Seven rigs on site Active drill program at New World project

With five core and two reverse circulation drill rigs at work, the New World gold-silver-copper project in Park Cty., Mont., ranks among the most active mineral projects currently being explored and developed in the western U.S.

The advanced project is owned 100% by Crown Butte Resources (TSE), a Montana-based junior owned 60% by a unit of Hemlo Gold Mines (TSE). Project operator is Noranda Exploration.

The first results from this year’s drill program indicate that a significant increase in reserves is likely for the Home-stake breccia deposit, one of several deposits making up the New World project.

Stepout drilling in the Homestake deposit is continuing to encounter significant mineralization, as evidenced by results such as 122.5 ft. grading 0.86 oz. gold (0.28 oz. cut) and 0.61 oz. silver per ton, plus 0.58% copper, and 126.7 ft. of 0.22 oz. gold, 0.88 oz. silver and 0.77% copper. Before this year’s program began, New World was estimated to contain preliminary reserves totalling 8.38 million tons grading 0.18 oz. gold and 0.75 oz. silver per ton plus 0.69% copper.

Two of the five deposits making up New World, Como and McLaren, are considered amenable to open pit mining. Preliminary reserves at Como are estimated at 707,318 tons grading 0.11 oz. gold and 0.54 oz. silver plus 1.03% copper, while McLaren’s preliminary reserves are 2.17 million tons of 0.09 oz. gold, 0.38 oz. silver and 0.7% copper.

The remaining deposits — Fisher, Miller Creek and the more recently discovered Homestake — contain the bulk of reserves that would require mining by underground methods.

This year’s drill program is largely focused on the Home-stake deposit which has not yet been fully delineated or defined. At the end of last year’s season, this deposit was estimated to contain 2.66 million tons of 0.18 oz. gold, 0.51 oz. silver and 0.54% copper.

Thirteen holes have been completed so far this year in the Homestake deposit for a total of 13,830.5 ft. Results from this drilling are listed below. Assays are still pending for several holes which were reported to have intersected mineralization “over considerable thicknesses” in the Homestake deposit area.

Drilling is also continuing in the Miller Creek deposit which is considered “nearly delineated