MEDINAH ENERGY INC.- October 22, 1997- NEWS RELEASE
Howe Chile Limitada (A.C.A. Howe International Consulting Inc.)
confirms Medinah gold values in the Andacolla properties, Andacolla,
Chile.
Howe Chile Ltda. (Howe) recommends a $1,350,000 drilling and
development program.
In their in-depth report to Sierra La Plata S.A. (Medinah's wholly
owned subsidary in Chile). Howe highlighted the following:
1. Two primary target areas for development:
- La Colorada, with zones 30 to 40 meters (120 feet) in width and
strike zones of 250 meters (750 feet) open in all directions and
averaging 2.05 g. Au/ton
- La Violetta, with gold outcroppings (0.28 million tons grading
1.29 g. Au/ton) and projecting south from the Dayton Mine on to
Medinah claims.
2. Two additional target areas are:
- The Mercedes, with drilled probable reserves of 810,000 tons
grading 1.25 g. Au/ton
- The Toro, with probable reserves of 1.32 million tons grading 1.79
g. Au/ton.
3. Additional testing on other claims show gold values ranging from a
low of 0.41 g. Au/ton to a high of 3.12 g. Au/ton.
4. Howe concurs with the Chevron study, indicating 3,303,000 tons at
2.37 g. Au/ton from vein material plus 3,430,000 tons at 1.31 g.
Au/ton from manto structures, which remain to be confirmed by further
drilling.
5. Medinah's properties border the North and West edges of the Dayton
Gold operation (130,000,000 tons of ore grading 0.70 g. Au/ton) and
includes six claims within the Dayton boundaries.
6. Medinah now controls more than 1750 acres in the Andacolla field
(approximately 2.75 square miles) with additional acquisitions under
negotiation.
Further to evaluating and verifying data,Howe has completed the
following field work:
- Established a 40 kilometer (24 mile) gridline
- Magnetic surveys over gridded areas
- Reconnaisance geological mapping
- 1000 feet of hand trenching
- 353 grab and channel samples
Given the above factors, Howe recommends a two phase program:
Phase I - additional mapping, sampling, bulldozer trenching and
geophysics surveying
Phase II - Drill testing on the target areas - 8000 meters (24,000
feet)
Cost of the above is projected at $1,350,000, funding of which is now
in progress.
NP Energy Corp. (NPEC) has a 20% joint venture position with Medinah.
For further information, please call Investor Relations:
Dave DiRiccco - 415-261-9608
On behalf of the Board of Directors
Per: Larry Regis, President |
