(COMTEX) B: New Discovery At Lobo Solitario Property, Lipangue Platea
B: New Discovery At Lobo Solitario Property, Lipangue Plateau, Chile
SALT LAKE CITY, Jan 27, 2000 (BUSINESS WIRE) -- Cerro Dorado, Inc. is
pleased to announce an important new discovery on the Company's Lobo
Solitario property in Chile. A report by geologist Eric L. Hanson, on
the results of a recently completed exploration program, describes an
extensive area on the southern portion of the claim block where large
amounts of iron oxide rich quartz and granodiorite rubble can be found
at surface in an area covered by shallow soil. A number of samples of
the quartz contained anomalous to high-grade gold, with values up to
6.10 g/t. It is very significant that a recently completed Induced
Polarization (IP) geophysical survey over the same area showed strong,
high-polarization and high-resistivity anomalies. These coincident
anomalies are interpreted as representing the presence of sulfides and
silicification extending up to the near surface.
This new discovery is of particular significance due to its close
proximity to other areas of known strong gold and base metal
mineralization. The workings of the Fortuna Mine, famous in Chile for
its historic high-grade gold production, are located less than 500
meters to the north. In addition, this area lies just 2 kilometers to
the southwest of the Lipangue breccia pipe, which is currently being
drilled by Medinah Mining, Inc. Recent drilling results from Medinah
have shown this breccia to contain very strong gold, silver and copper
mineralization over significant widths - for example, 44 meters at an
average grade of 4.80g/t gold and 0.495 % copper (December 27, 1999
Medinah News Release).
Mineralized breccia pipes, such as the nearby discovery by Medinah, can
signify the presence of underlying or adjacent, larger-scale,
porphyry-style mineralization. Widespread alteration of intrusive rocks
of the Lipangue plateau and the presence of peripheral vein gold and
base metal mines further support this concept. The recent discovery on
the Lobo Solitario property could be further evidence of the existence
of porphyry-style mineralization at depth or beneath the extensive soil
covered areas of the property.
In his report, Mr. Hanson recommends a second phase of work on the
southern portion of the Lobo Solitario property consisting of grid
geochemical sampling followed by trenching and 1,500 meters of
drilling. The budget for this work is estimated to be US$350,000.
The Company plans to initiate this suggested work program on the Lobo
Solitario property during February 2000.
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.
Copyright (C) 2000 Business Wire. All rights reserved.
Distributed via COMTEX.
-0-
CONTACT: On behalf of the Board of Directors
Per: Richard W. Cahoon, President
Investor Relations
801/484-2668
or
visit our website at www.cerrodorado.com
WEB PAGE: businesswire.com
GEOGRAPHY: UTAH
INDUSTRY CODE: MINING/METALS
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
*** end of story *** |
