VANCOUVER, British Columbia --(BUSINESS WIRE)--August 13, 1997--
Medinah Energy Inc. has entered into an option agreement to acquire a group of 18 additional mining concessions adjacent to the company's La Colorada group of claims in Andacollo, Chile. Company project management, Howe Chile, reports as follows; The property lies in the historic Andacollo mining district just north of the Dayton mine which contains 130 million tonnes of gold ore grading 0.7 grams of gold per tonne. Gold is hosted on the property in north west trending, steeply dipping vein structures of up to a meter in width, the same orientation as the feeder structures at the Dayton mine. Two main subparallel structures separated by 300 meters were located on the property. Most importantly these structures were traced over a strike length of seven hundred meters. In some locations veins appeared to splay into a series of subparallel veins that could extend the width of the mineralized zone.
Chip samples from the individual veins ranged from 35 to 13,70 ppb gold and averaged about 1200 ppb gold. Of 60 vein samples taken, 21 assayed over 1000 ppb gold. Samples were also gathered from the hanging wall and/or footwall lithologies of the veins. These yielded values of 60 to 2717 ppb of gold. The best weighted average across both vein and wall rock include: 1417 ppb gold per tonne across 1meter and 3037 ppb gold per tonne across 1.8 meters.
Mineralization on the property is predominantly hosted in vein type structures. It is possible that hidden gold mineralized manto structures do occur on the property. Howe Chile Ltda. recommends a short program of mapping, trenching and sampling across the identified suriferous structures. Gridding and geophysics would follow and targets identified should be tested by diamond drilling. Based on the conclusions and recommendations in this report Medinah Energy has signed an option agreement to acquire this property.
NP Energy Corporation has acquired a 20% interest in this project.
For further information please call Investor Relations: Dave DiRicco-415-261-9608
On behalf of the board of directors
Per: Raymond Lazo, President
CONTACT:
Investor Relations
Dave DiRicco, 415/261-9608 |
