GREAT BASIN'S GOLD-SILVER INTERSECTIONS COMPARE WITH MIDAS
VANCOUVER, BRITISH COLUMBIA--
Robert G. Hunter, Chairman of Great Basin Gold Ltd. (GBG: VSE; GBGLF: NASDAQ)
is pleased to announce highly encouraging assay results from selected vein
intercepts from three of six core holes at the Ivanhoe joint venture property
(75% Great Basin: 25% Cornucopia).
Great Basin's initial drill program consisted of a fence of six vertical
holes drilled on 25 foot spacings across an area of known, gold-bearing
feeder structures. This program was designed to test the feeder structures
at moderate depths before drilling down through Valmy Formation rocks towards
potential high grade, lower plate, carbonate-hosted gold deposits at greater
depth. Great Basin utilized the latest drilling technology to obtain
excellent core recovery and successfully complete all holes in an area where
historic drilling produced either poor sample recovery or resulted in lost
holes. To prevent potential sample bias and maximize sample size, whole core
was taken, under the supervison of Chemex Labs Ltd., from select intervals in
three of the six core holes. Assay result highlights from 134.7 feet of the
whole core samples analyzed are listed below, while the balance of results
from 2,246 feet of core utilizing half core for analysis are expected in
March.
--------------------------------------------------------------------------
Drill From To Intercept Intercept Gold Silver
Holes (feet) (feet) (feet) (metres) (oz/ (g/ (oz/ (g/
ton) tonne) ton)tonne)
---------------------------------------------------------------------------
IH-002 961.5 994.7 33.2 10.12 0.132 4.53 3.2 110
incl. 968.0 976.0 8.0 2.44 0.243 8.33 1.8 62
incl. 984.5 990.0 5.5 1.68 0.178 6.10 13.4 460
---------------------------------------------------------------------------
IH-003 975.4 984.7 9.3 2.83 0.278 9.53 2.1 72
---------------------------------------------------------------------------
IH-004. 607.1 617.7 10.6 3.23 4.964 170.23 47.8 1639
incl. 613.1 617.7 4.6 1.40 11.130 381.69 103.4 3546
---------------------------------------------------------------------------
IH-004 634.5 647.1 12.6 3.84 1.635 56.07 39.0 1337
---------------------------------------------------------------------------
Further drilling of the gold-rich feeder structures is required before true
width calculations can be accurately completed.
Careful core logging and detailed microscopic and microprobe analysis
indicates that the high grade gold-silver mineralization intersected in Valmy
Formation rocks in this initial drilling is very similar to the recently
discovered Ken Snyder Mine located 15 miles northwest of Ivanhoe on the Midas
Property owned by Franco-Nevada and Euro-Nevada Mining Corporations (see
Figure 1). Most importantly, the Valmy mineralization at Ivanhoe and the
Midas system are both characterized by coarse-gold as electrum with locally
abundant silver mineralization occurring as naumannite and aguilarite within
finely banded quartz veining. A recently announced high grade intersection
from the Midas Property was 3 feet grading 12.91 oz gold per ton and 65.73 oz
silver per ton; a result similar to Great Basin's drill hole IH-004.
At Ivanhoe the potential for the Valmy Formation to host a mineralized system
similar to the underground Ken Snyder Mine is very significant. Although the
Ken Snyder deposit is contained within a narrow corridor of multiple veins
averaging only 3 to 5 feet thick, the current mineable reserves calculated at
US $300 per oz gold and US $6 per ounce silver, are 2.17 million tons,
grading 1.04 oz gold per ton and 11.65 oz silver per ton containing 2.25
million ounces of gold and 25.3 million ounces of silver. In today's
environment of depressed gold prices, the importance of having "quality
ounces" is obvious. At Midas, the US $84 million, 500 ton per day Ken Snyder
Mine is scheduled for commercial production in mid-1999 at a rate of 250,000
ounces of gold equivalent per year. Cash operating costs are forecast to be
under US$80 per ounce, which will make the Ken Snyder Mine one of the lowest
cost gold producers in the world.
At Ivanhoe, nearly 900 historic holes have delineated a near surface, 3
million ounce gold mineral inventory in the Hollister Resource area.
Although very few of these drill holes penetrated down to the underlying
Valmy Formation, 34 holes (mainly reverse circulation drilling) intercepted
at least 5 feet grading +0.20 ounces gold/ton in Valmy rocks across an area
measuring 3,600 feet by 2,800 feet (see Figure 2). The recognition of these
Valmy intercepts as Ken Snyder-style mineralization points to the high
potential for the delineation of an extensive, high-grade Valmy gold-silver
system on the Ivanhoe Property. Now that the significance of the discovery
has been recognized, the joint venture partners plan to aggressively pursue
exploration of the Valmy system and make it a primary target for extensive
drilling.
In addition, extensive work to date on the property continues to show
excellent potential for discovery below the Valmy Formation of a classic,
carbonate-hosted Carlin-type deposit as found elsewhere along the Carlin
Trend. In the coming months the Ivanhoe Property will be explored for both
Ken Snyder-style systems in upper plate Valmy rocks and for deeper
Post-Betze-style analogues in lower plate carbonate rocks.
ON BEHALF OF THE BOARD
Robert G. Hunter .
Chairman
The Vancouver Stock Exchange has neither approved nor disapproved the
information contained in this news release.
