NOT REALLY A RUMOUR.
NEWS RELEASE
Trading Symbol VSE: EEL
Web site - http:www.canvest.com/eaglecrest
12g # 82-603
January 16, 1998
ú San Simon Gold Project Elevated to Official Status
ú Joint Venture Agreement completed between The Bolivian Government-
Eaglecrest Explorations Ltd. and the San Simon Mining Society
ú Large Bulk Sampling Program Begins
Eaglecrest Explorations Ltd. announces that recently, the Bolivian Ministry
of Mines and it's regional division have officially acknowledged the
Company's San Simon gold project, located in northeastern Bolivia, (along
with Battle Mountain, Comsur, Vista Gold and Gencore) as one of five of the
most significant discoveries in this South American country.
This status has facilitated the completion of a joint venture agreement
with MEDMIN, (the operational arm of Swiss agency COSUDE) a Bolivian
governmental agency whose mandate is to promote regional development and
provide technical assistance to mining operations. The focus of the venture
is to enhance gold recovery methods currently being utilized and to reduce
indiscriminate useage of mercury amalgams by the San Simon Mining Society
("Society").
As previously reported, MEDMIN processed 6 tons of coarse ore material from
the Trinidad Vein, and this test returned a value of 19.33 g/t. of gold.
Recovery improved up to 90% by utilizing a finer grind on the material.
This process is without the use of mercury in the grinding stage or in
amalgamation plates. The Society is currently extracting approximately 100
tons of ore per month.
Both the Federal and Provincial levels of the Bolivian Government have
authorized this agreement, ensuring Eaglecrest of access to the various
Governmental agencies on a timely basis, when and if required.
The agreement and responsibilities between the parties are as follows:
Eaglecrest Explorations Ltd.
1) Provide machinery and materials for the pilot plant
2) Provide logistical support to MEDMIN.
MEDMIN
1) Pilot plant design
2) Provide logistic support to the San Simon Mining Society
3) Implementation, start up, and operation of the pilot plant
4) Training and education
5) Dissemination of results
6) Accounting
2) Permanent technical support staff.
The San Simon Mining Society
1) Deliver material (approximately 15+ tons per day) to the pilot plant
2) Provide labor as needed for the operation of the mill;
3) Pay 20% of revenues to MEDMIN;
4) Assist in facilitating comparison studies between traditional methods
and the pilot plant;
5) Facilitate the dissemination and implementation of the improvements
obtained in gold recovery, and pollution reduction throughout the San Simon
Mining District.
This joint venture agreement ensures Eaglecrest of all the necessary
information on recoveries of various ore types from different test pits
that will be critical for any large-scale mining activities that may be
considered for the project and accrues to Eaglecrest virtually cost free.
This agreement will remain in effect at the discretion of Eaglecrest and/or
until full-scale mining operations are commenced.
On Behalf of the Board of Directors
Victor Lahmer, President
The information presented herein is for information purposes only. No
stock exchange has approved or disapproved of the information contained
herein. This does not constitute an offer to buy or sell securities or
solicitation of offers to purchase securities. Past performance cannot be
relied upon as a guide to future performance
Mr Metals |
