Wishbone Gold Regulatory News (WSBN)

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Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural Resources

25 October 2013

Wishbone Gold Plc ('Wishbone Gold' or 'the Company')

Positive Exploration Update on Wishbone II Project

Wishbone Gold plc, an exploration company focussed on precious metals, is pleased to announce the latest results of its on-going exploration programme on the 100% owned 6,300 hectare Wishbone II tenement in Queensland, Australia, which has identified new gold and polymetallic mineralisation within the licence area.

Highlights 

Hanging Valley Prospect Area

· Latest results strengthen the Board's conclusion that the Hanging Valley represents a priority target that may contain multiple polymetallic veins located perpendicular to the major Alex Hill Shear Zone

· Latest work defined extensions to the previously identified polymetallic DAB vein system as well as a parallel vein with grades of 1.25% copper ('Cu'); 0.12g/t gold ('Au'); 476ppm molybdenum ('Mo'); 262ppm arsenic ('As')

· High grades (including one sample at 25.2 g/t Au) were also returned from rock chip samples on the previously discovered Haughton Bluff Creek West vein system

· Regional stream sediment sampling returned strongly anomalous results up to 27.7ppb Au in the area

Oaky Mill Prospect Area

· Significant areas of copper and gold mineralisation discovered by soil sampling

· Samples from 17 outcrops returned grades greater than 1% copper ('Cu') and a further 8 samples returned grades greater than 0.5% with one sample as high as 4.83% Cu and 0.23 g/t Au

· Stream sediment samples defined elevated gold levels up to 11.7ppb Au

· High grade rock chip samples of up to 7.32 g/t Au were taken from an area to the west of the prospect that was previously unexplored

Wishbone now plans to continue to delineate the surface gold anomalies and define drill targets.

Richard Poulden, Executive Chairman of Wishbone Gold said:

"Our latest work on Wishbone II has extended the area of potential mineralisation on the tenement at the Hanging Valley and Oaky Mill prospects. As a result of the high gold and copper grades returned from recent sampling and the existing deposits and mines in the area, we are confident going in to the next phase of exploration as we look to establish drilling targets on the licence.

"Wishbone II represents less than a quarter of our current portfolio of four licences and covers a total area of 34,700 hectares in a known gold bearing region of Queensland, Australia. In tandem with the work being carried out on our existing tenements, we continue to evaluate a number of potential projects with a view to adding to our growing portfolio of high quality assets."

Further Information

The Company commissioned Terra Search Pty. Ltd ('Terra Search') to undertake surface exploration activities on the Wishbone II project.

Hanging Valley

Previous work revealed that the Hanging Valley Prospect is located at the intersection of two known gold mineralised structures: the east-west trending Alex Hill Shear Zone and a prominent north north-east trending structure that runs south from historical Blue Doe gold workings. In addition, accessible areas of gold and polymetallic mineralised structures within outcrops of igneous bedrock were identified at Hanging Valley.

Recent prospecting, soil sampling and ground magnetics focussed on the area to the north-west of Hanging Valley between the Haughton Bluff Creek West gossanous quartz veining and the recently uncovered, significantly mineralised polymetallic DAB veining. The results of this targeted exploration have allowed previously mapped structures to be more accurately defined and which correlate well with linear features shown by ground magnetics data.

The latest geological traversing and geochemical sampling discovered further extensions to the DAB vein system, and successfully sampled the Haughton Bluff Creek West vein as well as an area of secondary copper mineralisation directly to the north. Rock chip samples were taken from outcropping gossanous and mineralised veins located in a corridor of north north-west structures that intersect the Alex Hill Shear Zone. Of these, the standout sample returned 1.25% Cu; 0.12g/t Au; 476ppm molybdenum ('Mo'); 262 ppm arsenic ('As'); from a newly discovered vein that lies parallel to the previously reported DAB veins. Rock chip samples of gossanous "boxworked" quartz vein scree/float highlighted significant gold mineralisation shedding from that has weathered out of the Haughton Bluff Creek West vein system, with one sample returning 25.2g/t Au. Bulk cyanide leach (BCL) stream sediment samples returned elevated gold results with one sample collected returning a strongly anomalous 27.7ppb Au from a small catchment area adjacent to an interpreted extension of the DAB veins to the Alex Hill Shear Zone.

