Vancouver, British Columbia — April 22, 2013 — TNR Gold Corp. (“TNR”, “TNR Gold” or the “Company”) reports the completion of a resource estimate at the Shotgun Gold project in Alaska. The Shotgun Ridge prospect contains an inferred mineral resource of 20,734,313 tonnes at 1.06 grams per tonne (“g/t”) for a total of 705,960 ounces gold (“Au”) using a 0.5 g/t Au cut-off. The inferred mineral resource estimate is prepared in compliance with the standards of disclosure as set out in NI 43-101 by Allan Armitage, PhD., P.Geol., of GeoVector Management Inc.
TNR Gold is targeting a bulk mineable gold deposit at the Shotgun Gold project and is highly encouraged with the recent resource calculation, which is being incorporated into an updated Form 43-101F1 Technical Report, scheduled for filing on SEDAR within 45 days of this release.
The Shotgun project contains several gold targets, with most of the historic work having been carried out at Shotgun Ridge. The results of this resource estimate are an indicator to the Company that the Shotgun Ridge may prove up additional resources with further drilling. A table of the resource estimates at select cut-off grades is given below.
Shotgun Resource Estimate – modelled at an ~ 0.3 to 0.5 g/t cut-off.
The Company believes that the reported grade of 1.06 g/t Au at a 0.5 g/t Au cut-off is a realistic target for continued resource expansion and that this grade and cut-off combination is in line with other bulk mineable gold deposits in the region. Based on the recently identified structural model of mineralization and associated geophysical signatures that are duly coincident with the mineral resource shell and the mineralization model parameters, there are several targets at surface in close proximity to the defined resource that have never been drill tested. These targets will be a priority for future drill campaigns.
The mineralization at Shotgun Ridge, described in more detail below, is located at surface on a topographic high point and is only defined to a vertical depth of 150 m (Figure 1). Mineralization appears to be open both at depth and along strike (Figure 2). Combined with geophysical interpretations indicating additional near surface potential for mineralization (Figures 3 and 4), the Company believes that a multi-million ounce gold deposit might exist in this single, small target area.
The Company is currently reviewing options on the best manner in which to move the project forward, including acquiring a strategic or joint venture partner.
Kirill Klip, Non-Executive Chairman of TNR, stated, “We are at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical investigations to target drilling and define sufficient resources to the form the basis of a preliminary economic analysis. The next step is to acquire a partner that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time.”
Shotgun Zone Resource Estimate
The Shotgun Zone mineral resource estimate is based on 34 diamond drill holes (NQ) totalling 4,932.3 metres, with 2,481 assays (0.2 up to 10 metres in length). Holes were drilled by several operators in five drill campaigns conducted between 1984 and 2012. The 34 drill holes are spaced primarily 40 to 100 metres apart in an area of approximately 375 x 300 metres. The drill holes tested mineralization to a vertical depth up to 150 metres.
The Shotgun gold mineralization is associated with intrusions of various compositions (incl. granite porphyry), which intruded the Cretaceous sedimentary rocks of the Kuskokwim Group. Mineralization was emplaced within a compressional environment evidenced by northeast oriented right lateral strike slip faulting and open folding with northwest oriented axes. In the Shotgun Zone, northwest oriented dilational jogs or relay zones host mineralized quartz breccias. A resource model for the Shotgun Zone was constructed based on the distribution of the gold mineralization (> 0.3 to 0.5 g/t Au) and this model was used to constrain the composite values chosen for interpolation, and the ore blocks reported in the mineral resource. A block model (x — 548000, y — 6697000, z — 800, no rotation) with block dimensions of 5 x 5 x 5 metres in the x, y and z directions was placed over resource model solids with only that proportion of each block below the topographic/overburden surface and inside the solid recorded.
Grades for gold were interpolated into the blocks by the inverse distance squared (“ID2”) method using a minimum of 2 and maximum of 12 composites to generate block grades in the Inferred resource category. The search ellipse used to interpolate grade into the blocks measured 110 x 60 x 110 (Principle Az — 235°, Principle Dip – 25°, Intermediate Az.- 325°). The size and orientation of the search ellipse approximates the strike, dip and thickness of the resource model and takes into account the limited drilling and relatively wide spacing of the drilling.
