New research supports theory of kimberlite intrusions in South
Saskatchewan
Pure Gold Minerals Inc PUG
Shares issued 26,379,471 Apr 2 close $0.94
Fri 3 Apr 98 News Release
Also Caribgold Resources Inc (CG)
Mr Donald Sheldon reports
New confidential data just acquired by Pure Gold Minerals and CaribGold
Resources, gathered from a heavy mineral sampling program conducted in 1995
by the Saskatchewan Research Council for the Willow joint venture provides
evidence that five potential kimberlite fields may occur within the joint
venture land holdings in the Wood Mountain area in South Saskatchewan.
Certain high energy, clast supported gravels collected during the SRC
sampling program contain common (greater than 1.74 mm) silicate indicator
minerals and abnormal amounts of clinopyroxene-rich sands in the samples.
Due to the unusual size (up to 8 mm) and quantity (up to 998) of indicator
minerals, the source is considered to be very proximal (0.5km to 5km). As
indicated in a previous release in Stockwatch dated March 6 1998, a high
resolution magnetic survey over the companies' claims holdings in the Wood
Mountain area has confirmed a large number of magnetic signatures that
demonstrate kimberlite characteristics. Several of the magnetic anomalies
are considered to be the potential source of the high indicator mineral
counts.
Both Pure Gold and Carib have optioned an additional 12,150 acres of land,
previously staked by another prospector, that are within the boundaries of
the existing property, staked jointly by the companies' last October. In
terms of the agreement, Pure Gold and CaribGold have an option to earn an
80% interest in the claims by making a cash payment of $7,000 and spending
$500,000 over three years on the new property. The optioned property is
subject to a 1% net profits interest, which can be purchase at any time for
$2,000,000.
The Saskatchewan project is a 50/50 joint venture with CaribGold Resources.
Rights to purchase a total of 3,356,000 units of the company, at $1.00 per
unit, and consisting of one common share and one-half of one series D
warrant expire at 4:30 pm Eastern Time on April 9 1998. Each full series D
warrant will be transferable and exerciseable at $1.25 per common share
until October 9 1998 |
