Underworld Makes New Yukon Gold Discovery
VANCOUVER, BRITISH COLUMBIA–(Marketwire – July 23, 2008) – Underworld Resources Inc. (TSX VENTURE:UW) is pleased to announce initial assay results from 100% owned White Gold and Black Fox Gold Projects, in the Yukon Territory, Canada. The diamond drill program is still underway and additional assay results are expected shortly.
Drill hole WD-004 intersected 4.03 g/t Au over 19.58 meters, from 12.99 meters, including 9.43 g/t Au over 5.76 meters. Drill hole WD- 005 intersected 4.58 g/t Au over 16.61 meters, from 14.74 meters, including 11.62 g/t Au over 5.13 meters and including 19.14 g/t Au over 2.65 meters. These initial discovery holes at the Golden Saddle Prospect encountered a shallow dipping quartz breccia vein associated with a thrust fault. The assays are from priority samples of quartz breccia containing visible gold from the upper part of each hole. Both holes were drilled from the same set up with WD-004 at minus 45 degrees and WD-005 at minus 65 degrees. These holes for which partial results are available plus holes WD-009 and WD-010 have all been drilled to test a soil geochemistry anomaly which identified the Golden Saddle target and is characterized by gold in soil values exceeding 80 ppb over a strike length of 2.2 kilometres.
Holes WD08-04 and 05 at Golden Saddle were located to evaluate a trench sampled in 2007 that returned a 38 m wide zone of mineralization averaging 1.12 g/t Au, including 4.7 g/t over 5 m and a minimum grade of 0.1 g/t over 0.3 m. The near surface zone of breccia with strong silica – albite alteration and oxidized, disseminated pyrite was prioritized for sampling and assaying and returned the gold grades reported above. In Hole WD-004 the zone of breccia, alteration and mineralization extends to a depth of 50 m, albeit less strongly developed than the interval reported above which is to a depth of 32.57 meters. The distribution of this mineralization was interpreted as a shallow north dipping zone. WD- 009 is a 60 m step out down-dip from holes WD-004 and 5, and intersected similar but unoxidized brecciated, quartz pyrite stockwork within altered gneiss from 68-82 m. Hole WD-010 is a further step out 60 m further north of WD-009 but was abandoned at 122 meters due to drilling problems. This shallow dipping breccia vein associated with a thrust fault bears similarities to Teck Cominco/Sumitomo’s Pogo Mine in Alaska, also located within the Tintina Gold Belt.
Plans with drill hole locations and a cross section can be viewed at www.underworldresources.com.
Additionally, holes WD-001 to 3 were completed at Ryan Showing to test the quartz veins which had returned encouraging gold grades from sampling during the summer program in 2007 (see UW 2008 – NR#4). Hole WD-006 was drilled to test an IP geophysical target, and WD-007 and 8 were drilled at Trench C, all testing disseminated sulphide mineralization within an extensive multielement soil anomaly at the Quartz-Thrust zone. Assays are pending for all additional drill holes. The Ryan, Golden Saddle, and Quartz-Thrust anomalies are located over one kilometer apart, within a broad soil anomaly that extends for over 6,000 meters.
The White Gold and Black Fox properties comprise an aggregate 11,850 acres and are located 95 kilometres south of Dawson City in Yukon Territory. Underworld has an option to earn a 100% interest in the Projects (see UW 2007 NR#3, May 16, 2007). Maps with the 2007 results are available at www.underworldresources.com.
Underworld has put in place a rigorous QA/QC program using best industry practice. Elements of the program include chain of custody of samples and insertion of standard and blank samples, with drill core sawn in half and shipped in sealed bags to Alaska Assay Laboratories in Fairbanks, Alaska. The ongoing 2008 Exploration Program is being directed by Adrian Fleming, M.A.I.G., RPGeo, M.Aus.I.M.M., President of Underworld Resources and a Qualified Person as defined by NI43-101. Mr. Fleming prepared, and approves of the content of this release.
Underworld Resources is a well-structured junior exploration company targeting base and precious metals in the Americas and New Zealand.
ON BEHALF OF THE BOARD OF DIRECTORS
Adrian Fleming, President
Forward Looking Statement
Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control, including, but not exclusively, statements regarding potential mineralization, exploration results, completion of work programs and studies, and future plans and objectives of the Company. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production.
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