Cross your fingers guys and gals.
Hammerdown due diligence
field work complete
Abiting Inc. of Val d'Or, Quebec, have notified Major
General Resources Ltd. that they have completed
the fieldwork portion of the due diligence evaluation
program at Hammerdown Gold deposit.
In November - December of 1999, Abiting drilled 47
diamond drill holes totalling 4,426 metres (14, 516
ft). The drilling consisted of in-fill drilling on this
multiple vein deposit to determine continuity and
gold grade of the veins.
Numerous veins were intersected as visually
identified by Abiting geologists. All essays and
check assays have been received using
conventional fire assaying technique with 30 gram
sample weights. Initial assaying was by Eastern
Analytical Ltd. of Springdale and samples
exceeding 5 gm/T Au were check assayed by
Burlamaque Laboratory Inc. of Val d'Or, Quebec.
The assay results are as expected and show the
high tenor of gold of the Hammerdown veins.
Assays ranged from a low of less than 1 g/T Au to a
high of 360 g/T Au, or in excess of 10 oz/t Au. This
range and distribution of gold assays is virtually
identical to assays of previous drilling completed by
Major General Resources and partner Noranda Inc.
Check assays by Burlamaque show good
correlation of gold values at lower levels below 20
g/T Au, but average about five per cent higher at
elevated levels above this level. Statistical plots of
comparative assay values also show identical
variations to check assay values by other
laboratories previously used by Major General and
Noranda.
Both Major General and Abiting technical staff are
satisfied that assay results are consistent with
expectations.
At this time, Abiting are plotting detailed sections to
allow re-interpretation of Hammerdown gold veins.
When this is complete, Abiting will determine if its
minimum expectations have been achieved,
according to a press release from William Coulter,
President of Major General.
The sale of Hammerdown will close on March 3,
2000 provided Abiting reaches its gold resource
objective. On closing Major General will receive $3.3
million. A non-refundable payment of $100,000 has
already been made to Major General. Once
production is achieved, the Company will receive a
further $600,000 from ounces of gold recovered
between 70,000 and 130,000 ounces of gold
production. After 200,000 ounces of production, the
Company will receive $20 per ounce proved the
price of gold is U.S. $290 or higher. |
