News Release
Exploration activities continue in NWT and Mexico
Gerle Gold Ltd GGL
Shares issued 22,194,983 Aug 12 close $0.90
Tue 12 Aug 97 News Release
Mr Ray Hrkac reports
Doyle Lake project
Exploration work continues on the Slave Craton in the NWT, about 280 km
northeast of Yellowknife. Drilling is expected to resume in a few weeks.
The Doyle Lake project is subject to an agreement between the company and
Monopros, De Beers' Canadian exploration subsidiary. Under the terms of the
agreement, Monopros has the option to earn a 60% interest in the Doyle
project claims by making total exploration expenditures of $4.65 million by
the end of 1997. The company expects that total expenditures will exceed
the required amount by the end of this year.
The company is the operator and project manager at Doyle Lake, working in
conjunction with and under the direction of Monopros.
According to the terms of the agreement, if an economically viable deposit
is proven on any of the claims, Monopros will arrange the financing of all
costs necessary to bring the first mine into production.
Both companies believe that, based on exploration results to date, there
remains potential to find diamondiferous kimberlites on the Doyle Lake
property. Last year's discovery of a diamondiferous kimberlite sill, and
promising indicator mineral trains, formed the basis for this year's work.
Beginning in early April and continuing until mid-June, the company
conducted a diamond drilling program on the LA1-25 claims on the north
section of the staked area. The north boundary of these claims is within
one km of the 5034 kimberlite pipe, the discovery of which was announced by
Mountain Province in February 1995.
Twenty diamond holes were drilled for a total of 2,366.5 metres in order to
test geophysical targets chosen from the 1996 airborne magnetic and
electromagnetic surveys. Most of these targets were under lakes and thus
were drilled from the ice. Anomalies were found to be due to the variable
magnetite content within the country rocks, chiefly granite and granite
gneiss. No kimberlites were found during this drilling program.
Further exploration work resumed in late June after spring break-up. Since
late June, the company's crews have been conducting geological mapping and
sampling at the head of indicator mineral trains on the LA 1-25 claims in
preparation for drilling, which the company expects to begin in the later
part of August or early September.
The work going forward will continue to focus on the kimberlite indicator
mineral trains that were delineated by sampling over the past two years.
These trains incorporate large numbers of G-10 pyrope garnets with
excellent chemical compositions that compare favourably with G-10 garnets
from producing diamond mines.
The location and distribution of these indicator mineral trains on the LA
1-25 claims suggest the possible occurrence of several kimberlite
intrusions on the Doyle Lake claims. The concentration of G-10 garnets,
which are formed under the same conditions as diamonds, is a good
indication of a diamond pipe.
The crew of ten on the Doyle Lake project includes five geologists.
The LA 26-30 claims
The company is waiting for a government ruling on five disputed claims in
the Doyle Lake area. The LA 26-30 mineral claims, which are described as
being in the central section of the Doyle Lake area, are recorded in the
name of the company, but are subject to a section 84 appeal under the
Canada Mining Regulations. The company's claims were on ground occupied by
earlier claims filed by a third party, which the company submitted, were in
contravention of the Canada Mining Regulations. In May 1996, the
Supervising Mining Recorder agreed with the company, ruling that it was
entitled to have the central claims recorded. Golden Rule Resources,
however, has requested a ministerial review of the decision.
Fishback Lake/Dessert Lake area
The company is a 40% partner and project operator of the Slave Diamond
Syndicate, which includes Norcal Resources, Tenajon Resources and Westley
Technologies, each of which owns 20% of the syndicate. The syndicate holds
claims containing approximately 120,000 acres in these areas in the NWT.
Fishback Lake area
Crews are doing prospective and sampling work on this property to follow up
on sampling done in 1996. During the past quarter, the company obtained the
micro probe results from the 1996 sampling program, which identified G-9
and G-10 garnets. Several targets have been identified based on both the
magnetics and on geochemical analysis.
Dessert Lake
The syndicate has maintained its interest in a number of claims, which
contain potential kimberlite drill targets.
Clinton Colden
This company, owned 100% by the company, is 400 km northeast of Yellowknife
and consists of original claims covering 65,288 acres, plus another 41,000
acres which were recently staked. The company has received notice that
these claims have been registered.
Although originally part of the company's diamond exploration properties,
the company has been encouraged by early samples that have identified gold
and the potential for platinum group minerals. It is significant that the
gold and platinum minerals were found in two separate areas, since they
rarely appear together.
Mexico
A two person crew is currently conducting a prospecting and sampling
program on the company's claims in Mexico through Minera Rio Sonora SA de
CV. The results of this program, expected by year end, will determine the
company's exploration program there.
Minera Rio Sonora is a wholly owned subsidiary of Rio Sonora Resources,
which is a private Canadian company, controlled by the company (holding
86.8% of the issued share capital). Minera Rio Sonora owns two mineral
claims in the state of Sonora, which contains 1,245 hectares. The company
is awaiting title to one adjoining 639 hectare claim.
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