Wednesday, October 3rd, 2012
With 40% of Stage 2 Drilling sample analysis received, Paynes Find Gold Limited (ASX:PNE) announces encouraging results on the Company’s 100% owned tenements. The results quantify occurrences of visible gold, and the company believes the drill results to date confirm the potential for Paynes Find mining leases to host economic gold mineralisation.

The Stage 2 Drilling program was carried out to the North and West of the Stage 1 area (drilled in 2011). Gold mineralisation has been recognised over an area with a strike length of at least 3,500m and width up to 800m with occasional shallow laterite and alluvium cover.

Results from Stage 2 Drilling include
• 3m at 92.1 g/t from 41m in PFRC120, including 1m at 271 g/t Au
• 2m at 3.82 g/t Au from 96m in PFRC110
• 3m at 4.94 g/t Au from 114m in PFRC112
• 5m at 1.24 g/t Au from 40m in PFRC118
• 2m at 2.56 g/t from 69m in PFRC120
• 5m at 1.24 g/t Au from 91m in PFRC121 and
• 2m at 2.56 g/t from 8m in PFRC123-1

“Paynes Find has a long gold mining history. It’s believed that the 110 ounce nuggest found by Huffa and Gessner in 1912 (one of WA’s largest) came from this area. War delayed more exploration of the area, but 100 years on, and with a listed entity in place, we are excited by our current Stage 2 Drilling results”, Carl Popal, Chief Executive Director of Paynes Find Gold said.

Carl Popal continued, “Results received so far include some very high value's, in addition to vast reefs showing low grade gold also. Our strategy will remain to extrapolate a large tonnage of low grade gold, to take advantage of the current gold price, rather than focus only on the high grade veins. This is a similar strategy to that of Boddington Gold Mine, which operates one of W.A.s largest mines.

“We will be studying the ground for every grain of gold, where pioneer mining strategies were only focused on high grade nuggets! To do this, we have to focus on evaluating results as low as 0.5 g/t, where historically they were ignored. Paynes Find geology is proven to have rich shafts, with lots of low grade shoots which have not been previously drilled in the past”, Carl concluded.

Further results from drilling at Paynes Find Gold will be made available at the earliest opportunity. The Company believes the drill results received to date confirms the potential of the Paynes Find Gold Limited.

Contact Profile

Paynes Find Gold Limited

Market Cap: ~$7.5 mill
Cash: $3.7m (as at 30 June 2012)
Paynes Find Gold Limited (ASX:PNE) is located in a historically significant gold producing region in Western Australia, 420kn northwest of Perth.

Paynes Find takes its name from Thomas Payne, who was the first prospector to register (1911) a lease for gold mining with the Mines Department of Western Australia. As a reward for discovering gold in the area he was not charged to put a crushing of gold bearing ore through the State Government Battery. This was also the first crushing in the area.

In 1987 the State Government battery was sold to the Taylor family and is still operating today as the Paynes Find Gold Battery, and is now a popular tourist attraction.

Carl Popal
P: 0421 994 900


Paynes Find Gold Limited, PNE, Stage 2 Drill Program, Mining, Gold



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