TORONTO, Sept. 24, 2014 (GLOBE NEWSWIRE) -- U.S. government debt has surged $1 trillion in the last 12 months, which combined with U.S. business and personal debt, has now reached a mind-boggling $60 trillion - 25 times the total debt that existed when the U.S. uncoupled from the gold standard in 1971.
If rampant money printing leads to the global devaluation of paper currency there will be a frenzied flight to gold benefiting junior explorers like Phoenix Gold (TSX-V:PXA) currently drilling on its 100% owned Plumas Property, an outcropping gold-silver mineralized system that has seen limited underground historical mining, and is now being drill tested for the first time.
The Plumas Property is located adjacent to Newmont's Phoenix-Fortitude Gold/Copper Mine in Nevada's Battle Mountain District.
On September 17, 2014 PXA released drill results from the first 3 drill holes confirming veined and disseminated sulphides which, along with the coincident magnetic anomaly, suggests the potential for a significant mineralized sulphide system at depth.
The first drill hole (CPL-1) located at the southernmost end of a large area of a significant mineralized system intersected numerous gold zones with 0.25 g/t gold over 45.5 feet including 9.44 g/t gold and 116.8 g/t silver over 0.9 feet.
The second drill hole (CPL-4), located 200 feet north of CPL-1, intersected numerous gold zones, including 0.85g/t gold over 9 feet and 0.41 g/t gold over 34.5 feet with 3.37 g/t gold over 1.5 feet, and 0.35 g/t gold over 46.0 feet with 2.44 g/t gold over 1.5 feet.
The third hole (CPL-7), located about 200 feet north of CPL-4, provided assays for about two-thirds of the hole with additional assays pending. The results received so far for CPL-7 intersected numerous gold zones including 2.21 g/t gold and 16.8 g/t silver over 2.5 feet, 2.68 g/t gold over 4 feet and 15.85 g/t gold and 938 g/t silver over 2.0 feet.
"The market is looking for high grade intercepts," stated PXA CEO, Glenn Laing, in an exclusive interview with Financial Press, "But when you start drilling into a big system, it's impossible to figure out what you have with just 3 holes. We have just begun to explore a large mineralized system on the Plumas property."
Based on the assay results and geology and structural analysis, PXA believes that the size of the known mineralized sulphide system is increasing. The PXA geological team is confident of a relationship between sulphide mineralization in the drill holes and the magnetic anomaly.
"I am convinced this is a large unexplored system which we just starting to understand," stated Laing, "The composition of the sulfides we are finding is indicative of a very large mineralized deposit. Obviously with a large complex system, it takes multiple holes to get a clear picture."
Further drill results are pending. Hole CPL-7 has been completed by a further 298 feet to a depth of 937 feet; hole CPL-8 has been completed to a depth of 988 feet; hole CPL-10 is complete to a depth of 497 feet and CPL-9 is targeting the Plumas fault system and is planned for 800-900 feet to further test the extent of the sulphide related system.
"You got a lot of day traders who don't trade on fundamentals," confirms Laing, "Typically they get panicked when the first grade is not spectacular, which creates a buying opportunity investors who understand how precious metal projects are developed."
Laing's geological team believes that the magnetic signature is a significant indicator. The company will continue drilling into the system to expand it. The first three holes did not go deep and PXA plans to explore the deeper mineralized zones.
On August 28, 2014 PXA closed $374,500 of the planned $750,000 Private Placement. The company expects to complete the balance of the private placement by approximately the end of September 2014. Proceeds will be used for the current drill program and associated exploration and development expenses.
Gold mining in Nevada is one of the largest sources of gold in the world, with total historical gold production from Nevada (1835 – 2013) of over 153 million ounces.
"What is happening with the Plumas project is not wildly different from the early development of the Newmont's Phoenix-Fortitude Gold/Copper Mine," stated Laing, "They started with a high grade zone - but the long term value was in the lower grade mineralization at depth."
PXA is currently trading at .045 with a market cap of $1.6 million.
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CONTACT: Phoenix Gold Resources Corp. 5000 Yonge Street, Suite 1901 Toronto, ON, M2N 7E9 Canada PH: 416-227-3402 firstname.lastname@example.orgSource:PHOENIX GOLD RESOURCES CORP