The Hanging Valley Prospect represents a high quality gold target with multiple mineralised veins perpendicular to the major Alex Hill Shear Zone. Prospecting, geochemical sampling and ground magnetic surveys have proven successful in delineating outcropping mineralised structures. In a similar fashion to the previously recognised gossanous quartz veining at Haughton Bluff Creek West, the recently discovered DAB vein system is a north north-west, narrow, polymetallic, gold bearing bedrock vein system which intersects the Alex Hill Shear Zone at a high angle.

More geological traversing, prospecting and surface geochemical sampling is required to follow up on the anomalous linear magnetic structures that have been revealed in the ground magnetics surveys. Further delineation of the surface gold anomalies, coincident with a favourable structural position, may be leading to high quality drilling target. The regional nature of the Alex Hill Shear Zone and intersection with the north north-west structures suggest that gold mineralisation if present in economic concentrations and extent, could be a significant new discovery.

Oaky Mill 

As announced on 29 July 2013, a ground magnetic survey conducted by Terra Search showed the Oaky Mill prospect to be a coincident magnetic/gravity feature which appears to be developed along the same structure that runs up to the north-west from the working Mt Wright-Ravenswood Mine. (Reserves at Mt Wright are estimated at 4.85 million tonnes @ 2.68 g/t Au and production in 2012 increased to 1.46 million tonnes of ore (2011: 0.93 mt) @ 2.96 g/t Au.) The Oaky Mill gold vein system is developed on a conjugate north-east fault system related to the main north-west structure.

Following on from the encouraging results returned from sampling of historical occurrences in the Oaky Mill area in the south of the tenement, further work has enhanced the potential for copper gold mineralisation. A follow-up work programme comprised of prospecting and surface geochemistry including soil sampling resulted in the identification of a large area of pervasive copper mineralisation and associated gold. Recent geological traversing and surface geochemical sampling at 17 outcrops returned greater than 1% Cu and a further eight samples greater than 0.5% Cu in pervasive secondary copper mineralisation. A standout of 4.83% Cu and 0.23g/t Au occurs in a newly discovered greisen. In addition, -80 # BCL stream sediment samples returned elevated gold results with one sample collected returning an anomalous 11.7ppb Au from a catchment area that has no previous recorded gold workings. Rock chip sampling also returned positive results that correlate with historical occurrences in the west of the prospect including a standout rock chip sample of 7.32g/t Au and encouraging veining along strike returning grades of 1.23 g/t.

Significant surface copper mineralisation occurs over a large area at the Halo Prospect in the Oaky Creek area. Anomalous gold has been discovered in association with the copper mineralisation and peripheral veining within the broader Oaky Creek area. Soil sampling has been undertaken to explore the geochemical attributes controlling copper-gold and other polymetallic mineralisation. Further analysis of these samples and correlation with the mapped geological observation are required to further the understanding of the mineralisation style present in this southern part of the tenement. This southern portion of the tenement is highly prospective given its proximity to the major gold bearing intrusive/breccia system of Mt Wright and its positioning within the highly mineralized Leyshon Corridor. The aim of this next exploration phase would be to take the programme through to drill targeting.

This announcement has been reviewed by Michael D. Campbell, P.G., P.H., Chief Geologist for I2M Associates, LLC in Houston, Texas, and independent consultant to Wishbone Gold plc. He is a Fellow in the Society of Economic Geologists (SEG), a Registered Member in the Society of Mining, Metallurgy, and Exploration (SME), a Fellow in the Geological Society of America, and a candidate Fellow in the Geological Society of London (TBA November 2013). He is also a Licenced Professional Geologist in the States of Texas, Washington, Wyoming, Mississippi, and Alaska, and is a Certified Professional Geologist in the American Institute of Professional Geologists (AIPG) and a Certified Professional Hydrogeologist in the American Institute of Hydrology (AIH), among other societies and associations. Mr Campbell has sufficient experience, which is relevant to the style of mineralization and type of deposits under consideration, to qualify as a "Competent Person" as defined in Clause 11 of the 2012 JORC Code  and meets the definition of a "Qualified Person" as defined in the AIM Note for Mining, Oil and Gas Companies. I2M Associates, LLC prepared the Competent Persons Report dated July, 2012 (A 35 MB PDF).

The geological opinions are based in part on the advice provided by Wishbone Gold's primary consultant, Terra Search Pty Ltd. in Townsville, Qld. and with the independent technical oversight provided by I2M Associates, LLC in Houston, Texas, USA.

**ENDS**

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