Gateway Options Advanced Gold Property in Prolific Walker Lane Terrain From Barrick Subsidiary

VANCOUVER, BC - Gateway Gold Corp. reported that the Company has entered into an agreement with Homestake Mining Company of California, a wholly-owned subsidiary of Barrick Gold Corporation, whereby Gateway has acquired the right to earn up to a 70% interest in the Santa Fe gold property located in Mineral County, Nevada. Gateway can earn an initial 60% interest in the property by spending $5 million over five years and can earn an additional 10% by spending an additional $1.5 million in the sixth year.
The Santa Fe deposit was mined by Homestake in the late 1980's and 1990's, recovering in excess of 350,000 ounces of gold and 500,000 ounces of silver from near surface oxide ore bodies. Ore was mined by open pit methods and the gold was recovered by heap leaching the oxide ore. Based on information received from Homestake, a "500 x 500 foot high grade sulphide pipe", crops out in the south end of the Santa Fe pit. Although Homestake drilled over 30 holes into the pipe, it was never mined or drilled out in detail. Half of the holes drilled into the pipe by Homestake bottomed in significant gold mineralization. Hole BSF74-14, starting at surface on the south edge of the pit, intersected 240 feet averaging 2.88 g/t (0.084 opt) gold and 25.4 g/t (0.74 opt) silver including 90 feet averaging 4.66 g/t gold (0.136 opt) and 36.7 g/t (1.07 opt) silver. A second high-grade zone occurs below the north central part of the pit where Hole CSF89-19 intercepted 55 feet grading 3.98 g/t (0.116 opt) gold and 6.38 g/t (0.186 opt) silver including 25 feet that averages 7.99 g/t (0.233 opt) gold and 8.47 g/t (0.247 opt) silver. Previous drilling did not define the full extent of mineralization, which remains open for expansion.
Don Merrick, VP Exploration for Gateway, commented, "The Santa Fe data base is extensive; we see many exciting possibilities and attractive gold targets. Several thick gold intercepts within the sulphide pipe bottom in gold mineralization at 600 to 900 feet leaving the zone open to depth and on strike. The acquisition fits well into Gateway's business plan of focusing our financial resources into advanced projects like Santa Fe and Big Springs."
The Santa Fe Gold Mine is located in southwestern Nevada within the Walker Lane physiographic province. Gateway is planning a comprehensive program of geological mapping, geochemical sampling and a minimum of 3,000 feet of initial drilling. The program is scheduled to commence in early June and can be worked year round.
The company's address is 906, 595 Howe St., Vancouver, BC Canada V6C 2T5, 604-801-6040, fax: 604-801-6075