SCOTTSDALE, AZ--(Marketwire - 11/15/10) - Ironwood Gold Corp. (OTC.BB:IROG - News) (the "Company") is pleased to announce it has entered into a Letter of Intent ("LOI") to acquire a 100% interest in mining operations on 20 unpatented lode claims commonly known as the Cherry Creek property, located approximately 90 miles south of the town of Wells, in White Pine County, Nevada.The project is in the Cherry Creek District, which has documented historic production of 312,012 tons of ore that yielded 32,450 ounces of gold, 1.6 million ounces of silver, 144,000 pounds of copper, and 832,000 pounds of lead. The Cherry Creek Project lies within a 36 square mile area that is 6 miles wide and approximately 6 miles long that is anomalous in silver, gold and minor base metals. Geologically, most of the mines are located in numerous Precambrian to Triassic aged quartzites, shales, limestones and dolomites as vein deposits, mostly in the Prospect Mountain Quartzite and the Cambrian Carbonate Formations. The Cherry Creek project is an underground, hardrock project focused on exploring the extensions of major veins in the district.Two of the major mines near the Cherry Creek project area are the New Century and Exchequer Mine. In the below summary table, several previous resource estimates at Cherry Creek have been made based upon underground sampling, as follows:
Year Author Mine Class Tons Opt Ag Equiv.
1982 Groves NC Proven 31,000 33.8
Exc Proven 5,000 12.7
NC+Exc Inferred 75,000 22.5
1988 Drips NC Proven 29,000 20.0
NC Indicated 30,000 20.5
Exc Indicated 8,500 20.3
NC=New Century Mine
Within the project area, mineralization appears to remain strong on the unpatented claims which were previously controlled by Sterling Mining and make up the property which would be held by Ironwood Gold. Select samples of veins from that area have returned assays of 30 opt Ag/0.12 opt Au, 1.6 opt Ag/0.26 opt Au, 0.7 opt Ag/1.18 opt Au, and 12 opt Ag/0.34 opt Au. At surface, these veins average about 2 feet in width, and dip roughly 60 degrees in an easterly direction. At least two parallel veins were found, roughly 100 feet apart. The aforementioned grades are targeted for drilling, especially given the historic production along strike. More drilling would be needed to confirm the eastern extension of the New Century and Exchequer vein systems, which intersect the Cherry Creek project.Dr. Howard Lahti Ironwood's VP of Exploration comments, "We are advised that previous district history and limited exploration work done at the Cherry Creek Project indicates that anomalous silver/gold mineralization lies to the east of the major workings that make up the New Century and Exchequer vein systems." Dr. Lahti continues, "An aggressive mapping and sampling program should be done to delineate the vein systems. The potential is very good for high grade, vein hosted, underground targets in the project area and, as such, we believe this project is a definite undervalued opportunity for the Company."The Definitive Agreement shall contain customary representation and warranties, covenants and indemnification provisions. Additional details regarding the Company and its agreements are filed as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database. For more information visit: www.ironwoodgold.com.ABOUT IRONWOOD GOLD CORP. (OTC.BB:IROG - News)
Ironwood Gold Corp. is a mineral exploration and development company building a portfolio of prospective properties containing known deposits of strategic precious metals in politically stable, mining-friendly North American districts with recognized production histories.Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.ON BEHALF OF THE BOARDIronwood Gold Corp.
Behzad Shayanfar, CEO