Fairmile Announces Updated Resource Estimate for Buffalo Valley
FAIRMILE GOLD CORPORATION
Telephone: (604) 257-4262 or 1-888-599-6777 Toll Free
Fax: (604) 683-2540
ASE: FLA
NASDAQ Bulletin: FAMQF
Fairmile Announces Updated Resource Estimate for Buffalo Valley
October 23, 1997
-Fairmile Gold Corp. (Fairmile) is pleased to announce that an updated
resource estimate for Fairmile's Buffalo Valley Project, located in
Nevada's Battle Mountain Gold Trend, was completed by Humboldt Mining
Services (Humboldt) of Reno, Nevada. The results show a 14% increase
in the resource at Target A/B/O. Meanwhile, drilling continues at the
site on areas identified in early stage exploration drilling as having
the potential to host significant new resources of gold.
Of the funds Echo Bay contributed toward the Fairmile/Echo Bay
strategic alliance, the majority was used to fund drilling to confirm
Fairmile's resource estimate at the A/B/O Complex of the Buffalo
Valley Project. This drill campaign was completed during the past
summer. The earlier A/B/O Complex resource estimate was in excess of
500,000 troy ounces of gold. A total of 16,120 ft. of reverse
circulation drilling was completed at the A/B/O Complex in a program
by the strategic alliance over the last 6 months.
The results of that drilling, plus earlier drilling performed by
Fairmile and others, was used as the raw data for calculating the
A/B/O Resource. Humboldt used this information to update the resource
estimate as listed below:
A/B/O Complex Average Grade Cut-Off Grade Contained Troy
Tons of Material tr. oz. Au tr. oz. Au Ounces Au.
20,330,000 0.029 0.01 592,839
An independent resource calculation by Echo Bay corroborated these
results.
A complete tabulation of all resources at Buffalo Valley, calculated
by Humboldt, is attached.
The drilling performed by the strategic alliance confirmed Fairmile's
earlier estimate and increased that resource by 14%. The total cost
to date to identify all of the resource ounces was approximately
US$10/tr. oz. These results again demonstrate the high quality of
work that Fairmile is known for.
The latest round of drilling at Target F has shown that the
gravel-covered target is much larger than previously thought. Three
distinct mineralized zones have now been identified at this target.
The South Zone was previously identified as containing approximately
67,000 tr. oz. Au and is reported in the "Other Mineralized Material"
category of the attached table. The Roof Zone of Target F contains a
modest number of ounces under the same category as the South Zone.
The newly discovered East Zone at Target F has shown encouraging
results in the 1997 drill program. While no assays have been received
from the current drilling program, the presence of strongly altered,
favorable host rocks under shallow gravel indicates that strong gold
mineralization found earlier this year to the south may extend
northward. A total of five holes are planned for this area in the
current program.
Additional drilling will test zones at Target L and in the area
between Target L and the A/B/O Complex. These results, along with the
results of Target F drilling, will be announced when the final assays
are received and the strategic alliance has had an opportunity to
analyze the results.
Buffalo Valley Mineral Inventory (September, 1997)
----------------------------------------------------------------------
Target Category Tons (Tonnes) Resource Grade Contained
Oz./ton(Gr./T) Ounces Au
A/B/O
Complex Measure/Ind. 14,611,938(13,255,950) 0.031(1.06) 456,535
Inferred 5,722,082(5,191,073) 0.024(0.82) 136,304
Sub-Total 20,334,020(18,447,023) 0.029(0.99) 592,839
C(DoreHills)Measure/Ind. 199,395 (180,891) 0.024(0.82) 4,689
Inferred 131,088 (118,923) 0.020(0.69) 2,578
Sub-Total 330,483 (299,814) 0.022(0.75) 7,267
Resource
Total Measure/Ind. 14,811,333(13,436,841) 0.031(1.06) 461,224
Inferred 5,853,170(5,309,996) 0.024(0.82) 138,882
-------
Total Resource 20,664,503(18,746,837) 0.029(0.99) 600,106
Buffalo Valley, Other Mineralized Material* (September, 1997)
----------------------------------------------------------------------
Target Category Tons (Tonnes) Resource Grade Contained
Oz./ton(Gr./T) Ounces Au
B(Front Fault) 290,024 (263,110) 0.031 (1.06) 8,890
F (Roof Zone) 298,266 (270,587) 0.015 (0.51) 4,551
F (South Zone) 3,008,217 (2,729,054) 0.022 (0.75) 67,331
Water Well Pod 162,250 (147,193) 0.039 (1.34) 6,275
Heaps 1,800,000 (1,632,960) 0.0075 (0.26) 13,500
Sludge Ponds 200
---------------------- --------
Total Oz. Au, Miner. Mat'l 100,747
* Other Mineralized Material includes deeper mineralization that is
believed to be too low grade to be economic in the near future.
Additional drilling, however, may delineate additional higher-grade
zones within and adjacent to this mineralization, possibly upgrading
portions of the mineralization into the Resource category.
Please contact Fairmile at (888)599-6777 for further information.
FAIRMILE GOLD CORP.
"Thomas R. Kelly"
Thomas R. Kelly,
President and CEO
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein. |
