NEW YORK, Nov. 1, 2006 (PRIMEZONE) -- Great West Gold, Inc. (Pink Sheets:GWGO) announced that it would be providing stockholders with more detailed data on its various Mining Exploration Projects in order for stockholders to gain a better insight into the value of the Company. Great West Gold, Inc. confirms that the Chairman of its Advisory Committee, Dr Wayne P Colliston, is continuing with the re-assessment of Great West Gold, Inc.'s Mining assets, and to that end, is releasing this report, compiled in August, 2004 on the "Mockingbird" gold (silver - copper) property. Dr Colliston is preparing an updated report on this property at this time and upon its completion, this report will be made available to our stockholders. This is the second report being released by the Company, the first having been the "Bouse" Gold Mining Project, the details of which were announced last week.
At the gold price of approximately US$400/oz (in August 2004), this provides a value estimate for the deposit in the range of up to $400 million. The estimated gold resource does not include the potential of the 16 gold placers identified on the property. At the current Gold price of circa US$600/oz, the revised and updated valuation report being prepared by Dr Colliston will be significantly higher.
INTRODUCTION:
The Projects are located in the historic Mockingbird Mining District, about 50 miles (80 kilometres) southeast of Las Vegas. The project area is on federal lands about 5 miles (8 km) west of the major Las Vegas / Phoenix highway and within 10 miles (16km) of the Colorado River; it comprises 4 claim groups spread over 2,500 acres.
As such, enough is known about the Projects to warrant reassessments of their mineral resource potential.
In Arizona, the Company will enter one of the most exciting and historical gold producing areas in the USA with its new high potential gold projects, namely, the Mockingbird and Great West Gold Project including the four claim groups. Significant reserves and gold mineralization are expected at depth, constrained by the structural controls associated with the Mockingbird detachment fault.
The sources of information available at the time of compilation of this report have been extracted from reports of the U.S. Geological Survey, reports prepared for Golden Sierra and references from the gold industry including other Arizonian gold projects (these are available on request from the Company's web site).
The resource potential available to the proposed future operations has been estimated by the project managers and consultants based on data drawn from reports and records related to the Golden Sierra and previous operations. There is no reason to doubt the authenticity or substance of those records and we believe that for the purposes of this report the estimates extracted from those reports could be acceptable.
A complete audit of the information available at the time of compilation has not been carried out, and the valuation of the mineral potential contained in this report assumes that confirmation of certain of the resources will be carried out at an early stage of exploration.
The investigations have concentrated on the review of the gold resource within the Mockingbird Project area and have relied on estimates and proposals as provided by Golden Sierra and previous data to make the review and estimates. There is no reason to doubt the information so obtained.
TITLE
Mining title consists of 2,500 acres (1,011.72 HA) of mineral rights and comprise a number of federal claims, namely:
Lode deposits: three Placer deposits: sixteen. And Claim Groups, which consist of: The Mockingbird Claims, the Dandy Claims, the Great West Claims and the MP Claims.
It is significant to note that the claim block includes four existing mines, namely, Mockingbird, Great West, Hall (Dandy) and Pocahontas; all these mines contributed significantly to the past gold production in this important gold producing mining district.
PROJECT OVERVIEW AND PAST EXPLORATION
The Mockingbird Project involves an important new type of Arizona gold deposit, called a "detachment fault" deposit. Detachment fault deposits were first recognized as a separate form of gold deposit in the 1980's. The best example of an Arizona detachment gold deposit is Copperstone (Figure 1), which, like Mockingbird is in the highly extended Western Arizona terrain near the Colorado River.
Copperstone was the biggest gold discovery in Arizona in at least 50 years. Cyprus Gold profitably mined the 500,000 oz open pit resource during the 1980's. Based upon the underground drilling by American Bonanza, it appears that the underground high-grade resource is even larger. This is however to be expected from the style of mineralization associated with detachment faults.
