NEWS RELEASE FOR: PHILEX GOLD INC.
CDNX SYMBOL: PGI
September 15, 2000
PHILEX GOLD ANNOUNCES DRILLING RESULTS
Toronto, Ontario – Philex Gold Inc. (CDNX-PGI) reports that diamond drilling being conducted by
Anglo American Exploration (Philippines), Inc., under a joint venture covering the Surigao joint
venture properties ("the Properties") in the province of Surigao del Norte, Philippines, has
encountered significant porphyry copper-gold mineralization at the Boyungan Prospect. The
mineralization is related to a diorite porphyry intrusive intercepted under volcanic cover at a down-hole
depth of 57 metres in diamond drill-hole TDS-6. Mineralization continues to a down-hole depth
of 422 metres where the hole terminated due to limitations in drill rig capacity.
The uncut, weighted average assay values of the 365 metre intercept are 0.81% copper and 1.90
grams per tonne gold. Applying a 0.1% copper and 0.1 gram per tonne cut-off, the weighted average
values of a 329 metre intercept from 93 metres to 422 metres averaged 0.90% copper and 2.07 grams
per tonne gold. An upper cut-off was not applied as outlier copper and gold values were not
encountered.
All assays were conducted on average 3 metre intervals of split drill core by Intertek Testing Services
at their laboratory in Jakarta, under the supervision of Anglo American. Quality control was
monitored by incorporation of assay standards and duplicates.
Step out drilling is currently being undertaken with two diamond drill rigs to investigate the extent of
the porphyry copper-gold mineralization.
Under the terms of the joint venture, Philex Gold is free carried through exploration and feasibility
studies. Should Anglo American spend a total of $2.2 million within a five year period, its 40%
equity interest in the Properties will be vested. In addition, should Anglo American complete a
bankable feasibility study, it will obtain a 70% interest in the Properties either directly or if necessary
through a joint venture with a qualified entity, and will conduct the operations if the project proceeds
to development. Philex Gold will be required to raise its pro-rata share of the project funding while
Anglo American would provide 100% of the completion guarantees that may be required by third
party lenders.
The assay data provided above was communicated to the Company by Anglo American Exploration
(Philippines) Inc. which, under the terms of the joint venture, is responsible for conducting
exploration on the Properties. Philex Gold has not independently verified this information.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or
accuracy of this release.
For further information contact:
Paula Kember, Vice President Finance Telephone: (416) 861-1221 |
