Little Squaw Reports Complete Drill Results at Chandalar
Spokane WA - February 14, 2008 - Little Squaw Gold Mining Company (LITS:OTC.BB) (“Little Squaw” or “the Company”) has now received all drill results from its placer gold project on the Little Squaw Creek drainage located on the Company’s wholly owned Chandalar, Alaska, mining property. The complete results confirm the Company’s opinion that it has discovered an industrial-scale placer gold deposit of potential commercial significance.
The Company drilled a total of 111 holes on the property during the 2007 summer field season, 99 of which were completed to targeted depths. Seventy-three of these holes intersected the “Pay Horizon” (the mineralized stratum of gravel from which significant quantities of gold can be recovered) averaging $14.85 per cubic yard (yd3) over a thickness of 83 feet (28 yards) using a gold price of $600 per ounce, or $22.27/yd3 at $900/oz..
The Company has commissioned two independent studies to determine if the value of the placer gold gravels on Little Squaw Creek falls within economically extractable limits. Metallogeny, Inc., a private consulting company based in Fairbanks, Alaska, is working on the delineation of potential ore reserves that meet the criteria established under U. S. Securities and Exchange Commission (SEC) Industry Guide 7 reporting guidelines. Also, a state licensed and registered mining engineer with Alaska placer gold mining expertise has been retained to create a preliminary mine design and produce cash flow and sensitivity analyses for the deposit.
Robert Pate, Chief Operating Officer of the Company, said, “We believe our current database is sufficient to establish an SEC Industry Guide 7 compliant resource in conjunction with determining the economic viability of the Little Squaw Creek gold deposit. We expect the results of the pilot study to set the course for our future activities at Chandalar. Encouragingly, the deposit as we know it remains open to expansion by more drilling.”
Rodney Blakestad, Vice President of Exploration for Little Squaw, added, “In contrast to most placer gold deposits in Alaska, our Little Squaw Creek discovery is not a typical bedrock placer where the gold is irregularly concentrated beneath stream gravels on the bedrock surface. Instead, we have found a special kind of deposit where multiple gold-bearing stream channels are dispersed throughout a large volume of alluvial fan gravel, derived in part from erosion of the original bedrock gold deposits. I believe it could be bulk-mined and processed like a giant gravel pit would be.”