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Consolidated Magna Ventures Ltd -
Diamond drilling begins at Koala project
Consolidated Magna Ventures Ltd CMVShares issued 201871761998-05-11 close $0.54Tuesday May 12 1998Robert Archer reports Consolidated Magna Ventures has begun the first diamond drilling program at the Koala project, 100 kilometres south-southwest of the city of Chihuahua, Mexico. The 2,000 metre program will test coincident geological, geochemical and geophysical anomalies which the company believes reflect a buried replacement type lead zinc copper silver deposit of significant proportions. Previous surveys by Magna identified a large area of anomalous lead zinc copper silver in altered limestones with a coincident induced polarization anomaly suggesting the presence of sulphide mineralization at depths of 200-300 metres. The drill program is following immediately on the heels of an expanded geophysical program that included the extension of the IP anomaly to the southeast and a gravity survey over the entire IP anomaly. The zone of high chargeabilities defined by Quantec's RealSection IP system has been extended by a further 1,000 metres to the southeast and is now defined as being 3500 metres long and up to 800 metres wide. A subtle but persistent gravity anomaly occurs near the middle of the IP anomaly and appears to be about 400 metres long and about 100 metres wide. Geological mapping and soil geochemical sampling have also been extended to the southeast and several new zones of alteration have been discovered that correlate well with the geophysical results. Structural mapping is aiding the overall interpretation and is a key component of the program as chimney and manto type systems typically show strong structural controls. The depth to the top of the interpreted sulphide mineralization, as suggested by the IP data, may be a function of the level of oxidation, as this geophysical method cannot detect oxide mineralization. Although the main target of the drill holes will be the sulphide mineralization, requiring 400-500 metres long holes, it is possible that oxide mineralization will be intersected closer to surface. As the project operator, Magna plans five holes for this $500,000 program, which is being financed by its partner, NovaGold Resources. The program is designed to gain a preliminary understanding of the geological setting and the controls on mineralization but the companies recognize that it will not be sufficient to adequately test an anomaly of this magnitude. If the anomaly at Koala does indeed reflect an extensive mineralizing system, then its apparent size could rival the world class deposits at the nearby Santa Eulalia and Naica mines where total historical production plus current reserves exceeds 85 million tonnes of 10-15 per cent combined Pb-Zn-Cu and 150-350 g/t Ag. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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