To All; January 15, 1998 News Release
January 15, 1998 New Project Acquired in Nevada Symbol: MAD.V
Form 20F: 0-27760
The Company is pleased to announce that it has acquired the Sand Springs project in Churchill County, Nevada.
The area was evaluated in the past for porphyry copper and gold in the intrusive and in contact skarns and veins. A small diorite pluton intrudes a structurally complex sequence of Mesozoic age metasediments and volcanics including a thick limestone unit. A north-northeast striking shear zone cuts the diorite and limestone rocks in the western part of the project area. Just south of the area, epithermal gold and silver veins were mined in the past with bonanza grades due to secondary enrichment of silver.
Drilling four years ago by a previous operator broadly defined a gold and copper zone associated with skarn mineralization in the lower part of the limestone unit adjacent to the diorite. This drilling resulted in a 10 foot intersection of 0.14 ounces gold/ton in the skarn and three other 10 to 20 foot zones of low grade gold mineralization, all in the northwestern part of the property. A zone of skarn and marbleized limestone extends beyond the drilled area and will be the focus of new exploration. Tertiary volcanics with indications of epithermal mineralization occur in the southwestern part of the area.
The prospective area remains open, especially in the western and southwestern area where a large zone of skarn-marble-limestone is known containing numerous gold-bearing quartz-tourmaline veins. Past drilling and follow-up work was not done due to a lack of structural and geologic control. A magnetometer and IP/resistivity survey was completed over the northern part of the area and was not followed up.
Detailed geologic mapping has been completed. In addition to the mapping, a soil geochemistry survey and a ground magnetometer survey were completed over the project area. The mapping, geochemistry, and geophysical data will be used to direct further exploration in the area. This will include the areas of the limestone and diorite contact and the volcanic and alluvial covered areas to the south.
The Company acquired this option by paying for the costs of staking the original claims and must make option payments totalling U.S.$138,500 over the next ten years. The property is subject to a 2.5% net smelter return until the optionor has received U.S. $500,000, at which time the royalty is reduced to 1%.
ON BEHALF OF THE BOARD
"Dennis L. Higgs"
Dennis L. Higgs, B.Comm.
President
The Vancouver Stock Exchange neither agrees nor disagrees with the information contained herein. |
