N E W Sÿÿ R E L E A S E
March 3, 1998
CUSIP No.:ÿ 718923-10-5
V.S.E. Trading Symbol:ÿÿ PHO
US 12g3-2(b) No.:ÿ 82-4419
High Grade Silver Ore To Be Processed
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Phoenix Gold Resources (the Company) is pleased to report that it has now
signed a preliminary agreement to acquire an additional 30% interest in the
Coyote Knolls silver / gold property in Utah.ÿ Additionally, an underlying
dilution clause in the original agreement increases the Company's interest
a further 10%.ÿ These two developments increase the Company's interest in
the project to a total of 70%.
The Coyote Knolls Project is a silver-gold property located within the
Delta Quadrangle region of Utah which includes much of the Tintic deep
mineral belt which trends east and west between a latitude 39ø 30' and 40ø.
Mineral deposits within the Delta Quadrangle have yielded large quantities
of base and precious metals since the 1860's, with most of the precious
metals related to the Tintic Districts. Past production has included
3,000,000 ounces of gold and 300,000,000 ounces of silver.
Based upon trenching and drilling to date at Coyote Knolls, a mineralized
zone 200 feet in true thickness dipping 60ø North has been identified at
the structural contact of an inferred rhyolite dome complex and Precambrian
quartzites with a strike length of at least 3,000 feet (915 meters).ÿ An
early stage of a quartz sulfide stockwork and argillic alteration of the
volcanic package was cut by an ore grade breccia pipe (locally referred to
as pebble dikes) with precious metals as high as 135 o.p.t. silver (4623
g.p.t.) and 0.51 o.p.t. gold. (17.5 g.p.t.).ÿ The mineralized breccia pipe
zone within the main zone may represent the high level signature or
expression of bonanza grades attained in the east or main Tintic District.
The Company is currently focusing on near surface and stock piled ore
totaling an estimated 10,000 tons, grading 22 o.p.t. silver (753 g.p.t.)
and 0.12 o.p.t. gold (4.11 g.p.t.)
The Company has made arrangements for a 50 ton per day pilot plant, and
associated people and equipment, to concentrate this ore and supply it to a
local refiner for processing.ÿ Subject to favorable weather conditions, we
expect to move the plant on site by approximately March 15, 1998.
Potential cash proceeds from the sale of the concentrate will be used to
further develop the Coyote Knolls property, as well as other Phoenix
properties.ÿ Additionally, we feel that given the current market
conditions, the ability to self finance without share dilution would put
the Company in a strong position should other favorable situations arise.
Senior management will be moving to the Coyote Knolls property to oversee
operations first hand.
It should be noted that silver has been steadily increasing in price since
September 1997.ÿ Recent high profile market interest in silver has brought
the supply - demand deficitÿ to the attention of the world. Any increase in
the price of silver will have a substantial impact on the potential profit
of the Coyote Knolls project.
We look forward to providing regular updates as we proceed with the mining
and processing of ore at Coyote Knolls.ÿ Further exploration of Coyote
Knolls and other properties is also planned and will be announced as soon
as possible.ÿ All interested parties are encouraged to contact the Company
to ensure they are placed on our email or fax distribution lists.
ON BEHALF OF THE BOARD OF DIRECTORS
"JOHN W. CARSON"
JOHN W. CARSON, President
INVESTOR RELATIONS in Vancouver:
Robert Matthews
Tel: 604-732-8366
Toll free: 888-732-8366
Fax: 604-732-4096
Email: norwest@axionet.com
Dick Lonsdale
Tel: 604-698-9960
Fax: 604-684-3499
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. |
