Randgold Resources Completes First Year Exploration Program &
Commits to a Second Year of
Exploration on Azco's Gold Properties in Mali, West Africa
Date:
Fri, 1 Oct 1999 13:22:19 -0700
October 1, 1999
RANDGOLD RESOURCES COMPLETES FIRST YEAR EXPLORATION PROGRAM AND COMMITS TO A SECOND YEAR OF EXPLORATION ON AZCO'S GOLD PROPERTIES IN MALI, WEST AFRICA
FERNDALE, WASHINGTON, October 1, 1999… AZCO Mining Inc. is pleased to
have received an encouraging report
from Randgold Resources on its first year of exploration on AZCO's
Medinandi and Dandoko gold exploration properties in
Mali, West Africa.
The integration of all the Medinandi regional data (which included soil
sampling, geology, regolith, Landsat and aeromagnetic
survey) identified five gold anomalies coincident with prominent
regional northeast and north-trending structures. These targets
areas are referred to as: Medinandi, Bakolobi, Medinandi North, Tintiba
and Betakili. All five targets have been subjected to a
regional follow-up exploration program.
The nature of the exploration completed to date has been regionally
focused and as such the results are not conclusive as to the
individual merits of any of the numerous targets defined during the
first part of phase one exploration. To date, ten gold targets
have been identified on the Medinandi and Dandoko concessions. Only one
of these targets, Medinandi Deposit, has been
tested in some detail.
Of particular encouragement has been Randgold's discovery of the Tintiba
target on the Medinandi claim block. Two trenches,
120 meters apart, returned 14 meters grading 5.37 g/t gold and 8.8
meters grading 5.43 g/t gold while pits dug inside one
of the trenches returned individual gold values of 9.6 g/t and 11.16
g/t.
Randgold believes that further regional potential exists below areas of
extensive laterite, where known regional structures are
concealed. The future exploration program is expected to be structured
to include a detailed exploration of the four follow-up
targets at Medinandi, with provision for rotary air-blast drilling due
to the thickness of overburden (5-7 m). Focused regional
exploration is expected to have a special emphasis on prospective areas
that are covered by laterite at both the Medinandi and
Dandoko permits.
Randgold is currently earning a 75% interest in AZCO's subsidiary, which
holds the rights to 80% of the properties, by
expending a minimum of $2 million over the next three years. The
Government of Mali has an option on the remaining 20%
with a 5% participation. Furthermore, Randgold must complete a bankable
feasibility study on an established deposit of at least
one million ounces of gold to fulfill its earn-in obligations.
AZCO has also received from Randgold a total of US$227,500 as partial
payment for the sale of field camp and equipment
negotiated as part of the joint venture. The company expects to receive
the remaining US$50,000 shortly.
AZCO Mining Inc. is a mining development and exploration company with
mineral interests that include: gold, copper,
industrial minerals and gemstones. AZCO is currently commissioning its
first mining operation, the Black Canyon mica project,
and is also funding its 30% share of a US$3.6 million work program on
the 2.3 billion pound Piedras Verdes copper deposit in
Mexico – a partnership with Phelps Dodge Corporation.
On behalf of the Board of Directors, AZCO Mining Inc.
Alan P. Lindsay
Chairman, President and Chief Executive Officer
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