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ÿCanadian Company Press Releaseÿ
GNUÿÿ1997-09-22 ÿÿ(provided courtesy of ISDN Wire Service)
GOLDEN RULE LTD. AND HIXON GOLD RESOURCES INC. - WEST AFRICA PROGRESS REPORT
CALGARY, ALBERTA--
STENPAD PROPERTY
Hixon Gold Resources Inc. 50%
Golden Rule Resources Ltd. (Operator) 50%*
*Back-in.
Diamond Drill Program
---------------------
A six hole 753 metre diamond drill program has been completed on the Stenpad
property. This was the first part of the original drill campaign, planned to
be a twenty hole, 3,000 metre program. The drill program has been suspended
pending the completion of an ongoing program of soil sampling, geological
mapping, trenching, prospecting and ground geophysical surveying that has
been designed to replicate much of the work completed prior to April, 1997.
The diamond drill program was originally designed to test gold mineralization
hosted by quartz vein systems and metasedimentary rocks in the Agyakra area
that had been identified by gold-in-soil geochemical surveys and trenching.
The initial holes were laid out to evaluate the area for its potential to
host bulk tonnage, open pittable gold mineralization.
Associated Mining Consultants Ltd. ("AMCL") established the security
provisions for the drilling, sampling, transporting and assaying for Holes
STP9701 and STP9702. Inter-con Security was retained by AMCL to provide
security at the drill site and maintain custody of the core until it had been
sampled and the samples were on the plane for shipment to Canada from Accra,
Ghana.
Subsequent drilling, sampling and assaying were conducted under the revised
security provisions recommended by AMCL and established by the Joint Venture
with gold analyses conducted at assay laboratories in Ghana and Canada and
ICP analysis for additional elements conducted in Canada.
Drill hole STP9701 was drilled at -45 degrees to a depth of 149.7 metres to
test the gold mineralization exposed in the Agyakra #1 trench. During the
drilling of this hole detailed structural mapping of the Agyakra #1 trench
indicated that the geological structure of the area was much more complex
than previously believed and that the quartz veining might be controlled by
fold structures and not shear zones. The structural mapping showed that many
of the quartz veins exposed in the trench were relatively flat lying,
discontinuous and folded.
The hole encountered interbedded argillite and quartzitic siltstone with
associated quartz veining to a depth of seventy (70) metres followed by
quartzitic siltstone with minor quartz veining to the end of the hole. Minor
argillite beds or zones were encountered toward the end of the hole. The
simplified geology of approximately seventy metres of interbedded argillite
and siltstone followed by eighty metres of siltstone matches very well the
overall geology exposed in the trench. However, it is not possible to match
individual units seen in the trench with those found in the drill core.
The size and frequency of quartz veins in the drill core increased throughout
the first half of the hole up to the contact between the interbedded
argillite-siltstone and the more massive siltstone. The orientation of the
quartz veins to the core axis ranges from 40 degrees to 60 degrees. The
trench samples and drill core samples both show the main gold mineralization
to be associated with the quartz veining within the interbedded
argillite-siltstone and adjacent to the contact with the more massive
siltstone.
The interesting drill intersections (previously reported) are as follows:
Hole STP9701
From (m) To (m) Interval (m) Core Assay
Recovery (g/T gold)
--------------------------------------------------------------------------
34.70 35.70 1.00 30% 7.34
44.00 48.15 4.15 80% 3.18
120.00 120.50 0.50 100% 2.15
131.60 131.80 0.20 75% 4.62
Core recovery for this hole was unacceptable, especially in the critical
first 70 metres, where it average less than 80% and in numerous quartz vein
intervals where core recovery was considerably less than 50%. Poor core
recovery can significantly affect the assay results, and these results,
therefore, can only be considered qualitative. This portion of the hole will
be re-drilled during the next drill program.
Drill hole STP9702 was originally scheduled to be drilled as a -60 degrees
undercut to STP9701. The location of the second hole was changed to test an
area of quartz veins southwest of STP9701. STP9702 was drilled to a depth of
129.0 metres on an azimuth of 120o and at an angle of -45 degrees.
The hole intersected mainly siltstone with moderate beds of argillite. The
structural logging indicates that the rocks have been folded. Three zones of
quartz veining were intersected. The number, size and frequency of these
quartz vein zones did not match those seen in the first portion of hole
STP9701. The orientation of the veins appear to be similar to those
encountered in hole STP9701. As previously reported, the results from the
drill core sampling were disappointing with no results greater than 1 g/T.
