SDG.V ( BRAZIL PLAY) Press Release Yesterday...Looks GREAT!
NEWS RELEASE
Dated: November 13, 1996 VSE Symbol: SDG
£ FURTHER ASSAYS CONTINUE TO PROVE UP MADALENA PROJECT
South Duval Gold is pleased to announce that they have received further
assays from their Madalena project located in the Para state of Brazil. To
date, geological mapping, panel sampling and continuous rock chip samples
have outlined a mineralized gold bearing stockwork zone hosted within a
granite to quartz monzonite intrusive stock.
The mineralized stockwork zone known as the Area de Minas which has been
mined on surface, currently measures 250 metres in width with a strike
length exceeding 250 metres. Previous underground development done on the
property as part of a feasibility study, confirms that the mineralization
extends to a depth of approximately 100 metres and remains open in all
directions. A cut grid has been established over the area of known
mineralization to better define the size potential of the mineralized
stockwork zone. The underground workings have been dewatered and a program
of systematic sampling and mapping will commence shortly. Previous
operators had focused on the high grade quartz stockwork zones whereas South
Duval is focusing on a bulk tonnage, open pit target.
Assays from a program of systematic grid sampling in the area of the Area
de Minas are as follows:
Sample Number Type Assay (Au g/t)
3036 1m chip 4.08g/t
3037 1m chip 3.85g/t
3039 1m chip 2.35g/t
3041 1m chip 1.49g/t
3042 1m chip 1.16g/t
3043 1m panel 4.77g/t
3045 1m chip 18.42g/t
3046 1m chip 10.61g/t
3047 1m chip 17.02g/t
3049 1m chip 5.15g/t
3050 1m chip 7.56g/t
3056 1m chip 3.62g/t
3058 1m chip 23.42g/t
3060 1m chip 4.37g/t
3061 1m chip 3.83g/t
3062 1m chip 1.48g/t
3063 1m chip 3.05g/t
3064 1m chip 9.31g/t
3066 3m chip 16.98g/t
Further gold assays are pending and to date no copper values have been received.
Several new areas of intense alteration and stockwork gold mineralization
have been identified, in old road cuts, 400 metres to the west of the Area
de Minas. It is believed that this new zone is a continuation of the zone
identified in the Area de Minas. Follow up work in the form of hand
trenching and panel sampling is ongoing. Several showings have also been
identified 2000 metres further to the south, which contain an abundance of
chalcopyrite in association with pyrrhotite,. Several rock samples were
taken in this area and assays are pending.
At the Gemel Project, which is located approximately 60 kilometres to the
south of the Madalena Project, guarimperos have commenced mining at several
locations. The company has commenced regional prospecting which has to date
identified several gold bearing stockworks hosted within sheared, intensely
altered quartz monzonite intrusives. The zones are only just beginning to
be exposed. One of the areas of stockwork mineralization which has been
mined measures 30 x 30 metres square. The Stockwork Zone is similar in
appearance as that found on the Madalena Project.
Preliminary samples which have been received from this Stockwork Zone are
as follows:
Sample Number Type Assay (Au g/t)
1008 1m chip 58.45g/t
1009 3m chip 12.81g/t
Several samples observed but not assayed in the immediate area of the
Stockwork Zone contained visible gold. No copper results from this area
have been received as yet.
In the immediate area where regional sampling has been initiated, samples
obtained from local streams and creeks taken over an area of 2 x 2
kilometres returned the following results.
Sample Number Type Assay (Au g/t)
507 silt 0.507g/t
510 gravel/sands 0.380g/t
511 silt 0.450g/t
533 gravel 1.50 g/t
535 gravel 1.66 g/t
538 gravel 1.73 g/t
539 gravel/sands 0.815g/t
540 gravel/sands 6.10 g/t
546 gravel/sands 0.568g/t
1017 gravel 0.20 g/t
These are exceptionally high values for stream silt samples over a large
area and are indicative of a nearby source. The company is actively
exploring to define the source of the values.
Presently, South Duval is mobilizing further ground crews into the Madalena
area to continue further work in the form of underground sampling, surface
trenching, geochemical sampling, geological mapping. Airborne Geophysical
crews from Geoterrex (Canada) have been dispatched to Brazil and it is
anticipated that this program of airborne magnetometer and radiometric
surveys will commence shortly.
The company will be filing a prospectus for financing to be used to finance
a diamond drilling program starting early in 1997 on the Madalena/Gemel
projects.
With the ongoing success of the Amazon area projects encompassing the
Madalena and Gemel projects, the company has arranged with Southern Anaconda
Resources to acquire the final 25% of this project and the final 40% of the
Bossoroca project in Southern Brazil. This will give South Duval a 100%
interest in both and will be the operator. Southern Anaconda Resources will
receive shares based on the current trading price of the company having a
value equal to the value of the interests being acquired. Formal
documentation is being prepared and the company will be retaining an
independent consulting engineer to conduct a fair market evaluation of the
properties, the future potential of the properties, and all fixed assets to
be acquired. This process will begin immediately and upon completion will be
subject to shareholder and V.S.E. approval.
The company anticipates further results and updates from the project shortly
and will provide this information as available.
ON BEHALF OF THE BOARD
George E. Nicholson, P. Geo.
President
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this News Release.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
South Duval Gold Corporation Gold Mining in South America
In Canada:
Info : Mirana Simic Email: southduval@canvest.com
Telephone: (604)685 7890 Fax: (604)682 1816
In the USA:
Info: Gary Reid Email: bigmreid@aol.com
USA toll free only: 1 888 565 9051 Fax: (805)565 9061
Check out our web page at: canvest.com
News & Corporate Information
The above information is neither an offering of securities nor a
solicitation to purchase or sell securities.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ |
