Significant Target Expansion Potential At Eldorado Gold Project As Upcoming Drilling Approaches

VANCOUVER - Provenance Gold Corp. reported that as part of its preparation for a planned Eldorado spring drilling program, it has plotted cross-sections and long-sections of the historic drill holes. Analysis of the cross-sections and further supporting data has produced encouraging results.

Upon review of the cross-sections, Project Manager, Steven Craig, said, "Not only is the system open outward in all directions, but it's also wide open between the holes, and especially downward. Most of the holes bottomed short of 100 meters, but the holes that went deeper continued to hit thick gold zones, even to depths below 250 meters. The deeper holes often had their best mineralization below 100 meters."

The Eldorado gold property, in mining-friendly Malheur County, in Eastern Oregon, was the site of extensive historic placer mining. Although the project is in a desert environment, it has very few outcrops. The placer mining locally exposed the underlying gold-bearing bedrock. Later, historic drilling focused on the areas where placer mining had exposed the gold-mineralized bedrock, leaving much of the mineralized area still undrilled.

The gold mineralization is associated with a diorite intrusive that hosts most of the gold. The deposit is a porphyry-style gold system that additionally contains breccia zones that carry local high-grade gold values. Historic testing suggested that the property has excellent recovery characteristics because the gold came in after the sulfides, so consequently even the unoxidized rock appears to have good recovery characteristics, even using only gravity and floatation.