Standard Mining Progressing at El Chanate, Mexico
VANCOUVER, B.C.--(BUSINESS WIRE)--May 9, 2000--Upon execution of the option agreement with AngloGold on March 24, 2000 to acquire 100% of Minera Chanate S.A. de C.V., Standard Mining Corporation (TSE:SDM. - news) dispatched a team to the El Chanate gold property in northern Sonora State, Mexico and to the legal offices of the Mexican corporation in Mexico City. The Due Diligence Team includes a geologist, metallurgist, mining engineer, certified Mexican mining landsman, and Mexican and Canadian attorneys.
Upon completion of the due diligence, and assuming that management has determined that the El Chanate property meets its investment parameters, the Company would then elect to proceed with the acquisition. This would then allow the Company to carry out an in-fill drill program in conjunction with a bankable feasibility study. Upon completion of a positive feasibility study management would work to place the property into production by the fall of 2001.
Emphasis has been placed on metallurgy and database assurance. To this end, two 7-tonne bulk ore samples extracted from two vertical shafts have been shipped to Kappes, Cassidy and Associates in Reno, Nevada for metallurgical testing. Two 24 inch-diameter columns hosting the run-of-mine bulk samples are currently under leach. In addition, core samples from seven holes and portions of the ``B'' reverse circulation drill cuttings from 22 holes, indicative of the known gold resource, are being leached in smaller columns. Check assays and analyses for other parameters such as screen size, specific gravity, hardness, and cyanide soluble gold are being conducted. Much of this confirmation data can be incorporated into a feasibility study that Standard plans to initiate upon final acquisition of El Chanate.
Management of Standard Mining is also pleased to report that other aspects of the 90-day evaluation period are progressing as scheduled. The studies are enhanced by the quality of the technical and corporate database furnished by the current owners. Initial studies carried out for Standard by Mintec, Inc. of Tucson show a global resource of 34,800,000 tonnes grading 1.04 grams per tonne (gpt) at a 0.5 gpt cutoff.
A number of parameters including land status, permitting requirements, water availability, infrastructure, environmental baseline criteria, metallurgy, operating costs, geology (assays/resources) and the corporate status are being researched. To date company personnel are encouraged with their findings.
A full geological analysis has been started including a review of possible additional exploration targets. Company personnel believe that the land package involved includes other areas with good exploration potential. The property has only been partially explored and gold has been identified in other areas.
Standard Mining is an exploration and mine development company with drill indicated gold resources in Canada and Honduras. While focus is on the acquisition of El Chanate, which will expedite the company's plan to become a near-term gold producer, exploration in the form of soil sampling and trenching continues to advance the Zopilote gold property in Honduras.
Paul Saxton, President and CEO
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