Preliminary drill results from San Lorenzo project
Penn-Gold Resources Inc PNB
Shares issued 8,959,306 Jan 19 close $0.11
Thu 22 Jan 98 News Release
Mr Robert Rosner reports
The company has received preliminary results from its phase 2 exploration
program at its San Lorenzo manganese project near La Serena, Chile.
According to the company's independent consulting engineer, Mr P.J. Santos,
a program of reverse circulation drilling, detailed mapping and surface
sampling conducted in 1997 succeeded in confirming the continuity of a
series of layers or mantos mineralized with manganese over a contiguous
area of 947,497 square metres, referred to as zones E, F, G, and H. This
1997 exploration program (phase 2) is a continuation of the initial
exploration program (phase 1) that was started in 1995 and continued in
1996. The phase 1 program indicated a potential tonnage of 18.5 million
metric tons of 16% manganese in zone E (see geology and engineering report
March 31 1997 by P.J. Santos). Within this zone E a high grade core with a
possible tonnage of 8.25 million metric tons was estimated to occur.
Mr Santos further reports that the 1997 phase 2 program has succeeded in
indicating a tonnage of 17.9 million metric tons of manganese
mineralization in zone E which consists of high grade manganese
mineralization, medium grade manganese mineralization, and low grade and
marginal manganese mineralization essentially confirming the tonnage
estimated in the phase 1 program. This tonnage is based on the results of
1,486m of drilling in 14 holes within a 500 by 400m zone with an average
mineralized thickness of 32m.
In addition, the phase 2 program has indicated a further potential tonnage
of 40.8 million metric tons of manganese mineralization in zones F, G, H
and E. This tonnage is defined by 508m of drilling in four reconnaissance
drill holes, geological mapping, old workings and outcrop in road cuts,
extending the strike length of dell tested manganese mineralization to
1.5km. As well, the manganese mineral cone has been delineated in outcrop
and road cuts to southeast of DH-28 for an additional 1km.
However, due to the degradation and hence the unreliability of the reverse
circulation drill sample assays the true grade of these mineralized
tonnages cannot be determined accurately at this time. As a result, the
above tonnages do not qualify as resource or reserve as defined in the CIM
ad hoc committee report dated September 1996. To establish the true grade
of these tonnages, Mr Santos is recommending a diamond drilling program.
MASA (Manganesos Atacama) presently the only manganese producer in Chile,
uses a two stage drilling procedure to define manganese ore reserves.
Reverse circulation drilling is used to delineate the top and bottom of the
manganese zones and is then followed by diamond drilling to obtain core
samples for assaying to establish the true grade of the manganese ore.
With the recommendation of Mr Santos to conduct a diamond drill program,
the company is determining availability of equipment and obtaining bids
from drill contractors. Also, the company is in the process of securing the
necessary financing and plans to commence this diamond drill program
immediately.
A comprehensive engineering report is being prepared on the phase two
exploration program of the San Lorenzo project.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
