News Release
FOR: CONSOLIDATED MAGNA VENTURES LTD.
VSE SYMBOL: CMV
NOVEMBER 27, 1997
Consolidated Magna Ventures: Phase I Exploration at Koala
Indicates Potential for World-Class Base Metal Discovery
VANCOUVER, BRITISH COLUMBIA-Consolidated Magna Ventures Ltd. is
pleased to announce that a Phase I multi-faceted exploration
program at the Koala Project, 100 kilometres south-southwest of
the City of Chihuahua, Mexico, has outlined coincident geological,
geochemical and geophysical anomalies which the company believes
reflect a buried replacement-type lead-zinc-copper-silver deposit
of significant proportions.
A 3500 metre by 500 metre zone of altered limestone with
lead-zinc-copper-silver mineralization has been identified on the
property and is thought to be the surface expression of a buried
deposit of massive to disseminated sulphides. The latter is
interpreted from a coincident geophysical anomaly that is over
1000 metres by 800 metres in size, open to the southeast, and
lying at a depth of about 200-300 metres.
This early stage project is targeting a deposit similar to the
Santa Eulalia and Naica mines, which are both near Koala, and
where base metal mineralization occurs as mantos and chimneys in
Cretaceous limestones. The Santa Eulalia District has produced
over 40 million tonnes of 15 percent combined Pb-Zn, up to 1
percent Cu and 320g/t Ag. The Naica deposit has produced in
excess of 21 million tonnes at a grade of 5.5 percent Pb, 4.3
percent Zn, 0.34 percent Cu, 177g/t Ag and 0.34g/t Au.
The Koala property lies within a similar window of gently folded
Cretaceous limestones. A fault trends northwest-southeast across
the property, parallel to the axis of the main anticline and is
traceable on surface for over 3.5 kilometres in strike length.
Initial work at Koala included geological mapping, rock and soil
sampling, very low frequency electromagnetic (VLF-EM) ground
magnetic and induced polarization (IP) geophysical surveys on a
grid laid out over the fault zone. Geophysical readings and
geochemical samples were taken at stations every 25m along 17
lines spaced 200m apart.
A 500m wide zone of intense dolomitization, silicification and
brecciation following the fault zone on its southwest flank, was
mapped by Servicios Reliance, S.A. de C.V. of Chihuahua, over the
entire 3.5 kilometre length. Intermediate porphyry dykes and
scattered Pb-Zn-Cu-Ag mineralization occur within this altered
zone. A total of 664 soil samples were collected from a
reasonably well developed B-Horizon soil profile by Servicios
Reliance and submitted to SGS-XRal Labs in Hermosillo for 30
element ICP analysis. All of the 17 grid lines indicated at least
one zone of elevated Cu and/or Pb and/or Zn values within this
impressive alteration system. Individual soil samples reached
1440 ppm copper, 720 ppm zinc, 720 ppm lead and 26.9 g/t silver.
The geophysical surveys were contracted to Quantec Consulting Inc.
who specialize in a leading-edge IP technology known as
"Real-Section IP". This technique employs a gradient array setup
and can detect sulphide mineralization to depths of several
hundred metres. The results are plotted as plan maps and
cross-sections which more closely reflect the actual position of
the anomaly, compared to the better known "pseudo-sections" from
other types of IP which result in a best-guess scenario for
follow-up drill testing.
Quantec's report lists 16 targets forming 4 significant zones of
chargeability highs coincident with both geological and
geochemical anomalies. All four zones coalesce to cover an area
strongest in the southeast. This chargeability high is
interpreted by Quantec geophysicists as reflecting sulphide
mineralization and is associated with a resistivity low.
Real-Sections on three lines across this zone indicate that the
source of the anomaly is 200-300m below surface and is overlain by
a pronounced resistivity high which reflects the alteration seen
in surface exposures. Quantec has further stated that "all zones
appear to strengthen with depth."
The spectacular results of this integrated exploration program
have been interpreted to reflect a buried replacement-type
lead-zinc- copper-silver deposit. The areal extent of the
anomalies further implies that the source is of a significant
size, potentially rivaling the Santa Eulalia and Naica deposits.
The Bismark deposit, a more recent discovery in northern
Chihuahua, is of a similar type and may exceed 15 million tonnes.
It is important to note that, despite their size, these deposits
have very little surface expression. Although the Santa Eulalia
District was discovered in 1591, a recent IP survey over one of
the massive sulphide deposits produced virtually identical
responses to those seen at Koala, with chargeabilities increasing
with depth and overlain by zones of higher resistivities
reflecting alteration of the host limestones. The Bismark deposit
was discovered in 1984 by a combination of soil geochemistry and
IP.
As the zone of faulting and alteration at Koala extends off of the
company's original 990 hectare property in both directions, an
additional 10,220 hectares have been staked around it. Magna is
earning a 70 percent interest in the original property but owns
100 percent of the additional claims. The combined 11,210 hectare
property now covers most of the window of Cretaceous limestones
and makes Magna the largest claim holder in the region. The
company plans to drill the Koala property in the first quarter of
1998.
Consolidated Magna Ventures Ltd. is a growth-oriented mineral
exploration company listed on the Vancouver Stock Exchange (Symbol
- CMV.VSE).
ON BEHALF OF THE BOARD OF DIRECTORS,
CONSOLIDATED MAGNA VENTURES LTD.
Bradley T. Aelicks, President
Note: Location maps available from the Company at the phone
number listed below. |