Additional Drill Results
------------------------
The third hole STP9703 was drilled to test a 15 metre wide zone of thin
quartz veins located about 75 metres southwest of STP9702 trending
approximately 020 degrees -210 degrees with either a subvertical or
horizontal dip. The hole was drilled to a depth of 100.5 metres on an
azimuth of 120 degrees and at an angle of -45 degrees.
Quartz veins were encountered in the hole at the start and end of the main
argillite unit with the most extensive veining occurring at and bracketing
the eastern argillite/siltstone contact. This matches the exposed eastern
argillite/siltstone contact seen on surface. The quartz veins intersected
the core at angles generally between 40 degrees and 60 degrees to the core
axis. The structural logging shows that there are at least two phases of
deformation. The assay results for STP9703 were disappointing with the
highest values less than 1 g/T gold.
Plans are to resume drilling in the Agyakra area later in the exploration
program once results from the geological, geochemical and geophysical work
now in progress are received and interpreted. The gold values intersected in
STP9701 will need to be evaluated by redrilling that portion of the hole
where core recovery was unacceptable and then attempting to determine the
structural complexities and attitudes of the quartz veining to guide the
location and dip of the subsequent drill holes.
A second area of gold mineralization was tested by drilling holes STP9704,
STP9705 and STP9706. These holes were drilled to evaluate two holes of
active Galamsey (local illicit artisanal miners) gold mining located 500
metres to 2,000 metres northeast of the Agyakra area. Up to approximately
500 local miners can be found at any one time on the property. The peak of
their activity is during the rainy season when abundant rainfall provides
water for the sluices used to recover the gold. Production has been reported
to be greater than 2 kg per month. Each Galamsey crew of three to seven
people work along the creek banks, alluvial flats and mineralized areas in
small valleys and on hill sides. The gold produced is frequently amalgamated
with mercury as it is extracted, indicating that most of the areas worked
today have been previously mined. These present day Galamseys are therefore
reworking tailings from an already exploited, higher grade, original deposit.
The shape of the gold grains recovered by the artisanal miners indicate that
very little mechanical transport of the gold has taken place and, therefore,
that it was being recovered close to its source. Three drill holes were
drilled under these areas of artisanal gold production in an attempt to
intersect the source of the gold being mined by the Galamseys. Two very
important sectors of past and present production were tested by drilling,
each sector being recognized over a strike length of about three km and an
average width of over 100 metres.
The core was split on site and half of the core was sent for analysis to an
assay lab in Ghana with check assaying and multi-element ICP analysis being
conducted at an assay lab in Canada in accordance with the security and
sampling protocols established for exploration on the property.
All three drill holes showed important intersections of graphitic, sheared
and quartz vein bearing metasedimentary rocks with disseminated pyrite as
well as local arsenopyrite and minor chalcopyrite sulphide mineralization.
Although the structural and mineral associations were encouraging, being
typical of an Ashanti-type shear hosted gold deposit, only a few anomalous
gold values were returned by assaying. The highest of these values was 3.84
g/T over an interval of 1.5 metres. A summary of the anomalous values are
given below:
Intersections Above 0.2 g/T Au, Drill Holes STP9704, 05 and 06
Hole From (m) To (m) Interval (m) Assay
Number Result (g/t)
STP9704 45.0 46.5 1.5 0.547
60.0 61.5 1.5 0.239
STP9706 40.5 42.0 1.5 3.835
42.0 43.5 1.5 0.662
These three drill holes have demonstrated that gold bearing systems are
present under the artisanal mining areas, but not enough is known about their
geometry to identify effectively the more enriched areas such as those which
have been mined by the past and present Galamseys. Detailed mapping of the
gold producing areas and a high sensitivity, detailed ground geophysical
survey are being initiated on the project at this time. Geochemical
surveying is probably not an effective exploration method in these areas due
to the high level of disturbance of the surface material by the ongoing
mining activity. Subsequent drilling aimed at locating enriched portions of
the gold bearing shear zones will be guided by the results of these surveys.
Multi-element ICP geochemical analysis has been undertaken on some of the
core samples. While all of the analytical results have not yet been received
there is some evidence that other elements may be associated with increasing
gold values.
