ST. ANDREWS, NEW BRUNSWICK — (Marketwire) — 08/24/11 — Portage Minerals Inc. („Portage“) (CNSX: RKX) today announced the results of the initial resource estimate and project highlights on the Golden Pike property (the „Golden Pike Property“). The NI 43-101 compliant mineral resource estimate and technical report on the Golden Pike Property were completed by Roscoe Postle Associates Inc. („RPA“). The Golden Pike Property, comprising 1600 hectares, is located 60 kilometres southeast of the City of Fredericton in Kings County, New Brunswick. The Golden Pike Property is owned 100% by Portage and is subject to a 2.0% net smelter return („NSR“). Portage can purchase half of the NSR (1%) for $500,000 per 0.5% NSR increments.
Roger Dahn, Vice President – Exploration, stated, „The property hosts a significant gold target with excellent potential to significantly increase the resource base on the South Trend. As well, our initial drill hole on the North Trend identified extensive gold bearing alteration. Untested high priority target along the extensions of these mineralized trends which are up to 5 km length, have yet to be drill tested and hold promise for near term resource additions.“
The Company controls an approximate 10 km x 40 km land position (100% owned) surrounding the Golden Pike project and Bald Hill Sb-Au discovery (Portage Minerals Inc. press release dated November 10, 2010) within the prospective Annidale Gold Belt.
TARGETS FOR MINERAL RESOURCE EXPANSION
Most of the drilling on the property completed by Portage to May 26, 2011 (44 of 45 holes) has been on the South Trend deposit which has been defined by drilling over a 600 m length to a maximum vertical depth of approximately 350 m. This mineralized trend remains open for expansion in both directions. Demonstrating the larger scale potential at the Golden Pike Property is the fact that property-wide exploration initiated by Portage has identified a number of other high-potential targets along each of the South and North mineralized trends. Areas of particular interest include gold in soil geochemical anomalies and areas with induced polarization (IP) signatures similar to those of the mineralized zones.
With funding assistance through the New Brunswick Junior Mining Assistance Program, 7 seven exploration holes totaling approximately 936 metres were completed along the North Trend during July 2011. Five holes were drilled on the Golden Pike property approximately 2 km north of the South Trend deposit. Previous trenching in this area by Noranda, during 1990 – 1991, returned high grade gold mineralization in bedrock and boulders assaying 17.38 g/t gold and 42.84 g/t gold respectively. Two holes were also completed 13.4 km further east along the North Trend on Portage-s surrounding Annidale gold belt claims where Portage prospecting results returned grab samples assaying between 0.3 to 12.1 g/t gold. All assay results from the July drill program are currently outstanding and will be released once received.
MINERAL RESOURCE ESTIMATE
RPA estimated Mineral Resources for the Golden Pike South Trend deposit using drill hole data available to May 26, 2011. Resources were estimated and classified by RPA following Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (CIM definitions). At a cut-off grade of 5 g/t Au and minimum true thickness of two metres, Inferred Mineral Resources are estimated to total 214,800 tonnes grading 9.60 g/t gold (capped) containing 66,300 ounces of gold. The details of the gold mineral resource estimate are tabled below:
The May 26, 2011, resource estimate for the Golden Pike Property is based on a total of 100 diamond drill holes with a length of 16,185.5 m. The resource drilling consists of 25 holes, 15 drilled by Fosters Resources Ltd. in 1994-1996 campaigns and 11 by Rockport Mining Corp. in 2007-2008 campaigns, totalling 4,092 m and generating 29 intercepts. The resource estimate is based on 132 assays for gold.
In addition to the above resource, the potential tonnage and grade of the mineralization according to RPA, located immediately along strike from the South Trend resource which are targets for further exploration, could be 150,000 tonnes to 350,000 tonnes grading between 7.0 g/t Au and 10 g/t Au. The potential quantity and grade is conceptual in nature as there has been insufficient exploration to define a mineral resource along strike from the resource area, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The estimated ranges of tonnage and grade for the exploration target were based on gold in soil anomalies, geophysical results, and the geology of the South Mineralized Trend. The current mineral resource is located within a 600 m segment of the South Mineralized Trend that has been drilled tested at a relatively closely spaced pattern. In addition to this segment, the gold in soil anomaly, IP results, and geology suggest exploration targets ranging from an additional 400 m to 1,000 m of favourable strike length which have yet to receive sufficient drill testing. Using these lengths of untested favourable strike, plus the estimated tonnage per metre of the current mineral resource, RPA estimated a tonnage range of 150,000 to 350,000 tonnes for the exploration target. The estimated grade ranging from 7.0 g/t Au to 10 g/t Au is derived from the current mineral resource.
A technical report on the Golden Pike Property describing in detail among other things, the resource estimate, QA/QC, database validation and geologic model, will be filed on SEDAR within 45 days of this news release.
Roger Dahn, P. Geo. (New Brunswick), Vice President-Exploration of Portage, is designated as the Qualified Person under National Instrument 43-101 and has reviewed and approved the contents of this press release. David A. Ross, M.Sc., P.Geo., of Roscoe Postle Associates Inc., has reviewed the portion of this news release pertaining to the NI 43-101 technical report and related resource estimate. All assays have been completed by Activation Laboratories Ltd, Ontario.
Portage Minerals Inc. is a mineral exploration corporation exploring for gold in Eastern Canada. Further information about Portage can be accessed on the Company-s website at and on the SEDAR website at . The common shares of Portage trade on the Canadian National Stock Exchange („CNSX“) as a mining issuer under the trading symbol „RKX“.
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CNSX does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Portage Minerals Inc. Ken Hight President and CEO (506) 529-8206 (506) 529-8595 (FAX)
CHF Investor Relations Robin Cook Senior Account Manager (416) 868-1079 x228 (416) 868-6198 (FAX)