Unlike Copperstone, Mockingbird is an historic gold producer, producing some 15,000 ounces from high-grade ore at a weighted average grade of 0.8 oz/T. A majority of this production was from the Mockingbird Mine itself, which is the centerpiece of the Company's land position. Other mines producing gold were the Great West, Hall (Dandy) and Pocahontas Mines, all of which are included in the claim block (see Wilkins 1982). A gold rush was initiated at Mockingbird during the 1980's, with many companies providing large amounts of exploration activity. Anaconda, who acquired the Mockingbird Project, focused exploration on the area east of the historic Mockingbird and Great West mines, and lying beneath the surface trace of the Mockingbird detachment fault. Anaconda estimated a deposit of at least 10 million tons of .05 to 0.1 oz / T gold. This means the deposit is in the range of 500,000 to 1,000,000 ounces of gold, approximately the same size as Copperstone. This estimate does not include the additional vein material included in the earlier mentioned Wilkins Report. Joe Wilkins assessed the deposit for Gulf Mineral Resources in 1982 (see "Economic Geology of the Mockingbird Mine Area") and assumed a deposit of at least 500,000 tons at 0.1 oz / T from just the surface veins. The project was turned down as Gulf was of the opinion that the project was not big enough. Next, Santa Fe Gold (now part of Newmont) acquired a claim block at the historic Mockingbird mine. Although their work showed anomalous gold in numerous samples, Santa Fe cancelled the project without drilling on the erroneous theory that the gold was largely found in veins and not in wall rock.
It is clear that in making this decision, the structural geology controls on the mineralization were poorly understood. This left the door open for Anaconda, which acquired two square miles of claims (all included in the Companies' land position). Anaconda geochemistry delineated numerous gold anomalies. A seismic survey confirmed that the detachment fault was largely horizontal under the eastern portion of their claim block.
There is little subsequent exploration history on the property. Arco (Anaconda's parent company) shut Anaconda down and abandoned the project. Chevron then staked the same area, did their geochemistry and selected drill targets. Chevron then merged with Gulf, and the combined unit was under the management of former Gulf personnel. As explained above, Gulf had previously turned down the project and now moved to terminate it. Western States next acquired the property for several years and apparently only did some trenching. Golden Sierra, who viewed it as one of their biggest and best gold properties to date, then acquired the Mockingbird project.
GEOLOGY OVERVIEW:
The Mockingbird Mining District is situated along an undulating pediment along the east flank of the Black Mountains and occurs in the "basin and "range" province of the south-western United States. The province has undergone crustal extension, with the development of symmetric structural arrays such as horsts and grabens, with the horsts being the ranges and the grabens being the basins in the "basin-and-range topography. Igneous activity (basaltic volcanism) occurred with the extensional faulting during the Mesozoic to the Cenozoic. The Mines in the district are situated along a distinct N30 degree west linear feature that cuts across the Black Mountains and displaces all older lithologic and tectonic features. The NW trend is probably a late tertiary, basin and range fault zone that localized and preserved the mineralization at the mines
The geology and mineralization of the Mockingbird District is strongly influenced by Tertiary-age detachment faults and younger high-angle normal faults, associated with the abovementioned crustal extension. The regional geological setting is a major detachment fault (called the "Mockingbird Mine Fault"; Faulds et al., 2000) separating tertiary volcanics in the upper plate from Precambrian gneiss in the lower plate.
Mineralization is found in both quartz veins and breccia zones hosted by steep faults. The mines in the Mockingbird district are located along northwest to east west striking, north-dipping to flat quartz veins containing specular hematite, oxidized copper minerals and free gold.
The nature of the structures and mineralization further suggest potential for another type of ore deposit -- that of the strong likelihood of a major detachment fault associated gold / copper deposit, similar to the proven and mined Copperstone and Mesquite deposits. This was the working hypothesis of Anaconda and, later, Chevron. Unfortunately, the hypothesis could not be tested; neither company drilled the property because of project cancellation resulting from shutdown of the company (in the case of Anaconda) or merger (with Gulf, in the case of Chevron).
Surface and dump sampling shows a close correlation to Copperstone mineralization with the following average grades for all samples: Gold - 0.09 oz/T; Silver - 0.3 oz/T and Copper - 0.4%.
Chevron's geochemical work suggests two undrilled anomalies in Sections 26 and 35.
Sixteen Placer gold deposits have been identified on the claims area, but have not been tested to date.
Exploration Model:
The Mockingbird Project area has the potential for the development of a large gold reserve.
