News release: Drilling starts at Buffalo Valley
Tue 14 Oct 97 News Release
Mr Thomas Kelly reports
Drilling will restart this week at the Buffalo Valley project in Nevada. The company is working in conjunction with Echo Bay Mines Ltd through a joint venture at Buffalo Valley, where the company has identified a resource of over 500,000 troy ounces of gold. An updated resource calculation, based on the results of in-fill drilling, is expected in the next few weeks.
This round of drilling at Buffalo Valley will focus on two areas previously drilled during reconnaissance exploration and one area that is totally untested. The first area to be tested is target F (north), where initial drilling has shown strong gold mineralization. Approximately one-half mile of strike length is untested and will be explored in this program. Target L will also be tested. Previous reconnaissance drilling indicates that the target is much larger than was anticipated. This drill campaign is
designed to further define the overall boundaries of the mineralized zone.
The third target is an area, half a mile in length, between target L and the A/B/O complex. This gravel-covered area has never been drilled and has the potential to host a large, disseminated gold deposit.
Drilling is expected to take approximately 30 days with final assay results received two weeks after drilling is completed. Echo Bay then has 30 days to make a determination as to how they wish to proceed with the joint venture at Buffalo Valley.
The company's consultant, Humboldt Mining Services of Reno, Nevada, is completing a new resource calculation. This resource is based on the drill results from the original drilling done by the company and others, as well as the confirmation/in-fill drilling done by the Fairmile/Echo Bay joint venture at the A/B/O complex. Fairmile expects that the new resource calculation will modestly expand the original resource, which was done before Echo Bay's involvement.
The company has contracted the services of R.R. Communications of Vancouver. This company is composed of investor relations professionals with a wide range of experience in the mining industry. |
