Mar 29 2013
Punchline Resources Ltd. ("Punchline" or the "Company") is pleased to announce that it has initiated an exploration work program at the Winnemucca Mountain Property in Humboldt County, Nevada, USA.
Previous exploration on the Winnemucca Mountain Property conducted by several exploration companies, including Sante Fe Pacific Gold Corp. (now part of Newmont Mining), outlined a gold bearing zone containing an estimated historical resource of 4,580,000 short tons grading 0.024 oz/ton gold. Punchline currently holds an option agreement to acquire a 70% interest in the Winnemucca Mountain Property.
"The Winnemucca Mountain Property has provided Punchline with the immediate opportunity to move forward at a very promising exploration project containing a previously well-define gold zone with significant upside potential," said Ramzan Savji, CEO and President of Punchline. "Now that we have prepared for and initiated work at the site, we expect to make significant progress with several steps of the Phase-1 exploration program over the next few weeks."
The Company and its professional geological consultants have set out an exploration strategy at the Winnemucca Mountain Property that is planned to include historical data compilation, detailed geologic mapping, and rock chip sampling of exposed quartz veins in the historic Swordfish resource area. Based on current schedules, results of the first round of mapping and sampling are expected to be received within 3-4 weeks.
Winnemucca Mountain Property Summary
The Winnemucca Mountain Property covers 3,800 acres and is located in an area of numerous past and current gold mines. Two of the most significant are the Sleeper and Hycroft mines which both produced over one million ounces of gold. Both mines are located to the west of Winnemucca Mountain.
Gold and silver were first discovered in the Winnemucca Mining District in 1863 and during the 1860s several smelters were constructed in the area. Modern exploration began in the 1980s with mapping, geochemical sampling, geophysics, and drilling conducted by several companies including St. Joe, Cordex, Tenneco, and Sante Fe Pacific Gold. By the mid-1990s over 52,000 feet of drilling had been completed. A large percentage of this drilling was done in the Swordfish Target which is currently being evaluated by Punchline as a potential resource.
Santa Fe utilized a Geostat computer program to calculate a cross-sectional resource estimate for the Swordfish zone area which estimated it to contain 4.58 million tons grading 0.024 oz/ton gold at a 0.01 oz/ton cut-off). This estimated resource occurs in an area 2,200 feet long and 700 feet deep. The Santa Fe historical resource estimate pre-dates the implementation of current 43-101 compliant techniques. As such, it is only a historical estimate and does not meet current resource standards.