Western Keltic to test Boundary anomaly
Western Keltic Mines Inc WKM
Shares issued 10,869,858 Jul 24 close $0.26
Mon 31 Jul 2000 News Release
Mr. Donald McInnes reports
The company has just completed the first phase of this year's exploration
program on the Goodpaster Gold project, located in east central Alaska. A
diamond drill is being mobilized to test the Boundary anomaly in early
August in order to rapidly follow up on encouraging surface sample results.
The Boundary anomaly straddles the California and Surf claims that are
located immediately east of the Pogo property where Teck and Sumitomo have
defined a deposit hosting a 5.6 million ounce gold resource.
Year 2000 results further establish the presence of a significant gold zone
at the Boundary anomaly which features Pogo-style mineralization. During
Phase 1 a total of 770 samples consisting of 60 rock and 710 soil samples
were collected at the Boundary and South East Surf anomalies. They were
analyzed at Chemex Laboratories in Vancouver. Results continue to confirm
the values initially encountered at the Boundary anomaly during the
previous season where rock samples returned values up to 24.8 grams per
tonne gold (0.72 ounce per ton).
Geophysical work consisting of 45 kilometres of ground magnetics and 24
kilometres of ground VLF was also carried out to confirm the extent of
potential mineralization.
Boundary anomaly
The Boundary area was more intensely sampled (360 soils) and tested (24
kilometre ground magnetics and 14 kilometre VLF). The additional samples
have better defined the anomaly over an area some 900 metres by 300 metres.
The soil anomaly defined as well by arsenic and bismuth indicator minerals,
centers over the gold anomaly and extends 1,800 metres by 1,300 metres.
Geophysics point to a relatively strong magnetic high centered over the
gold showing. Phase 1 of the program has been successful in better
outlining the boundaries of the anomaly. As a result, the company will be
able to position the drill holes much more precisely.
Southeast Surf anomaly
The anomaly was further tested with an additional 250 soil samples, 17
kilometres of ground magnetics and 10 kilometres of VLF. Results define a
gold anomaly over an area 1,300 by 1,000 metres. Most of the gold anomaly
lies within or straddles a porphyritic intrusion. The geophysics confirms
that the Spur zone is centered on a significant magnetic low.
"We are very pleased with the results of Phase 1. Both rock and soil
samples together with the geophysical surveys continue to confirm the
excellent potential for the discovery of high-grade gold mineralization on
the property. We are also very encouraged by Barrick Gold Corporation's
continued support and participation in the project through the exercise of
their warrants, Our next step at the Boundary anomaly, is to drill," stated
Donald McInnes, president.
Western Keltic is earning an 80-per-cent interest in the Alaska properties
from Rimfire Minerals Corporation (RFM:CDNX). Barrick Gold Corporation has
an option to earn up to a 51-per-cent interest in the properties.
Eric Lavarack has joined Western Keltic Mines and will be responsible for
corporate development and investor relations. Mr. Lavarack brings 15 years
of experience in the mining exploration and financing business, having
formerly worked with TSE, MSE, VSE and NASDAQ listed companies. He also has
extensive experience in international corporate development and operations,
particularly in Latin America. He is a graduate of Laurentian University
(Sudbury) and obtained his MBA at the University of British Columbia.
The company is not proceeding with the plans for the private placement
originally announced in Stockwatch May 3, 2000.
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