Sleeper awakened by deep drilling (July 19, 2004)

Vancouver — Two deep holes have confirmed and extended higher-grade gold mineralization in the West Wood breccia zone of the Sleeper deposit in Nevada’s Humboldt Cty. The property is held 50-50 by New Sleeper Gold (NWS-V) and X-Cal Resources (XCL-T).

The Sleeper mine, which closed in 1986, produced 1.7 million oz. gold and 2.3 million oz. silver.

In the recent program, hole 14 averaged 12.1 grams gold and 239.4 grams silver per tonne over 54.6 metres at a down-hole depth of 251.5 metres, while hole 18 averaged 10.6 grams gold and 106.6 grams silver over 27.3 metres at 197.8 metres down-hole.

Hole 14 includes intercepts of 8.1 metres grading 29.3 grams gold and 31.5 grams silver, plus 6.9 metres of 18.7 grams gold and 1007.8 grams silver.

Hole 18 includes 8.4 metres grading 9.5 grams gold and 113.2 grams silver, plus 9.2 metres of 17.8 grams gold and 161.7 grams silver.

The higher silver-to-gold ratios are an anomaly and associated with intensely silicified and sulphidized portions of the breccia zone at West Wood.

The drill program at West Wood will test the extent of the new high-grade zone. At least US$6 million will be spent on exploration this year.