Mongolian Resource Play

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Golden Patriot options Mongolian gold-copper prospect

2004-05-04 18:35 ET - News Release

Mr. Raj Chowdhry reports

GOLDEN PATRIOT MINING INC. - ACQUIRES A COPPER GOLD PROSPECT IN NW MONGOLIA

Golden Patriot has acquired the right to earn a 100-per-cent interest, subject to a 2-per-cent net smelter return, in a 360-square-kilometre copper-gold project in northwestern Mongolia.

The property hosts several different styles of mineralization in a porphyry-type environment that has never been systematically tested with modern exploration techniques. The Chinese geological survey, which has conducted geological surveys in the area, reports evidence of historical small scale mining and smelting.

The acquisition agreement calls for an initial cash payment of $40,000 (U.S.) upon signing of the agreement, $10,000 (U.S.) within three months of the signing date and a further $20,000 (U.S.) on the first anniversary of the agreement. In addition, the vendor will receive 200,000 shares of Golden Patriot upon signing, 200,000 shares on the second anniversary of the agreement and one million shares at feasibility.

Previous exploration work on the property confirmed the existence of a number of primary copper and gold occurrences and deposits over a distance of several kilometres. One of these deposits averages 1.1 per cent copper over a thickness of five to 15 metres along a strike length of 150 to 200 metres.

In the same general area, drilling has confirmed the presence of a 28-metre-thick oxidized zone containing chalcopyrite and bornite that may be associated with supergene enrichment.

Approximately 800 metres away trenching results from another copper showing returned values as high as 3.2 per cent copper and five grams silver per tonne while other widely spaced showings returned copper values in the range 0.7 per cent and gold values in the range of of 0.4 gram per tonne along with gold pathfinder minerals.

Compilation studies are planned immediately to determine whether the deposits are related geologically and also to prioritize targets for a first phase exploration program in the coming year.

According to Golden Patriot's president, Raj Chowdhry: "The agreement provides us with an opportunity to explore and develop a mineral project with large tonnage potential at a reasonable cost. It also fits in with our game plan of building a portfolio of high-quality exploration projects in a region where demand for mineral commodities is expected to be explosive over the next decade."