Underworld Resources Identifies New Drill Targets

Underworld Resources Inc. has identified a 40-kilometre-long trend of gold prospects and anomalous gold in soil geochemistry at the JP Ross and Maisy May property. This trend exhibits similar geologic and geochemical characteristics to the White Gold trend, which hosts the Golden Saddle and Arc Deposits. Within the trend, Underworld has identified a Golden Saddle-style geochemical signature that is underlain by similar host rocks. The company intends to aggressively drill test this area.

Underworld recently announced the initial resource estimation for the Golden Saddle and Arc deposits. The resource at Golden Saddle includes 1,004,570 ounces at a grade of 3.2 grams per tonne Au in an indicated category, with an additional 407,413 ounces of inferred resources at an average grade of 2.5 g/t Au. At the Arc zone, the initial resource includes 170,470 ounces at an average grade of 1.2 g/t Au in the inferred category.

The JP Ross trend is road-accessible, located approximately 65 km south of Dawson City, Yukon, and 35 km north of the White Gold trend. Underworld recently completed additional claim staking, expanding this claim group to 312 square km. JP Ross includes the headwaters to multiple active, past-producing placer operations, including Henderson, Maisy May and Black Hills creeks. Production records from the Yukon Geological Survey (2009) report over 177,689 ounces of gold mined from these operations.

During 2009, Underworld collected over 6,200 soil samples on the property, primarily “ridge and spur” reconnaissance lines. Four soil grids were completed over select target areas, including the Frenzy, Marnie, Vertigo and Spellbound prospects. This work has identified a 40-kilometer-long and 12-kilometre-wide area of anomalous gold and pathfinder elements. The northwest trend at JP Ross is a parallel orientation to the 9.5-kilometre-by3.5-kilometre trend at White Gold.

The Frenzy gold-in-soil anomaly measures 2.7-by-one-kilometres and consists of 459 samples with an average grade of 18 parts per billion Au, ranging from trace to 1,142 ppb Au. The prospect is underlain by similar host rocks to the Golden Saddle deposit, with a similar geochemical signature. The Golden Saddle soil anomaly, 1.8-by-0.9-kilometre in area, consists of 348 samples which outline an “u”-shaped anomaly with an average grade of 22 ppb Au, ranging from trace to 364 ppb Au.

The ridge and spur sampling has identified numerous areas for additional grid soil sampling, including Sabotage Ridge, 1,600 metres long, which is a single ridge line gold with soil samples ranging from trace to 132 ppb Au, averaging 23 ppb. Samples for the entire property range from trace to 2,200 ppb Au, averaging five ppb.

The JP Ross and Maisy May area is underlain by a similar rock types and structures to White Gold, including metamorphosed mafic volcanic, intermediate intrusive and sedimentary rocks, as well as mid-Cretaceous to Early Tertiary plutons and volcanics. At White Gold, Golden Saddle is hosted within a metavolcanic sequence and Arc is hosted with sedimentary rocks.

Adrian Fleming, president, said: “The new soil geochemical results for JP Ross vindicate the exploration approach we have used, are similar or of larger magnitude to the footprint of the Golden Saddle deposit and confirm the potential of the White Gold district to host multiple occurrences of gold mineralization. We look forward to the results of our proposed aggressive 2010 regional drill program.”

Due to poor exposure of bedrock in White Gold, soil sampling is the primary reconnaissance exploration tool utilized by Underworld. It plans to set up an additional exploration camp at JP Ross to complete further soil sampling, trenching and diamond drilling during the 2010 field season.

SRK Consulting (Canada) Inc. was engaged by Underworld in September, 2009, to evaluate the mineral resources for White Gold discovered and identified by drill programs carried out in 2008, and 2009.

Underworld has implemented a rigorous quality control and quality assurance program at White Gold using best industry practice. Elements of the program include chain of custody of samples, insertion of standard and blank samples, and check assays. Soil and rock samples were collected by experienced, trained geologists and geological technicians, and shipped in sealed bags to Acme Laboratories in Vancouver, B.C.

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