Expectations are high that a resource will be confirmed by following the known mineralization, (a) eastward (in the case of the Mockingbird Mine) and (b) north-eastward (in the case of the Dandy and Great West) under the detachment fault. The deeper Mockingbird gold mineralization is expected to occur in northwest-striking, moderate to shallow dipping fault zones related to the Mockingbird fault structural horizon in the footwall of the fault (Precambrian basement gneiss). The expected gold mineralization will be associated with breccia zones where the fault rock has been intensely sheared, altered and replaced with intense hematite and magnetite, chloritization, silicification and copper oxides related to the fault. Without the benefit of Anaconda's work, it will be necessary to re-do some geochemical and geophysical work to select drill sites.
The Mockingbird Area is modelled as a lower plate deposit, and east of the Mockingbird detachment fault the lower plate is buried. This area east of the fault is where most of the former claims occur; however large scale mining did not acquire the historic Mockingbird, Dandy and Great West Mines which are west of the fault where the lower plate is exposed.
RESERVE REVIEW
Anaconda estimated an Inferred Resource of at least 10 million tons of 0.05 to 0.1 oz/T gold with additional resources of silver and copper. U.S. Geological Survey Open File Report 92-002 and the Arizona Department of Mines and Mineral Resources corroborated these estimates. Underground operations and an open pit have previously been established with initial assay results and informal sampling confirming widespread surface gold mineralization, some of which is high grade gold (2 oz/T).
The deposit size may be in the range of 500,000 to 1,000,000 ounces of gold. At the gold price (in August 2004) of approximately US$400/oz, this provides a lower estimated value for the deposit of USD200 million and an upper value of USD400 million.
The estimated gold resource does not include the potential of the 16 gold placers identified on the property.
CONCLUSIONS AND RECOMMENDATIONS
Conclusion
From the assessment of the Mockingbird Project Area the following conclusions are made:
1. The Mockingbird Project is a relatively high tonnage, low-grade
potential deposit. It has an Inferred Resource of at least 10
million tons with variable grade of 0.05 - 0.10 oz/T (1.55 - 3.1
gram/ton).
2. The gold resource is estimated to be of the order of 500,000 to
1,000,000 ounces of gold; this excludes the potential of the 16
gold placers on the property.
3. Silver (0.3 oz/T) and Sulphide mineralization (copper: 0.4%) may
also show potential during future development on the whole
property.
4. The gold resource can be raised significantly by drilling for the
subsurface extension of the Mockingbird Detachment Fault, with
the expectation of discovering high volume mineralised detachment
fault deposits.
5. The sixteen identified placer deposits are easily mineable and
also have the potential of raising the gold resource.
Recommendations
Extensive exploration at greater depth should be considered as very important to increase the resource of the property and appropriate technology applied for its exploitation.
GENERAL:
The "Mockingbird" Gold Mining Project is owned by Sentinel Mining Holdings plc. Great West Gold, Inc. retains a stake of 51% in this Company after distributing 41% of this Company's stock to Great West Gold, Inc. stockholders of record as at November 14, 2005. It is intended that Great West Gold, Inc.'s interest in this Company and in its "Mockingbird" Gold Mining Exploration Project be sold into "The Sentinel Gold Group" as set out below.
Great West Gold, Inc. has announced that it intends to dispose of all of its Gold and Copper Mining interests into three new OTC quoted companies and upon the completion of those "Reverse Merger", distribute all Great West Gold, Inc.'s stockholding in those companies to Great West Gold, Inc. stockholders. Great West Gold, Inc. will be making an acquisition in another Industry Sector.
Great West Gold, Inc. will be creating two new OTC quoted Gold Companies and one OTC quoted Copper Company through this de-merger of its Mining Assets. The de-merger will be structured as follows:-
THE "TREASURE KING GOLD GROUP":
Great West Gold, Inc. announced that it significantly increased its Gold assets through the acquisition of the "Storm Cloud", "Venezia", "Starlight", "Buffalo Lime Cap", "Red Cloud", "Buffalo", "Federal", "Gladstone Lookout" and "Bonanza" Gold Mining Exploration Projects. Great West Gold, Inc. already owns the "Treasure King" and the "Yaba" Gold Mining Exploration Projects. Great West Gold, Inc. intends to dispose of these Gold Mining Exploration Interests, being the "Storm Cloud", "Venezia", "Starlight", "Buffalo Lime Cap", "Red Cloud", "Buffalo", "Federal", "Gladstone Lookout", "Bonanza", "Treasure King" and "Yaba" Gold Mining Exploration Projects; to a (yet to be confirmed) OTC quoted Company to form "The Treasure King Gold Group", through a "Reverse Merger".
