NEW YORK, Nov. 21, 2011 (GLOBE NEWSWIRE) — Sagebrush Gold, Ltd. (OTCBB:SAGE) and Continental Resources Group, Inc. (OTCBB:CRGC) announced today that Sagebrush Gold has completed the first phase of drilling on its six plus square mile Red Rock property, located at the intersections of the prolific gold producing Battle Mountain-Eureka, Rabbit Creek and Caetano Gold Trends in the Mt. Springs Mining District, Lander County, Nevada. Ten thousand, four hundred and twenty-six feet (10,426 ft) of combined diamond core and reverse circulation footage has been completed in 15 drill holes. The Company commenced drilling on August 2, 2011.
Approximately 80% of the drill assays have been received and both geologic and assay data drill vector to a precise drill location – drill hole RRC: 11-15. The hole intersected 10 feet grading 1.23 g/T Au (including 5 ft grading 2.18 g/T Au) with corresponding elevated silver, arsenic, mercury, selenium, thallium and tellurium. This hole along with high metal values obtained from three other holes drilled in the same general area suggests that the metal values recorded represent leakage from a highly prospective, potentially, high-grade gold target that exists at depth. The location of the prospective gold target corresponds directly with surface geochemical data and the center of a large gravity high that is interpreted to represent altered rocks at depth. In addition, very sooty carbon alteration, strong quartz veining, and high pyrite content was encountered in most holes.
“We are seeing exactly the type of mineralization and structural preparation that is reported to occur above a ‘Carlin-type’ gold deposit,” states project geologist, Arthur Leger. He continues, “We are concentrating our exploration efforts along the north margin of the northwest trending Caetano Graben, which we feel is one of the major metal feeders in the region.”
“Both soil and rock geochemistry, geologic mapping, detailed gravity geophysics and drilling, confirm the existence of a large metal bearing hydrothermal system in the region. In addition, the phase I drilling has only partially tested one of four large gold bearing areas located along the northern Caetano structural zone.
“The 2011 year program was designed to provide sufficient information to determine the approximate location of a high-grade feeder(s) and to locate a site to test for a potentially high-grade gold deposit at depth. The drill program proved very successful in that even though a high-grade feeder was not encountered, numerous gold bearing structures were discovered and reported metal values definitely vector towards a location for a diamond core hole to test for a “world-class” gold deposit at depth. Depending on diamond core drill availability, a winter drill program is planned and will be reported once details are finalized.”
Drill assays were completed by ALS Minerals of Reno, Nevada and all results will be reported upon their receipt from ALS.
CSAMT Survey Completed at Red Rock
Sagebrush Gold also recently completed a Controlled Source Audio Magneto-Telluric (CSAMT) geophysical survey over the south-eastern portion of its claim block – the South-Central and Centerra gold targets. Both have corresponding gravity highs and elevated soil and rock geochemical metal values. CSAMT is a geophysical technique that provides deep geologic information based on lateral and vertical resistivity contrasts. A CSAMT survey combined with a gravity survey can help in defining both structural and lithologic boundaries.
Results from the four-line CSAMT survey, covering a ½ mile by ½ mile area, indicate an unsuspected complex set of north-south trending, high angle structures on the eastern end of the lines. According to a geophysical consultant, the contact between rock units west and east of the structural zone can best be described as a “collision zone”, rather than one rock unit simply overriding another (thrust). The discovery of the zone is very significant as a number of large gold deposits are situated along the north-south trending Rabbit Creek structural break, located just west of the Red Rock claims. In addition two previous drill holes located east of the structural break, encountered weakly mineralized rock in favorable carbonate host rocks at depth.
Sagebrush Gold is extremely excited about the discovery of the N-S trending structural zone as both rock and soil geochemical data indicate elevated gold and associated trace metals near its projected intersection with the Caetano Graben. Unfortunately previous geologic work did not reveal the existence of the structural zone. Thus the CSAMT survey stopped short of tracing the zone into the metal-bearing, Caetano Graben feeder system. An additional four (4) line CSAMT survey is planned for December to trace the “collision zone” into the Caetano system.
Company Chairman Barry Honig commented, “We are very excited with the development at Red Rock and the Company is looking forward to further defining this highly prospective project as soon as possible. As we have previously stated, the Company plans to add shareholder value by increasing the number of gold ounces in the ground through drilling and, as such, we will fast-track exploration activities at Red Rock.”
About Sagebrush Gold, Ltd.
Sagebrush Gold, Ltd. is a junior gold exploration company focused on searching for world class resources and seeking out potentially significant gold exploration and development targets in Nevada’s leading gold districts.
Legal Notice and Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words “believes,” “expects,” “given,” “targets,” “intends,” “anticipates,” “plans,” “projects,” “forecasts” or similar expressions, are “forward-looking statements.” Although the Company’s management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company’s future results to differ materially from those anticipated. Potential risks and uncertainties include, among others: general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; fluctuating mineral and commodity prices; risks of junior exploration and pre-production activities; the Company’s ability to successfully integrate Continental Resources Group business and assets into its own existing business; maintenance of important business relationships. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company’s and Continental Resources Group’s filings with the SEC including the Annual Reports of each of the companies on Form 10-K for the year ended December 31, 2010 and Quarterly Reports on Form 10-Q for the quarterly period ended June 30, 2011, and each subsequently filed Current Report on Form 8-K. The Company assumes no obligation to update any of the information contained or referenced in this press release.
CONTACT: Sagebrush Gold, Ltd.
1640 Terrace Way
Walnut Creek, CA 94597
David Rector, President
877-705-9357
Barry Honig, Chairman
305-571-1000
Email: info@sagebrushgold.com
www.SagebrushGold.com