Coastal Gold Coporation Provides Corporate Update
TORONTO, ONTARIO -- (Marketwired - Apr 15, 2014) - Coastal Gold Corp. (TSX VENTURE:COD) (FRANKFURT:CY41) (the "Company") provides the following corporate update:Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold, commented: "Over the past year, in spite of the difficult market conditions, we have substantially advanced our Hope Brook Gold Project. On December 4, 2013 we released an updated mineral resource estimate that increased the indicated resource by 110% to 1,239,000 ounces of gold with an additional 138,000 ounces of gold in the inferred category. The overall grade of the indicated resource was increased by 30.2%. In addition, on January 16, 2014 we released an inferred tailings resource of 134,500 ounces and 9.5 million pounds copper. We have identified a number of exploration targets both near surface and underground with good potential to further expand mineral resources."
Dr. Pearson continued "These new resource estimates have formed the basis for a preliminary economic assessment (PEA). Work completed on the PEA has focused on the potential production from tailings, open pit and underground at a rate of 5,000 tonnes per day. While we have made good progress, further engineering work is needed to finalize the study. Coastal Gold has elected to suspend work on the PEA to conserve cash and wait for market conditions to improve."
Mineral Resource at Hope Brook
The NI 43-101 mineral resource on the Company's Hope Brook Gold Project, as reported in the press release issued on December 4th 2013, are estimated to contain 1,239,000 indicated ounces of gold and 138,000 inferred ounces of gold as set out in Table 1 below.
| Table 1: Mineral Resource for Gold, Hope Brook Gold Project as at December 4, 2013 | |||||||||
| Within constraining shell @ 0.50 g Au/t cut-off | Below constraining shell @ 2.0 g Au/t cut-off | Total | |||||||
| Category | Tonnes | Gold g/t | Gold (Oz) | Tonnes | Gold (g/t) | Gold (Oz) | Tonnes | Gold g/t | Gold (Oz) |
| Indicated | 17,692,000 | 1.70 | 966,000 | 2,254,000 | 3.76 | 273,000 | 19,946,000 | 1.93 | 1,239,000 |
| Inferred | 230,000 | 0.89 | 7,000 | 1,101,000 | 3.71 | 131,000 | 1,330,000 | 3.22 | 138,000 |
Additionally, a NI 43-101 mineral resource estimate has also been reported on the tailings at the Hope Brook project as reported in the press release dated January 16th, 2014. The tailings are estimated to contain 134,500 ounces of gold and 9.5 million pounds of copper in the inferred category at a cut-off grade of 0.45 g Au/t as set out in Table 2.
| Table 2: Mineral Resource for Gold and Copper, Hope Brook Tailings as at January 15, 2014 | ||||||
| Category | Pond Area | Tonnes mil | Au g/t | Cu % | Au Oz | Cu mil lbs. |
| Inferred | Tailings Pond 1 | 2.6 | 0.95 | 0.10 | 80,000 | 5.9 |
| Inferred | Tailings Pond 2 | 2.3 | 0.75 | 0.07 | 54,400 | 3.6 |
| Inferred | Pond 1 and Pond 2 Total | 4.9 | 0.86 | 0.09 | 134,500 | 9.5 |
The independent technical report, entitled "2013 Mineral Resource Estimate, Technical Report Hope Brook Gold Project, Newfoundland and Labrador, Canada" (the "Technical Report"), dated January 17th, 2014, was prepared for Coastal Gold by AGP Mining Consultants Inc. and Mercator Geological Services Limited. The Technical Report is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.coastalgold.ca.
ABOUT COASTAL GOLD
Coastal Gold is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "COD". Coastal Gold's flag ship property is the Hope Brook Gold Project located in southwestern Newfoundland, which has 19.9 million tonnes at 1.93 g Au/t for 1,239,000 ounces of indicated mineral resources and 1.3 million tonnes at 3.22 g Au/t for 138,000 ounces of inferred mineral resources. In addition, there are inferred mineral resources in the tailings of 4.9 million tonnes at 0.85 g Au/t and 0.09% copper containing 134,500 ounces of gold and 9.5 million pounds of copper.
QUALIFIED PERSON
Dr. Bill Pearson, P.Geo., President & CEO of Coastal Gold, a Qualified Person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this news release.
Cautionary Note Regarding Forward-looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the estimation of mineral resources and the anticipated results of proposed future work at Hope Brook, including a PEA. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contact
Coastal Gold Corp.
65 Queen Street West, Suite 815
Toronto, Ontario, Canada M5H 2M5
Web: www.coastalgold.ca
Rob Hopkins, Manager, Investor Relations
Tel: 416-861-5899
Email: info@coastalgold.ca
Bill Pearson, President & CEO
Tel: 416-861-2968
Email: president@coastalgold.ca
