Surface Samples Grading 37.5 g/t Gold & 769.0 g/t Silver Indicate the Potential for a Bonanza Grade System at the Santa Lucia Gold Property in Sonora, Mexico
ARCTIC HUNTER URANIUM INC.
Suite 501 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2 Telephone: (604) 681-3131 Facsimile: (604) 408-3884
NEWS RELEASE
May 20, 2010 CNSX Trading Symbol: AHU ________________________________________________________________________________________
SURFACE SAMPLES GRADING 37.5 G/T GOLD & 769.0 G/T SILVER INDICATE THE POTENTIAL FOR A BONANZA GRADE SYSTEM AT THE SANTA LUCIA GOLD PROPERTY IN SONORA, MEXICO
Vancouver, B.C. - Arctic Hunter Uranium Inc. (CNSX: AHU) (the “Company”) and Kootenay Gold Inc. (TSX-V KTN) are pleased to announce the results of a surface grab sampling program from the Santa Lucia gold and silver project in Sonora, Mexico. A significant number of high grade samples were obtained along a 300 meter length at the Santa Lucia Gold & Silver project indicating the potential for a large bonanza grade system with assays that include:
Gold: 37.5 g/t, 28.2 g/t, 26.1 g/t, 23.4 g/t, 12.35 g/t and 9.15 g/t
Silver: 769 g/t, 473 g/t, 82 g/t, 1525 g/t, 482 g/t, and 574 g/t
Jim McDonald, CEO of Kootenay Gold and Tim Coupland, CEO of Arctic Hunter both commented, “ that the results from the surface sampling and preliminary geologic mapping continue to support and confirm the belief that the Santa Lucia Gold & Silver Property has the potential for hosting a large buried epithermal gold- silver deposit. We both look forward to receiving the results of the recently completed 3D-IP survey in preparation for the commencement of a comprehensive drilling program”.
A total of 133 grab samples were collected during a recent extensive property mapping program to gain a better understanding of the extent of anomalous mineralization along the 4 kilometer trend comprised of the Fortuna, San Geronimo, Central and South zones. Of these 43 samples returned anomalous gold over 0.1 g/t gold, with 26 greater than 0.5 g/t gold, and 18 greater than 1.0 g/t gold.
These results compliment previous sampling from the Central zone which showed comparable results indicating the potential for bonanza grade gold and silver mineralization. A 3D-IP survey comprising 20 line kilometers has been completed and results are now being processed. The 3D- IP geophysical program is concentrating on the Santa Lucia north area where preliminary geologic mapping and sampling has been successfully completed. The results from the 3D-IP will aid in target definition and will form part of the basis for a comprehensive diamond drilling program at Santa Lucia. A release of these geophysical results will be made once available. Following the completion of the 3D-IP program and receipt of all required drill permits, drilling will commence on all high priority targets.
The Santa Lucia north area has four known mineralized zones forming a 1 by 4 kilometer area of intermittent veining and mineralization, controlled by north and northwest trending structures. The known mineralization is open to the north and south.
The Santa Lucia north area represents a target area where ore bodies are thought to be buried by shallow cover. The extent of mineralization along trends measuring a few kilometers in length with only about 5% bedrock exposure supports the belief the area may contain buried epithermal vein type gold-silver deposits.
Surface grab samples collected by the Company’s joint venture partner Kootenay Gold (News Dec 10, 2009); have returned from background to a high of 34.8 g/t gold and 856 g/t silver from grab samples which indicates the potential for bonanza grades within the system. Additionally one sample of sericitically altered tuff without visible veining assayed 3.138 g/t Au and 173.8 g/t Ag which is an indication that mineralization may be found outside of veining opening up the potential for bulk tonnage mineralization.
To view a map for the sample locations visit http://www.kootenaygold.ca/s/JointVentures.asp
SAMPLING, ASSAYING AND QA/QC
Samples were placed in labeled rice sacks and sealed. All samples were recorded and delivered to the ALS Chemex sample preparation lab in Hermosillo, Sonora, Mexico. Receipt of the samples was signed off at the preparation lab. Pulps of each sample were prepared in Hermosillo and sent to ALS Chemex, North Vancouver B.C. Canada an ISO 9001-2000 certified full service analytical laboratory.
SANTA LUCIA GOLD & SILVER PROPERTY
The Santa Lucia gold project is comprised of two mineral claims covering 9,350 hectares. This large mineral concession is located in the southern Sonora state region of Sonora, Mexico, extending 16.5 km north-south x 11.5 km east-west. The property is approximately 100 km northeast of Ciudad Obregon, Mexico. The Santa Lucia Gold and Silver project area contains several styles of precious-metals mineralization including: 1) coarsely crystalline, deep-seated, gold-silver +/- minor base metals quartz veins in Mesozoic plutonic rocks, 2) vuggy finely crystalline quartz-breccia veins and stockworks in Tertiary volcanics, 3) barren sulfide-deficient hairline quartz veinlets in Tertiary volcanics, 4) barren sulfataric (argillic and silicic) alteration in andesitic volcanics.
