Gateway cuts Big Springs high grade (August 12, 2005)

Vancouver – Drilling on the Crusher target at Gateway Gold’s (GTQ-V) Big Springs project in northeastern Nevada delivered high-grade gold.

RC drill hole 166 intersected 41 metres (from 40 metres depth) grading 4.18 grams gold per tonne, including 6 metres of 18 grams gold in the Crusher B zone. The hole was positioned adjacent to an historic hole by past operator Independence Mining, since acquired by AngloGold Ashanti (AU-N), that returned 3 metres of 16.9 grams gold.

A vertically drilled hole (#172) on the Crusher A zone also cut significant high grade, returning 7.6 metres (from a down hole depth of 21 metres) averaging 28 grams gold. The hole was collared to test an Independence Mining drill intercept of 6 metres grading 19.9 grams gold.

“These initial results are highly encouraging in that they provide us with an orientation of the two zones and increase the Crusher target’s importance as a potentially sizeable zone,” commented Gateway Gold president Michael McInnes.

Mining from 1987-93 at Big Springs produced 386,000 oz. of gold from several open pits. Since acquiring the project in 2002, Gateway has targeted potential high-grade gold in the known mineralized fault-structures beneath the old pits.

The company is also in the midst of compiling its National Instrument 43-101 compliant resource estimate for Big Springs. Gateway is integrating results from over 30,000 metres of its drilling into the study, which will also incorporate data from two historic resource estimates. A pre-NI43-101 global estimate conducted by engineering firm Pincock Allen Holt, for Independence Mining, reviewed a resource of 4.7 million tonnes averaging 3.8 grams gold (using a 1.7 grams gold cut-off grade) for almost 580,000 contained oz.

Gold at Big Springs occurs predominantly as Carlin-type sediment hosted mineralization. Steeply dipping fault structures host the bulk of mineralization, exhibiting thickening and enrichment associated with secondary cross-faults.

Investors applauded the results, driving the share price up about 30% to the $1.35 per share level. With 22.4 million shares outstanding the company posts a $30-million market capitalization.