Prosperity Goldfields Provides Update on Kiyuk Gold Project Program

VANCOUVER, Aug. 5, 2011 /PRNewswire/ - Prosperity Goldfields Corp. (TSX-V: PPG) ("Prosperity Goldfields") is pleased to announce drilling has progressed well at it 100% controlled Kiyuk Gold Project, Nunavut. To date, approximately 1,700 meters of diamond drilling have been undertaken at the Cobalt and Gold Point Zones. The company is on track to complete its 3,500 meter program Phase One drill program by the end of August.

• Seven diamond core holes, CS11-001 through -007, have been completed at the Cobalt Zone, a 200 m wide and at least 700 m long zone of variably mineralized polymictic conglomerates.  Hole CS11-001 was lost in overburden, but CS11-002 through -007 were drilled to depths ranging from approximately 100-250 meters, and all intersected variably long intervals of albite-altered sedimentary rocks ranging from a few meters to a few tens of meters long.  Disseminated sulfide minerals including pyrite, pyrrhotite and arsenopyrite, occur locally.  Samples from holes CS11-002 through -005 have been submitted to SGS Minerals Services in Red Lake, Ontario, for fire assay, and holes CS11-006 and -007 will soon be split and sampled in preparation for submission to the assay laboratory.
  
  
• Three core holes, GP11-001 (182 m long), GR11-002 (185 m long) and GP11-003 (259 m long), have been completed at the Gold Point Zone where the target is a 200 m wide and at least 400 m long zone of variably mineralized polymictic conglomerates.  All holes are drilled in a southerly direction at an inclination of -50 degrees.  All three holes have encountered multiple intervals of strongly albite-altered "K1" conglomerate with variable amounts of disseminated sulfides including pyrite, pyrrhotite and arsenopyrite.  In hole GP11-002, approximately a dozen small,  0.1 mm, specks of visible gold are randomly scattered over the bottom 6 meters of this hole. Approximately a hundred similar small gold grains are visible over a 78 m long interval of core starting at 148 m down hole depth in GP11-003. These grains are randomly scattered in numbers of 0-5 per meter of core. The intensity of alteration in all three Gold Point holes appears to increase with depth. Because of the presence of visible gold in holes GP11-002 and -003, these core have been given priority for sawing, sampling and submission to the assay laboratory.
  
  
• Three more holes are planned at the Gold Point Zone.  From there, the drill will move to the Rusty Zone where four holes will test a similar zone of conglomerates. The final two holes of the program will test each of the North Snake Lake and Heart Pond targets. Completion of these drill holes is expected by August 24^th. Closure of camp for the summer will be September 1^st before caribou migration in this area. Final sample submission to the assay lab will be by September 3^rd, 2011.

"We are extremely pleased with the progress of our first drill program at Kiyuk," states Quinton Hennigh, Chief Geologist for Prosperity Goldfields Corp. "Our second and third Gold Point Drill holes are particularly intriguing given the presence of small grains of visible gold scattered over significant lengths of core. We shall be quite anxious to see assay results from these holes over the coming weeks." 

Images of core samples will be posted shortly on our website at www.prosperitygoldfields.com

About the Kiyuk Gold Project and Drill Targets

Gold at Kiyuk is hosted by a sequence of conglomerates and breccias occurring along an unconformity between two thick sedimentary units, the Hurwitz Supergroup and overlying Kiyuk Group. The Kiyuk sub-basin in which numerous gold showings occur, measures roughly 60 km NE-SW and 35 km NW-SE. Gold mineralization is associated with intense magnetite and albite replacement and displays variable geochemical associations with cobalt, nickel, arsenic and uranium.  Assays from a suite of over 500 grab samples from the property include values ranging from below detectable levels to as high as 36 grams per tonne gold. 

Five targets are being tested during Phase One drilling including:

• Cobalt Zone where gold grades from grab samples range from below detectable levels up to 16 grams per tonne in a sequence of strongly albitized conglomerates up to 200 meters thick. This zone is at least 700 meters long and open to the NE and SW.
• Heart Pond showing where gold grades from grab samples range from below detectable levels up to 6 grams per tonne gold in strongly albitized conglomerates of unknown thickness.
• North Snake Lake showing where gold grades from grab samples range from below detectable levels up to 36 grams per tonne in a sequence of albitized conglomerates of unknown thickness.
• Rusty Zone where gold grades from grab samples range from below detectable levels up to 9 grams per tonne in a sequence of strongly albitized conglomerates up to 250 meters thick. This zone is at least 300 meters long and open to the NE and SW.
• Gold Point Zone where gold grades from grab samples range from below detectable levels up to 24 grams per tonne in a sequence of heavily magnetite- and albite-altered conglomerates up to 200 meters thick. This zone is at least 400 meters long and open to the NE and SW.

These five gold occurrences lie within a belt of gold mineralization as defined by rock chip sampling that is approximately 20 km long and is situated on the SE flank of the Kiyuk sub-basin.

Gold assays in surface sampling described above were completed by either ALS Minerals, ALS Canada Ltd., Vancouver, using a 30 gram charge fire assay with ICP finish or Activation Laboratories Ltd, Geraldton using a 30 gram charge fire assay with AA finish.

About Prosperity Goldfields Corp.

Prosperity's principal business is the acquisition, exploration and development of resource properties for the mining of precious metals. Prosperity acquired the option to purchase the mineral claims comprising the "Kiyuk Property" near Nueltin Lake in Nunavut. Prosperity's principal objective is to explore the Kiyuk Property. In compliance with National Instrument 43-101, Quinton Hennigh, Ph.D., P.Geo. is the Qualified Person responsible for the accuracy of this news release.

For more information about Prosperity please visit: www.prosperitygoldfields.com.

On Behalf of the Board of Directors
PROSPERITY GOLDFIELDS CORP.

"R. Bruce Duncan"

R. Bruce Duncan
CEO and Director

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

SOURCE Prosperity Goldfields Corp.