Finally - the new gold property in Arizona has been announced and a work program is scheduled to begin. As noted in the NR - sample 15 shows that the Au MAY go into the disseminated rock. If this turns out to be the case - then we are not just chasing high grade veins! The potential gets much bigger than the veins themselves - even in this gold environment. Regardless - the veins are high grade enough to be mineable and the near surface nature makes a big difference in this $250 oz Au mkt. Cash is coming into the company for the drilling that should happen fairly quickly.
Sierra Nevada signs Gold Spot option; sampling results
Sierra Nevada Gold Ltd SDD
Shares issued 17,086,456 Jun 10 close $0.04
Mon 14 Jun 99 News Release
Mr. Jon Stewart reports
Sierra Nevada Gold Inc. (a 100-per-cent-owned subsidiary), has signed an
option/purchase agreement with the owners of the Gold Spot mineral claims
in Maricopa County, Ariz.
Previous work on this high-grade gold property, dating back to the late
1800s/early 1900s, was through a series of shallow shafts, with the deepest
shaft being an estimated 250 feet in depth. The current 15 claims cover an
area 2,000 feet by 9,000 feet. Additional claims are being staked.
Reconnaissance Landsat imagery has identified a large area of
lineation/fracture systems. The property contains a number of veins and
cross veins within a greenstone dyke structure. Country rock is granite.
Coarse gold has been observed at various locations and would be
free-milling. Initial channel sampling assayed by Chemex Laboratories in
Vancouver returned the following values:
SAMPLE LOCATION WIDTH AU AG
(ft) oz/t g/t
GS No. 1 Vein in place 3.0 .629 12
GS No. 2 Vein in place 2.5 1.353 24
GS No. 3 South wall of
shaft No. 1 .464 5
GS No. 4 North wall of
shaft No. 1 .098 4
GS No. 5 Vein in place 3.0 4.236 23
GS No. 5A Vein in place 3.0 .492 10
GS No. 6 Dump material .629 10
GS No. 7 Dump material .018 - 3
GS No. 8 East wall shaft
No. 2 4.0 .231 11
GS No. 9 Face of
decline 10.0 .218 9
GS No. 10 North wall of
decline - dyke
rock .975 13
GS No. 11 Vein material 15.0 -.002 - 3
GS No. 12 Gold spot vein .141 3
GS No. 13 Gold spot dump .372 7
The quartz veins pinch and swell from 1.5 to 15 feet in width. GS No. 10
was particularly interesting because it shows dissemination into the dyke
material.
The 30-year contract calls for a 90-day option to assure title and to
receive Vancouver Stock Exchange approval. At the end of the 90-day period,
Sierra Nevada Gold will pay $10,000 (U.S.) and 200,000 shares of its
capital stock to the owners. On June 30, 2000, the company will apply to
the VSE for the issuance of an additional 400,000 shares. The owners will
retain a 3 per cent net smelter return until $3-million (U.S.) has been
paid, at which time royalty payments will cease and 100 per cent ownership
will be transferred to Sierra Nevada Gold.
Jon A. Stewart has several commitments for a private placement of the
company's shares and is planning an exploration program to begin
immediately.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
