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Drills 15.5 Metres at 3.1 (g/t) Gold, Sulawesi Indonesia

July 19, 2011

  • Zone shows increasing grade as well as width at depth, results include:
    • 15.5 metres at 3.1 g/t Au
    • 19.8 metres at 1.6 g/t Au
  • Extends gold mineralisation at Tanoyan
  • Round-the-clock drilling continues with 2 diamond drill rigs
  • Program designed to extend Tanoyan's initial NI43-101 resource of 91,100 ounces of gold

Golden Peaks Limited (TSX: GL) (the company) is pleased to announce that it has begun to receive assay results from its initial 5,000 metre drill program at its Tanoyan Gold Project, Sulawesi, Indonesia.

Results have been received for the first seven drill holes at Tanoyan, with six holes cutting mineralised structures from the Sondana Vein system. Highlight results include intersections from holes TND 049 and TND 050:

TND 049: 19.8 metres at 1.6 g/t Au from 10.9m (Interpreted true thickness 18.9m)

TND 050: 15.5 metres at 3.1 g/t Au from 55.6m (Interpreted true thickness 13.5m)


TND 050 is particularly significant (Figure 1) (http://www.goldenpeaks.com/i/maps/Sondana-Vein-Drill-Section.jpg) as it shows that the mineralisation in this section of the main Sondana Vein is increasing in both width and gold-grade with depth. Figure 1 also shows the position of the drill hole designed to follow up the positive result in TND 050 and extend the zone to greater depths.

The Tanoyan property hosts an extensive set of gold-bearing quartz vein systems which have been mapped over a strike length of about 5,600 metres. Historical drilling comprised of 44 widely-spaced holes in 2 programs testing portions of vein systems. As previously reported, CSA Global Resource Industry Consultants (CSA Global) estimated a NI 43-101 compliant inferred mineral resource of 2.22 Mt at 1.3 g/t for 91,100 ounces of contained gold.

The company is confident that it will be able to significantly exceed the initial resource estimate in both tonnage and grade. This first set of results confirms the strength of our strategy.

Golden Peaks' President Scott Emerson commented: "This is a pleasing start to our initial drilling program at Tanoyan and confirms our confidence in the potential for this project. With a resource in place of 91,100 ounces of gold, we have every confidence that we will increase this figure.

To date, we have completed 18 holes as part of the initial drilling program planned for Tanoyan. Exploration work is ongoing with two rigs operating around the clock. We expect to report additional drilling results in the near future as well as updating shareholders on progress at our four other Indonesian projects."

Table 1: Tanoyan Project Drilling Results

DH No. Zone 51 N UTM Vein From To Interval Au Interpreted
East North (m) (m) (m) (g/t) True Width (m)
TND045 639202 66883 Sondana 0 16.1 16.1 0.8 15.5
TND046 639152 66827 Sondana 77 78 1 0.7 0.9
TND047 639223 66813 Sondana did not intersect vein
TND048 639146 66872 Sondana 44.2 49.2 5 2.9 4.9
TND049 639184 66875 Sondana 10.93 30.7 19.8 1.6 18.9
Sondana 132.1 134.5 2.4 0.9 2.3
Sondana 144.5 145.4 0.9 0.9 0.9
TND050 639247 67005 Sondana 55.6 71.1 15.5 3.1 13.5
Incl 63 63.9 0.9 12.4 0.8
And 69.1 70.1 1 23.2 0.9
TND051 639284 66979 Sondana 14.6 22.3 7.7 0.9 6.7

The company currently owns two drill rigs and they are being operated by PT Maiwadrill Resources Antarnusa. All samples were assayed by Intertek Indonesia; a division of the global Intertek Group PLC.

Core is collected and initially logged at Tanoyan Base Camp at the project area. The core is then securely transported in closed core boxes to Golden Peaks' Exploration Office in Kotamobagu, North Sulawesi. Here the core is logged in detail, cut longitudinally into 2 equal halves and half-core is sampled at 1 meter intervals; except where the geology dictates a lesser sampling interval. Half core is permanently retained, as a reference, in the secure Kotamobagu core-storage facility. All QC samples are introduced before the bagged samples are trucked to PT Intertek Laboratory's sample preparation facility in Manado. Prepared samples are then couriered by PT Intertek to their analytical facility in Jakarta for analyses.

Gold is fire assayed using a 50.0 gram aliquot sample with an AA finish. Multi-element analysis is by Four Acid Digestion using an Induced Coupled Plasma (ICP) finish.

The Company's QA/QC program now includes the regular insertion of blanks, multiple certified assay standards into the sample shipments. Locally-sourced blank samples are inserted in every assay batch of 10 samples. Commercial standards are inserted in every assay batch of 25 samples. Sludge samples are also collected and assayed on a 1 metre interval from the drilling fluid circulation return. Regular monitoring of these QC samples is a critical part of Golden Peak's QA/QC protocols.

This press release has been reviewed and approved by Mr. John Levings, B.Sc., FAusIMM, director of Golden Peaks Resources Limited and a Qualified Person as defined by National Instrument 43-101, under whose direction the exploration programs are being carried out.

Media Information, contact:
Scott Emerson, Chairman and Director
SE@goldenpeaks.com

Investor Information, contact:
Mike Kordysz, Investor Communications
MK@goldenpeaks.com

The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.


Figure 1: Sondana Vein Drill Section: Vein widening and increasing grade with depth

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