Tuesday August 17, 3:32 pm Eastern Time
Company Press Release
Howe Chile Ltda. (A.C.A. Howe International) Completes Review of Lobo Solitario Gold Properties, Chile
SALT LAKE CITY--(BUSINESS WIRE)--Aug. 17, 1999-- Mr. Robert Cinits, professional Geoscientist and Geologist of Howe Chile, was commissioned by Cerro Dorado, Inc. to review the potential of the company's Lobo Solitario property near Santiago, Chile. The Lobo/Solitario Fortuna Mine property was acquired in April, 1999 in an agreement by which Cerro Dorado, Inc. purchased a 100% interest in the 270-hectare package. Sr. Juan Jose Quijano, the vendor, retains a 20% NPI to a maximum of $5 million.
The property is located in Central Chile in the coastal mountain ranges at an elevation of 2,000 meters. The properties are easily reached from Santiago to the town of Lampa and then 13 kilometers of 4-wheel drive roads to the Alto de Lipangue plateau.
The Fortuna Mine was developed over a 30-year period from the early 1940s to the late 1960s. Workings include a total of 853 meters of underground development, including 156 meters of shafts, 162 meters of chimneys, and 535 meters of drifting and access levels. During a period from 1941 to 1955, the mine produced almost 2,000 tonnes of vein-style mineralization grading 63.9 g/t gold, 51.2 g/t silver, and 0.2% copper which was shipped directly for milling and processing. Most of the resource is still in place.
On surface, west of the Fortuna vein, Howe identified at least five subparallel veins or vein zones and at the very southern end of the area reviewed by Howe, a bowl-shaped depression covering an area of about 250 meters by 250 meters was identified. This has a similar surface expression as the recently discovered Medinah Mining Alto de Lipangue gold-copper breccia pipe, located about 1.75 kilometers to the southwest. Often breccia pipes will occur in clusters and it would not be unrealistic for additional pipes to occur inside the Fortuna Mine property boundaries.
Cerro Dorado's Fortuna Mine property could host a significant gold resource that is open both to the south and at depth. With a minimal exploration program, the potential size of this prospect can be substantially increased. The Fortuna Mine property should also be evaluated for large tonnage, bulk mineable gold-copper breccia-style mineralization. Parts of the property have been only reviewed on a preliminary basis, or not at all. These will be further explored since the potential exists for additional high-grade veins similar to Fortuna.
Howe recommends a two-phase program be conducted. Phase I would include surface gridding and mapping sampling, Magnetic and IP surveys, trenching and 1,300 meters of diamond drilling. Phase II would consist of approximately 5,000 meters of fill-in drilling over the resource area with the object being to outline sufficient measured and indicated reserves to justify a feasibility study. An additional 1,000 meters of drilling should be set aside to test new targets identified during the Phase I program.
Management of Cerro Dorado, Inc. has approved the recommendations made by Robert Cinits, P.Geo, Howe Chile Ltda. and Phase I of the work program recommended by Howe has commenced.
Note: This News Release may contain certain ''forward-looking statements'' within the meaning of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Cerro Dorado Inc. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future could differ materially from those anticipate in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading ''Risk Factors'' and elsewhere in documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities.
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Contact:
Cerro Dorado, Inc.
Richard W. Cahoon, President
Investor Relations:
801/484-2668
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