Great West Gold, Inc. will, upon completion of this "Reverse Merger" transaction, divest itself of its entire stockholding in the quoted, "The Treasure King Gold Mining Group", to Great West Gold, Inc. stockholders.
THE "SENTINEL GOLD GROUP":
Great West Gold, Inc. holds 51% of each of the following Gold Mining Exploration Projects:
"Ambassador" held through Ambassador Gold Holdings plc "Golden Eagle" held through Golden Eagle Mining Holdings plc "Bouse" held through Bouse Mining Holdings plc "Mockingbird" held through Sentinel Resource Holdings plc "South Copperstone" held through Copperstone Mining Holdings plc
Great West Gold, Inc. stockholders, through the declaration of Stock Dividends in November and December of 2005 and in January 2006, hold an amount of 40% of each of these Companies. The balance of the stock in each of these Companies, being 9.99%, is held by Searchlight Exploration, LLC.
Great West Gold, Inc. (along with Searchlight Exploration) intends to dispose of their combined 60% stockholding in these Gold Mining Exploration Interests, being the "Ambassador", "Bouse", "Mockingbird", "South Copperstone" and "Golden Eagle" Gold Mining Exploration Projects; to a (yet to be confirmed) OTC quoted Company to form "The Sentinel Gold Group", through a "Reverse Merger".
All of the stockholders, holding the balance of 40% in each of these Gold Mining Exploration Companies, will be offered the chance to exchange their stock in each of these five Gold Mining Exploration Companies for stock in "The Sentinel Gold Group", and on the same terms and conditions as Great West Gold, Inc. and Searchlight Exploration, LLC.
Great West Gold, Inc. will, upon completion of this "Reverse Merger" transaction, divest itself of its entire stockholding in the quoted, "The Sentinel Gold Mining Group", to Great West Gold, Inc. stockholders.
THE "COPPER MOUNTAIN MINING GROUP":
Great West Gold, Inc. announced that it significantly increased its Copper assets through the acquisition of the "Tip Top", "Mineral Mountain" and "Swansea" Copper Mining Exploration Projects. Great West Gold, Inc. already owns the "Copper Mountain" Copper Mining Exploration Project. Great West Gold, Inc. intends to dispose of these Copper Mining Exploration Interests, being the "Copper Mountain", "Mineral Mountain", "Swansea" and "Tip Top" Copper Mining Exploration Projects; to a (yet to be confirmed) OTC quoted Company to form "The Copper Mountain Mining Group", through a "Reverse Merger".
Great West Gold, Inc. will, upon completion of this "Reverse Merger" transaction, divest itself of its entire stockholding in the quoted, "The Copper Mountain Mining Group", to Great West Gold, Inc. stockholders.
Great West Gold, Inc. will be continuing to update stockholders with reports on each of the Gold and Copper Mining Exploration Projects in its portfolio.
About Great West Gold, Inc.
Great West Gold, Inc., www.greatwestgold.com, a gold mining exploration stage company, engaged in the acquisition and exploration of mining properties in the United States. The Company has Gold assets through its holdings in "Bouse", "Mockingbird", "Ambassador", "Yaba", "Golden Eagle", "Bonanza", "Storm Cloud", ""Starlight", "Venezia", "Federal", "Buffalo Lime Cap", "Red Cloud", "South Copperstone" and "Gladstone Lookout" Gold Mining Projects. The Company's Copper assets are "Copper Mountain", "Swansea", "Tip Top" and "Mineral Mountain". The Company holds five of these Mining Assets through its 51% holding in Bouse Mining Holdings plc, Copperstone Mining Holdings plc, Ambassador Gold Holdings plc, Golden Eagle Mining Holdings plc and in Sentinel Resource Holdings plc. The other Mining Exploration Projects are 100% controlled by the Company.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.