Coronado Resources Mining Crosscuts at Madison Gold Property

 

VANCOUVER - Coronado Resources Ltd reported gold assay results from the first two diamond drill holes designed to test the extent of the known gold zones and attempt to locate more high-grade copper zones. The first hole (U1) was drilled below the lowest working level of 500 feet and intercepted 30 feet averaging .313 oz/ton/Au, included in that intercept was 15 foot section containing .528 oz/ton/Au. The second hole (U2) was drilled to the north of hole U1 and intercepted 36 feet averaging .390 oz/ton/Au and included in that was a section of 17.5 feet of .607 oz/ton/Au. Both holes indicated silver averaging 1.50 oz/ton/Au with copper in the 2% range.

The company is currently mining the crosscuts in the first level (200 ft level) where the gold oxides were previously mined and sent for processing at Barrick’s Golden Sunlight mill. The gold oxides are mainly from the crosscuts support pillars and are estimated to be around 800 tons in the order of .400 oz/ton/au. A sample has been sent to Kinross to test the compatibility of the gold oxide for processing at their facility.

Madison is a former producer that is now producing cash flow from high grade shipments which commenced in 2008 with recent grades averaging 35% Cu and .47 oz/ton/Au. The Madison region hosts well establish processing and mining infrastructure. The company remains focused on expanding the Madison project with continued exploration and development drilling from the cash flow from sales.

Coronado owns 100% interest in six patented and twelve unpatented mineral claims known as the Madison Gold Property. The property is approximately 35 miles southeast of Butte, Montana near the town of Silver Star. The property contains old surface and underground mine workings. The underground decline has been driven over 1,200 feet at a slope of 15% which was designed to access a high-grade zone of oxide gold to Level I and Level II and to allow access to a high grade Copper zone. The underground development also accessed a sulphide gold zone in Level 3. Drill stations have been placed at stages along the decline to provide for additional drilling from underground to further test the limits of the mineralization. The decline is large enough to accommodate ore trucks and underground drill rigs.

A crushing plant, power line, compressor and weigh scale have been installed on site to process the gold and copper mineralization encountered in underground development. The company has made three shipments in early 2008 of oxide gold mineralization to the Golden Sunlight Mine for custom milling. Copper shipments of 1304 tons grading over 20% Cu were delivered to China in the Fall of 2008 to produce over 500,000 payable pounds.

In January 2009, the company signed and started shipping sulphide gold mineralization to the Kinross Mill in Washington state. In April and May of 2009, the company shipped over 1,000 tons of copper grading over 24% Cu. In July, 2009 the company made a gold shipment of 400 tons grading .045 oz/ton Au, and continues to extract gold and copper mineralization from underground.

The company’s address is #507 595 Howe Street, Vancouver, BC V6C 2T5, 604-683-6338, 800-811-2322, www.coronadoresourcesltd.