New press release!!!!
MARCH 20, 1997
Golden Hill/Mill City - Two New Gold Zones Discovered:
Maclama Area, Cuba
CALGARY, ALBERTA--GOLDEN HILL MINING CORP. (GHMC-CDN) and MILL
CITY GOLD MINING CORP. (MIY-VSE) are pleased to announce an
exciting new gold discovery based on the results of the
exploration program of MacDonald Mines Exploration Ltd.
(MMP.A-ASE) at the Maclama gold prospect located 8 kilometres due
west of the Golden Hill gold-copper deposits.
Analytical results from 12 of 27 widely-spaced, cored, exploration
drill holes have been received. These holes tested several
targets defined in a systematic exploration program that included
a 100 line-kilometre cut grid, geologic mapping, soil
geochemistry, and ground geophysical surveys.
The first 7 holes (M-01 to M-07) tested a large horseshoe-shaped
induced polarization anomaly, 800 metres in diameter, centered on
a diorite stock. Target IP-1 located on the east side of the
anomaly returned an intercept in hole M-03 of 4.88 g/t gold over
3.50 metres (0.14 oz/ton over 11.5 feet).
Target IP-2 located on the west side of the anomaly, hole M-05
intersected 0.80 g/t gold over 24.30 metres (0.02 oz/ton over 79.7
feet) and includes a 7.50 metre interval grading 1.22 g/t gold
(0.036 oz/ton over 24.6 feet). The target IP-2 is also located on
an 800 metre-long linear northeast-striking gold-in-soil anomaly
containing up to 3.54 g/t gold (0.10 oz/ton). This mineralization
is hosted within a large pyrite+epidote+garnet skarn.
Drill holes M-08 to M-12 tested the Maclama Hill area. All five
drill holes intersected gold mineralization; including three
intersections over wide widths. Hole M-11 returned 0.92 g/t gold
over 53.96 metres (0.027 oz/ton over 177 feet) and included 6.10
metres that averaged 2.97 g/t gold (0.087 oz/ton over 20 feet).
The Maclama Hill mineralization appears to be spatially related to
the northeast-striking Mac Fault which has been traced for 2
kilometres along strike. The Mac Fault has a coincident
gold-in-soil anomaly that is greater than 100 metres wide and 1200
metres long. As previously reported, surface grab samples and
chip samples of outcrop along the anomaly have yielded values up
to 11.0 g/t gold and 100.0 g/t silver. The Maclama Hill target
has currently been drill tested on three parallel lines spaced 100
metres apart, and is open down dip and along strike at both ends.
Company management is very encouraged by these new discoveries and
is planning additional holes. These will be drilled once the
current definition drilling program on the previously discovered
oxide gold deposits at Golden Hill has been completed. The two
newly discovered Maclama gold zones are a very significant
potential addition to the at-surface heap-leachable reserves
delineated at both the Florencia Sector deposit and at the
large-tonnage Golden Hill deposit. The potential to combine
processing of the presently indicated resources at these three
nearby deposits indicate substantial economies of scale with
attendant grade and production rate consequences.
Analytical results for the remaining holes completed at Maclama
will be released as soon as they become available.
Operator MacDonald Mines is conducting the ongoing exploration
program at the Golden Hill epithermal gold discovery, in
east-central Cuba, on behalf of partners GeoMinera S.A., a Cuban
state agency, and Golden Hill Mining Corp. Mill City currently
owns approximately 42 percent of the Shares of Golden Hill.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Golden Hill Mining Corp.
Larry D. Revitt
Vice-President, General Counsel
(403) 278-8500
(403) 278-8580 (FAX)
www.millcitygold.com
millcity@cadvision.com
or
Mill City Gold Mining Corp.
Larry D. Revitt
President
(403) 278-8500
(403) 278-8580 (FAX)
or
MacDonald Mines Exploration Ltd.
Tom Smeenk
Shareholder Relations
(416) 865-1625
(416) 865-9386 (FAX)
None of the ASE, VSE or CDN have approved or disapproved the
information contained herein. |
