Vancouver, BC — August 9, 2011 – Ethos Capital Corp. (the “Company” or “Ethos”) (TSX-V: ECC) (OTCQX: ETHOF) (FRANKFURT: 1ET) is pleased to report gold analyses from soil samples up to 277 ppb Au and to provide an update on the ongoing exploration at the Betty Property located southeast along-strike of Kaminak Gold Corporation’s (“Kaminak”) Coffee discovery in the White Gold District, west-central Yukon Territory, Canada and just one of the 5 properties that Ethos owns in the area.
Ethos is currently exploring 4,963 claims covering an area of 1,038 square kilometers in the emerging White Gold District. Ethos’ Betty Property, comprised of 730 claims covering 152 square kilometers, is situated immediately east of Kaminak’s Coffee Property. Gold mineralization at Kaminak’s flagship Coffee Property is associated with a regional scale structural corridor termed the “Coffee Fault”. The Coffee Fault is defined by a pronounced east-west trending topographic and magnetic lineament that transects Ethos’ Betty Property. The Coffee Fault and subordinate structures are the focus of Ethos’ Betty Property exploration program.
A total of 3,875 reconnaissance ridge-and-spur soil samples representing 194 line kilometers of soil data have been collected. Results have now been received for 2,354 samples representing 60% of the total collected at the Betty Property. Remaining samples have been delivered to the analytical lab for processing.
A previously reported ridge-and-spur soil result of 597 ppb Au (see July 12, 2011 News Release) led to the discovery of 2.1 g/t Au in rock at the Buck Zone (see July 25, 2011 News Release). At present, the Buck Zone is defined by trenching to occupy a 250 meter by 250 meter area of alteration, as described in more detail below. The nearest adjacent ridge-and-spur soil lines are 700 meters away, also with anomalous Au and As geochemistry.
Numerous other gold anomalous soil sites have now been identified. These are all in the process of being field-checked. A gold-in-soil map of results received to date has been posted on the Company’s website and can be viewed by clicking here.
New Mascot Creek Soil Anomaly
New results reveal significant gold-anomalous soils in the area of Mascot Creek located south of the main Coffee Fault. A line of reconnaissance ridge-and-spur soils collected at 50 meter intervals above the west bank along Mascot Creek returned a continuous gold-in-soil anomaly above 10 ppb gold that is 2,500 meters long, then a 650 meter interval gap not anomalous, then an additional 650 meter long gold-in-soil anomaly. The entire soil line ranges in value from 10 ppb, with the numeric average of 34 ppb gold, and with multiple sites above 100 ppb gold to a maximum of 277 ppb Au. Soil values above 14 ppb Au are statistically anomalous above the 95th percentile for Ethos’ soil sample database. These gold-anomalous sites are also uniformly highly anomalous in arsenic with many values above 250 ppm and six values between 505 ppm to 1611 ppm As. These Au and As values are consistent with results reported by Kaminak from soils in proximity to gold-mineralized zones.
A second line of reconnaissance ridge-and-spur soils was collected at 50 meter intervals along the ridge top 900 meters west of the line in Mascot Creek with similar results. There is a 1,400 meter long gold-in-soil anomaly above 10 ppb, then a 500 meter interval gap not anomalous, then an additional 450 meter long gold-in-soil anomaly. The anomalous values begin at 10 ppb and reach a maximum of 134 ppb Au along this line, with a numeric average of 34 ppb Au. These gold-anomalous sites are also uniformly anomalous in arsenic with several values above 250 ppm As and one value of 501 ppm As.
Samples from adjacent soil lines which would help refine the geographic extent of this anomalous area are still in the lab with analytical results pending.
The Mascot Creek area is now a priority area for follow-up. Prospecting surveys have begun. Trenching of the anomalous gold-in-soil line along the ridge top is planned as soon as the backhoe completes Buck Zone trenching. An additional 1,000 soil samples from a follow-up detailed soil grid are planned for collection to expand the soil coverage; this program should begin shortly.
