | |SE | | | | |------------------------------------------------------------------| |40.6mSE |1014537|14.779 |1.0m | | |133.5m |1014755|0.560 |0.5m | | | | | | | |SE | | | | |------------------------------------------------------------------| |42.0m |1014539|0.243 |1.0m | | |136.4m |1014613|45.379|1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |45.1m |1014541|1.000 |1.0m | | |137.3m |1014614|1.867 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |45.1m |1014543|0.252 |1.0m | | |139.7m |1014615|18.204|1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |47.1m |1014544|0.117 |1.0m | | |141.3m |1014616|0.805 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |49.5m |1014547|0.105 |1.0m | | |143.4m |1014618|0.090 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |72.6m |1014564|1.171 |1.0m | | |145.3m |1014619|6.301 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |74.3m |1014565|1.508 |1.0m | | |146.4m |1014620|1.407 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |77.0m |1014567|0.459 |1.0m | | |148.6m |1014621|0.666 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |80.7m |1014571|8.205 |1.0m | | |149.8m |1014622|14.209|1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |82.1m |1014573|0.567 |1.0m | | |150.2m |1014623|4.057 |1.0m | |SE | | | | | |SE | | | | |------------------------------------------------------------------| |85.7m |1014582|7.525 |1.0m | | | | | | | |SE | | | | | | | | | | |------------------------------------------------------------------| |85.7m |1014582|7.525 |1.0m | | | | | | | |SE | | | | | | | | | | --------------------------------------------------------------------
The channel samples from the Quartz Vein Shear Zone and as reported in the above table were processed and assayed by Accurassay Laboratories located in Thunder Bay, Ontario Accurassay Laboratories is an ISO-Certified laboratory that performed the gold fire assays with AAS finish following assay code ALFA1 using 30 grams of rock after it has been crushed and powdered. Results for the remainder of the samples will continue to be released as they are received and reviewed by the company's on-site geologist, Mr. Russell Crosby, M.Sc., P.Geo., who is acting as the Qualified Person (QP) for this project in compliance with National Instrument 43-101.
Wagg Tailings Pond
In the 1990's, Western Troy Capital Resources Inc. processed approximately 907 metric tonnes (1,000 short tons) of quartz vein material through a small mill erected from the six known gold-bearing quartz veins (A-F) at the Wagg gold showing. They reported recovering 346 ounces of gold and deposited the tailings in a depression adjacent to the mill. They reported an overall historical grade of 10.73 g/t at that time from the approximately 1,000 tons of material that was processed. Tailings from the mill were collected in a small pond nearby. This historical data has not been verified. Source: Ontario Ministry of Northern Development and Mines Assessment Files, verified by Russell Crosby, M.Sc., P.Geo.
During the summer and fall of 2011, King's Bay Gold collected 74 samples from the tailings pond to determine what, if any, gold may be present in these tailings. Assay results obtained to date range from a low of 1.00 g/t to over 116.20 g/t and have an average of 4.28 g/t.
The 74 samples that were taken from the tailings pond during the summer of 2011 were also processed and analyzed by Accurassay Laboratories in Thunder Bay, Ontario using 30 grams of sample, the fire assay method, and an AAS finish following Accurassay Assay procedure code ALFA1.
Wagg Mill Feed Pile
On December 19th, 2011, the Corporation reported in a news release that a total of 54 grab samples of red hematite-stained sugary quartz, taken from the mill feed pile near the former mill site at the Wagg occurrence, averaged 14.2 g/t Au. The mill feed consists of a mixture of rocks milled from the six Wagg veins as located nearby in an area of approximately 200 metres by 100 metres. The assay results obtained from these 54 grab samples ranged from a low of <0.005 g/t Au to a high of up to 151.892 g/t Au. The company may consider adding the mill feed and tailings pond left by Western Troy to be processed at the time of their bulk sample to increase the profitability of the bulk sample. It is noted that grab samples as found in the table below are selective by nature and are unlikely to represent average grades for the deposit.
Of the 54 samples collected from the mill feed pile, the following table lists the 36 most significant gold grades obtained:
----------------------------------------------- |KBG Sample #|Au (g/t)| |KBG Sample #|Au (g/t)| | | | | | | |---------------------------------------------| |1014692 |151.892 | |1014679 |4.668 | |---------------------------------------------| |1014684 |132.821 | |1014673 |3.965 | |---------------------------------------------| |1014694 |95.030 | |1014707 |3.209 | |---------------------------------------------| |1014686 |58.430 | |1014695 |2.729 | |---------------------------------------------| |1014704 |54.374 | |1014699 |2.655 | |---------------------------------------------| |1014709 |46.721 | |1014676 |2.335 | |---------------------------------------------| |1014678 |38.785 | |1014682 |2.323 | |---------------------------------------------| |1014660 |32.189 | |1014714 |2.212 | |---------------------------------------------| |1014662 |24.537 | |1014670 |1.713 | |---------------------------------------------| |1014706 |22.679 | |1014657 |1.578 | |---------------------------------------------| |1014703 |19.850 | |1014680 |1.352 | |---------------------------------------------| |1014687 |15.605 | |1014702 |1.067 | |---------------------------------------------| |1014698 |10.347 | |1014669 |1.040 | |---------------------------------------------| |1014701 |5.974 | |1014693 |0.763 | |---------------------------------------------| |1014689 |5.910 | |1014685 |0.494 | |---------------------------------------------| |1014705 |5.884 | |1014671 |0.484 | |---------------------------------------------| |1014691 |5.613 | |1014708 |0.410 | |---------------------------------------------| |1014690 |5.202 | |1014712 |0.398 | -----------------------------------------------
All 54 grab samples from the mill feed pile near the former mill site at the Menary Wagg showing were processed and assayed by Accurassay Laboratories located in Thunder Bay, Ontario. Accurassay Laboratories is an ISO-Certified laboratory that performed the gold fire assays with AAS finish following assay code ALFA1 using 30 grams of rock after it has been crushed and powdered.
Geophysical Surveys & Mapping
Magnetic and electromagnetic (HLEM) were carried out along cut gridlines over the 5 central claims of the Menary Gold Project claim group (Claim numbers 4256397, 4205640, 3014054, 1079876 & 4247110).
About half of the area of the Menary Gold Project claims group has been mapped and prospected.
Menary Gold Project - Work Contemplated for 2012
Recommendations for next steps on the property include excavator trenching to the north of the Wagg prospect and to the south of the Galbraith "A" prospect to determine continuity between the two. Linecutting, geological mapping and prospecting is also recommended over the 6 newly staked claims at the Menary.
Recommendations for next steps at Galbraith "A" includes closely spaced diamond drilling at the gold bearing quartz vein in the shear zone.
King's Bay Gold President & CEO (Kyle Picard) states: "The Spring of 2012 will see a renewed focus on the high grade results at the Menary Gold Project along with moving forward an aggressive plan to develop our 100% owned Sturgeon Lake high grade gold project. With two (100% owned and operated) high grade gold projects under development and two high grade gold projects being developed with partners in 2012 (Headway & Cameron Lake), King's Bay Gold is positioned for an exciting year ahead."
Qualified Person's Statement
All of the drilling and field work on this project has been supervised by the Company's on-site geologist, Mr. Russell Crosby, M.Sc., P.Geo., acting as the Qualified Person (QP) in compliance with National Instrument 43-101. Mr. Crosby has reviewed the technical disclosure in this news release.
PDAC 2012 in Toronto, Ontario - Sunday March 4th to Wednesday March 7th - Booth #2951
King's Bay Gold Corporation is pleased to announce that it will be attending the 2012 PDAC Conference in Toronto, Ontario. Come visit Kyle Picard, President & CEO, Ray Prefontaine, CFO and Russell Crosby, on-site geologist at the Menary Gold Project at Booth # 2951 to discuss the company's upcoming plans for 2012.
About King's Bay Gold Corporation
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: 97,126,913
King's Bay Gold Corporation
Kyle Picard
President & CEO and Corporate Secretary
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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