License Extension
The Joint Venture applied for an extension of the term of the Prospecting
License No. LVB5625/95 which was acquired by Deed of Assignment from Stenpad
Mining and Processing Company Limited. The Minerals Commission of Ghana has
informed the Joint Venture that the term of the license has been extended to
May 4, 1998. This will allow the Joint Venture to evaluate the 69.38 sq. km
(17,144 acres) Stenpad property before having to relinquish 50% of the area
pursuant to the terms and conditions of the Prospecting License.
***Map of Stenpad Property/Ghana, West Africa available please call 1-800-
866-4736***
TINSO PROPERTY
----------------
Hixon Gold Resources Inc. 50%
Golden Rule Resources Ltd. (Operator) 50%*
*Back-in.
Exploration has continued on the Tinso property located in the Ashanti belt.
This relatively small (470 ha.) property is strategically located between the
Prestea and Bogusa gold mines. The property has been gridded and a
systematic, first phase gold-in-soil geochemical survey completed. Several
low magnitude anomalies have been identified. Mapped exposures, trenches,
old shafts, workings and possible adits have been located and evaluated.
Shallow trenches dug on the weak gold anomalies have been sampled. No
economic grades of mineralization have been identified. Several mining
contractors were contacted to dewater and rehabilitate the old shafts located
on the property but so far a contract has not been negotiated to conduct this
work.
FREDAG PROPERTY
---------------
Hixon Gold Resources Inc. 50%
Golden Rule Resources Ltd. (Operator) 50%*
*Back-in.
During the summer months exploration work on the large 8,340 hectare (20,608
acre) Fredag concession was limited to the emplacement of a grid, the
beginning of a major gold-in-soil geochemical survey and a limited amount of
reconnaissance geological prospecting of the concession and surrounding area.
A 10,490 metre long base line oriented at N40 degrees E was cut and surveyed.
Reconnaissance soil sample lines are initially being established at 800 metre
intervals with intermediate lines begin cut at 400 metre intervals in areas
of higher priority. One 50 metre long trench has been excavated in an area
of massive blocks of quartz which appear to be in-situ. Reconnaissance level
stream sediment sampling has been accompanied by the panning of sediments and
the counting of gold colours in order to identify areas of gold
mineralization.
During the next quarter the exploration program on the Fredag property will
accelerate as the ex-patriate project geologist is now on site.
ALEPE PROPERTY, IVORY COAST
----------------------------
Hixon Gold Resources Inc. 40% *
Trillion Resources Ltd. (Operator) 40%
SODEMI (Government) 10%
Private Ivorian Company 10%
* Option to earn.
The Operator, Trillion Resources Ltd., has carried out gold-in-soil
geochemical surveys in several areas of interest identified by the previous
exploration work carried out on the property earlier in the year. A small
area located on the west side of the Comoe River was gridded and sampled to
test the contact of a granite intrusive with the adjacent schists. A weak
gold-in-soil anomaly has been outlined over an area of 800 metres by about 30
metres. The highest gold values were 875, 641 and 647 ppb. A second area
near the Village of Ngalekro was gridded and soil sampled to test an area of
quartz veining in gneissic rocks. No gold-in-soil values in excess of 50 ppb
have been identified. The analytical results for about 200 samples have yet
to be received. Further exploration programs and budgets will be presented
by the Operator once all of the results have been received from the
geochemical survey.
OTHER ACTIVITY
--------------
During the summer months the exploration and administrative staff and
organization in Ghana was restructured. Most of the workers employed in the
geochemical surveying, trenching, and sampling programs conducted on the
Stenpad project earlier in the program have been replaced and the level of
supervision by ex-patriate geological staff was increased. Improved
sampling, chain of custody of samples and security procedures were
implemented on all projects. Subsequent to the receipt of the AMCL report,
several additional steps have been taken with respect to their
recommendations regarding sampling and analytical procedures. Expatriate
geological personnel have been on leave throughout the rainy season and are
in the process of returning to the field. During this period exploration
activity has been at a reduced level and has consisted of line-cutting, grid
surveying, ground geophysical surveys and geological mapping and sampling
conducted by the Ghanian geological staff.
GLEN HARPER PRESIDENT
No Canadian Stock Exchange has approved nor disapproved of the information
contained herein.
For Further Information Contact: Investor Relations at 1.888.237.7898
GOLDEN RULE RESOURCES LTD. AND HIXON GOLD RESOURCES INC. #1000, 800-5TH
AVENUE S.W., CALGARY, ALBERTA T2P 3T6
TELE: (403) 233-7898 FAX: (403) 266-2606
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