Labbe, thanks: (08/07/97)
Drill Programs Beginning on Two Highly Prospective Properties in B.C. and Utah
CARLISLE, GRASSHOPPER MOUNTAIN PLATINUM PROSPECT, TULAMEEN B.C.
Phoenix Gold Resources Ltd., is pleased to report that road refurbishing is complete and core drilling has commenced at the company's Carlisle, Grasshopper Mountain platinum prospect near Tulameen B.C., 260 km east of Vancouver. The purpose of the current drill program is to attempt to assess the continuity of the known platinum occurrences mapped out by previous surface work, percussion and limited core drilling. Occurrences of the host rock, (Dunite) have been identified over a 5.5 km by 2.5 km. area. Results of the previous work have included chip and channel samples up to 0.45 opt, (15.43 gpt) platinum over 5.9 ft., (1.8 metres). A 32 hole percussion drill program returned a high of 0.27 opt,(9.26 gpt) platinum over a 10 ft., (3.05 metre) intersection. Phoenix currently has a right to earn up to a 70 percent interest in this property.
Research has shown that platinum demand continues to rise world-wide for use in automotive catalytic converters as well as jewelry and industrial applications. Currently South Africa and Russia produce a majority of the world's supply although South African production is decreasing and Russian supply has fluctuated. Platinum prices have been strong in the current market with a recent price of U.S. $452 oz. representing a 40 percent premium over the price of gold.
COYOTE KNOLLS SILVER/GOLD PROSPECT, UTAH
Phoenix is also pleased to report that a 1500 ft., (457.5 metre) drill program has been initiated on the Coyote Knolls silver/gold prospect in the Delta Quadrangle area of Utah. Phoenix has earned a 30 percent interest in this property and is currently negotiating with the property owner for additional interest. Historic production from the Delta Quadrangle area includes 3 million ounces of gold and 300 million ounces of silver.
The Coyote Knolls prospect is a Breccia system within a larger epithermal setting. Recent trench results have included assays showing an average grade of 33.1 opt, (1134.9 gpt) silver and 0.1473 opt, (5.05 gpt) gold. The property has been expanded to include geological, structural, and geophysical zones totalling 1320 acres, (534 hectares).
A pilot production plant is currently being assembled for the Coyote Knolls property to test a 2,000 ton, (1,810 tonne) bulk sample. Favorable results of a bulk sample production program would allow small scale production which could fund further exploration work on all of Phoenix's properties.
Phoenix will release further information as it becomes available.
ON BEHALF OF THE BOARD OF DIRECTORS
JOHN W. CARSON
President |
