NEWS RELEASE
California; Arizona activities
Chandeleur Bay Production Company CYJ
Shares issued 24,135,409 Sep 3 close $0.38
Thu 4 Sept 97 News Release
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.
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