Patriot Gold Announces Updated NI 43-101 Resource Estimate Totals 956,800 Gold Equivalent Ounces on Moss Gold-Silver Project, Arizona

LAS VEGAS, Sept. 11, 2012 /PRNewswire/ -- Patriot Gold Corp. (OTC: PGOL), a gold resource and exploration company, today announced that an updated resource estimate performed by Scott E. Wilson Consulting Inc. of Denver, Colorado on its Moss Gold-Silver Project in Mohave County, Northwestern Arizona, has resulted in an increase to 956,800 ounces of Measured and Indicated gold equivalent resources and 199,100 ounces of inferred gold equivalent resources.  Scott E. Wilson Consulting Inc. Summarized Updated Resource Estimate: Table 1

Reported at 0.3 gpt Au Cutoff

Resource Category

AuEq* (oz)

Au (oz)

Ag (oz)

Tonnes

Grade

AuEq (gpt)

Au (gpt)

Ag (gpt)

Measured

427,820

348,000

3,991,000

12,465,000

1.07

0.87

9.96

Indicated

528,980

432,000

4,849,000

18,414,000

0.89

0.73

8.19

M+I

956,800

780,000

8,840,000

30,879,000

0.96

0.79

8.90

Inferred

199,100

162,000

1,855,000

7,096,000

0.87

0.71

8.13

* Gold equivalency is based on a silver:gold ratio of 50:1 and assumes 100% recovery of all metals.

* Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.  There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves estimate.

* Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.

Patriot Gold President and CEO, Robert Coale, P.E., stated, "We are extremely excited by the announcement of our project partner, Northern Vertex, that their continuing exploration program on the Moss deposit has resulted in a substantial increase in the mineral reserves of the deposit." 

Ken Berry, Northern Vertex President and CEO, stated: "The outstanding results achieved from the resource study is a tribute to the quality work of our entire exploration team in Arizona led by Chief Geologist Dr. Bob Thompson and Project Manager Joe Bardswich. Supported by a substantial near surface, open-pittable resource, our objective of fast-tracking Moss into a near-term, low-cost gold-silver producer is clearly coming into focus. Concurrent with our drilling and exploration activities, we continue to advance the project forward through strategic development that includes ongoing environmental baseline studies, metallurgy work, preliminary pit-design, economic evaluation and permitting."

Northern Vertex's Chief Geologist, Dr. Bob Thompson, PhD, P. Eng. added, "We are delighted with the conclusions returned from the updated independent resource study on Moss. Not only have we dramatically increased the size of our current gold-silver resource, the deposit remains open for even further resource expansion. With close to one million gold equivalent ounces now established on the project, our immediate goal will be to continue to expand the Moss gold-silver resource to the west and east of the main deposit and to advance the current 199,100 ounce inferred gold-silver resource to the measured and indicated category."

Updated NI 43-101 Resource Estimate.  The updated 956,800 ounce gold-equivalent resource at Moss, classified as measured and indicated, comprises 30,879,000 tonnes having average gold grades of 0.87 and 0.73 grams per tonne respectively, and average silver grades of 9.96 and 8.19 grams per tonne respectively. An additional inferred gold-equivalent resource of 199,100 ounces comprises 7,096,000 tonnes having an average gold grade of 0.71 grams per tonne and an average silver grade of 8.13 grams per tonne.

The following material changes contributed to the (significant) increase in the mineral resource estimate:

  • Substantial additional drilling (Phase 2) consisting of 42 RC and core drill holes totaling 5105 m (ref. Northern Vertex News Releases);
  • Comprehensive underground channel sampling consisting of 148 five-foot (1.52 m) intervals oriented across and along the strike of the deposit;
  • Reliance on post 2004 drill results (161 RC and core holes) and underground sampling to calculate measured and indicated resources.

Current Exploration and Development Initiatives.  The current ongoing Phase II exploration and development program on Moss, designed to expedite the path to a production decision, consists of the following components:

  • Infill drilling to render 'inferred resources' into the 'indicated' category;
  • Continued scoping and baseline studies to advance the permitting process;
  • Comprehensive metallurgical testing to determine precious metal recoveries;
  • Preliminary pit design for open-pit, heap-leach mining and;
  • The initiation of environmental impact and feasibility studies in a timely fashion.

The technical report on the Moss deposit in Oatman Mining district in Mohave County, Northwestern Arizona will be filed within 45 days of this news release.

The Moss mine, located in the historic Oatman District of Northwestern Arizona, is a low-sulfidation epithermal deposit having exceptional grade consistency and homogeneity along its 2 km strike length (ref. Northern Vertex News Releases at: http://www.northernvertex.com/s/NewsReleases.asp)

The mineral resource is reported in accordance with Canadian Securities Administration (CSA) NI43-101 and has been classified in accordance with standards as defined by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) CIM Definition Standards for Mineral Resources and Mineral Reserves.

The mineral resource estimate was completed by Mr. Scott E. Wilson, C.P.G. of Scott E. Wilson Consulting Inc. and independent qualified resource evaluators; this estimate has an effective date of September 9, 2012, and complies with National Instrument 43-101 for the Standard of Disclosure for Mineral Projects as adopted by the Canadian Securities Regulators. Mr. Wilson is an independent Qualified Person as defined under NI43-101 and is responsible for the mineral resource estimate presented in the release.

The foregoing geological disclosure has also been reviewed and verified by Northern Vertex's Chief Geologist, Dr. Bob Thompson PhD, PEng (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects).

Northern Vertex has the right to earn a 70% interest in the historic Moss Gold-Silver Property located in Mohave County, Arizona from Patriot Gold Corp.  Subsequent to the Northern Vertex earn-in, financing of the project will be on a proportional basis.

For full QC/QA procedures please visit: www.northernvertex.com/QCQA.html. For complete drill results and estimates please visit: http://www.northernvertex.com.

Source: http://www.northernvertex.com/

ON BEHALF OF THE BOARD OF PATRIOT GOLD CORPORATION.
Robert Coale, President

About Patriot Gold.  Patriot Gold Corp. is a resource exploration company with the mission to discover and develop significant gold assets.  Headquartered in Las Vegas, Nevada, Patriot Gold currently holds a portfolio of three projects in Nevada and Arizona at varying stages of development from grassroots to advanced exploration.  For more information, go to our website at www.patriotgoldcorp.com.

Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.

For further information, please visit www.patriotgoldcorp.com or call Investor Relations at: 1-702-456-9565.

SOURCE Patriot Gold Corp.



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