CERRO COLORADO III DISCOVERY EXPANDED
TORONTO, ONTARIO--Intrepid Minerals Corporation (CDNX:IAU) is
pleased to release results from their ongoing diamond drill
program at Cerro Colorado on the Aldea Zapote property in
northwest El Salvador. This program follows an earlier reverse
circulation drill program carried out in 1999 which focussed on a
baryte stockwork zone. Drill intercepts from the 1999 program
ranged from 95 to 449 g/t silver over significant widths up to 55
metres (see press release #99-2).
The current program tested the depth extent of the high grade
silver-baryte stockwork capping Cerro Colorado III. Continuous
intersections of silver-zinc mineralization were encountered in
diamond drill holes DDH CC3-1,3,4,5 and 6. Drill hole DDH CC-2 was
abandoned in a fault zone and drill hole DDH-CC3-7 was designed to
twin 99 RC-1 as part of Intrepid's quality control protocol. A
total of 550 metres of diamond drilling has been completed to date
in the current program.
Results indicate that a thick, silver-zinc (gold) feeder zone
underlies the baryte stockwork zone. The feeder zone is composed
of disseminated silver-zinc mineralization hosted by siliceous
breccias and is approximately 50 metres thick. Silver equivalent
grades range from 30 to 150 g/t over widths of 20-50 metres. In
addition, zinc grades range from 2% to 3%. The base of the feeder
zone is characterized by a silver enriched baryte-sulphide
stockwork which assays 60-925 g/t silver and 2-5% zinc over 4-7
metres. The presence of zinc substantially adds to the contained
metal value of the system.
/T/
HOLE INTERVAL LENGTH AG AU ZN AG EQUIV. (1)
CC3 (m) (m) (g/t) (g/t) (%) (g/t )
---------------------------------------------------------------------
99 RC-1 0-55 55.0 305 - - 305
incl. 21-26 5.0 832 0.08 1.16 837
incl. 39-43 4.0 926 0.10 2.26 932
RC-2 0-54.5 54.5 170 - - 170
incl. 24.5-28.5 4.0 518 0.47 - 546
RC-3 0-45.5 45.5 449 - - 449
incl. 13.5-29.5 16.0 865 0.10 - 871
RC-8 0-7.5 95.5 95.5 0.51 - 128
----------------------------------------------------------------
00 DDH-1 1.25-78.4 77.15 81 - - 81
incl. 1.25-31 29.75 142 - - 142
45-60 15.0 58 - 3.03 58
incl. 50-52 2.0 342 0.15 1.01 351
00 DDH-2 0-66.4 Abandoned In Fault
00 DDH-3 24-46 22.0 64 0.22 1.05 77
incl. 32-42 10.0 108 0.24 2.59 122
54-84 30.0 57 - 2.22 57
incl. 68-72 4.0 362 - 4.21 362
00 DDH-4 3-22 19.0 128 0.35 0.55 149
00 DDH-5 3-56 53.0 100 0.41 1.79 125
incl. 37-55 18.0 99 0.12 3.28 106
00 DDH-6 33-78 45.0 21 0.11 2.00 28
78-86 8.0 Assays Pending
00 DDH-7 0-22 22.0 204 0.05 - 207
22-55 33.0 Assays Pending
----------------------------------------------------------------
(1) Silver equivalent of Ag:Au equals 60:1 calculated on the
basis of US$5.00 per ounce for silver and US$300 per ounce
for gold excluding any value for zinc.
/T/
The most southerly portion of the zone has been sampled in a road
cut where it averages 95 g/t silver and 3% zinc over 12 metres.
The zone is currently open along strike to the south. The drill
results confirm that the mineralization extends to depths of 125
metres and along strike for a minimum of 250 metres and is located
within a coincident magnetic anomaly that extends north for 700
metres towards the San Casimiro mine. The San Casimiro structure
has been traced north for a further 500 metres; in total the Cerro
Colorado- San Casimiro zone is now known to extend over a strike
length of 1.25km.
At the San Casimiro mine, 5 metre contiguous channels were taken
across a mineralized structure exposed in Quebrada de la Mina.
Contiguous samples over 25 metres on the west side of the
structure averaged 236 g/t silver and on the east side of the
structure a 25 metre sample averaged 129 g/t silver. Individual
channels contain up to 372 g/t silver, 0.6 g/t gold, 5% zinc and
1% lead and resemble the feeder mineralization observed in drill
core below Cerro Colorado III. A 16m channel sample taken
underground across the same structure assayed 410 g/t silver.
/T/
SAN CASIMIRO CHANNEL SAMPLES
-----------------------------------------------------------------
25m Ag Au Zn Pb Ag Equivalent (1)
West Side (g/t) (g/t) (%) (%) (g/t)
-----------------------------------------------------------------
236 0.10 0.12 0.56 242
25m
East Side 129 0.40 1.36 0.52 153
16m
Underground 410 0.08 1.88 1.09 415
-----------------------------------------------------------------
(1) Ag:Au @ 60:1, excluding any value for zinc.
/T/
"Our current interpretation is that Cerro Colorado and San
Casimiro may be linked by a silver enriched feeder system.
Magnetic surveys and prospecting confirm the hydrothermal system
has a strike length in excess of a kilometre. The mineralization
has similarities in grade and style to many underground Mexican
deposits, with the exception that this system is clearly an
open-pit scenario" said President Laurence Curtis. The next phase
of work will be to trace the Cerro Colorado structure north. A
geophysical crew is currently being mobilized to complete further
surveys over the Cerro Colorado III, San Casimiro, Carolina and
Cerro Tajado targets. Diamond drilling will resume once these
surveys have been completed.
Additonal assays have been received from the San Carolina zone
situated 1.5km southeast of Cerro Colorado III. Grab samples
assayed from 117 g/t - 763 g/t silver, 0.05-0.6 g/t gold, 0.2-1%
lead and 0.5-1% zinc. Geophysical surveys are in progress at this
occurrence, which is coincident with a 400 metre by 900 metre
geochemical anomaly located by the UNDP.
Intrepid also announces that the promissory note in favour of High
River Gold Mines Ltd. (TSE:HRG) in the amount of CDN$282,358 and
outstanding option payments totalling USD$525,000 due to High
River will be settled, subject to Board and Regulatory approvals.
The transaction is scheduled to close on or before April 30th,
2000. Intrepid will meet these obligations by issuing 725,000
common shares of the Company at a price of CDN$0.34 for a total of
CDN$246,500 as well as make a cash payment in the amount of
CDN$52,500 due on January 1, 2001. As a result of this settlement,
Intrepid will control 100% of Aldea Zapote, as well as 100% of two
key properties in eastern El Salvador. High River Gold Mines Ltd.
will remain one of Intrepid's major shareholders with a
shareholding of 2,900,000 common shares or 19.8% of the 14,635,800
outstanding shares after giving effect to this transaction. High
River has acquired the common shares in Intrepid for investment
purposes and has no immediate intention to either increase or
decrease its holdings in the Company. Notwithstanding the
foregoing, High River has advised that it may decrease or increase
its beneficial ownership, control or direction over common shares
in the capital of the Company through market transactions, private
agreements, other treasury issuances or otherwise.
The Canadian Venture Exchange has neither approved nor disapproved
the information contained in this press release.
-30- |
