Fairmile Gold Corp March 2000 Newsletter
Fairmile Gold Corporation
Volume 2, Issue 1
March 2000
Fairmile Company Newsletter
Below are summaries of Fairmile's projects.
Buffalo Valley Project Summary:
Tests are being conducted on the existing Buffalo Valley heap in order to determine if microbes can be used to economically re-leach the heap. Research on other heaps has demonstrated that this type of biotreatment can liberate significant quantities of gold while improving the quality of the heap's discharge. The initial results of column tests on material from the Buffalo Valley heap are encouraging. Humboldt Mining Services estimates the heap contains 13,500 troy ounces of gold (see News Release dated October 23, 1997).
The microbe work is being conducted with two groups. Pintail Systems, Inc. is a private Colorado Corporation and a recognized leader in microbial treatment of heaps. Technical articles describing some of their previous projects are available to interested parties on Fairmile's recently updated web site. Science Applications International Corporation, generally known as SAIC, is a Fortune 500 Company and the largest employee-owned research and engineering company in the United States. Forbes magazine (December 13, 1999 issue) ranked SAIC as 23rd out of the top 500 private companies in the US based on revenue, up from the rank of 40th in 1998. Additional information about SAIC can be obtained from their web site saic.com
The current work utilizes Pintail's second-generation biotechnology, which exhibits greater extraction efficiencies for gold than their earlier technology. The process can be applied to virgin ore as well as spent ore, and tests are in progress on virgin mineralized material from the Buffalo Valley open pit in order to compare the new process to conventional cyanide leaching. SAIC, Pintail, and Fairmile plan to continue testing material from Buffalo Valley and to investigate other opportunities where the new process may be applied.
Fairmile continues to seek a joint-venture partner to continue exploration at Buffalo Valley. In addition to the possibility of significantly expanding the existing oxide resource, there are possibilities to discover high-grade gold deposits at depth. Two geologic formations may have provided favorable conditions to form high-grade deposits of gold along feeder faults such the Buffalo Valley Fault.
One of the favorable formations is the hlc subunit of the Havallah sequence, which has been intersected in a few of the deeper holes below Fairmile's existing resource. This formation should be most prospective along the Buffalo Valley Fault and where it has been altered to diopside hornfels.
The second favorable formation is the Antler sequence, which should underlie the Havallah sequence. This formation is the most important hostrock for gold in the entire Battle Mountain district, as exemplified by the rich deposits at Lone Tree and Fortitude. The formation has not been intersected in drilling at the Buffalo Valley project to date, and we know from previous drilling that it will lie greater than 1800' below the surface in the area of the existing resource. However, the Antler sequence is capable of hosting economically attractive deposits at these depths.
Highland Project Summary:
Fairmile and joint-venture partner Hecla Mining Company completed limited geologic mapping and sampling, a magnetics survey, and trenching at the Deb and Highland targets during late 1999. A drilling program is planned in 2000 to test the geologic model.
Veins exposed at the Highland target were successfully traced southward under shallow cover using detailed magnetics and one trench. Veins exposed in the new trench have geologic and geochemical characteristics of the upper level of a low-sulfidation, epithermal gold/silver system, consistent with the trench being topographically above other exposures to the north. The target remains a lower level of this system, where bonanza grades are thought to exist.
Trenching at the Deb target was less definitive. Trenching revealed that the boulders of gold-rich vein material are eroding out of a Tertiary debris flow, a somewhat resistant unit forming Deb Hill. The debris flow is overlain by non-mineralized air-fall and water-lain tuffs. The debris flow is underlain by altered and quartz-veined andesitic tuff; however, gold values are low in the small area exposed by trenching. The source of the boulders of gold-bearing veins is unknown, but that source may be hidden beneath the shallow gravel cover that surrounds Deb Hill.
Eastgate Project Summary:
Joint-venture partner Echo Bay Exploration Inc. conducted detailed geologic surface and underground mapping and sampling at the Eastgate Project during late 1999. Echo Bay also permitted a drilling program to test the geologic model during 2000.
