NEWS RELEASE - Mongolia and Revised Mongolian Mining Legislation
Mongolian exploration program; new mining legislation
International Pursuit Corporation IPJ
Shares issued 29,067,395 Jun 6 close $2.35
Mon 9 Jun 97 News Release
Mr Stephen Dattels reports
Mongolian Exploration Program
Pursuit currently holds the largest land position in Mongolia with direct
and indirect interests in five approved special and strategic hardrock
exploration licences. Each licence is approximately 400,000 hectares (4,000
sq km) in size for a total of two million hectares. Geologically, the areas
chosen by Pursuit provide a number of environments conducive to the
development of large tonnage gold deposits. These include shear zone,
intrusive related stockwork, skarn zone, Carlin type, and epithermal
stockwork systems.
Pursuit's evaluation of the gold potential in Mongolia began in early 1996
when virtually no competition existed for property acquisition. Although
little detailed hardrock gold exploration had been undertaken in the past,
extensive high quality Soviet sponsored mapping has identified many
promising gold prospects. Management of Pursuit believes it has acquired
the largest and most promising of these prospect areas.
Pursuit exploration teams have been mobilized in the last few weeks to
begin the evaluation of some of its priority targets. Exploration programs
will include geochemical sampling, trenching, geophysical surveys and
drilling. Pursuit will also be evaluating additional target areas in the
country for potential acquisition.
One of Pursuit's priority targets is on the Khan-uul licence which lies
within the Bayanhongar Gold Belt in central Mongolia. Gold mineralization
has been observed in broad zones of limonitic and silicified
quartz-sericite schists intruded by porphyry. Alteration and mineralization
are situated along a major east-west structure. One mineralized zone is
reported to contain a possible resource of 550,000 ounces of gold. This
prospect area has only been evaluated by trenching and will be one of
Pursuit's first drill targets this season.
The Huh Bulagin Hundig (HBH) gold-copper skarn deposit is in the Ulizit Gol
licence, also in the Bayanhongar Gold Belt. The HBH deposit consists of
several mineralized lenses along a 2km contact of a metamorphosed limestone
and a diabase sill. One of the lenses was defined by trenching as 160m long
and 20m wide grading 8.8 g/t gold. Based on a 4.0 g/t gold cut-off this
lens is reported to hold a possible resource of 110,000 ounces of gold.
Diamond drilling by Pursuit is planned to test these lenses in August of
this year. Pursuit's geologists have recently identified a 1km by 500 metre
quartz stockwork zone, with excellent gold bearing potential, near HBH. A
detailed sampling program has begun.
Pursuit's other licences include Khargas, and Tsahkin Khudag in western
Mongolia and Erdene-dalai in the central region. Each of these licences
includes numerous gold showings and prospects which will be evaluated by
preliminary surveys during the 1997 season. Pursuit plans to drill test at
least four priority targets and complete trenching and geophysics on
several others.
New Mineral Law Ratified by Mongolian Parliament
On June 4 1997, Mr L. Nyamsambuu, Minister for Agriculture and Industry
(including mining) presented the details of the proposed new law to an
international conference on oil, gas and mining being held in Ulaanbaatar,
the capital of Mongolia. The law was specifically drafted to attract and
promote new foreign investment in the mining sector. On June 5 1997, the
Mongolian parliament (Great Huural) ratified a new mineral law. Some of the
key policies adopted include:
A Mineral Authority to serve the mining industry exclusively.
A Cadastral office (within Mineral Authority) to issue mineral exploration
licences and mining permits on a first come, first serve basis.
A three year exploration licence with two, two year renewals on request.
A 60 year mining licence with an additional 40 years on renewal.
Maximum licence area of 4,000 sq km.
Licences have annual fees and are transferable.
Royalty rate reduced to 2.5% on all minerals.
Accelerated depreciation on fixed assets with no tax on infrastructure
development costs.
Exempt importation of materials and services for projects.
During the course of the last year Pursuit has been received favourably in
establishing its operations in Mongolia. Pursuit believes the country
represents a diverse geological region with excellent mineral potential -
especially for gold deposits. This potential, together with positive and
progressive government support, will ensure a healthy and active
exploration industry in Mongolia.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
Seems that the pressure being applied to Pursuit for regular news releases has finally fallen on the right ears (Dattels). It is necessary that they continue releasing progress reports and results to take IPJ off of the bottom. It is important that shareholders keep up the pressure on IPJ you can do this by e-mail to:
Stephen Dattels
donnam@pursuitgold.com
or phone to : 1-800-396-5188 |
