Argentina Mining Play

[Ed Monton]

Golden Peaks cuts 65.4 m of 5.72 g/t Au at La Fortuna


2006-04-06 15:51 ET - News Release

Mr. Scott Emerson reports

NEW HIGH GRADE GOLD ZONES AT LA FORTUNA

Golden Peaks Resources Ltd. confirms the discovery of new high-grade gold mineralization in holes LF-16 and LF-14, which were drilled on the Amphitheatre zone (A structure), on the La Fortuna project in Patagonia, Argentina -- see Table 1. The high-grade gold and silver assays in LF-16 were confirmed by gravimetric assay -- see Table 2. Holes LF-16 and LF-14 lie approximately 1,000 metres northwest of the T-11 zone (see news in Stockwatch on Jan. 20, 2006). Hole LF-16 is located 250 metres north of LF-14.

 
               TABLE 1 
  
 Hole       Int.        Au        Ag 
             (m)     (g/t)     (g/t) 
  
 LF-16     65.40      5.72         - 
 Incl.      7.40     45.60         - 
 Incl.      3.50     96.22     60.79 
 Incl.      1.90    172.63    108.13 
 Incl.     38.30      0.47         - 
 Incl.      1.70      6.71     24.27 
 Incl.     18.00      0.38         - 
  
 LF-14      2.40      3.65         - 
 Incl.      1.50      5.68         - 
 Incl.      0.50     11.64         - 
  
               TABLE 2 
  
      FA/AA*             FA/GR**   
   Au         Ag       Au       Ag 
 (ppm)      (ppm)    (ppm)    (ppm) 
  
 235.19     115.5    231.8      124 
 197.91     117.1    190.4      108 
 259.12     105.9    267.8      124 
 89.81       95.2     85.4       99 
 83.83      102.4     85.4      124 
  
 

........


*Fire assay/atomic absorption finish

**Fire assay/gravimetric finish


Hole LF-16 tested a poorly exposed gold-mineralized structure (to 20.19 grams per tonne Au and 16.4 g/t Ag in grabs) in the central part of the Amphitheatre zone. The hole cut two strong zones of gold-bearing sulphide mineralization at approximately 55 metres and 101 metres down hole. The core between the zones, and below the lower zone, is pyritized and carries persistent, variably developed, low-grade to moderate-grade gold mineralization. The estimated true width factor is 66 per cent. The upper zone carries gold-pyrite-copper mineralization. The lower zone carries gold-pyrite-copper-zinc-lead mineralization. The different types of mineralization suggest different pulses of gold mineralization.

Hole LF-14 was drilled 250 metres south of LF-16, in the south-central part of the Amphitheatre zone, to test a gold-mineralized structure (10.59 g/t Au and 18.41 g/t Ag over 2.0 metres -- chip). It intersected the zone at approximately 30 metres down hole. The estimated true width factor is 70 per cent.

The Amphitheatre zone (430,000 square metres) lies within a 2.0-kilometre by 2.0-kilometre zone of high chargeability and pyritic alteration that is developed at the intersection of the A and CR structures. The thermal engine for the extensive alteration and mineralization is not recognized at this time. It may be an intrusive lying deeper in the system, or possibly the A and CR structures are tapping deep crustal levels.

Holes LF-14 and LF-16 were drilled as single holes on showings No. 5 and No. 9 (see news in Stockwatch on May 3 and May 18, 2005). These are but two of many gold-bearing structures in this area, identified by the company in 2005, that are now being drill tested. The company plans follow-up drilling to trace the mineralization in both holes along strike and to depth.

The drill contractor is Connors Argentina S.A. Split core samples are assayed by Alex Stewart (Assayers) Argentina S.A., a certified ISO 9002 laboratory. In accordance with the company's quality control/quality assurance policy, all high-grade samples will be check assayed at a different laboratory.

The company anticipates the first-pass drill testing of surface mineralization on the A, CR and CB structures will continue through 2006. In addition, a concurrent program of delineation drilling to outline and define gold resources will commence in the near future.

This news release has been reviewed and approved by Dr. Kieran Downes, PGeo, president of Golden Peaks Resources and a qualified person as defined by National Instrument 43-101, under whose direction the exploration programs are being carried out.