Mongolian Resource Play

[Tackler]

Fortress reviews summer 2004 exploration in Mongolia

2004-09-13 10:20 ET - News Release

Mr. Steve Swatton reports

DRILLING AND EXPLORATION UPDATE FROM MONGOLIA

Fortress Minerals Corp. has completed its summer exploration program for 2004 from the Shiveen Gol, Huvs, Gobi Altai and Erdenet belt (Teltiin and Oyuut Uul) projects in Mongolia. Exploration is still continuing at its Tsagaan Tolgoi property in northwest Mongolia adjacent to the Shiveen Gol property. All properties are 100 per cent owned by Fortress Minerals and constitute part of a roughly 52,000-square-kilometre-sized land package currently held under licence or application by the company in Mongolia. Upon approval of all exploration licences under application Fortress will become the second largest exploration licence land package owner in Mongolia.

Shiveen Gol (northwest Mongolia)

A total of nine drill holes have been completed (a combination of reverse circulation and diamond drilling) for a total of 1,920.8 metres. The deepest hole was 280.5 metres. Geochemical results will be released when available. As reported in earlier news releases, the geological target at Shiveen Gol is an iron oxide copper gold target with chalcopyrite mineralization reported from surface rock samples in the zone of drilling.

Huvs (north-central Mongolia)

Approximately 600 soil, rock and stream sediment samples have been collected to date. A soil orientation survey (91 samples at 100-metre spacing) was completed in a drainage basin that previously returned 4.37 grams Au per tonne from pan concentrate sampling. Partial soil sample results received to date outline the existence of a gold-enriched geochemical zone measuring approximately two kilometres by 300 metres. The highest gold soil sample from this zone returned a value of 0.49 gram per tonne, with an average of 0.124 gram per tonne. This gold geochemistry represents the first batch of results from nine such soil surveys in the same district. The geological target from this zone is either a large tonnage mesothermal vein style or a sediment hosted gold deposit. A complete dataset of results from all sample media will be released when available. As a result of the encouraging results and current hypotheses for gold genesis in this region Fortress has applied for approximately 35,000 square kilometres of additional mineral exploration licences in the Huvs region.

Erdenet district (north-central Mongolia)

Work has been concluded within the Teltiin (copper-gold) and Oyuut Uul (gold) project areas. At Teltiin, a total of 50 line kilometres of dipole-dipole induced polarization was completed with 150-metre dipole spacings. A ground magnetic survey was completed over a 28-square-kilometre area with 200-metre line spacings and readings collected every 10 metres on-line. A total of approximately 300 rock chip and 400 soil samples were collected. Final results and analyses are pending.

Work within the Oyuut Uul prospect has been completed. A total of 31 line kilometres of induced polarization surveys were completed with dipole-dipole spacings of 50 and 150 metres. A ground magnetic survey was completed over a 34-square-kilometre area with 200-metre line spacings and readings collected every 10 metres on-line. A total of approximately 60 rock chip and 100 soil samples were collected. Final results and analyses are pending.

Tsagaan Tolgoi

Reconnaissance exploration throughout the Tsagaan Tolgoi licence block is continuing. Approximately 300 rock chip samples have been collected to date from several gold and copper-gold prospects. Final results and analyses are pending.

Gobi Altai region

A reconnaissance exploration program has been completed within Fortress's 100-per-cent-owned Gants Modot licence block in the west-central Gobi Desert region. Approximately 150 rock chip samples were collected during reconnaissance completed in early September. Final results and analyses are pending.

A breakdown of the quality assurance/quality control procedures in place for rock and soil samples taken by Fortress are as follows. The samples are prepared and pulped by Analabs (a subsidiary of SGS Laboratories) in Ulaanbaatar. Acme Analytical Laboratories Ltd., Vancouver, assayed the pulps. The company incorporates one of six quality control laboratory standards into the analytical procedure. The standards are provided by Ore Research and Exploration Pty. Ltd. (Australia) and each standard has been evaluated by several recognized mineral testing laboratories in accordance with International Standards Organization (ISO) recommendations. The company's qualified person under National Instrument 43-101 is G.E. (Greg) McKelvey, a registered geologist in Wyoming and a certified professional geologist in accordance with the guidelines of the American Institute of Professional Geologists. Mr. McKelvey is also a member of the Society of Economic Geologists, and a fellow of the Geological Society of America.