Capital Hill's New Claim -- The Smokey Valley Gold Deposit
DENVER, June 28, 2005 (PRIMEZONE) -- Capital Hill Gold, Inc. (OTCBB:CHGI) reports that the company has acquired a 100 percent interest in the Smokey Valley gold project (Lander County, Nevada) from Salzburg Holdings LLC ("Salzburg").
The Smokey Valley project covers eight unpatented lode-mining claims on federal lands administered by the Bureau of Land Management ("BLM"). Field observations have identified both upper and lower plate rocks and jasperiods on the property, which, in conjunction with USGS geochemical and geophysical work and privately funded geophysical surveys, suggest that the area of interest could host a major gold deposit. A nearby high-grade underground gold mine was developed by two adits and about 600 meters of underground workings. The company's geologists are targeting a Sleeper-type gold deposit.
The Smokey Valley project encompasses the core of a much larger gold project that was previously staked by a major gold mining company when gold prices were in the $275/oz range. The prior lessor never drilled the property, and after two years, allowed the claims to lapse.
Capital Hill plans to immediately begin exploration work on the Smokey Valley project. Geologic mapping and sampling will be undertaken in conjunction with geophysical surveys to identify areas for trenching and drilling later this summer.
Terms of the acquisition call for a $4,500 payment to Salzburg for reimbursement of staking costs; Capital Hill will be responsible for making all future state, county and federal (BLM) payments. There are no minimum annual work commitments or other property payments on the Smokey Valley property.
Management views this new acquisition as a very positive step in company portfolio holdings and development.
On behalf of Capital Hill Gold, Inc. Dan Enright, President Capital Hill Gold, Inc., Denver About Capital Hill Gold
Capital Hill Gold's strategic objective is to obtain controlling interests in gold and silver properties with excellent exploration potential for economically significant to world-class ore deposits. CHGI intends to acquire mineral exploration properties primarily through the filing of concessions on its own account and in partnership with Mexican prospectors as well as by optioning exceptional properties at reasonable costs relative to the property's potential and the financial capabilities of the company.
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
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