Winston Gold Mining Corp. (WGC: CNX) would
like to thank all of its current shareholders for their continued support and
shared vision. The company has set a corporate goal of generating cash flow as
quickly as possible through the advancement of high-grade, low-cost mining
opportunities.
It has been less than a year since Winston Gold Mining commenced
trading on the Canadian Securities Exchange and the OTCQB Venture Market. In
that short time, our company not only advanced our namesake flagship asset in
Montana, but has also acquired the promising Gold Ridge Project (a high-grade
gold asset in Arizona). We look forward to advancing each of these assets
towards production.
Acquiring quality assets means nothing without the right team to
recognize, evaluate and effectively exploit them. Our technical team, led by
Underground Mining Specialist, Harold (Mike) Gunsinger, (Director), and M.Sc.
Geologist, Ben Porterfield, (Director), have an impressive track record of
success. Together, they have over eight decades of experience in mining and
exploration. Their hard work is appreciated and valued as we move towards
achieving our corporate goal.
The Company has decided to focus on developing the Winston
property. We have successfully completed a first phase drill program consisting
of 33 holes totaling 12,428 ft. (3,788 metres). The results of this program not
only confirmed the existence of four high grade veins but also determined that
they remain open for expansion along strike and at depth.
The Phase 2 and 3 drill programs will continue to outline the
lateral and vertical extent of these veins. The Company then intends to
identify the most prospective vein systems and determine the best way to access
them for follow up underground exploration and bulk sampling.
In concert with these drill programs, management plans to ensure
that all necessary permits are in place to allow bulk-sampling and toll milling
to commence if drill results continue to be promising.
We are very excited about the drill results received so far. It
proves to us that the Historic Custer Mine and the surrounding ground has not
been fully exploited or explored.
Summary
of work completed to date
On the Winston property, the Company has targeted gold veins
which are associated with the late Cretaceous to early Tertiary age Edna Stock,
a 1200-by-2400 foot (365.8 by 731.5 metre) granite pluton, which intrudes
volcanic rocks of similar age and Cambrian to Cretaceous age sedimentary rocks.
Quartz fissure veins contain auriferous pyrite, which has been oxidized near
the surface.
The most significant was the Custer Vein, which strikes North 30
degrees East and dips 70 degrees Southeast to 60 degrees Northwest. It averaged
one to three feet (0.30-to-0.91 metre) wide and was mined over a strike length
of 2,400 feet (731.5 metres) above the 400 level of the mine. Development work
went as deep as the 500 level but sulphide ore and water conditions limited the
amount of mining at depth. At least 10 other veins have been reported around
the Edna granite. The veins are narrow, often 2-to-6 feet (0.61-to-1.83 metres)
wide.
Total gold production from the Winston District has been
estimated at about 100,000 ounces from 150,000 tons of ore, giving a grade of
about 0.66 ounces per ton (22.63 g/t) gold. There is evidence some higher grade
ore was shipped to Europe (Earle, 1964; Schell, 1963).
Modern exploration includes over 138,000 feet (42,062 metres) of
drilling in 619 drill holes dating from 1984 to 1995. The drilling encountered
numerous high grade intercepts and it is clear that there are high grade veins
which were not discovered by the early miners.
Most of this mineralization was outlined within 300 feet (91.44
metres) of the surface. Only 10 of the vertical drill holes went deeper than
500 feet (152.4 metres). Mineralization in the vein systems has been classified
as a mesothermal-style, which means it may continue to considerable depth. Add
to this the fact that some underground mines in the area were as deep as 1,400
feet (426 metres), and it suggests that the mineralization on the property
could continue well below the historic mining and drilling activities.
Drill Programs performed by WGM (Please refer to attached drill
plan Maps)
After establishing a property position in 2014, a drill program
of eleven core holes tested some of the historical drilling intercepts (Please
refer to the Company press release dated Oct 24th 2016 for more details). The
program had intercepts that included:
7 ft. (2.13 metres) averaging 0.193 ounces per ton (opt) or (6.6
g/t) gold,
2 ft. (0.61 metre) averaging 3.14 opt (109.5 g/t) gold,
4 ft. (1.22 metres) averaging 0.33 opt (11.7 g/t) gold, and
1.8 ft. (0.55 metre) averaging 0.44 opt (15.09 g/t) gold.
Based on these results, a larger program was planned and initiated
in 2016. The Phase 1 program drilled 33 holes that were designed to test the
west side of the Edna Stock, and to investigate the mineralization below the
old workings on the Custer Vein.
West-Edna
Vein Highlights
The drill holes on the west side of the Edna stock defined a new
vein, called the West-Edna Vein, over a strike of 407 feet. Please refer to
Company press releases dated December 26th, 2016 and January 23rd, 2017 for
details. Intercepts from the West-Edna Vein included:
2.3 ft. (0.7 metre) averaging 1.3 opt (44.57 g/t) gold from hole
W1633,
4.8 ft. (1.46 metres) averaging 0.303 opt (10.39 g/t) gold from
hole W1635,
4 ft. (1.22 metres) averaging 0.226 opt (7.75 g/t) gold from
hole W1647 and
1 ft. (0.30 metre) averaging 0.427 opt (14.64 g/t) gold from
hole W1650.
Custer
Vein Highlights
Ten holes were drilled from three pads located north of the
Custer Mine shaft. Please refer to Company press release dated February 9th,
2017 for details. Highlights include:
Hole W1720 hit 4.4 ft (1.34 metres) averaging 0.55 opt (18.86
g/t) gold.
Hole W1721 hit 6.5 ft. (1.98 metres) averaging 0.19 opt (6.51
g/t) gold.
Hole W1757 hit 4.5 ft. (1.37 metres) averaging 0.47 opt (16.11
g/t) gold.
Based on the drilling to date, Winston Gold Mining has
demonstrated a potentially mineralized strike length of 530 ft. (161 metres)
along the Custer Vein from hole W1724 to hole W1721 with a potential vertical
extent of as much as 180 ft. (55 metres). Historic reports indicate that the
old Custer mine was worked over a strike of 2,400 feet (731 metres).
Current
Phase 2 Drill Program
Phase 2 is a 5,000 ft. (1,524 metre) ongoing program. One goal
is to test a vein called the Parallel Vein, which is located about 100 feet
(30.5 metres) south of the Custer Vein. Seven historic rotary holes had
intercepted the vein over a strike of 500 feet (152 metres). Please refer to
Company press release dated March 1st, 2017 for details of the Parallel and
Block 93 vein drill results. The historic intercepts, which were composites,
included:
20 ft. (6.1 metres) of 0.37 opt (12.68 g/t) gold,
10 ft. (3.0 metres) of 0.21 opt (7.2 g/t) gold,
10 ft. (3.0 metres) of 0.89 opt (30.51g/t) gold and 1.8 opt
(61.71 g/t) silver,
10 ft. (3.0 metres) of 0.80 opt (27.43 g/t) gold.
Three holes drilled in the Phase 2 program to test this vein.
One hole hit a mined out stope; another intersected 3.5 ft. (1.06 metres) of
0.31 opt (10.63 g/t) gold and 4.8 opt (164.57 g/t) silver. A third hole
intersected 4 ft. (1.22 metres) of 0.60 opt (20.57 g/t) gold and 1.3 opt (44.57
g/t) silver.
The three holes also encountered another vein, named the Block
93 Vein, south of the Parallel Vein. The three intercepts included;
3 ft. (0.91 metre) of 0.1 opt (3.43 g/t) gold,
3.5 ft. (1.06 metres) of 0.23 opt (7.89 g/t) gold,
4 ft. (1.22 metres) of 0.33 opt (11.31 g/t) gold.
Phase 3
Drill Program
Custer
The Phase 3 program will be designed to continue to expand the
Custer Vein below the old workings. We believe that 14 holes with an average
depth of 560 ft. (171 metres) for a total of about 7,900 ft. (2,407 metres)
would be required to confirm and block out mineralization between the 300 and
500 levels over a strike length of about 500 ft. (152 metres) and a vertical
extent of 180 ft. (54.9 metres). As well as confirming mineralization, the
drilling would begin to extend the strike of the mineralized vein below the 300
level, another 360 ft. (110 metres) to the west below a historically stoped
(mined out) zone.
West
Side
The Phase 3 program will also test the westward extension of the
Parallel and Block 93 Veins.
These two new veins are only about 300 feet (91.4 metres) east
of the West vein and there is an opportunity to further explore and potentially
test-mine these veins using the same access. There are a number of historic
drill intercepts along this trend, including 20 ft. (6.09 metres) of 0.27 opt
(9.26 g/t) gold in Hole RC 298, over 1,000 ft. (304.8 metres) to the southwest.
Our goal is to define each of the three veins over a combined strike length of
1,500 feet (457 metres) and a vertical extent of 300 ft. (91.4 metres). The
results of this program will be used to help plan a decline to access the Edna
West Vein.
A total of 12 holes will be drilled from three separate pads
near the Edna portal and historic test pit. These holes will have an average
length of 400 ft. (122 metres) for a total of 4,800 ft. or (1463 metres). They
will be designed to define the Block 93 and Parallel vein’s western extents,
and the West-Edna vein’s Eastern extents, to the possible intersection of all
three. This drilling will also extend the Eastern extents of the Block 93 and
Parallel veins another 100 ft. (30 metres) and 200 ft. (61 metres),
respectively.
Qualified
Person
The scientific and technical content and interpretations
contained in this news release have been reviewed, verified and approved by Dr.
Criss Capps PhD. P.Geol., an independent consultant to Winston Gold Corp. Dr.
Capps is a Qualified Person as defined in National Instrument 43-101 Standards
of Disclosure for Mineral Projects.
About
Winston Gold
Winston Gold is a junior mining company focused on advancing
high-grade, low cost mining opportunities into production. Towards that end,
the Corporation has acquired two under-explored and under-exploited gold/silver
mining opportunities, being the Winston Gold project near Helena, Montana, and
the Gold Ridge project, near Willcox, Arizona.
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