A total of 2,406 line kilometers of magnetic and radiometric surveying of the Betty Property has been completed and preliminary results are in hand. The magnetic survey clearly images the first-order Coffee Fault as well as many additional second-and tertiary-order structures. The Buck Zone is shown to be an area of intersecting east-west and north-south magnetic linears interpreted as faults. The Mascot Creek area gold-anomalous soils are also associated with strong magnetic linears.
Buck Zone Trenching
1,500 meters of trenching have been completed at the Buck Zone gold discovery in the immediate area of the 2.1 g/t gold sample site. The trenches cover approximately a 250 meter square area and are spaced 50 meters apart. The area is confirmed to have abundant silicification, quartz veining, iron oxidation, and locally relict arsenopyrite and pyrite. Prospecting the immediate area has uncovered an outcrop containing boulangerite (antimony-arsenic sulphide), stibnite (antimony sulphide) and arsenopyrite (arsenic sulphide) approximately 600 meters south of the Buck Zone. The outcrop is along a north-south structure interpreted from the magnetic data that extends from the Buck Zone. Photographs of rock samples and trenching are available on the Company’s website.
A total of 298 rock samples have been collected from the Betty Property predominantly from the Buck Zone trenches and the antimony-arsenic bearing outcrop. All rock samples have been submitted as a “rush” order to the analytical lab.
Peter Tallman, P.Geo. and COO of Ethos states “The recognition of antimony and arsenical sulphides associated with gold mineralization and strong alteration adjacent to the Coffee Fault, combined with the general level of oxidation of the host rocks, continues to compare favourably with extremely similar early results obtained by Kaminak Gold Corporation, our neighbor to the west.”
Gary Freeman, CEO and President of Ethos states “We continue to work diligently and methodically in investigating the many new gold target areas which continue to come to light and we are excited by the preliminary indications received to date.”
To view the location of our claims including the Betty Property please click here.
The Coffee Fault and Betty Property can be viewed using Google Earth through a link on the homepage of the Company’s website, www.ethoscapitalcorp.com.
A comprehensive QA/QC program is in place to monitor precision and accuracy of the assay results. All soil samples are submitted with certified reference materials. Soil sample duplicates are routinely collected, and pulp duplicates are obtained for all soil samples. Ridge-and-spur soil samples are analyzed by Acme Analytical Laboratories Ltd. (“Acme”). A 15 g sub-sample of soil material is ignited, acid digested, and gold determined by ICP-MS; a 0.5 g sub-sample undergoes aqua regia digestion with ICP-MS analysis for 36 reporting elements including arsenic. Analytical QA/QC programs monitoring the precision and accuracy of results includes the routine use of assaying sample duplicates, certified reference standard(s), and both assay and prep wash blanks. Acme is ISO 9001 certified.
The technical information contained within this News Release has been reviewed and approved by Peter Tallman, P.Geo, Chief Operating Officer of Ethos Capital Corp. and Qualified Person as defined by National Instrument 43-101 policy.
About Ethos Capital Corp.
Ethos’ principal assets are its substantial mineral land positions in the heart of the emerging White Gold / Klondike gold district, as well as its Santa Teresa and Corrales silver-zinc-lead properties in Mexico. Ethos currently has approximately 40.8 million shares issued and outstanding, and working capital of approximately $17 million.
For additional information please contact Gary Freeman or Andy Hay at 604-682-4750 or visit the company website at www.ethoscapitalcorp.com.
Gary Freeman, President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement Cautions:
This press release may contain certain "forward-looking statements" within the meaning of Canadian securities legislation, including statements regarding the Company’s planned 2019 exploration program for its Pine Pass project. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the risk of accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, or the possibility that the Company may not be able to secure permitting and other governmental clearances, necessary to carry out the Company's exploration plans, and the risk of political uncertainties and regulatory or legal changes in the jurisdictions where the Company carries on its business that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects