Punchline Resources Ltd. (OTCQB: PUNL) (OTCBB: PUNL) ("Punchline" or the "Company") is pleased to provide an update regarding exploration programs currently outlined for the Empress and Winnemucca Mountain Properties in Nevada.
"We have been very successful at financing and acquiring interests in two premier exploration and development properties in two of the most important gold producing areas of Nevada -- one in the prolific Walker Lane mineral belt and the other in Humboldt County -- the second largest gold producing county in the United States," said Ramzan Savji, CEO and President of Punchline. "Current global economic uncertainty, inflationary quantitative easing programs, and the subsequent flight of gold to $1,700 have all led to a substantial increase in interest to establish new gold production within the United States. That being said, the Company has outlined substantial work programs for both properties that we anticipate will further define the historically identified areas of gold and silver mineralization with the ultimate goal of bringing the projects into production. Furthermore, we intend to aggressively pursue the acquisition and joint venture development of additional properties in order to take advantage of the soaring gold prices that we feel could make many previously explored or developed projects remarkably viable."
Empress Property Description/History
The Empress Property consists of a total of nine (9) unpatented mining claims located approximately 26 miles south of Goldfield, Nevada, in the Topok mining district located in the southern portion of the Walker Lane mineral belt. The Walker Lane mineral belt is a 60+ mile wide corridor that runs NNW-SSE along the California Nevada border and has produced a reported 35,000,000 gold equivalent ounces since the mid-1880s. This district has hosted many well-known gold mines, including the Round Mountain open-pit mine, the Tonopah mine, the Goldfield mine, and the Silver Peak mine.
In total, seven (7) horizontal adits make up the two historical mines situated on the Empress property, the Empress Mine and the Wonder Mine. Previous results of underground sampling show several +1 oz./ton gold and silver assays and include an 11.7 oz/ton gold assay taken by Homestake Mining Co. in the 1980s. The highest reported silver value in previous Wonder Mine sampling is 3.18 oz/ton.
Historic drilling activity has occurred only at the Wonder Mine site. Results include the following: Hole E0702 intersected 7 feet (2.1 m) true width averaging 0.237 oz/ton gold (8.10 g/t) and 1.75 oz/ton silver (60.0 g/t) including 3 feet (0.9 m) true width averaging 0.470 oz/ton (16.10 g/t) and 3.85 oz/ton silver (132.0 g/t). Drill hole E0706 intersected 5 feet (1.5 m), true width 3.9 feet (1.2 m), averaging 0.793 oz/ton gold (27.15 g/t) and 0.46 oz/ton silver (15.9 g/t). While encouraging, these results will need confirmation with new drilling. None of the other mine workings have been drilled.
Empress Property Exploration Program
The Empress Property has a well-documented database of surface and underground geochemical sampling and results for eight historic drill holes. A drilling permit allowing 46 additional drill holes is currently in place with the Bureau of Land Management (BLM). The planned Empress Property exploration program will consist of several key phases:
1) Review historic database for accuracy through field checking including resampling of the five underground workings which have partial access.
2) Conduct detailed geological mapping of known mineralized vein locations, thicknesses, and elevations to allow targeting of a planned drilling program.
3) Analysis of updated exploration database and selection of high-priority drill targets to test vertical extensions of existing veins. Cross sections will be constructed to aid in targeting where underground mapping and sampling was completed.
4) Complete planned drilling program of 10 reverse circulation (RC) holes. Drilling can begin as soon as target maps/sections are completed because drilling permits are already in place.
5) Evaluation of new drilling data with the goal of better defining the known mineralization for potential open pit mining or further high grade underground mining.
Winnemucca Mountain Property Description/History
The Winnemucca Mountain Property consists of a total 208 unpatented mineral claims in Humboldt County, in northwestern Nevada (total claim number corrected from a previously reported 72 claims). Humboldt County is the second largest gold producing county in the United States and hosts four producing gold mines, including the Getchell (Barrick/Newmont), Marigold (Goldcorp), Lone Tree (Newmont), and Twin Creeks (Newmont). The property is located about 25 km northwest of the Lone Tree Mine and 30 km southeast of the historic Sleeper open pit mine operated by Amax Gold from 1986 to 1996.
Previous exploration conducted at the Winnemucca Mountain Property by Santa Fe Pacific Gold Corp. (now Newmont Mining) between 1988 and 1990, focused on the pediment covered Swordfish zone. Gold mineralization at the Swordfish zone occurs within a northeast-trending low sulfide quartz veining type system that extends approximately 670 meters (2,200 feet) along the western flank of claim block. Santa Fe conducted geological mapping, rock sampling, trenching, CSAMT and induced polarization geophysical surveys, collected 286 auger hole bedrock samples, and completed a total of 18,260 meters (52,470.8 feet) in 73 reverse circulation (RC) drill holes, nearly all of which were focused on the Swordfish zone and reported results ranging up to 13.7 m averaging 3.9 g per tonne gold.
Santa Fe outlined a gold bearing zone containing an estimated 4,580,000 million tons grading 0.028 opt gold or approximately 128,240 oz. of gold. Based on current gold spot prices of $1,770/oz., the Swordfish zone only is thought to contain over $225 million in gross mineral value. The Santa Fe historical estimates do not include mineral resource categories currently utilized in present day resources estimates.
Winnemucca Mountain Property Exploration Program
Initial planned exploration at the Winnemucca Mountain Property will focus on confirmation and expansion of the known mineralized Swordfish zone and its surrounding area in several stages:
1) Although the property has undergone significant exploration and drilling in the past, the complete data set has never been compiled. It will take several weeks to create a complete database, but is expected to allow for the first comprehensive evaluation of the property and known mineralized zones.
2) Following completion of the exploration database, detailed geological and surface geochemical mapping will be completed and correlated with historic drill hole information.
3) Simultaneously, additional surface sampling will be conducted to confirm areas of anomalous geochemistry.
4) All known data will be utilized to create drilling cross sections and advanced 3D modeling to determine possible high-priority targets.
5) After the above work is completed, the Company can then design and execute a logical drill program to further confirm and possibly expand the known mineralized zone.
About Punchline Resources
Punchline Resources Ltd. is an emerging mineral resources company focused on both domestic and international exploration and development projects. The Company is currently exploring the Empress Property and Winnemucca Mountain Gold Property in Nevada, USA. The Company is also evaluating several additional projects for potential acquisition and/or participation.
Some information in this press release constitutes forward-looking statements or statements which may be deemed or construed to be forward-looking statements such as but not limited to the potential confirmation and expansion of presently known mineralized zones on the Empress or Winnemucca Mountain Properties, the evaluation or confirmation of historical exploration results on those properties, the establishment of proven resources on those properties, the possible acquisition of additional projects, and the possible future economic production of minerals. The words "plan," "forecast," "anticipates," "estimate," "project," "intend," "expect," "should," "believe," and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The risks, uncertainties and other factors are more fully discussed in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Punchline Resources Ltd. herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Punchline Resources Ltd. disclaims any obligation to update forward-looking statements contained in this press release, except as may be required by law.
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