News Release: Nov. 3, 1997
ENERGOLD HOLDS OPTION ON GROUND BESIDE NEW DOMINICAN DISCOVERY
Energold Mining Ltd. announces that it has optional rights to a majority interest in a property adjacent to a new mineral discovery in the Dominican Republic.
Under the terms of a Letter of Agreement dated July 25, 1996, Energold has the right to earn up to a 60% interest in a Dominican company, Actividadas Mineras S.A. (AMSA) from MJD Agency Ltd. (MJD), a private Canadian company, and 100% owner of AMSA, by incurring exploration expenditures of $600,000 over a four year period.
AMSA has priority of application for the 2,400 hectare Rey Midas Exploration Concession, which lies immediately to the north and west of the Managua Exploration Concession, owned by Corporacion Minera Dominicana S.A., a Dominican subsidiary of Falconbridge. KWG Resources Ltd. is earning a 49% interest in Managua.
KWG announced the results of a 13 hole drill program on Managua on Oct. 16, 1997, in which
"...12 holes intersected significant and accountable mineralization over a strike length of 800 metres. The drill indicated mineral inventory in the Kiosk Vein is currently estimated to be 4,680,000 tonnes averaging 0.91% Cu, 4.88 g/t Ag and 2.29 g/t Au. The final hole in the series intersected 4.6 metres...which averaged 6.3% Cu, 20.10 g/T Ag and 10.80 g/T Au..."
Preliminary reconnaissance sampling on the Rey Midas concession application has returned anomalous gold values in stream silts of up to 100 ppb Au and 1.0 ppm Ag; float and subcrop samples ranging from 0.17 to 1.21 g/t Au and 0.6 to 10.2 g /t Ag in a highly silicified, leached cap which covers an area of 300 by 600 metres immediately along the common boundary of the Rey Midas and Managua concessions and which remains open to the west and north.
The Company has been informed by the Department of Mines that they will be awarding the Rey Midas and other concessions in the near future.
In addition to its right to earn a majority interest in AMSA, Energold Mining Ltd. has certain optional rights to three Dominican companies 100% owned by three independent Canadian public companies, and is a minority owner of a fourth, all of which have applied for exploration concessions in the Cordillera Oriental - a region underlain by the Los Ranchos Formation, host to the world class Pueblo Viejo gold deposit, which lies some 60 km west of Rey Midas. |
