News Release:
Java Gold Corporation - Drilling Underway to Test Gold Target, White Stone Prospect - Mongolia; Kendeng Project Update - Indonesia; Update on Placer Gold Mining Operations - Mongolia
Business Wire - September 16, 1997 09:26
JAVA-GOLD JVAG. %NEW-YORK %MINING %METALS V%BW P%BW
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TORONTO--(BUSINESS WIRE)--Sept. 16, 1997--(CANADIAN DEALING NETWORK JVAG.) Java Gold Corporation ("Java Gold") is pleased to report results from its current exploration and mining operations in Mongolia and Indonesia.
TSAGAAN CHULUUT, (WHITE STONE) PROSPECT - DASHBALBAR LICENSE, (398,900 HA) NORTHEASTERN MONGOLIA.
Recent exploration by Java Gold Corporation has confirmed the presence of a large gold-bearing alteration zone, previously identified by Mongolian and Russian geologists, which has the potential to contain an economically viable gold deposit. This combined work outlined an auriferous hydrothermal alteration zone consisting of quartz-muscovite-pyrite, termed berezite, in Protozoic diorite and gabbro adjacent to Triassic-Jurassic granite. Exploration activities by Java Gold's geologists during the 1997 field season included; geological mapping, soil and rock chip sampling, trenching, and magnetic and induced polarization surveys. Results are as follows:
-- Geologic mapping defined a berezite alteration zone approximately
500m long and up to 180m wide.
-- Rock chip sampling and soil sampling outlined a gold anomaly over
an area 600m long by up to 400 m wide, centered over the berezite
zone.
-- Four trenches spaced at 80 metre intervals across the berezite
zone, returned the following results:
T-1: 0.10 to 0.80 g/t Au over 67 metres
T-2: 0.66 g/t Au over 66.7 metres including:
1.62 g/t Au over 6.2 metres (301N 307.2N)
1.04 g/t Au over 10 metres (311N 321N)
T-3: 0.42g/t Au over 41.6 metres including:
1.52 g/t Au over 3 metres (280N-283N)
2.80 g/t Au over 1 metre (206N-207N
T-4: 0.73 g/t Au over 67.5 metres including:
1.40 g/t Au over 13 metres (209N 222N)
1.20 g/t Au over 18 metres (242N 260N)
-- Induced polarization (IP) results have defined a large zone of
chargeability (500 metres long by 200 metres wide) beneath the
berezite alteration zone.
-- IP "Real Sections" indicate an intensifying and broadening
sulfide-bearing alteration zone to a depth of 200m.
-- A 31 metre drill hole, completed by earlier workers, on the
northwest edge of the zone, returned increasing grades at depth, up
to 4.5 g/t gold over 4 metres within 17m of 1.4 g/t gold to the end
of the hole.
-- Based on the exploration results outlined; a four hole, 600 metre
drill program is now underway by Java Gold over the central portion
of the prospect (200m x 200m x 150m depth). This program is designed to test indications that the gold content increases at depth due to decreased weathering and intensifying alteration, as indicated by the geophysics.
KENDENG PROJECT (22,000 HA) - JAVA, INDONESIA
The Kendeng Project continues to report positive results from exploration work which is underway to define several promising gold targets. As reported in August, sampling at the Leuwikopo Prospect has returned 4.13 g/t gold over 5.8 metres. The central siliceous vein in this section returned 8.0 g/t gold over 2 metres. Several mineralized quartz veins have now been identified and sampled within an extensive area of silicified hydrothermal breccia. A similar zone has now been identified at the nearby Cisadang Prospect, where hydrothermal breccias have initially indicated anomalous gold, silver, and mercury.
At the Cipariuk Prospect soil sampling by the company has been completed over a prominent southwest trending, soil covered ridge. Results indicate a gold anomaly 1.5 km. long by 100 m. wide, with soil values up to 1.0 g/t gold. A trenching program to define drill targets is planned to commence as soon as the necessary permits are in place.
Detailed prospecting has now been completed over a previously reported airborne geophysical anomaly (magnetics and radiometrics). Company geologists report that a recent high sulfidation porphyry gold-copper system occurs, overprinting an earlier gold bearing, epithermal event. These are very favourable indications for the discovery of a potentially significant gold deposit. Trenching is now planned in two areas in order to locate the source of gold-silver-copper bearing breccia boulders along a prominent 5 km ridge zone.
PLACER GOLD MINING OPERATIONS (MONGOLIA)
Java Gold is operating two gold recovery plants on the Gazar Toson dry placer deposit in the Zaamar Valley of north-central Mongolia. Production rates, at full capacity, total 150 cubic metres per hour, with current gold grades ranging from 0.8 g/m3 to 1.2 g/m3. As reported in August, a number of delays and start-up problems have now been overcome. However, due to these problems, this year's gold production targets have been reduced to between 2000 and 3000 ounces. Recent resource evaluation programs however, have increased the indicated reserves of the Gazar Toson property, held 100 percent by Java Gold Corporation, to approximately 250,000 ounces. Production costs are expected to approximate U.S.$125 per ounce. Java Gold also owns 100 percent of the adjacent Toson Alluvial license (480,000 ounces of gold) and 80 percent of the Tas Alluvial license (180,000 ounces of gold). Java Gold has now developed a full scale placer operations base in the Zaamar Valley and intends to be in a position to add to its production capacity next year, with a target in excess of 10,000 ounces of gold annually.
Java Gold has 24.19 million shares issued and trades on the Canadian Dealing Network under the symbol 'JVAG'.
CONTACT: Java Gold Corporation
Investor Relations, 416/ 947-9216
1-800-396-5188
Looking promising for JVAG.
Ron E |
