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Animas Resources and Nevada Sunrise Gold start exploration of Golden Arrow and Kinsley Mountain in Nevada

Published: 16:43 27 Apr 2010 BST

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Animas Resources Ltd (TSX-V: ANI) and its joint venture partner Nevada Sunrise Gold Corp (TSX-V: NEV) have begun field exploration programs at the Golden Arrow and Kinsley Mountain project areas in Nevada. The Golden Arrow and Kinsley Mountain exploration programs, operated by Animas, will be conducted under the technical leadership of Dr Odin Christensen.

Animas optioned into the projects earlier this month, with the initial option to earn a 51% interest in each property.

"The Golden Arrow and Kinsley Mountain areas are outstanding gold exploration targets”, Christensen commented. “Golden Arrow has volcanic-rock hosted precious metal mineralization both in high-grade veins and in disseminated epithermal deposits, with a compelling exploration model, and a robust defined mineral resource upon which to build”.

The Golden Arrow property, located in the central Nevada high desert, contains a Measured and Indicated Mineral Resource of 296,500 ounces gold and 4,008,000 ounces silver. The 2010 exploration program is designed to build upon the defined mineral resources with electrical geophysical surveys extending from areas of known mineralization and detailed electrical geophysical surveys over specific target areas.

The geophysical data will be integrated with existing technical data, and it will be used to target the drilling phase of the program. Animas expects to use a combination of diamond core and reverse-circulation drilling to test at least 6 targets during the third quarter of 2010.

The other 2010 exploration program, at Kinsley Mountain, aims to build on the propertiy's existing technical data. Kinsley Mountain consists of 141 unpatented lode mining claims, covering approximately 2,807 acres. “Kinsley Mountain has sedimentary-rock hosted "Carlin-type" gold mineralization within an emerging gold province in eastern Nevada", Christensen added.

Gold was discovered at Kinsley Mountain in the nineteen-eighties, and Alta Gold produced approximately 135,000 ounces of gold from a number of small open pits. Animas highlighted that the greater property area has yet to be systematically explored.

The work program will include a property-wide gravity geophysical survey, multi-element soil geochemical surveys and the integration of geophysical data from other sources. Subsequently, a new geological map of the property will be prepared, and it will include a consideration of the geological characteristics of recent nearby gold discoveries.

The gathered data and subsequent mapping will be interpreted for drill targeting which is scheduled for 2011.

"Animas is excited to have Dr. Odin Christensen provide the leadership on these two exciting properties. The opportunity is to apply the knowledge and newer technologies to an area with historic production and considerable size potential: size matters", Animas President Gregory E McKelvey stated.

Animas can earn a 51% interest in the Golden Arrow Property by spending C$3.5 million in exploration over three years, with the first C$1 million being spent by the end of 2010. Animas can earn an additional 9% interest through spending a further C$4 million. Furthermore the company has the right to earn up to a 75% interest by paying for and completing a Pre-Feasibility study.

Once Animas has earned the initial 51% interest, a formal joint venture will be formed between the two companies.

Animas can earn a 51% interest in the Kinsley Mountain property by spending C$1.5 million in exploration expenditures over three years, with $200,000 required by the end of 2010. Animas can subsequently take its stake to 65% by spending a further C$3 million, and it also has the right to earn up to 75% interest by paying for and completing a Pre-feasibility Study.
As with the Golden Arrow, a formal joint venture will be formed once Animas has earned its 51% interest.

On 8 April 2010, the company also announced a non-brokered private placing to raise gross proceeds of C$1.4 million, through the issue of 4 million units, comprising one share and one half warrant, at C$0.35 per unit. The proceeds will be used for drilling at the company’s Santa Gertrudis property in Mexico, the Golden Arrow property and the Kinsley Mountain property, and for general corporate purposes.

Work also got underway at the company’s principal project, San Gertrudis, last week when Animas commenced a 3,000 metre drilling programme at the El Tigre area, to explore for a causative intrusive and proximal skarn mineralization, while also considering other targets.

The Latin America focused company has re-consolidated the Santa Teresa District's Santa Gertrudis precious metal and related deposits and prospects within a 562 sq km (square kilometer) land holding. The mine at Santa Gertrudis has produced over 560,000 oz (ounces) of gold from a mine commissioned to start with 1.2 Moz (million ounces).

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