TORONTO--(Marketwire - Sep 14, 2012) - Punchline Resources Ltd. (OTCQB: PUNL) (OTCBB: PUNL) ("Punchline" or the "Company") is pleased to announce that the Company has entered into an option agreement to acquire a 70% interest in the Winnemucca Mountain Property, an advanced gold exploration and development project located in Humboldt County, Nevada, USA. Previous exploration and computer modeling conducted on the Winnemucca Mountain Property by Sante Fe Pacific Gold Corp. (now Newmont Mining) outlined a gold bearing zone containing an estimated 4,580,000 million tons grading 0.028 opt gold.
"The Winnemucca Mountain Property is another excellent fit for our Company's aggressive, yet measured, growth strategy because the advance stage property already has a well-define gold zone and has significant upside potential in both possible tonnage and grade," said Ramzan Savji, CEO and President of Punchline. "We look forward to quickly establishing the next phase of exploration and development at Winnemucca and intend to proceed with additional mapping, sampling, and drilling as soon as possible."
The Winnemucca Mountain Property consists of 72 unpatented mineral claims covering about 560 hectares in Humboldt County, in northwestern Nevada. The property, which has excellent road access, is located about 25 km northwest of Newmont's Lone Tree Gold Mine and 30 km southeast of the Sleeper Gold Mine.
Previous exploration conducted by Santa Fe Pacific Gold Corp. (now Newmont Mining) between 1998 and 1990, focused on the pediment covered Swordfish zone. Gold mineralization at the Swordfish zone occurs within a northeast-trending low sulfide quartz veining type system that extends approximately 670 meters (2,200 feet) along the western flank of claim block. Santa Fe conducted geological mapping, rock sampling, trenching, CSAMT and induced polarization geophysical surveys, collected 286 auger hole bedrock samples, and completed a total of 18,260 meters (52,470.8 feet) in 73 reverse circulation (RC) drill holes, nearly all of which were focused on the Swordfish zone and reported results ranging up to 13.7 m averaging 3.9 g per tonne gold.
Santa Fe utilized a Geostat computer program to calculate a cross-sectional resource estimate for the Swordfish zone area which estimated it to contain 4.15 million tonnes grading 0.82 g/t gold (4.58 million tons grading 0.028 opt gold) at a 0.29 g/t cutoff (0.01 opt cutoff). Most of this estimated resource is confined to the main quartz vein at a depth of approximately 200 meters (700 feet), along the entire 2,200 strike length. The Santa Fe historical resource estimate pre-dates the implementation of current 43-101 compliant techniques. As such, it does not utilize mineral resource categories currently utilized in present day resources estimates.
Additional exploration conducted in 1996, which included an induced polarization (IP) survey, is thought to have delineated two new target zones that correlate well with known mineralized areas. The Company anticipates expanding future exploration to include these new target zones.
About Punchline Resources
Punchline Resources Ltd. is an emerging mineral resources company focused on both domestic and international exploration and development projects. The Company is currently exploring the Empress Gold and Silver Property, in Nevada, USA. The Company is also evaluating several additional projects for potential acquisition and/or participation.
Some information in this press release constitutes forward-looking statements or statements which may be deemed or construed to be forward-looking statements such as the potential acquisition of the Winnemucca Mountain Property, the establishment of proven resources, and the possible future economic production of minerals. The words "plan," "forecast," "anticipates," "estimate," "project," "intend," "expect," "should," "believe," and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The risks, uncertainties and other factors are more fully discussed in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Punchline Resources Ltd. herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Punchline Resources Ltd. disclaims any obligation to update forward-looking statements contained in this press release, except as may be required by law.