../3
GREAT BASIN'S GOLD-SILVER INTERSECTIONS COMPARE WITH MIDAS
VANCOUVER, BRITISH COLUMBIA--
Robert G. Hunter, Chairman of Great Basin Gold Ltd. (GBG: VSE; GBGLF: NASDAQ)
is pleased to announce highly encouraging assay results from selected vein
intercepts from three of six core holes at the Ivanhoe joint venture property
(75% Great Basin: 25% Cornucopia).
Great Basin's initial drill program consisted of a fence of six vertical
holes drilled on 25 foot spacings across an area of known, gold-bearing
feeder structures. This program was designed to test the feeder structures
at moderate depths before drilling down through Valmy Formation rocks towards
potential high grade, lower plate, carbonate-hosted gold deposits at greater
depth. Great Basin utilized the latest drilling technology to obtain
excellent core recovery and successfully complete all holes in an area where
historic drilling produced either poor sample recovery or resulted in lost
holes. To prevent potential sample bias and maximize sample size, whole core
was taken, under the supervison of Chemex Labs Ltd., from select intervals in
three of the six core holes. Assay result highlights from 134.7 feet of the
whole core samples analyzed are listed below, while the balance of results
from 2,246 feet of core utilizing half core for analysis are expected in
March.
--------------------------------------------------------------------------
Drill From To Intercept Intercept Gold Silver
Holes (feet) (feet) (feet) (metres) (oz/ (g/ (oz/ (g/
ton) tonne) ton)tonne)
---------------------------------------------------------------------------
IH-002 961.5 994.7 33.2 10.12 0.132 4.53 3.2 110
incl. 968.0 976.0 8.0 2.44 0.243 8.33 1.8 62
incl. 984.5 990.0 5.5 1.68 0.178 6.10 13.4 460
---------------------------------------------------------------------------
IH-003 975.4 984.7 9.3 2.83 0.278 9.53 2.1 72
---------------------------------------------------------------------------
IH-004. 607.1 617.7 10.6 3.23 4.964 170.23 47.8 1639
incl. 613.1 617.7 4.6 1.40 11.130 381.69 103.4 3546
---------------------------------------------------------------------------
IH-004 634.5 647.1 12.6 3.84 1.635 56.07 39.0 1337
---------------------------------------------------------------------------
Further drilling of the gold-rich feeder structures is required before true
width calculations can be accurately completed.
Careful core logging and detailed microscopic and microprobe analysis
indicates that the high grade gold-silver mineralization intersected in Valmy
Formation rocks in this initial drilling is very similar to the recently
discovered Ken Snyder Mine located 15 miles northwest of Ivanhoe on the Midas
Property owned by Franco-Nevada and Euro-Nevada Mining Corporations (see
Figure 1). Most importantly, the Valmy mineralization at Ivanhoe and the
Midas system are both characterized by coarse-gold as electrum with locally
abundant silver mineralization occurring as naumannite and aguilarite within
finely banded quartz veining. A recently announced high grade intersection
from the Midas Property was 3 feet grading 12.91 oz gold per ton and 65.73 oz
silver per ton; a result similar to Great Basin's drill hole IH-004.
At Ivanhoe the potential for the Valmy Formation to host a mineralized system
similar to the underground Ken Snyder Mine is very significant. Although the
Ken Snyder deposit is contained within a narrow corridor of multiple veins
averaging only 3 to 5 feet thick, the current mineable reserves calculated at
US $300 per oz gold and US $6 per ounce silver, are 2.17 million tons,
grading 1.04 oz gold per ton and 11.65 oz silver per ton containing 2.25
million ounces of gold and 25.3 million ounces of silver. In today's
environment of depressed gold prices, the importance of having "quality
ounces" is obvious. At Midas, the US $84 million, 500 ton per day Ken Snyder
Mine is scheduled for commercial production in mid-1999 at a rate of 250,000
ounces of gold equivalent per year. Cash operating costs are forecast to be
under US$80 per ounce, which will make the Ken Snyder Mine one of the lowest
cost gold producers in the world.
At Ivanhoe, nearly 900 historic holes have delineated a near surface, 3
million ounce gold mineral inventory in the Hollister Resource area.
Although very few of these drill holes penetrated down to the underlying
Valmy Formation, 34 holes (mainly reverse circulation drilling) intercepted
at least 5 feet grading +0.20 ounces gold/ton in Valmy rocks across an area
measuring 3,600 feet by 2,800 feet (see Figure 2). The recognition of these
Valmy intercepts as Ken Snyder-style mineralization points to the high
potential for the delineation of an extensive, high-grade Valmy gold-silver
system on the Ivanhoe Property. Now that the significance of the discovery
has been recognized, the joint venture partners plan to aggressively pursue
exploration of the Valmy system and make it a primary target for extensive
drilling.
In addition, extensive work to date on the property continues to show
excellent potential for discovery below the Valmy Formation of a classic,
carbonate-hosted Carlin-type deposit as found elsewhere along the Carlin
Trend. In the coming months the Ivanhoe Property will be explored for both
Ken Snyder-style systems in upper plate Valmy rocks and for deeper
Post-Betze-style analogues in lower plate carbonate rocks.
ON BEHALF OF THE BOARD
Robert G. Hunter .
Chairman
The Vancouver Stock Exchange has neither approved nor disapproved the
information contained in this news release.
../3 |
