Auracle Resources Ltd. of Vancouver BC Canada, is pleased to inform shareholders that phase one diamond drilling is continuing on the Mexican Hat property in Arizona, USA. To date 15 holes have been completed consisting of approximately 2600 meters of the 4200 meter program.
Diamond drilling was chosen for the first phase to enable the company's technical staff to gain a better understanding of geologic and structural controls of the mineralization. This information was not available from reverse circulation cuttings from the drill programs undertaken by previous operators.
The program has consisted of in-fill drilling to confirm historic data as well as tightening the drill hole spacing indicated from previous drilling. Visual observation of drill core has identified zones of strongly fractured material containing intense hematite and limonite alteration in the majority of holes drilled to date. Such alteration was indicative of gold mineralization in previous drill programs as well as earlier rock sampling programs completed by the company.
Management has decided to add a second drill to the program to expedite the phase one program. One drill will concentrate on step out drilling while the second will be utilized for continued close in development. The area to be covered in this phase will extend over 1000 meters of strike length and 200 meters of width.
The Company has retained Loring Laboratories of Calgary, Alberta, Canada to provide assay services. The core is logged, cut and sampled on site and shipped, under bond, to Loring in Calgary. Both metallic screening and conventional fire assay of gold is being undertaken to assess the nature of the gold mineralization.
The Mexican Hat property is located 15 kilometers from Sunsites Arizona, USA 120 kilometers southeast of Tucson and 60 kilometers northwest of the historic Bisbee mining area. Access is by all-weather roads. All required infrastructure is available in Sunsites, water is available from commercial wells. Future power requirements would be provided by a major coal fired generating plant approximately 25 kilometers north of the project.
Drill core assays are expected shortly and will be released upon receipt and compilation.
Jerome Grant M.Sc., P. Geo is the qualified person and site manager for the Mexican Hat project.
ON BEHALF OF THE BOARD OF DIRECTORS,
President & CEO
Auracle Resources Ltd. (AAL) TSX Venture
302-675 W. Hastings Street
Vancouver, B.C. Canada
001-604-682-3131 Fax: 001-604-682-1816
Cautionary Note: This news release contains forward-looking statements regarding the Company's intended use of proceeds from its private placement. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. There is no assurance that the Company will expend the proceeds of the private placement in the manner contemplated. Actual results may differ materially from those currently anticipated in such statements.