NEWS RELEASE
Chandeleur Bay Production Company
CYJ
Shares issued 24135409
1997-09-03 close $0.38
Thursday Sep 4 1997
Mr William McKee reports
The company has completed two diamond drill holes on the North Fork mineral
claims in Sierra County, California. The third hole was abandoned due to
difficulties encounterd when drilling through the lava cap which covers the
property.
Holes No. 1 and No. 2 were inconclusive since they encountered the underground
gravel beds of the Bald Mountain channel which contains placer gold. In addition,
there was evidence that the drills also intersected portions of old workings which
were not indicated on the maps. Consequently, Michael J. Skopos, P. Geologist
has, after careful examination and consultation, decided to rehabilitate the decline
in order to access approximately 6,000 ft of underground workings on three
levels. This will enable the company to sample, directly, those areas which the
records indicate, contain significant gold values.
The company intends to set up drill stations underground to diamond drill several
targets from close range, thus eliminating the problem of the lava cap. The
necessary permits have been applied for and the rehabilitation program has been
submitted to the appropriate authorities for approval.
Arizona - Bulk Sampling
Phase No. 1 of the diamond drill exploration program on the Sunrise claims has
been completed. The company has spent US$186,000 on this program and has
drill indicated the following:
Gold Ounces: 42,629.5
Silver Ounces: 205,831
The highest assays of secondary metals returned to date are 5.54% lead, 1.99%
zinc and 1.49 copper per ton. Additional values of lead, zinc and copper will be
recovered as byproducts.
Since a relatively shallow high grade block of mineralization has been outlined, the
company intends to strip the overburden and deliver a large block sample, in
excess of 5,000 tons to a nearby mill for processing. Discussions are currently in
progress with the Arizona mining authorities in order to gain permits for this test
run. The project will be under the supervision of Michael Skopos, and William W.
Moss. Additional diamond drilling will be part of phase No. 2 to test the extension
of the known zones which are open at depth and along strike.
A Web site has been established by the company - www.chandeleurbay.com
The company has sufficient funds to cover the initial expenditures related to phase
No. 2 in Arizona, and phase No. 1 in California. |
