Wednesday October 22 6:00 AM EDT - Howe Chile Limitada Confirms Medinah Gold Values in the Andacollo Properties, Andacollo, Chile
NEW YORK--(BUSINESS WIRE)--Oct. 22, 1997--Howe Chile Ltda. (A.C.A. Howe International Consulting Inc., ''Howe'') recommends a $1,350,000 drilling and development program.
In their in-depth report to Sierra La Plata S.A. (Medinah's wholly owned subsidiary in Chile), Howe highlighted the following:
1. Two primary target areas for development:
La Colorada, with zones 30 to 40 meters (120 feet) in width and strike zones of 250 meters (750 feet) open in all directions and averaging 2.05 g Au/ton.
La Violeta, with gold outcroppings (0.28 million tons grading 1.29 g Au/ton) and projecting south from the Dayton mine on to Medinah claims.
2. Two additional target areas are:
The Mercedes, with drilled probable reserves of 810,000 tons grading 1.25 g Au/ton
The Toro, with probable reserves of 1.32 million tons grading 1.79 g Au/ton.
3. Additional testing on other claims show gold values ranging from a low of 0.41 g Au/ton to a high of 3.12 g Au/ton.
4. Howe concurs with the Chevron study, indicating 3,303,000 tons at 2.37 g Au/ton from vein material plus 3,430,000 tons at 1.31 g Au/ton from manto structures, which remain to be confirmed by further drilling.
5. Medinah's properties border the North and West edges of the Dayton Gold operation (130 million tons of ore grading 0.70 g Au/ton) and include six claims within the Dayton boundaries.
6. Medinah now controls more than 1,750 acres in the Andacollo field (approximately 2.75 square miles) with additional acquisitions under negotiation.
7. Further to evaluating and verifying data, Howe has completed the following field work:
-- Established a 40 kilometer (24 mile) gridline -- Magnetic surveys over gridded areas -- Reconnaissance geological mapping -- 1,000 feet of hand trenching -- 353 grab and channel samples
Given the above factors, Howe recommends a two phase program:
Phase I: additional mapping, sampling, bulldozer trenching and geophysics surveying
Phase II: Drill testing on the target areas -- 8,000 meters (24,000 feet)
Cost of the above is projected at $1,350,000, funding of which is now in process.
NP Energy Corp. (NPEC) has a 20 percent joint venture position with Medinah.
Trading: OTC Symbol -- MDIN Cusip No. 584892 20 2 Tel: 909/245-9498 Fax: 909/245-9438
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Contact:
Medinah Investor Relations
Dave DiRicco, 415/261-9608 |
