Gold Summit Announces 60,000 Ounce Shallow Gold Resource at Sugarloaf Peak

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Gold Summit Announces 60,000 Ounce Shallow Gold Resource at Sugarloaf Peak
Marketwire - Oct 29, 2009

RENO, NEVADA--(Marketwire - Oct. 29, 2009) - Gold Summit Corporation ("GSM") or the "Company")(TSX VENTURE:GSM) has completed a 43-101 compliant study of the gold resource at the old Tip Top mine, within the Sugarloaf Peak Prospect in Esmeralda County, Nevada, acquired by the company in July this year (release July 10, 2009).

The study is based on 138 exploration holes, totalling 7,351 metres, drilled from 1980 to 2004 by five exploration or mining companies, including Gold Summit. The estimate of the gold resource, the bulk of which lies within 200 feet of surface, at a 1 g/t cut-off grade, is:

INDICATED GOLD
Metric Units Imperial Units
Cut-off Grade Tonnes GPT Total Gold (grams) Cut-off Grade Tons Oz/t Total Gold (oz)
1.0 gpt 352,922 3.274 1,155,467 0.03 oz/t 388,920 0.096 37,181
INFERRED GOLD
Metric Units Imperial Units
Cut-off Grade Tonnes GPT Total Gold (grams) Cut-off Grade Tons Oz/t Total Gold (oz)
1.0 gpt 293,312 2.473 725,361 0.03 oz/t 323,230 0.072 23,341

The Tip Top Mine mineralized vein has an identified strike-length of 370 m. The vein system in the study incorporates a footwall vein with an average true width of 2 m, hosted in andesite, with a narrower, hanging wall vein 1 m average true width at an andesite-rhyolite contact. These veins merge in part creating a zone up to 5 m in true width.

The report concludes that more drilling of both distal and down-dip portions of the deposit is clearly warranted to enlarge the resource and recommends a Phase 1 programme of $685,000 for that purpose. The programme includes initial base line studies required for any proposed mining operation.

Commenting on the report, Dr Anthony P. Taylor, Chief Executive Officer, said "we are very pleased with these results that come in midway in the range of the non-compliant resource numbers announced in July and, particularly, that two-thirds of the ounces are in the indicated category. The recommendation for a vigorous drilling programme follows from the 3D model which shows distinct target areas untouched by earlier drilling. The intent of the proposed drilling campaign is to significantly increase the resource base guided by the 3D Surpac model. This doubles our total resources base at potentially economic grades in Nevada to over 120,000 ounces"

Surpac is a 3D geologic modeling and mine planning software tool which was utilized in the preparation of the NI 43-101 report.

GSM explores in Nevada primarily for high-grade gold and gold/silver deposits that would support underground, low cost mining operations. GSM's primary properties cover four Tertiary epithermal vein districts. All have drill ready targets defined by surface work, most with bonanza grades in outcrops or discovery drill holes.

The Company's flagship property, Monte Cristo, contains a NI 43-101 compliant inferred resource estimate of 331,000 tonnes averaging 6.5 g/t gold. An updated resource evaluation and NI 43-101 report, to include drilling results obtained since the completion of the first report in 2006, is underway. The report will include a newly recognised shallow resource to the north -west of the main McLean Lode as well as an estimate for old drill results and channel sampling from the Black Mammoth mine that sits to the east and, probably, in the footwall of the main structure that hosts the McLean Lode.

High-grade shoots that form the heart of the McLean Lode resource are open down plunge and the Company plans drilling to extend these. This will be guided by a new Surpac 3D model, the basis for the new resource report. Surpac is a computer modelling, estimation, mine planning system in common use in the mining industry.

The Sugarloaf Peak Prospect

In the late 1800s gold-silver mineralization at Sugarloaf Peak was discovered in an intensely silicified outcrop north of the Tip Top adit and shortly after, in the Brownie Mine. Both of these mines have splayed veins in the footwall and hanging wall, on or near an andesite-rhyolite contact.

The geochemical signature from rock chip and drill sampling indicates a low-sulfidation environment similar to Midas in northern Nevada. Vein textures are typically crustiform to colloform banded quartz, adularia, and massive to bladed calcite veins. Very little sulphide is present, and wall rock alteration varies in width and type depending upon host lithology. The average silver-to-gold ratio is 9.8. Host rocks for the veins, that have a cumulative strike length of over 2,700 m, are rhyolite, andesite and rhyodacite.

The Tip Top vein structure likely extends for another 370 m northeast toward the Buckskin Mine. To the southwest, the 600 metre strike length towards the Brownie Mine is covered by slumped material (talus) and is untested. There, a mineralized zone 3 to 5 m wide and 150 m long averaged about 4.5 g/t gold.

Several other mineralized veins in the Project area show potential for discovery of gold-silver mineralization. Named Sagehen Flats, Riddle, Buena Vista and northwest Tip Top, they occur as sporadic outcrops of fine-grained or opaline silica carrying anomalous gold and silver values assaying up to 4.32 ppm gold and 16 ppm silver.

The 43-101 report is authored by Nicole Preuss, M.Sc.,LG, M.Aus IMM, a Qualified Person, defined in National Instrument 43-101 Standards of Disclosure of Mineral Projects, licensed in the State of Washington.

Larry Kornze, a GSM director and a registered Professional Geologist, designated as the Qualified Person under National Instrument 43-101 has reviewed and approved the contents of this news release.

This news release contains forward-looking statements. These statements are based on information currently available to GSM and GSM provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe GSM's future plans, objectives or goals, including words to the effect that GSM or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of GSM's mineral properties, and GSM's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of GSM's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on GSM's forward-looking statements. GSM does not undertake to update any forward-looking statement that may be made from time to time by GSM or on its behalf, except in accordance with applicable securities laws.

This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources and reserves, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please contact
Gold Summit Corporation
Andrea Rascati
(775) 284-7200
www.goldsummitcorp.com