Here is is Mikey.
Damoti drilling results
Quest International Resources Corp QIX
Shares issued 40,453,100 May 6 close $1.18
Wed 7 May 97 News Release
Mr Thomas Menning reports
The company has received additional results from its recent drill program
at Damoti Lake, in Canada's Northwest Territories. These important results
were not available for the company's press release last week. The company
has discovered a previously unrecognized, deep seated, zone of gold
mineralization in a new area of the Horseshoe zone. Hole D97-272, which is
590 feet north of high-grade hole D97-267 in the Horseshoe Zone,
intercepted 11.15 feet of 0.385 oz/t Au between 667.48 feet and 678.63
feet. The average depth of the drill holes in the Horseshoe zone is only
352 feet. This new, deep intercept discovered a down-dip extension of the
gold mineralization and confirmed the company's original statements that
this ore body is open along strike and at depth. It is important to note
that this area is accessible from extensions of the existing underground
workings.
This new discovery will be tested in the company's summer drilling program.
Such a discovery can only enhance the findings reported in the company's
recent scoping study. The scoping study, completed by Sierra Mining and
Engineering of Reno, Nevada, contemplates an average mill-head grade of
approximately 0.65 oz/t Au. The 0.65 oz/t Au is consistent with, and was
proven by, last summer's $2.5 million underground program where 4000 tons
of ore were mined and stockpiled with an average grade of 0.64 oz/ton. This
study stated cash production costs of approximately $200.00 per ounce. At
this level of cash costs, the company will be able to sustain profitable
mining operations at their Damoti Lake property even at lower gold prices.
In addition to the assay results for the new deep intercept in D97-272,
results were returned for the three remaining holes of the recent program.
Although holes D97-273 and D97-294 have no significant mineralization, they
were exploratory and have no impact on the success of the overall program.
Hole D97-275, 590 feet north of D97-267, intersected 3.63 feet of 0.217
oz/t Au at 399.5 feet and was terminated just as the drill was penetrating
favorable iron formation. This particular drill hole will be extended
during this summer's Damoti drill program. Previous resource calculations
for the Damoti property performed by Sierra Mining and Engineering of Reno,
Nevada, indicate a geologic potential of 1,135,000 ounces of gold. Based on
these new results the resource calculations will be restated in the near
future.
The company's Damoti property has withstood extensive scrutiny from several
major mining companies who have reviewed Quest's data and have had their
own labs provide assay results of samples taken by their own geologists
which confirmed the high-grade of the ore at Damoti. Not one discrepancy
has been noted as a result of these data reviews and assay results
generated from on-site visits. The recent rise in the company's stock price
clearly indicates continuing market confidence in honest companies
reporting real results.
In an effort to reduce the timetable required to get Damoti into production
and begin to generate continuing revenues, Quest started the formal steps
necessary to convert its mining claims to mining leases in accordance with
Canadian mining regulations. And, since this process was started this past
October, Quest is now within only 90 days of obtaining the requisite mining
leases for Damoti, a major milestone in obtaining governmental authority to
conduct commercial mining operations at Damoti.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
