Ely Gold provides update of the Green Springs Project and engages SRK Consulting
April 12, 2013
Ely Gold Minerals Inc. ("Ely Gold" or the "Company") is pleased
to provide the following update on its recently acquired Green Springs
property located in White Pine County, Nevada.
Green Springs lies approximately 5 miles south of Ely Gold's Mt. Hamilton project, 14 miles southeast of Midway Gold's (NYSE: MDW) Pan Deposit, 7 miles southeast of Midway's Goldrock project and 10 miles northwest of Pilot Gold's (TSX: PLG) Griffon project. The Mt Hamilton Project is being managed by Solitario Exploration Royalty Corp. (NYSE: XPL; TSX: SLR),
under a joint venture agreement with Ely Gold whereby Solitario owns
80% and Ely Gold owns 20%. Mt. Hamilton, Pan and Goldrock are currently
in the permitting process for mine development.
Previous work on the Green Springs property was conducted by U.S.
Minerals Exploration Company ("USMX") during the 1980's. The work
outlined six zones of gold mineralization from approximately 650 reverse
circulation drill holes. Using a cut-off grade of 0.7g/t gold, USMX
developed and produced from three of these mineralized zones. Historic
production records, from 1988-1990, indicate that 1.1 million metric
tons of ore averaging 2.1 g/t gold were mined by open pit mining and
heap leaching, and gold recoveries of approximately 80% were obtained
from a relatively coarse crush. Very little exploration work was done on
peripheral targets after the initial discoveries by USMX. However in
2004-2008, previous owners conducted extensive ground sampling, mapping
and a CSMAT geophysical survey. The USMX figures are historical figures
obtained from a 1991 report by the Geological Society of Nevada.
However, a qualified person has not done sufficient work to classify the
historical estimate as current mineral resources or mineral reserves
the issuer is not treating the historical estimate as current mineral
resources or mineral reserves.Therefore, the USMX figures should not be
relied upon by investors.
At the Green Springs project Ely Gold owns 76 unpatented lode mining
claims and has an option to acquire a 100% interest in a further 2
unpatented lode mining claims that altogether cover an area of 1,498
acres. The property hosts Carlin style, epithermal, disseminated,
sediment hosted gold-silver mineralization. The principal target horizon
at Green Springs in the 1980's was the Lower Chainman Shale and Upper
Joana Limestone similar to Midway's Goldrock project. These units lie
stratigraphically above the Pilot Shale, a primary host to Carlin style
gold mineralization elsewhere in the region, including Midway's Pan
The Company will initially focus on compilation of historical data to
provide direction to define targets proximal to the historic pits as
well as new exploration targeting the Pilot Shale. To that end, SRK
Consulting has been retained to compile, review and digitize historic
data, and create a modern geologic and mineralization model for the
Property, to ultimately produce a National Instrument 43-101 Geological
Report with recommendations for future exploration and development. In
addition, Enviroscientists, Inc. has been retained by the Company to
coordinate the permitting and environmental requirements for exploration
and development on the property.
"Ely Gold is focused on identifying near term production projects in
safe operating jurisdictions, like Nevada. Given the success of the Mt.
Hamilton project we are excited to begin work on a property in close
proximity to three projects currently being permitted for mining. We
have collected significant historical data on the Green Springs project
that allows us to fast track our assessment of the property and define a
development strategy", stated Trey Wasser, Ely Gold's President &
This press release has been read and approved by Stephen Kenwood, P.
Geo, a director of the Company and the Company's Qualified Person.
On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey Wasser, President & CEO
For further information, please contact Ely Gold & Minerals Inc. at 604-488-1104.
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.
This news release may contain forward-looking statements including but
not limited to comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.