NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: ARGOSY MINING CORP.
VSE SYMBOL: AGO
APRIL 30, 1997
Argosy Mining Corp.: Kremnica Geological Resource Passes
1 Million Ounces, Drilling Continues
VANCOUVER, BRITISH COLUMBIA--Argosy Mining Corp. is pleased to
announce that the potential in-situ geological resource at its
Kremnica Gold Property in the Slovak Republic of Central Europe
has passed one million ounces gold, and that exploration is
continuing using two drilling rigs.
The resources are present within the main Sturec deposit and in a
deposit called Vratislav, 300 metres north of Sturec. The
potential in-situ geologic resource estimates for these deposits
at cut-off grades of 0.5 and 1.0 g/t gold are summarized in the
following tables:
/T/
Kremnica Potential In Situ Geological Resource
(0.5 g/t gold cut-off)
Deposit Tonnes Gold Silver Total Total
Grade Grade Gold Silver
(g/t) (g/t) Ounces Ounces
Sturec(1) 19,495,000 1.54 13.2 965,000 8,273,000
Vratislav(2) 1,060,000 2.18 21.6 74,000 737,000
TOTAL 20,555,000 1.57 13.6 1,039,000 9,010,000
(1.0 g/t gold cut-off)
Deposit Tonnes Gold Silver Total Total
Grade Grade Gold Silver
(g/t) (g/t) Ounces Ounces
Sturec(1) 13,143,000 1.91 15.4 807,000 6,507,000
Vratislav(2) 595,000 3.33 24.7 64,000 472,000
TOTAL 13,738,000 1.97 15.8 871,000 6,979,000
Tonnages and Total Ounces rounded to the nearest 1,000
(1) a new independent resource estimate by Western Services
Engineering
(2) a 1992 unaudited resource estimate by the Slovak Geological
Survey
/T/
The in-situ geological resource estimate for the Sturec deposit
was calculated by Western Services Engineering of San Francisco,
California using a three-dimensional computer block model. The
modelled part of the Sturec deposit is 1,240 metres long in a
north-south direction and is up to 100 metres wide, dipping
steeply to the east. Argosy drilled the deposit on east-west
lines that are 100 metres apart. Numerous cross-cuts and drill
holes tested the deposit before Argosy commenced its drilling
program in 1996. Many of these cross-cuts and drill holes and
some of Argosy's new drill holes fall between these drill lines,
providing confidence that the deposit is continuous between lines.
The deposit remains open at depth where Argosy discovered high
grade gold mineralization in 1996, such as that in hole AS-7,
which contains 60.7 metres averaging 4.84 g/t gold and 41.9 g/t
silver at a vertical depth of 115 metres.
The Western Services Engineering estimate is based on 30 pre-
existing cross-cuts (some of which were sampled on both walls), 27
pre-existing drill holes and 33 Argosy diamond drill holes. This
database constitutes a total of 7,305 samples. Sample preparation
for these samples was conducted by the Slovak Geological Survey
Laboratory and SGS Qualitest Inc. of France. Gold assaying was
conducted by Slovak Geological Survey (4,677 assays), SGS
Qualitest (2,733 assays), Chemex Labs Inc. (245 assays) and
Bondar-Clegg & Company (226 assays). The 7,881 assays performed
on the 7,305 samples provides Argosy with a reasonable number of
check assays. The company has retained half cores from all drill
holes in a secure storage facility to allow additional check
assays as required.
The Sturec block model was created using GEMCOM software and
consists of a large number of sub-blocks each measuring ten metres
in a north-south direction and five metres in both the east-west
and vertical dimensions. Individual sub-blocks were assigned a
grade using geology and assays from nearby cross-cuts or drill
holes. A weighting factor (inverse distance cubed) assures that
assays located closer to a sub-block provide a much stronger
influence on its grade than assays located farther away.
All of the sub-blocks in the quoted Sturec resource occur within
100 metres of two 5-metre composites of assays, each from separate
cross-cuts or drill holes. Approximately 60% of the gold resource
(579,000 ounces) occurs in sub-blocks that are located within 50
metres of two composites. Approximately 22% of the resource
occurs in sub-blocks that are located within 25 metres of two
composites, and these resources comprise a Measured and Indicated
Mineral Resource of 3,940,000 tonnes averaging 1.67 g/t gold and
14.4 g/t silver.
The Vratislav resource estimate was made in 1992 by the Slovak
Geological Survey. They categorized the resource as Z2, which is
approximately equivalent to an indicated, in-situ geological
resource. Argosy has not conducted drilling in this area, and
neither Argosy nor Western Services Engineering has verified or
audited this resource. The company plans to do exploration at
Vratislav during 1997 and will update this resource as it conducts
its exploration work.
Exploration at Kremnica is continuing with two drilling rigs on-
site. Targets being tested are the Sturec deposit and the Wolf,
Katarina and Sturec West zones.
ON BEHALF OF THE BOARD
signed "Y. R. Simpson"
YALE R. SIMPSON, President
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Argosy Mining Corp.
Yale R. Simpson
President
(604) 689-5529
(604) 689-5079 (FAX)
1-800-851-7423
URL: argosy-mining.com
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