Hi Dave, here it is:
Mill City Gold Mining Corp - News
Release
Million ounce plus potential at Golden Hill
Mill City Gold Mining Corp MIY
Shares issued 39,402,152 Jan 6 close $0.38
Tue 7 Jan 97 News Release
See MacDonald Mines Exploration Ltd (MMP.A) News Release
Mr Thomas Smeenk reports
Continuing diamond drilling at the Golden Hill gold-copper discovery of
MacDonald Mines in east-central Cuba is yielding further positive results.
A 17-hole program recently completed on the Three Hills zone has identified
a size potential similar to the Little Golden Hill zone 750m east and
defined last year. The Three Hills gold oxide and gold-copper sulphide
zones remain open in several directions and an additional 10 drill holes
are planned to start by the middle of January.
A 23-drill hole program is nearing completion on two zones, the
Quartz-Alunite and the Castle Rock zones, on Big Golden Hill. On Big Golden
Hill the oxide zone is up to 75m thick and the potential for a large gold
oxide resource exists. Other targets to be drilled at the discovery include
a coincident, large ground geophysics and gold-in-soil anomaly 1.2km east
of Big Golden Hill and referred to as Anomaly A.
Within the Golden Hill anomaly, which covers a 2.5 sq km area, five
near-surface gold oxide zones have been identified. These near surface gold
oxide zones, and other posited but undiscovered zones, will be further
delineated by diamond drilling in the next five months with the aim of
producing a positive feasibility study for a heap leach gold operation.
The gold enriched near-surface oxide zones at Golden Hill are the surface
expressions of a large gold and copper rich sulphide deposit. MacDonald's
exploration to date has concentrated on the near-surface, gold-in-oxide
zones. A total resource potential of greater than 40 tonnes of gold (1.3
million troy ounces) together with many millions of pounds of copper, is
indicated. Resources calculated to date by company geologists, from last
year's analytical results only, include more than seven tonnes of gold
(226,602 troy ounces) and 50,578,000 pounds of copper (having a gold
equivalent value of approximately 147,500 troy ounces).
Initial cyanidation tests indicate high gold recoveries from both oxide,
ranging from 93 to 99%, and from sulphide, ranging from 85 to 93%, all with
low cyanide consumption and a short activation time.
An feasibility analysis has established target tonnages and grades required
to commence an economic heap-leaching operation. These tonnages and grades
now appear to be achievable from the current season's planned program,
based on all results to date.
The foregoing resource estimates relate only to the Golden Hill and
Florencia Sector target areas. Considerable potential for the discovery of
further new gold and copper resources exist in the Maclama, Tres Casas and
Palo Seco target areas, which will all be drill tested in the current
season's program. MacDonald's geologists believe the possibility is high
that an extensive skarn type system will be identified at the Maclama area
in this season's drilling program, in addition to the augmentation of
existing resources at Golden Hill and Florencia, now under way.
MacDonald is presently negotiating with underwriters the terms of a
possible convertible preferred share issue to finance further exploration,
development and production.
A previously announced agreement to issue MacDonald shares to acquire the
interest of partner Golden Hill in the discovery, continues dependent on
regulatory approval. Golden Hill is approximately 42% held by Mill City
Gold. MacDonald's application to list its securities on a senior Canadian
stock exchange, has been held pending such regulatory approval.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
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Any Comments?
Dorothy |
