October 31, 2011 – Escape Gold Inc. (the “Company”) is pleased to announce that the KAN 2011 exploration program continues to identify several new exploration targets at the KAN project located in the northern part of the Labrador Trough, Nunavik Territory, Quebec. The Labrador Trough is well known for its world class iron deposits and base metal potential. The Company has been exploring the potential for iron formation hosted gold
mineralization within the extensive KAN claim boundaries covering over 34 km of favourable stratigraphy.
The Company is excited about the renewed SEDEX exploration potential resulting from the discovery of a new massive sulphide boulder approximately 5.4km south of the original KAN showing. The Company staked an additional 46 cells covering 2100 hectares to extend the southern boundary of the KAN project to cover this new exploration target.
This new boulder is in a previously unexplored area and represents a base metal target that was not recognized by previous operators. Two grab samples from the new massive sulphide boulder averaged; 12.23% zinc, 2.29% lead, 0.1% copper, 80 g/t silver and 0.35 g/t gold. This new massive sulphide boulder sits on the same favourable stratigraphic package as the original KAN showing. The KAN project now covers in excess of 13,000 hectares.
Early base metal exploration on the property was initiated by Cominco Ltd. in 1965 with the discovery of a massive sulphide showing located under a sphalerite-galena-pyrite, glacial boulder train. Two additional boulder trains within a 1.5km radius of the original KAN base metal showing were subsequently identified with several boulders exceeding one metre in diametre.
Earlier this summer Company geologists located the massive sulphide boulder trains and the original KAN base metal showing. As previously reported (see January 31, 2011 news release), Kennecott Canada Inc. (“Kennecott”) sampled 28 of these boulders and the average reported grade was 9.9% zinc, 7.7% lead, 276 g/t silver and 0.65 g/t gold. Kennecott reported several angular boulders exceeding 1.5m in diametre suggesting that the source was proximal. This summer Company geologists sampled over 40 massive sulphide boulders around the original KAN SEDEX showing and these results are still pending.
A strict quality assurance/quality control program was applied to all samples, which includes mineralized standards and blank samples for each batch of 20 to 30 samples. All samples were sent to ALS Chemex in Val d’Or, Quebec, an accredited commercial laboratory. The gold analyses were completed by fire assay with an atomic absorption finish on 30 grams of material.
T. John Magee, P.Geo., President and CEO of the Company is the Qualified Person who has reviewed and is responsible for the technical data contained in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS OF ESCAPE GOLD INC.
T. John Magee
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward-looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.
For more information contact:
T. John Magee, President and CEO
Tel: (416) 479-9546