Fairmile Updates Status of Projects
Fairmile Gold Corp.
January 6, 2000
CDNX: FLA
Fairmile Updates Status of Projects
Vancouver, BC: Fairmile Gold Corp. (Fairmile) reports on the results of 1999 fieldwork conducted at its three Nevada gold projects.
Buffalo Valley Project - Fieldwork in 1999 consisted of required reclamation work. As a result of this work, the Bureau of Land Management and the Nevada Division of Environmental Protection are approving a reduction in the bond required for the project. Approximately US$80,000 will be released from the bond when this process has been completed.
Tests are being conducted on material from the existing Buffalo Valley heap to determine if microbes can be used to economically re-leach the heap. Pintail Systems, Inc., a private Colorado Corporation specializing in biological enhancement of gold heaps and treatment of industrial waste, is conducting the work. Initial test results are expected by early February. Humboldt Mining Services estimates that the heap contains 13,500 troy ounces of gold (see News Release dated October 23, 1997).
Fairmile continues to search for a suitable joint-venture partner to continue exploration and to advance the existing resource of approximately 600,000 troy ounces of gold (20,330,000 short tons averaging 0.029 troy ounces per ton - see News Release dated October 23, 1997).
Eastgate Project - Joint-venture partner Echo Bay Exploration Inc. conducted geologic surface and underground mapping, sampling, and fencing of open historic workings at the project during 1999. Geologic work to date suggests that the Eastgate Project has geologic characteristics of an upper level, low-sulfidation-type epithermal gold/silver deposit. The target is a lower level of this system where higher grades of gold and silver are thought to exist. Echo Bay is planning a 3 or 4 hole drilling program for this Spring to test the geologic model.
Highland Project - Fairmile and joint venture partner Hecla Mining Company conducted limited geologic mapping and sampling, a geophysical survey, and trenching at the Deb and Highland targets during 1999. Trenching at the Deb target revealed that the mineralized float previously sampled is eroding out of a Tertiary debris flow, which underlies non-mineralized air-fall and water-lain tuffs. Altered and quartz-veined andesitic tuffs underlie the debris flow, but gold values are low in these rocks. The source of the boulders of gold-bearing veins in the debris flow remains problematic, although the two most likely sources are either the upper, eroded portion of the Highland vein system or a separate vein system that is currently covered by alluvial gravel.
Veins exposed at the Highland target were traced southward using detailed magnetics, and one trench exposed a covered portion of the vein system. The vein system contains gold concentrations up to 0.01 ounces of gold per ton and strongly anomalous pathfinder elements. Vein characteristics suggest that the trench exposed an upper level of a low-sulfidation-type epithermal gold/silver system, consistent with geochemical values. The target is a lower level of this system where bonanza grades of gold and silver are thought to exist. A drilling program is being formulated, and 4 drill holes are planned to test the geologic model after permits are received.
To obtain more information about Fairmile, visit our Web Site at fairmile.com or contact Investor Relations at 1-604-257-4254.
"Joseph Anthony Kizis, Jr."
Joseph Anthony Kizis, Jr., President and CEO
This News Release contains forward-looking statements that are subject to various risks and uncertainties. Such statements contained herein represent management?s best judgment as of this date based on information currently available. Actual results may differ materially from those currently anticipated in these statements.
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein. |