Two metre composite samples were used in the resource estimation. An average specific gravity (SG) of 2.60 was used for the resource estimate. The average SG value is based on limited SG testing (18 samples) of representative mineralized core from 11 drill holes that intersect the resource model. Gemcom GEMS 6.4.1 software was used to complete the resource estimate.
GeoVector has estimated a range of Inferred resources at various Au g/t cut-off grades (COG) for the Shotgun Zone. The current inferred resource is stated using a grade cut-off of 0.50 g/t Au. A cut-off grade of 0.50 is considered a reasonable economic cut-off grade for the Shotgun zone to maximize the grade of the resource while maintaining a coherent model of the resource. A COG of 0.50 is a reasonable cut-off for this type of Au deposit in this region (eg. Donlin, Livengood).
The inferred mineral resource estimate is prepared in compliance with the standards of NI 43-101. Allan Armitage, PhD., P.Geol., of GeoVector Management Inc., is responsible for the technical comments related to the resource estimate and its parameters. Armitage is an “independent qualified person” for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has verified the data disclosed in this release.
John Harrop, PGeo, FGS, is a “Qualified Person” as defined under NI 43-101 and has reviewed and approved the technical content of this news release.
The Company settled a collateral claim related to the Los Azules litigation and received $1,000,000 from a third party insurer.
About the Shotgun Gold Project
TNR holds a 100% interest in the Shotgun property located 175 kilometres south of The Donlin Creek project deposits within the Kuskokwim Gold Belt in southwestern Alaska. This area is emerging as a world-class, multimillion ounce gold district. The Shotgun property includes a number of prospects, including Shotgun Ridge and nearby Winchester. Donlin Creek is an intrusion-associated system and represents one of the largest undeveloped gold deposits in the world. The Company believes that there are several key similarities between prospects on the Shotgun property and that of the Donlin Creek project deposits as well as other important intrusion-associated deposits.
TNR acquired 100% of the Shotgun Ridge prospect in 2010 following a 50/50 joint venture with Novagold Resources Inc. (“Novagold”). A total of 66 mining claims, each 160 acres, are located over and surrounding the Shotgun Ridge prospect for a total of 10,560 acres (4273.48 hectares).
Ground geophysical surveys conducted in 2011 and 2012 by TNR helped to identify structural controls on mineralization at Shotgun Ridge. Drill testing in 2012 confirmed the structural model of mineralization with two drill holes returning mineralized intervals in excess of 200 metres, SR12-56 returned 242 metres averaging 1.25 g/t gold and SR12-57 returned 209 metres averaging 1.02 g/t gold (news release dated 10 October 2012).
The Company is targeting a large tonnage low-grade porphyry system at Shotgun Ridge. Structural repeats, as interpreted from airborne magnetic data and ground geophysical surveys, provide TNR with encouraging targets for future drill testing.
About TNR Gold Corp.
Over the past twenty-one years TNR, through its lead generator business model, has been successful in generating high quality exploration projects around the globe. With the Company’s expertise, resources and industry network, it is well positioned to aggressively identify, source, explore, partner and continue to expand its project portfolio.
TNR’s recently listed subsidiary, International Lithium Corp. (TSX:ILC.V), demonstrated the successful application of TNR’s business model in which TNR shareholders benefited from a unit distribution upon spin-out of TNR’s lithium and rare metals projects. TNR remains a large shareholder in ILC at 25.5% of outstanding shares.
At its core, TNR provides significant exposure to gold and copper through its holdings in Alaska and Argentina; and teamed with the recent acquisitions of rare-earth elements and iron ore projects in Canada confirm TNR’s commitment to continued generation of in-demand projects, while diversifying its markets and building shareholder value.
On behalf of the board,
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company’s future plans and objectives or expected results, are forward-looking statements. News release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.