NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: MONGOLIA GOLD RESOURCES LTD.
VSE SYMBOL: MGR
JANUARY 26, 1998
Mongolia Gold Resources Ltd. Announces the Results From
the Examination of 146 Veins on the Bumbat Property,
Mongolia
VANCOUVER, BRITISH COLUMBIA--THIS RELEASE IS NOT FOR DISTRIBUTION
TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES.
Mongolia Gold Resources Ltd. (VSE: MGR) (the "Company") announces
that it has received results from its 1997 exploration program on
its 49 percent owned, Bumbat Mine, Zaamar District, Mongolia. One
hundred and forty six veins were examined of which 35 represented
grades greater that 0.2 gpt gold. The thirteen best new veins not
currently in reserves are shown below.
/T/
Best new veins identified from 1997 exploration program
Bumbat Property, Mongolia
VEIN LENGTH WIDTH DEPTH GRADE
(meters) (meters) (meters) (gpt)
912 100 1.00 N/A 157.00
457 A 60 1.31 N/A 35.01
188 400 0.90 250 31.50
191 200-250 0.90 50 20.50
188-1 250 1.50 100 13.70
712 N/A N/A N/A 11.36
409 100 6.57 N/A 10.30
405 100 1.14 N/A 9.60
188-2 300 1.00 50 7.10
56 A 400-500 0.79 200 6.40
188-3 200-300 2.40 100 4.70
420 250 1.43 N/A 3.00
408 150 4.78 N/A 2.43
Note: All sampling is from surface trenches. N/A means not
available. Where a number is reported under depth, limited
diamond drilling has been completed identifying the structure
to depth, but in insufficient quantity to classify the reserves
as proven or probable.
/T/
These veins will be explored in 1998 and are expected to add
reserves to the project. Management's current estimates of proven
and probable, undiluted in-situ (geologic) reserves from the 118,
56, 115, and 197 veins stand at 310,540 tonnes grading 10.29 gpt
containing 3,195 kg (102,700 ounces) of gold. This represents a
11 percent increase in tonnage, 6 percent decrease in grade for a
net increase of 5 percent contained gold and does not include any
of the veins shown on the table above.
As previously announced, the Bumbat mill is undergoing relining of
the rod mill and other maintenance to enable it to increase its
operating efficiency. Work is progressing well, and additional
gold recovered during the mill relining will be allocated to 1997
production. This will lead to an increase in production grades,
recovery rates, and sales, and lead to a lowering of the cash
operating cost per ounce.
On Behalf of the Board of Directors
Dr. D.R. Webb, President |
