News 8/23:
Wednesday August 23, 8:05 am Eastern Time
Press Release
Fischer-Watt Acquires Balsa Project,
Mexico
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Aug. 23, 2000--
Fischer-Watt (OTCBB:FWGO - news) announces that the Mexican Ministry
of Industries, Department of Mines has granted the company five mineral
concessions located 15 kilometers north of the industrial city of Lazaro
Cardenas in the state of Michoacan, southern Mexico.
The infrastructure surrounding this project, called the Balsa, is excellent with power, water, roads, ocean port, and rail
facilities all readily available.
Previous work by other companies, which includes 42 diamond drill holes and 35 percussion holes, developed a
proven, probable, and possible resource of 3,112,895 tons of 1.32 % copper at 0.15% copper cut off. This 82,180,433
lbs. of copper mineralization occurs in three forms; clay oxide, rock oxide, and rock sulfide. The present drilling
indicates that the lateral extent of the oxide mineralization is defined but its vertical dimension could be extended. The
sulfide mineralization is open ended in all directions.
Separate preliminary open pit models by four independent consulting groups indicate that an open pit will have a waste
to ore stripping ratio of 0.5 to 1
Metcon Research Inc. of Tucson Arizona preformed column leach tests on composite samples of all three types of
mineralization found on the property. This material came from diamond drill core and percussion drill cuttings. The
results of these tests are shown below.
COLUMN LEACH TEST SUMMARY
HEAD ASSAY ACID CONSUMPTION
------------------- ---------- -----------------
Ore Type % Cu % non Extraction lb/ton lb/lb Cu
Description sulfide Cu % Cu
------------------- ---------- -----------------
Clay Oxide 1.72 1.36 79.26 146.50 5.57
Rock Oxide 2.25 1.90 86.10 148.43 3.78
Rock Sulfide 2.24 0.11 51.78 157.18 5.80
Based on the results of these leach tests, resources and grades shown above, and the present price of copper ($0.85),
the gross value of the recoverable copper in this deposit is $48,200,000
Capital financing of up to $7.0MM has been arranged for this project, contingent upon completion of a bankable
feasibility study. This study will begin immediately and will be aided by the fact that previous work by others on the
property has created a large amount of positive data that already has been put into pre-feasibility format.
Commenting on this announcement, George Beattie, President and CEO of Fischer-Watt said, ``Earlier this year we
announced that as a result of the restructuring of the exploration activities of our 65% held Mexican subsidiary, the
shareholders of the Company would see a great deal of positive activity in Mexico in the near future. I am pleased that
we have been able to live up to that assessment. We are also making progress on our tailings project and now with this
Balsa project, we are pursuing two potentially profitable properties that are within the financial capabilities of the
Company.''
Statements in this release that are not historical facts are ``Forward-looking statements'' within the meaning of the
Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such a statements are not guarantees of
future performance and that actual developments or results may vary materially from those projected in the
forward-looking statements
Contact:
Fischer-Watt
George Beattie, 208/664-6757 |
