News - 50% interest in NWT property -
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: MONGOLIA GOLD RESOURCES LTD.
VSE SYMBOL: MGR
JANUARY 29, 1998
Mongolia Gold Resources Ltd. Announces the Acquisition of
a 50 Percent Interest in Past Producing High-Grade Silver
Mine Properties
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") is pleased
to announce the acquisition of a 50 percent interest in past-
producing silver mines in the Camsell River District of the
Northwest Territories, ("N.W.T.") Canada. These claims were
acquired by staking and are the 100 percent registered title of a
private NWT company which is, in turn, owned 50 percent by the
Company. The claims include the Silver Bear, North, and Smallwood
Mines, previously operated by Terra Silver Mines Ltd. and are
located 400 km north of Yellowknife.
Past production from these mines, which operated until 1985 totals
15.5 million ounces of silver with minor gold and base metal
credits. Silver grades at the Silver Bear Mine which account for
the bulk of the production from the district averaged 29.42 ounces
per ton. High-grade silver-nickel-cobalt-arsenide was extracted
from veins grading up to 10,000 ounces per ton (opt) silver.
Management believes that, as an exploration target, this is an
exciting opportunity. It believes that this form of
mineralization coupled with the likelihood that additional
high-grade veins that are known to exist on the property, and the
existence of larger, lower grade copper-cobalt-silver-gold
mineralization associated with iron oxides represents a very
promising opportunity.
This deposit model has recently been applied elsewhere in the
Great Bear Magmatic Zone with tremendous success. For example, on
the Company's Longtom Property (recently joint ventured with
Alberta Star Mining Limited), Fortune Minerals Limited's Nico
Property and the Fortune/Noranda Sue Dianne Property. The Company
is currently reviewing various exploration and development plans
for the claims and has commissioned a review of all historical
data.
On Behalf of the Board of Directors
Dr. D.R. Webb, President |
