Little Squaw Reports Drill Results At Chandalar

SPOKANE, WA - Little Squaw Gold Mining Company reported that it has received all drill results from its placer gold project on the Little Squaw Creek drainage located on the Company's wholly owned Chandalar, Alaska, mining property. The complete results confirm the Company's opinion that it has discovered an industrial-scale placer gold deposit of potential commercial significance.
The Company drilled a total of 111 holes on the property during the 2007 summer field season, 99 of which were completed to targeted depths. Seventy-three of these holes intersected the "Pay Horizon" (the mineralized stratum of gravel from which significant quantities of gold can be recovered) averaging $14.85 per cubic yard (yd3) over a thickness of 83 feet (28 yards) using a gold price of $600 per ounce, or $22.27/yd3 at $900/oz. The Company believes the order of magnitude of drilled mineralized material is in the many millions of cubic yards.
The Company has commissioned two independent studies to determine if the value of the placer gold gravels on Little Squaw Creek falls within economically extractable limits. Metallogeny, Inc., a private consulting company based in Fairbanks, Alaska, is working on the delineation of potential ore reserves that meet the criteria established under U.S. Securities and Exchange Commission (SEC) Industry Guide 7 reporting guidelines. Also, a state licensed and registered mining engineer with Alaska placer gold mining expertise has been retained to create a preliminary mine design and produce cash flow and sensitivity analyses for the deposit.
Robert Pate, Chief Operating Officer of the Company, said, "We believe our current database is sufficient to establish an SEC Industry Guide 7 compliant resource in conjunction with determining the economic viability of the Little Squaw Creek gold deposit. We expect the results of the pilot study to set the course for our future activities at Chandalar. Encouragingly, the deposit as we know it remains open to expansion by more drilling."
The company's address is 3412 South Lincoln Drive, Spokane, WA 99203, 509.624.5831, fax: 509.624.2878.