Looks like it was a good idea not to sell :-)
Peruvian Gold and Imperial Metals Silvertip property progress
Peruvian Gold Limited PVO
Shares issued 14,227,466 Sep 15 close $0.73
Wed 15 Sept 99 News Release
Also Imperial Metals Corporation (IPM)
Mr. David Henstridge reports
Hole 2 of a recently completed three-hole drill program has intersected a 31.4-metre (103-foot) zone of silver, lead, zinc mineralization assaying 318 grams per tonne silver, 8.65 per cent zinc and 5.53 per cent lead. This is the thickest intersection yet encountered at Silvertip and is thought to be the first major intercept of feeder-style chimney mineralization. Silvertip is a carbonate replacement deposit with similar geological characteristics to the large, high-grade Gilman (Colorado) and Santa Eulalia (Mexico) deposits. Previous drilling at Slivertip has established a resource of 2.57 million tonnes of flat-lying manto-style mineralization grading 325 g/t silver, 8.8 per cent zinc and 6.4 per cent lead. The significance of the hole 2 intercept is that chimney style mineralization, which is normally thicker and more continuous than the manto-style mineralization, could greatly increase the value of this resource, especially if multiple chimney zones are present. Further exploration will focus on the area of the hole 2 intercept.
Hole From-To Interval Ag Pb Zn
No. (m) (m) g/t % %
2 289.2-320.8 31.4 318 5.53 8.65
The objective of hole 1, a 250-metre step out to the southwest from the
known mineral resource, was to test the extent of the mineralizing system.
Hole 1 intersected four metres of manto-style mineralization. This
intersection represents a substantial expansion of the mineral system at
Silvertip and increases the potential for discovery of additional resources
as the mineralization remains open in all directions.
Hole 3 was drilled to test a fault zone suspected of being a conduit for
mineralizing fluids. Hole 3 cut extensive alteration in the limestones,
followed by a pyrite zone, confirming this fault as a feeder zone and
adding substantially to the knowledge base of the Silvertip deposit.
Silvertip is 85 kilometres southwest of Watson Lake, Yukon, and is
accessible by a 25-kilometre road from the Alaska Highway. Current
exploration is financed by Peruvian under an option from Imperial to
acquire a 60-per-cent interest for property expenditures of $5-million. The
Peruvian option is subject to a 20-per-cent buyback right in favour of
Imperial for subsequent property expenditures of $2-million. Peruvian has
so far expended approximately $400,000 on Silvertip. In the event that both
the option and the buyback are exercised, Silvertip will be held 60 per
cent by Imperial and 40 per cent by Peruvian. All operations at Silvertip
are managed by Imperial. There are no royalty or other underlying interests
on the Silvertip claims hosting known mineral resources.
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