ABOUT ARCTIC HUNTER
Arctic Hunter is Canadian mineral exploration company involved in the acquisition, exploration and development of precious and base metal mineral properties. The Company has acquired a 100% interest in a uranium prospect comprised of eight mineral claims of approximately 6,271 hectares, located near Lever Lake, Northwest Territories; the Lever Lake Property was acquired to determine if economic quantities of minerals exist on the property. The Santa Lucia Gold and silver project is located in Sonora, Mexico. The Santa Lucia gold project and property is a large mineral concession, comprised of 9,350 hectares extending about 16.5 km north-south x 11.5 km east-west. The project area contains several styles of precious-metals mineralization including gold and silver. The gold and silver mineralization is associated with epithermal-style veins, silica replacement zones and stockworks. The Company also intends to devote a portion of its corporate efforts to reviewing the assessment and acquisition of additional base and precious metal mineral exploration properties and will consider any acquisition of good exploration properties if the opportunity to acquire properties of value and interest to the Company arises.
ABOUT KOOTENAY GOLD
Kootenay is an emerging exploration Company actively developing several mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Numerous joint-venture partnerships maximize the potential for new discoveries. The Company's top priority remains the ongoing development of its Promontorio Silver project in Sonora State, northwest Mexico, which encompasses the former producing Promontorio Silver Mine.
The foregoing geological disclosure has been reviewed and verified by the Company’s qualified person Brian Game, P.Geo, (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects).
INVESTOR RELATIONS
Investors are welcomed to contact Andrew Mugridge or Benjamin Curry of Progressive Investor Relations for all corporate updates and shareholder inquiries at (604) 689-2881, or Morgan Brewster, Arctic Hunter Uranium Inc. at (778) 989-2739 or [email protected]
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO Arctic Hunter Uranium Inc.
Tel: (604) 681-3131 Fax: (604) 408-3884
Or
Morgan Brewster, Director Arctic Hunter Uranium Inc.
Tel: (778) 989-2739
Kootenay Gold Inc.
Ken Berry, Chairman Tel:604-601-5652 1-888-601-5650 www.kootenaygold.ca
Forward-Looking Statements
In the interest of providing the Company's shareholders and potential investors with information regarding the Company, including managements' assessment of the future plans and operations of the Company, certain statements contained in this document constitute forward-looking statements or information (collectively “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as “anticipate”, “continue”, “estimate”, “expect”, “forecast”, “may”, “will”, “project”, “could”, “plan”, “intend”, “should”, “believe”, “outlook”, “potential”, “target” and similar words suggesting future events or future performance. In addition, statements relating to “resources” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the resources described exist in the quantities predicted or estimated and can be profitably produced in the future. In particular, this document contains, without limitation, forward-looking statements pertaining to the following: expectations of management regarding the proposed acquisition of Sterling, including the timing of completion of the acquisition; operating and financial metrics of the acquisition; potential synergies resulting from the acquisition and the effect of the acquisition on the Company's operations.
With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things: future capital expenditure levels; future silver and base and precious metals prices and future silver and base and precious metal production levels; future exchange rates and interest rates; our ability to obtain equipment other resources in a timely manner to carry out development activities; our ability to market our silver and base and precious metals successfully to current and new customers; the impact of increasing competition; our ability to obtain financing on acceptable terms; our ability to attract new senior management and board members; and our ability to add production and resources through our development and exploitation activities. Although the Company believes that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause the Company’s actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the following: that the proposed transaction may not close when planned or at all or on the terms and conditions set forth herein; the failure of the Company to obtain the necessary Court, Exchange, regulatory and other third party approvals required in order to proceed with the proposed transaction; volatility in market prices for silver and other base and precious metals; incorrect assessment of the value of the acquisition; failure to realize the anticipated benefits and synergies of the acquisition; general economic conditions in Canada, the U.S. and globally; and the other factors described under “Risk Factors” in the Company’s annual reports available in Canada at www.sedar.com, Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Statements contained in this news release relating to future results, events, and expectations are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forwardlooking statements involve known and unknown risks, uncertainties, scheduling, re-scheduling, and other factors which may cause the actual results, performance, estimates, projections, resource potential, interpretations, prognoses, schedules, or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such statements. Such factors include, among others, those described in the Company' annual reports available in Canada at www.sedar.com.
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