SALT LAKE CITY, Oct. 19, 2004 (PRIMEZONE) -- Capital Hill Gold Inc. (OTCBB:CAGI) (the "Company") is pleased to announce the results of the Phase 1 trenching work program and near surface structural diamond drilling on its 100% optioned Mexican Hat Property, Cochise County, Arizona.
Based on these and historical results, management is pursuing a financing in order to commence production on the property. The Company has requested the preparation of a comprehensive report detailing recommendations on the next phase of hard rock and alluvial exploration to further enhance the Mexican Hat property, from Pamicon developments.
Trenching Test:
Samples were collected from a number of trenches employing a track mounted 3/4 yd backhoe and trucked to a site where adequate water was available to operate a 15 yd/hr testing plant. Samples were trommeled, screened to minus 1 inch; oversize was rejected with undersize concentrated employing hydraulic riffles in conjunction with expanded metal screening and mats. Head samples were collected from the material prior to washing and tail samples taken from the plant discharge. Concentrate was cleaned up between tests and collected in 5 gallon sealable buckets, sample sizes were between 2.67 bank yards and 4.8 bank yards which were delivered to Mountain States Testing Labs near Tucson.
Trenches TT- 3, 4, 5, 6, 7, 9, and 10 were taken on the Linda drainage system from the base of the east side of the Mexican Hat within an area of some 50,000 square yards. The majority of these trenches did not reach bedrock within the limits of the machinery at some 20 feet.
Trench TT-2 was taken from the Victoria Shaft area and trenches 1 & 8 were not sampled.
Samples were dried, crushed to nominal 10 mesh and split to obtain a one Kg weight which was then cyanide leached for assay.
Table -1: Trench Bulk Sample Head Grades
Conversion factors 1510 Kg/m3 (bank)
0.764 M/yd3
$400 U.S. /oz Au (12.86/gm)
------------ ---------- ---------- ------------- -----------
Sample gm/T Au gm Au/m3 gm Au/yd3 $US/yd3
------------ ---------- ---------- ------------- -----------
TT-2 0.101 0.152 0.116 1.49
TT-3 0.430 0.649 0.496 6.38
TT-4 0.313 0.473 0.361 4.64
TT-5 0.224 0.338 0.258 3.32
TT-6 0.183 0.276 0.21 2.7
TT-7 0.101 0.152 0.116 1.49
TT-9 0.700 1.057 0.807 10.38
TT-10 0.200 0.303 0.231 2.97
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Diamond Drilling:
Discussion of Previous Results
The original drilling on the property was in the Victoria Fault Zone area on the south flank of the Mexican hat Mountain. This is a strong structure striking some N60W and dipping at 45-60 degrees to the north. The Victoria Shaft in this structure predates modern exploration with good gold values of up to 2 oz. per ton Au reported from grab samples of the shaft dumps. Drill holes 89-1 through 6 intercepted this zone. Subsequently more emphasis in drilling was placed on the north easterly set of the fracture zones with most drilling orientated to intersect these structures to the north of the Victoria Fault Zone. Of the 156 previously reported holes some 40 are reported to contain one or more intercepts with grades greater than 0.10 oz per ton Au (3.42 gm/T) over widths of 5 feet or more and 4 have grades in excess of 1 oz per ton Au (34.2 gm/T). During a review of historical work it was noted that the geological resources quoted in the Placer dome reports were in an area some 800 to 1000 feet north and west of the Victoria Fault area around the high grade mineralization reported by MH 89-16 (400ft of 0.074 oz/t/Au including 35 ft of 1.40 oz/t/Au). Another area of potential higher grade values was also indicated some 500 feet east of 89-16 around drill hole MH 89-30 (100 ft of 0.109 oz/t/Au including 20 ft of 0.474 oz/t/Au).
Trenching was also conducted on several areas of the property. Detailed discussion of this work is not available although these are reported to have been sampled by 5 foot long channel samples. A program to drill test under trenches 5 & 6 to the west of MH89-4 (60 ft of 0.280 oz/t/Au including 5 ft of 2.34 oz/t/Au) and trench 2 to the east along the Victoria Fault Zone was conducted.
Recent Drill Program
Drilling was conducted on the Victoria Fault zone using a truck mounted Boyles Super 44 drill machine. Bit size was large diameter HQ (2 3/8 inch). Samples were collected from the drill site, transported off site, logged, split and sampled. The library samples of core were stored in core racks and samples were delivered to Mountain States Lab near Tucson for fire assay.
Core recovery was poor due to the highly broken and altered state of the zones. Gold is loosely held on fractured surfaces and is partly washed from the fractures during the coring process. Four holes were drilled in an attempt to test trenches 2, 5 and 6 reported by previous operators. Drilling totaled 517 feet with 1 hole lost prior to reaching targeted depth due to loss of circulation. The hole could not be re-entered and was abandoned at 114 feet. Circulation was lost at some point in all 4 holes.
During drilling sludge samples were collected for areas of the holes where the holes had circulation and labeled sludge sample. Core was removed and placed in a drain tray to allow excess water to drain prior to placing in core boxes. The water and minor amounts of silt washed from the core was collected in a gold pan and panned. In nearly all instances it was noted that this material contained minor amounts of very fine grained gold particles. Assays of sludge samples in all cases were higher than for the equivalent core assays indicating some questions on the reliability of the results. The large variation in silver results may be due the presence of silver chlorides such as are present in the nearby Tombstone Mining Camp.
The fire assay results for 4 drill holes on the Mexican Hat Victoria Fault Zone are presented below. DDH # 1 & 2 were drilled to the west of the Victoria Shaft to test previous operator trenches 5 & 6 and DDH # 3 and 4 drilled to the east to test trench 2.
Table -- 2: 2004 Mexican Hat Project -- Drill Hole Intercepts
-------- --- ------- ----- ------ ----- ------- -------- ----- --------
Depth From Interval Au
DDH# Dip Azimuth (ft) (ft) To (ft) (ft) g/mt Ag g/mt
-------- --- ------- ----- ------ ----- ------- -------- ----- --------
MH 04-01 sludge 0 50 50 0.205 45.94
-60 210 114.5 82 93.5 11.5 0.137 4.70
sludge 50 93.5 43.5 0.240 55.96
108 114.5 6.5 0.274 12.07
sludge 93.5 111.5 8.0 0.240 57.70
MH 04-02 -60 210 152 10 20 10 0.343 7.85
109.5 116 0.103 ND
143 152 9 0.024 ND
MH 04-03 -60 210 115 sludge 10 44 34 0.069 38.40
77 80 3 0.207 3.87
105 115 10 0.069 0.69
MH 04-04 -90 210.00 136 59 65 6 0.480 2.06
130 136 6 ND 0.14
-------- --- ------- ----- ------ ----- ------- -------- ----- --------
ND-Not
Detected
Charles Ikona P. Eng is the Company's nominated Qualified Person responsible for monitoring the supervision and quality control of the exploration programs completed on the Mexican Hat Property. Mr. Ikona has reviewed and verified the technical information contained in this news release.
On Behalf of the Board,
KENT CARASQUERO
Secretary, CFO
Statements contained in this press release, which are not historical facts, are forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.