Further Pine project drilling results
Stealth Mining Corp SAL
Shares issued 7,600,000 Oct 22 close $0.75
Thu 23 Oct 97 News Release
Mr Bradley Jones reports
The company has received further drilling results on the Pine project
highlighted by drill hole 1997-8. Drilling and geological work during 1997
on the Pine project has significantly expanded the area of mineralization.
The Pine zone as defined by the outer limits of drill holes returning
significant copper and/or gold values over appreciable widths, including
internal lower grade zones is now approximately 1km in width and 2km in
length and remains open. The porphyry system appears to be influenced by a
late stage gold enriched event.
Drill Hole 1997-8
Drill hole 1997-8, approximately 200 metres south and 50 metres east of
drill hole 1997-4, was drilled at an angle of 60 degrees and to a length of
307.0 metres. The hole was mineralized from 12.8 metres to 299.4 metres and
samples assayed up to 0.63 g/t gold (over a width of 68.7 metres) and 0.20%
copper (over a width of 68.7 metres). From metre 113.6 to metre 258.1 for a
total of 144.5 metres weighted average grades returned 0.49 g/t gold and
0.17% copper.
GEOLOGICAL RESOURCE IMPACT
At the Pine project, previous drilling identified an initial geological
resource of 40 million tonnes grading 0.57 g/t gold and 0.15% copper
(Canadian Institute of Mining, Metallurgy and Petroleum, Special Volume 46,
Porphyry Deposits of the Northwestern Cordillera of North America, T.G.
Schroeter, 1995). This resource was calculated by the polygonal method
using a 10 metre bench interval, a polygon radius of 100 metres and a
density of 2.70. Applying these principles to Stealth's 1997 drill results
to date:
The overall geological resource is increased from 40 million tonnes to 70
million tonnes grading higher than the initial resource;
The resultant geological resource of gold is increased from 700,000 troy oz
to approximately 1,500,000 troy oz excluding the impact of certain high
grade deposits of up to 215.9 grams (6.9 oz) per tonne which will require
supplementary drilling to better determine their magnitude. The existence
of such high grade intervals is not uncommon within the Pine porphyry
system which greatly enhances the economic potential of the deposit;
The resultant geological resource of copper is increased from 115,000,000
lb to approximately 200,000,000 lb.
THE PINE PROPERTY
The Pine property is a contiguous block of 660 mineral claims
(approximately 40,000 acres) covering an area of over 150 square kilometres
in Northern BC in the southern part of the Toodoggone gold district. Royal
Oak's Kemess mine, presently under construction with production scheduled
to commence in the second quarter of 1998, is 8km to the south. Royal Oak
estimates Kemess' annual production at 250,000 oz of gold with a cash cost
of approximately US$79 per ounce (copper to be credited against operating
costs of US$1 per pound).
Stealth has completed its drilling program for 1997 and will be reporting
future results as assays are received on drill holes 1997-9, 1997-10,
1997-11 and 1997-12. The last drill hole, 1997-12, was halted at
approximately 170 metres and will be continued in 1998. A formal geological
report will be available by year end to further define the geological
resource and outline the drilling program for 1998. |
