RELATED NEWS: Golconda Resources
DRILL RESULTS SHOW HIGH GOLD POTENTIAL OF IRON FORMATION TARGET
golcondaresources.com
GOLCONDA RESOURCES LTD.
Suite 620, 304 - 8th Avenue S.W.
Calgary, Alberta T2P 1C2
Phone: (403) 232-6828
Fax: (403) 232-8650
E-mail: golconda@cadvisin.com
golcondaresources.com
July 21, 1999
NEWS RELEASE
DRILL RESULTS SHOW HIGH GOLD POTENTIAL OF IRON FORMATION TARGET
To date Golconda Resources Ltd. has drilled three holes in its search for the source of high
grade gold values drilled in 1957 from an area 50 km (35 miles) south of La Ronge in Central
Saskatchewan. Gold values of 0.250 oz per ton and a high magnetite content were found in a
conglomerate (consolidated gravel layer) on top of the Archean basement which is covered by
258 m (845 ft.) of younger sediments. These results (0.250 oz gold per ton) came from a 6.40 m
(21 ft.) thick conglomerate. This amounts to over one third of an ounce of gold per square foot
of conglomerate, and led Golconda to the conclusion that a significant source of the gold is
nearby and that the gold is closely associated with the magnetite.
A very high magnetic anomaly occurs about 3 km to the southeast of the 1957 drill hole and
Golconda is testing this area as the most likely source of the gold. The three holes drilled by
Golconda show an eastwest striking ridge which rises a minimum of 103 m (340 ft.) above the
old basement plain and is still 150 m (500 ft.) below today's surface. The ridge is caused by a
zone of high iron and it was found that the three drill holes are situated on the southern flank of
the ridge while the gold bearing conglomerate is situated to the northwest of the ridge. In this
initial exploratory phase samples were collected over 3 m intervals, by taking alternative 10
centimeters of the drill core. Results have been received for hole one and two. Hole one
intersected 18 meters of 28.9% Fe and 27 m of 12.6 Fe. Hole two drilled closer to the center of
the magnetic anomaly intersected 90 meters of 32.2% Fe and 18 meters of 13.2% Fe. Hole three
resembles hole one. The iron seems to be free of undesirable elements for steel making. The
iron intercepts are anomalous in copper and highly anomalous in bismuth, a pathfinder
element for gold, which could be expected somewhere in this iron system.
Last week Golconda learned that drill cuttings from the 1957 hole are preserved at the
Geological Survey in Calgary. A microscopic examination by Golconda of these cuttings
showed a mixture of fresh chlorite schist an equal mixture of talc and ironstone (similar to the
ironstone intersected by Golconda). This talc-ironstone mixture is thought to contain the gold
and is most likely on the periphery of the central magnetite - hematite high iron core we have
discovered.
The drill program is continuing and hole number four will be drilled on the northwest flank of
the iron ridge about 300 m (1,000 ft.) west of hole number one, to get closer to the fringe of the
ironstone ridge, away from the high iron core and towards the hole with the gold bearing
conglomerate.
On behalf of Golconda Resources Ltd.
Guenter J. Liedtke
President
For more information about Golconda's properties contact our web site at:
golcondaresources.com
The Alberta Stock Exchange neither approves nor disapproves the information contained herein.
FOR REFERENCE see News Release - June 29, 1999 below............
-----------------------------------------------------------------
MARUM DISCLOSES PRIVATE PLACEMENT INVESTMENT
June 29, 1999 -- In September 1998, the Company purchased
a private placement in Golconda Resources Ltd. ("GA" on The
Alberta Stock Exchange). Marum purchased 165,000 units for
a total cost of $33,000. Each unit consisted of one Golconda
share at $0.20 per share and a share purchase warrant
exercisable at $0.24 per share until September 17, 1999.
The purchased shares and any shares obtained by the
exercise of warrants are restricted from trading until
September 17, 1999.
This disclosure is being made on the basis that the
investment may now constitute a material asset.
The hold period on the private placement and the warrant
stock is now less than three months and the current value
of the investment, assuming exercise of the warrant stock,
is approximately $160,000 calculated on the basis of a recent
Golconda share price of $0.60.
Golconda recently announced that favourable geology was
encountered while drilling on Golconda's Saskatchewan property
as described in several news announcements issued by
Golconda since April 15, 1999.
The Golconda investment was made as part of a exploration
agreement whereby Marum and Golconda would become 50%
joint venture partners in certain specific mineral exploration
properties that might be acquired as a result of exploration
activities. No properties have been acquired under the terms
of the agreement.
Marum's primary exploration focus remains its Chinchaga
diamond and base metal exploration project in northern
Alberta. Preparations are currently underway for an extensive
summer mapping and sampling program that may include
drilling on road accessible targets. The results of diamond
analyses on drill core obtained in February are expected soon.
FOR FURTHER INFORMATION:
Richard A. Boulay,
President & Director, Calgary: 403-243-9500
Arness Cordick,
Director Vancouver: 604-602-1440
U.S. Toll Free: 800-321-8564
The Alberta Stock Exchange has neither approved nor
disapproved the information contained herein
____________________________________________
---> Additional Information <---
Golconda's Ennis Project Page
agt.net
Golconda News Releases
agt.net
___________________________________________________
======== ======== ======== ======== ======== ======== |
