ESSEX (ESX-V) 15 million in the bank, 8 consessions in Bolivia, gold mine in Calafornia, interests in Vosey Bay.
Drilling in 2 weeks, aloted 4 million for Boliva project this year. They have bought thier own drill. Great management. Stock price last year hit 7.10 had a low of 1.10. Closed today (April 11/97----2.18)
24 million outstanding shares (Fully Dialuted)
One of Ted Carter's top gold stock picks.
Essex Resources
Phone 604 685 6851
NEWS RELEASE It's long.....
Wednesday Mar 19 1997
Mr Ian Rozier reports
The company would like to provide an update on the results from the
1996 work program on the Miguela and El Porvenir concessions in
eastern Bolivia.
Two different types of mineralization occur at Miguela. A near surface gold deposit occurs in highly weathered bedrock and will be the focus of work on the property in 1997. The second type of mineralization is a volcanogenic massive sulphide type deposit which is distinctly different and separate from the near surface oxide gold mineralization.
Near Surface Gold Deposit
1996 the near surface gold deposit at the Miguela A zone was tested
with deep trenches and vertical auger drilling. The following summarized the results of this work:
Vertical and horizontal channel sampling was conducted on these deep
trenches and intersections across the main zone in these trenches
included 23m at 31.5 g/t gold.
Vertical auger drilling confirmed that the gold values increase with
depth. One hole drilled to a depth of 5m from the base of a deep trench intersected an average grade of 15.2 g/t over the full 5m.
Spectacularly high grade zones encountered in 1995 were also
reported from exposures in deep trenches in 1996, with grades of up to 393 g/t.
Oxide mineralization at Miguela was previously thought to extend to an average depth of 25m; work in 1996 shows it to go as deep as 60m
below surface, and that an average of 40m is reasonable for resource
estimates.
The oxide material would be amenable to low cost open-pit mining
methods. Metallurgical test results report a high gold recovery factor in the order of 95%. Geochemical and geophysical anomalies indicate the presence of additional near surface gold resources at Miguela South (C zone), El Bagre and El Porvenir.
Reverse circulation drilling will be used to investigate the near surface gold reserves at the Miguela A zone, and at El Porvenir during 1997.
VMS (Volcanogenic Massive Sulphide) Mineralization
The VMS mineralization occurs beneath the oxide zone and was only
discovered at Miguela during 1996 using diamond drilling. VMS
deposits are typically enriched in base metals with gold and silver as byproducts and generally exhibit zoning of mineralization, ore types and metal content. Many examples of zoning and gold enrichment in massive sulphides were discovered in deep drilling at Miguela during 1996. The following summarizes the VMS deposits at Miguela and El Porvenir:
A 15km long by 2km wide corridor with good indications for the
presence of VMS deposits has been identified across the Miguela
South (C zone), El Porvenir, the Miguela A zone and El Bagre areas.
Diamond drilling results indicate that the VMS mineralized system in the A zone area is up to 18m wide and can be classified as a high grade copper mineralization with gold and silver byproducts. Multiple zones with VMS mineralization were intersected in diamond drill holes.
The VMS mineralization at Miguela beneath the oxide zone is typical of many large VMS deposits, and the gold values are significantly higher than the average gold grade of similar deposits worldwide.
The potential for the discovery of VMS deposits in 1996 adds enormous
potential to the Miguela and El Porvenir concessions.
Diamond drilling will be used in the 1997 program to investigate the
VMS base and precious metal mineralization beneath the oxide zone.
1997 Work Program The 1997 work program in Bolivia will focus on three aspects, the primary objective being the continued evaluation of the near surface gold zone. For this purpose a Global Prospector IV Rover Reverse Circulation track-mounted drill has been purchased. Drilling is scheduled to begin in mid-April and will start in the Miguela A zone where geological controls of the near surface mineralization have been outlined. This RC drilling should enhance the preliminary resource estimates of approximately 635,000 tonnes at 11.7 g/t gold made in early 1996. Work will then progress to other areas.
The second aspect is a program total of 4,000m of diamond drilling
proposed at Miguela and El Porvenir in order to further explore the
15km corridor of potential VMS mineralization discovered in 1996. This work is scheduled to begin in June. The third aspect will be trenching, auger drilling, mapping, sampling, IP, magnetic and HLEM surveys to be conducted over the other seven concessions.
The company is pleased with the results of its first year's work in Bolivia. Near surface gold resources are more widespread and deeper than originally thought. Furthermore, metallurgical test work suggests that high gold recovery will be achieved using standard heap leaching methods. The discovery of high grade VMS mineralization underlying the oxide zone across Miguela and El Porvenir further adds to the potential of these concessions.
The company has budgeted approximately $4 million for work in Bolivia
during 1997. The company currently is well financed with $15 million in the treasury.
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