Ironwood Gold Continues 2011 Growth With Plans for New Nevada Acquisition
Ironwood Gold Corp. is pleased to report on plans for growth in 2011 with the announcement today that it has entered into a Letter of Intent (“LOI”) to acquire a 100% interest in mining operations on a property initially consisting of 70 unpatented mining claims known as the Ruby Hill Project, located approximately 70 miles north of Ely in White Pine County, Nevada.
The Project is in the Aurum Geological District, where operations began in 1871 with previous production that yielded 702,000 ounces of silver, 1.8 million pounds of copper, 1.6 million pounds of lead, and 5.4 million pounds of zinc. The location is nearby to the Bald Mountain mine where Barrick Gold Corporation reported 2009 gold production of 75,000 ounces and has stated a provable and probable reserve of 4.49 million ounces of gold for their Southern Ruby Mountain property.
The Ruby Hill Project lies within an 18 square mile area that is 2 miles wide and approximately 9 miles long that is anomalous in gold, silver and base metals. Geologically, most of the mines in the area are located in Paleozoic dolomites and limestones as replacement and vein deposits in several formations, most notably the Fishhaven and Laketown dolomites. Excellent potential exists mainly for underground hardrock operations within the project area.
Most of the federal land in the project area is governed by the U.S. Forest Service and the Bureau of Land Management (BLM) within the Schell Mountain range. FMC conducted an exploration of the area in 1982 and drilled 12 diamond drill holes to a maximum depth of 100 feet with anomalous results for both gold and silver. The existence of mineralization was confirmed, with an undetermined extent and depth.
Data from a 2007 site visit developed from chip sampling of the Banded vein at the Ruby Hill mine yielded up to 23.2 oz/ton silver, generally confirming earlier results for the property. Previous exploration work at the Ruby Hill project indicates that anomalous gold occurs along a zone that is at least 8-9 miles long and approximately 1-2 miles wide and untested at depth.
Ironwood Gold’s Management believes the Ruby Hill area has been largely underexplored in the past and could host significant mineralization. The Company believes an aggressive mapping/sampling program should be done to understand the complex geologic controls of the multiple targets that exist at Ruby Hill. Based on the historic data it is believed that the potential is good for a high grade, underground deposit offering a minimum of 1.5 million ounces of gold for the project area.
The Definitive Agreement shall contain customary representation and warranties, covenants and indemnification provisions. Additional details regarding the Company and its agreements are filed as part of the Company’s continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission’s (“SEC”) EDGAR database.