Scorpion Minerals announces additional Copper-Gold-Molybdenum System identified on Scorpion's Sampanahan property
Business Wire - June 23, 1997 08:54
SCORPION-MINERALS SCP %NEW-YORK %MINING %METALS V%BW P%BW
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TORONTO--(BUSINESS WIRE)--June 23, 1997--("Scorpion") (TSE:SCP) is pleased to report that the previously announced expansion of the soil sampling grid north of the Miing prospect area on the Sampanahan property has resulted in the discovery of a new copper-gold-molybdenum mineralizing system known as the Dewi prospect. The Dewi prospect lies 3 km northeast of the Miing prospect on Scorpion's very prospective Sampanahan property, a 6th Generation granted Contract of Work.
Dewi Prospect
The Dewi prospect was discovered by completing soil sampling across a potassium radiometric anomaly which had been identified by the aeromagnetic and radiometric survey which Scorpion completed early this year. As with the Miing prospect, the Dewi prospect is located on one of the thirty-six NW/SE trending transfer structures which have been identified on the Sampanahan property. The Dewi prospect encompasses a 1,300 m by 600 m anomalous zone (as defined by the 0.1 g/t gold in soil contour) with peak soil assay values of 2.49 g/t gold and 0.17% copper. Initial trenching has returned an assay intercept of 16 m of 0.78 g/t gold and 0.25% copper within highly altered and leached diorite. Intercepts within altered pyritic andesitic volcanic wallrock include 12 m assaying 0.52 g/t gold and 0.20% copper and 8.5 m grading 0.16 g/t gold and 0.12% copper.
Mr. Phil Petrie, Project Manager of the Sampanahan property stated that "we are very encouraged by the discovery of the Dewi prospect. In addition to being a large mineralized zone, we are finding that the grades within this zone are very uniform. The overlaying signatures of gold, copper and molybdenum indicate that this prospect has the potential to be a significant porphyry copper-gold mineralized system. Most encouraging is that favorable grades have been returned from both our preliminary soil sampling program and trenching program despite the possibility of leaching at surface".
The Dewi prospect mineralized zone is also open to the east and to the northeast. Airborne magnetics and topography suggests that the zone may extend a further 1,000 m to the northeast into an area of extensive gold workings by local Indonesians. Our soil sampling grid will be expanded to investigate this area.
The Southwest Pacific region, and in particular, Indonesia and Papua New Guinea have been host to many of the world's largest porphyry copper deposits. These deposits, which are typically gold-rich, include Freeport McMoRan's Grasberg deposit, the largest such deposit in the world and Newmont's Batu Hijau deposit. Both of these deposits are located in Indonesia. Schedule 1 contains a summary of many of the numerous mineral deposits located in the Southwest Pacific region.
Regional Reconnaissance
The discovery of the Dewi prospect has shown that airborne geophysical surveying is a very effective aide in our exploration of the Sampanahan property. Scorpion retained Southern Geoscience Consultants of Perth, Australia, consulting geophysicists, to interpret the results of the aeromagnetic and radiometric survey. The survey showed that prime exploration targets are indicated by potassium radiometric anomalies which are located on or adjacent to transfer faults. Fourteen target areas of this type have been identified. An additional fourteen of the total of thirty-six transfer faults identified on the Sampanahan property were not able to be effectively sampled for potassium due to high terrain clearance. Six of these fourteen transfer faults have been identified as target zones. In addition, four discrete magnetic intrusive features have been selected as targets for porphyry style mineralizaton. We plan to systematically follow-up each of the twenty-four target zones outlined above with geochemical sampling programs during the course of Scorpion's ongoing regional reconnaissance program.
As part of its ongoing management and supervision of its exploration program, Scorpion has prepared a manual of trench and drillcore handling and assay procedures (the "Manual") which are followed by its staff on the Sampanahan property. The Manual has been reviewed by Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers ("WGM"). WGM has confirmed in a report to the board of directors of Scorpion that the procedures outlined in the Manual are appropriate for the exploration program being undertaken by Scorpion and that they are the customary procedures used in the mining industry in conducting mineral exploration programs.
Scorpion is a mineral exploration company listed on The Toronto Stock Exchange under the symbol "SCP". Scorpion, through wholly-owned subsidiaries, holds 85% - 90% interests in mining properties in Indonesia at various stages of gold, copper-gold and base metals exploration. The properties, totalling more than 5,000 square kilometres in size, include the Ruwai, Schwaner and Sampanahan properties in Kalimantan and the Mangani and Salido properties in Sumatra, the latter four of which are held through granted 6th Generation Contracts of Work. The Ruwai Property is held through a granted 4th Generation Contract of Work.
Both Mr. Laurie Whitehouse, President of Scorpion and Mr. Phil Petrie, Project Manager of the Sampanahan property, will be available to discuss Scorpion's exploration program with interested shareholders at Scorpion's annual and special meeting of shareholders to be held on June 25, 1997.
Scorpion currently has 21,589,238 shares outstanding and cash of approximately $16 million.
Schedule 1
Contained Metal Resource Grade Copper Gold (million Copper Gold (million (million Deposit Owner tonnes) % (g/t) tonnes) ounces) ------------------------------------------------------------------ Grasberg Freeport McMoRan 1,730 1.30 1.30 22.5 72.3 Batu Hijau Newmont 931 0.52 0.38 4.8 11.4 Tombulilato BHP Cabang Kiri 136 0.43 0.58 0.6 2.5 Kayubulan Ridge 75 0.76 0.33 0.6 0.8 Sungai Mak 84 0.76 0.39 0.6 1.1 Papua New Guinea Bougainville RTZ-CRA 691 0.40 0.47 2.8 10.4 Ok Tedi BHP 443 0.87 0.90 3.9 12.8 Frieda River Placer Dome 886 0.56 0.31 5.0 8.8 Philippines Kingking Echo Bay 315 0.44 0.52 1.4 5.3 San Antonio Marcopper 200 0.44 0.10 0.9 0.6 Atlas Astron 874 0.41 3.6 Sipalay Philex 485 0.47 2.3 Far South East RTZ-CRA 150 0.80 2.00 1.2 9.6 Guinaoang Crescent 166 0.52 0.54 0.9 2.9 Dizon Benguet 140 0.43 0.93 0.6 4.2 Australia Northparkes North Ltd. 99 1.30 0.50 1.3 1.6 Cadia Newcrest 230 0.18 0.85 0.4 6.3 ----------------------------------------------------------------- Average Deposit 449 0.70 0.61 3.1 8.9 ------------------------------------------------------------------
Source: Watts, Griffis and McOuat, Consulting Geologists and Engineers, and various published sources.
CONTACT: Scorpion Minerals
Lynn Grogan, CFO, 416/777-6761, 416/777-6764 (Fax) |