Eastgate is located about 10 miles northwest of Fairmile's Highland project, and the geologic setting is similar. Fieldwork completed to date suggests that the Eastgate Project has geologic similarities to the upper levels of productive low-sulfidation-type epithermal gold/silver deposits.
Michael P. Raftery, C.A. elected CFO
Fairmile's Board of Directors has elected Michael P. Raftery, C.A. as Chief Financial Officer of the Corporation. Mr. Raftery is a Chartered Accountant and since 1971 has been a director and officer of many publicly listed companies in Canada. Mr. Raftery joined Fairmile as a Director in March of 1999. His new position reflects his critical role in assisting the Corporation to obtain financing.
Questions and Answers:
Question: Why hasn't Fairmile produced these Newsletters more frequently?
Answer: Fairmile produces these Newsletters as a periodic summary of Company activities. Our work programs have been reduced given the poor climate for junior exploration companies; thus, the amount of worthy news has been reduced. There are also delays because our joint venture partners must approve public dissemination of information regarding those joint ventures. We will attempt to produce the Newsletters quarterly, depending on the amount of news.
Question: Why are parts of Fairmile's web site out of date?
Answer: Fairmile has recently changed its web server to allow direct access by RR Communications, Fairmile's Investor Relations consultants. The site is being updated. We expect new information to be quickly added in the future.
More Records for Gold Demand
The World Gold Council reports that demand for gold reached a new all-time record during the third quarter of 1999 (Business Wire, 11/17/99) and for entire year of 1999 (Business Wire, 2/17/00). Additional information can be obtained from the Council's website (www.gold.org)
Fairmile Gold's Projects
Buffalo Valley - Lander Co., Nevada
Resource (Measured, Indicated, and Inferred) of ~600,000 ounces gold (~20 million tons @ 0.029 oz. Au/t)
Much exploration potential remains
Resource is oxide, above water table
Preliminary metallurgy favorable
No unusual environmental concerns
Excellent logistics: roads, power, mining supplies, manpower
Lease exchange with Newmont, with Fairmile receiving a royalty interest in section 14 (Target J)
Numerous +1 million-ounce gold deposits within 20-mile radius, including (clockwise from north): Converse, Lone Tree, Marigold, Trenton Canyon, Copper Basin, Copper Canyon (includes Fortitude and Phoenix), Cove & McCoy.
Highland - Lander Co. Nevada
Minor historic production of high-grade gold
Geologically similar to other bonanza-grade, low sulfidation -type gold camps
No drilling below 200' vertically beneath strongest veining
Numerous exploration targets with strong surface gold values
Earn-in Joint Venture with Hecla Mining Company
Eastgate - Churchill Co. Nevada
Minor historic production of high-grade gold
Geologically similar to other bonanza-grade, low sulfidation -type gold camps
Limited drilling by others with encouraging high-grade gold over narrow intervals.
Close proximity to Highland Project
Joint venture with Echo Bay Mines
Fraser Institute once again rates Nevada highest for mining investment
Canada's leading economic think tank announced on 12/13/99 (PRNewswire) that again Nevada has received the highest ranking for mining investment, based on its combination of mineral potential and policy attractiveness. Nevada beat out other North American jurisdictions as well as mineral-rich Australia, Chile, Peru, and Argentina. Details can be found on the company's web site (www.fraserinstitute.ca)
This Newsletter
...will be published quarterly, or thereabout depending on the amount of news.
We invite you to email your questions to us, and we welcome your suggestions for articles that may be of interest to our shareholders.
You may contact the Company at:
Fairmile Gold Corporation
PH5-1060 Alberni Street
Vancouver, BC CANADA V6E 4K2
Telephone: (604) 257-4254
Fax: (604) 608-2949
Online at: www.fairmile.com
E-mail: info@fairmile.com
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Fairmile Gold Corporation
President & CEO: Joseph Anthony Kizis, Jr.
CFO: Michael P. Raftery
Trading Symbol: FLA
Exchange: Canadian Venture Exchange
Directors: Joseph Anthony Kizis, Jr., Thomas R. Kelly, Michael P. Raftery |
