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Consolidated Magna Ventures Ltd - News Release
Sampling confirms bulk tonnage potential at La Reyna de Oro
Consolidated Magna Ventures Ltd CMVShares issued 150617051997-05-23 close $0.85Monday May 26 1997News ReleaseMs Julie Hunter reports, Consolidated Magna Ventures Ltd has commenced preliminary surface and underground sampling on the Reyna de Oro property in the Urique-Batopilas area of western Chihuahua State, Mexico. This past producer, recently optioned by the company, was formerly part of the Mexican mining reserve. It was reported to host a significant mineral inventory of gold mineralization and Magna's sampling is confirming the potential for such a system. Selected results from Magna's program and previous sampling campaigns are:
Area Type Width Gold
(m) g/t
Magna (1997)
Cuse surface 27.0 3.45
Cuse Viejo underground 45.0 2.51
Cuse Nuevo underground 12.0 0.93
Vicente surface 57.0 4.52
Narciso surface 52.0 0.27
Narciso adit underground 25.0 0.05
Minera Metalica de Chihuahua
Cuse and Vicente underground
average 114 samples 13.6
Independent Evaluation (1992)
Upper Cuse surface 26.0 2.12
Marina/Silverio surface 62.0 2.99
Tahonas surface 35.0 1.12
Fomento Minero (1990)
Cuse & Vicente underground
average of 35 samples 10.78
University of Chihuahua (1990)
Vicente surface 10.95 6.87
Vicente surface 18.0 1.61
Cuse surface 16.4 0.95
Silverio surface 13.3 1.28
Of particular interest from the above table, underground sampling from Cuse Viejo of 45m grading 2.51 g/t Au was the average over the entire length of the drift which started and ended still in mineralization. Also the Vicente Tunnel which underlies the highest surface sampling of 57m grading 4.52 g/t is caved at the portal and was unavailable for sampling. The Vicente Tunnel historically produced the best underground results. The Vicente and Cuse zones are roughly 125m apart and are only two of many zones of higher grade gold mineralization known on the property. Several other short adits and pits are also present although access to some of these is limited by caving, either at the entrance or internally. Magna has been able to sample only three of these to date and is working to clear out the others. Magna's samples were taken as 3m continuous chip channel samples, both on surface and in the underground workings. Surface samples by previous workers are believed to have been a combination of continuous and selective chip samples. The underground sampling by Minera Metalica de Chihuahua and by the Fomento Minero (a branch of the Mexican government) is, as of yet, unsubstantiated. Magna's samples have been analyzed at SGS-XRAL in Hermosillo and American Assay Laboratories in Tucson by fire assay with an atomic absorption (AA) finish. Selected samples were reassayed by the same method and some were checked with a gravimetric finish. Repeatability of the results is good and the consistency of grade between the various sampling campaigns leaves the company confident in the validity of the numbers. The Reyna de Oro property consists of 1064 hectares approximately 29 kilometres west of Batopilas and 21 kilometres southwest of Urique, and is accessible by road. It lies roughly 18 kilometres west-northwest of Francisco Gold's El Sauzal property where recent drilling has returned impressive gold intersections. At Reyna de Oro, epithermal gold mineralization is hosted in a suite of andesitic pyroclastic volcanic rocks of Tertiary age. A north-northwest trending fault zone cuts and offsets the volcanic stratigraphy, although the amount and direction of displacement is not yet evident. Less prominent, northeast-trending faults may comprise a conjugate set of structures and the two combine to yield locally intense fracturing of the rocks. Alteration is extensive and consists of argillization, propylitization, silicification and patches of strong iron-manganese staining, all across widths of 100 to 150 metres and over a length in excess of 300 metres across the hillside. Gold grades are anomalous throughout the alteration zone but the controls on higher grade values are not yet clear. The rock is generally oxidized on surface but fresh sulphides can be seen in some of the adits and where the rock is more highly silicified. The depth of oxidation is expected to vary with rock type and the intensity of alteration and fracturing. Although there are several adits, development work has not been extensive and past production figures are not available. Previous mining, by small scale miners, was directed toward underground exploitation of high grade structurally controlled mineralization. Although high grade mineralization does exist on the property (Magna obtained grab samples returning up to 31.68 g/t gold and a 3m channel sample of 24.72 g/t gold), veins are not common. Rather, the gold appears to be associated with fine, disseminated and stockwork pyrite with lesser amounts of silver, copper, zinc and lead mineralization. As such, the small scale miners could not make a profit on the lower grade stockwork-style mineralization. The large-tonnage, open-pit potential, which is significant, has apparently not been considered in the past and the property has never been drilled. A field crew is currently being assembled to begin work at the Reyna de Oro property. Phase I exploration will consist of the rehabilitation of the road and adits, grid work, mapping and sampling (surface and underground), an IP survey and preliminary diamond drilling. It is management's belief that a large mineralizing system exists at Reyna de Oro and it is the company's intent to advance this project as quickly as possible. This acquisition comes about as a result of Magna's growing presence in northern Mexico. The company is currently setting up an exploration office in the city of Chihuahua from which it will operate all of its Mexican projects. For further information contact Julie Hunter at: Telephone:(604) 685-9700 (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
