Original grads not that impressive.
El-misti Gold Ltd -
Peruvian property options acquired
El Misti Gold Ltd
EMG
Shares issued 12076321
1998-04-02 close $1.55
Friday Apr 3 1998
Mr John Huguet reports
The company has signed option agreements to acquire a 100% undivided interest in
both the Colpayoj and Chamis properties including the Mirtha 2 and Sacramento 8
claims which adjoins the Yanacocha mine southern boundary in northern Peru.
These are contained within the same Yanacocha - Cerro Corona - Sinchao - Cerro
Tantahuatay northwest lineament zones that intersect the northeast trending
Chicama-Yanacocha structural corridor.
For the Colpayoj concession, the company is required to pay US$3.85m over 24
months from signing, including $100,000 over the initial six months, and a royalty on
the amount of gold identified by feasibility work. For the Chamis concessions, the
company must pay the owners of the property a total of US$2.4M over 48 months
from signing, including $30,000 over the initial six months, and a royalty on the
amount of gold identified by feasibility work. The agreements are subject to VSE
acceptance and require that El Misti performs a minimum of 2,000 metres of drilling
at Colpayoj and 1,000 metres at Chamis.
The Colpayoj (4,700 hectares) and Chamis (4,349 hectares) concessions are 4km
apart within the Yanacocha/Hualgayoc mining district.
At Colpayoj, the porphyry outcrops as two separate lobes which are very probably
connected at depth. The southern porphyry is exposed over 400 by 300 metres and
the northern one measures about 500 by 300 metres. Below surface, the extent of
mineralization has not been defined and remains open. Three reverse circulation
holes drilled by Balaclava Inc gave the following analytical results:
Hole
----
From-To Interval Au Ag Cu
(m) (m) (g/t) (g/t) (%)
-------- -------- ----- ----- ----
RCD-01
0 - 165* 165 0.6 3.80 0.09
incl.
3 - 52 44 1.1 5.10 0.16
RCD-02
0 - 1.65** 165 0.6 6.30 0.15
incl.
66 - 106 40 1.0 7.00 0.13
RCD-03
0 - 170 170 0.6 5.10 0.12
* The final sample taken from
164-166m returned 2.3 g/t gold
** Silver values increase with depth
Surface trenching results at Colpayoj include 146m at 0.74 g/t gold, 66m at 0.70 g/t
gold and 164m at 0.67 g/t gold (as reported by others). The porphyry mineralization
contains magnetite and a magnetic survey which has indicated a magnetic high
anomaly with dimensions of 600m by 600m.
The Chamis geology is similar to Colpayoj. The mineralized stockwork outcrops
over an area of 400m by 400m. Below the surface, the extent of the mineralization
which contains magnetite is indicated by the size of the magnetic anomaly with
dimensions of 1,500m by 500m.
The company believes based upon geological, geochemical and geophysical data
available, the drill results obtained, and the regional setting of both the Colpayoj and
Chamis porphyries collectively represent excellent potential for defining a bulk
tonnage gold copper deposit where the metals can be extracted using conventional
metallurgical approaches.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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