Peak Zone Map - Drilling Locations (Graphic: Business Wire)

Contango ORE, Inc. (CTGO.PK) announced today the initial drilling results in its 2013 exploration program at its 765,000 acres near Tetlin, AK. The initial results are part of a $10 million 2013 exploration program that includes drilling 55-67 holes over a five-month period from June through the end of October. Results to date reflect 8 holes drilled and analyzed that are summarized in Table 1 below. Analytical results are pending from an additional 19 holes.

In general, all of the 2013 holes intercepted a 100 to 125 foot wide zone of mineralization. The drill intervals in holes 13062-064 represent infill drilling while those from holes 13066 to 069 represent infill and expansion drilling. See map below for drilling locations. The early results of our 2013 drilling program indicate that the previously identified Peak zone will be extended along both strike and dip relative to the known limits from previous drilling.

Mr. Brad Juneau, President of the Company, said, “The preliminary results of our 2013 exploration program at our Tetlin project continue to meet our expectations in terms of gold, silver , and copper grade as well as thickness. Our goal is to identify sufficient mineral resources by the end of 2013 to justify initial reviews of economic and engineering parameters on the project. We expect to be drilling continuously with a two-rig program throughout the rest of the summer and early fall in an attempt to delineate the limits of the Peak Zone as well as test additional exploration prospects. We are awaiting final interpretations of new airborne geophysical data we acquired earlier this summer before selecting our exploratory drilling sites, anticipated to be in late July.”

Contango ORE has taken additional mining claims this spring in the vicinity of Tok, AK covering 40,200 acres. These claims were selected based on proximity to known mineral occurrence, access to existing infrastructure, and which complement our existing exploration program in terms of leveraging our local knowledge based on our exploration results to date. We have initiated exploration activities on these new claims.

Contango ORE, Inc. (CORE) is a Houston-based company that engages in the exploration in Alaska for gold and associated minerals and rare earth elements. Additional information can be found on our web page at www.contangoore.com.

This press release contains forward-looking statements regarding CORE that are intended to be covered by the safe harbor “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, based on CORE’s current expectations and includes statements regarding future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as “expects”, “projects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or stating that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the exploration and the mining industry (for example, operational risks in exploring for, developing mineral reserves; risks and uncertainties involving geology; the speculative nature of the mining industry; the uncertainty of estimates and projections relating to future production, costs and expenses; the volatility of natural resources prices, including prices of gold and rare earth elements; the existence and extent of commercially exploitable minerals in properties acquired by CORE; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the interpretation of exploration results and the estimation of mineral resources; the loss of key employees or consultants; health, safety and environmental risks and risks related to weather and other natural disasters); uncertainties as to the availability and cost of financing; inability to realize expected value from acquisitions; inability of our management team to execute its plans to meet its goals; and the possibility that government policies may change or governmental approvals may be delayed or withheld, including the inability to obtain any mining permits. Additional information on these and other factors which could affect CORE’s exploration program or financial results are included in CORE’s other reports on file with the Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. CORE does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.

Table 1

Significant 2013 gold drill results from initial drill holes at the Peak zone, Chief Danny prospect, Tetlin project, Alaska. Sample intervals are calculated using a 0.5 gpt lower cut off for gold with no internal waste greater than 3 meters less than cutoff grade. Intercepts shown are drill intercept lengths. All holes reported were completed at -60 degree inclination along azimuth 225 degrees to intercept mineralization at approximately right angles. The grade cutoff for gold (Au) is 0.5 gpt; for silver (Ag) is 10 gpt; and for copper (Cu) is 0.1 gpt.
Num       Drill Hole       From_m       To_m       Int_m       Au_opt       Au_gpt       Ag_gpt       Cu_pct
1       TET13062       6.10       9.10       3.00       0.037       1.265       6.9       0.106
2       TET13062       79.40       80.80       1.40       0.052       1.783       1.1       0.031
3       TET13062       83.20       85.10       1.90       0.024       0.822       0.9       0.026
4       TET13062       88.90       153.70       64.80       0.382       13.101       21.0       0.482
5       including       109.70       118.90       9.20       0.923       31.640       28.5       0.711
6       including       115.40       116.20       0.80       2.013       69.000       72.5       1.785
7       and       125.80       126.50       0.70       1.286       44.100       52.1       0.836
8       and       128.10       133.70       5.60       0.985       33.774       56.5       0.833
9       including       132.80       133.70       0.90       1.394       47.800       172.0       3.260
10       TET13063       131.11       171.60       40.49       0.483       16.550       36.1       0.732
11       including       146.00       148.65       2.65       2.365       81.100       178.0       3.920
12       and       153.35       155.14       1.79       1.671       57.300       121.0       0.762
13       TET13064       89.10       95.10       6.00       0.007       0.257       26.5       0.325
14       including       91.00       93.20       2.20       0.017       0.591       59.9       0.691
15       TET13064       120.50       122.90       2.40       0.016       0.549       9.2       0.202
16       TET13064       147.20       152.20       5.00       0.043       1.487       1.9       0.052
17       TET13064       156.60       189.40       32.80       0.310       10.638       6.4       0.198
18       including       163.00       166.50       3.50       1.213       41.586       15.3       0.461
19       including       163.70       164.80       1.10       2.225       76.300       19.2       0.499
20       and       171.00       173.60       2.60       0.712       24.400       13.4       0.494
21       and       174.30       177.70       3.40       0.590       20.212       7.5       0.323
22       and       181.50       183.50       2.00       0.680       23.300       8.4       0.295
23       TET13065       157.60       159.10       1.50       0.039       1.325       3.4       0.110
24       TET13065       184.45       206.93       22.48       0.034       1.160       10.5       0.403
25       including       186.55       188.47       1.92       0.125       4.270       15.6       0.705
26       and       203.00       204.50       1.50       0.153       5.240       40.7       1.290
27       TET13067       104.60       110.30       5.70       0.001       0.037       5.9       0.263
28       TET13067       114.80       125.10       10.30       0.005       0.180       18.2       0.215
29       TET13068       0.00       48.80       48.80       0.011       0.365       23.1       0.269
30       including       6.10       21.00       14.90       0.031       1.062       47.6       0.212
31       TET13068       54.90       79.20       24.30       0.004       0.148       10.0       0.312
32       TET13068       82.30       91.40       9.10       0.001       0.029       9.7       0.644
33       including       88.80       91.40       2.60       0.002       0.057       25.9       1.450
34       TET13068       94.50       98.30       3.80       0.000       0.002       2.6       0.224
35       TET13068       103.70       112.80       9.10       0.001       0.033       4.0       0.160
36       TET13068       128.40       132.30       3.90       0.000       0.002       1.2       0.120
37       TET13068       137.20       140.20       3.00       0.001       0.030       7.6       0.234
38       TET13069       54.60       63.70       9.10       0.000       0.000       3.6       0.106
39       TET13069       72.90       122.60       49.70       0.001       0.032       10.9       0.538
40       including       86.60       94.80       8.20       0.002       0.074       23.8       1.373
41       TET13069       136.70       141.35       4.65       0.000       0.004       4.5       0.133
42       TET13069       158.60       162.63       4.03       0.006       0.214       124.1       3.055
43       including       160.60       161.09       0.49       0.026       0.882       343.0       7.260

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX