News Release: Compilation report on Hungry Hill project
Celtic Minerals Ltd CME
Shares issued 14645135 1998-05-26 close $0.17
Wednesday May 27 1998
Also Jilbey Exploration Ltd (JLB)
Mr. David Graham reports
Celtic Minerals and Jilbey Exploration have received a compilation report on work to date at their Hungry Hill base metal joint venture project in Central Newfoundland.
Dr. J.G. Thurlow of VMS Consultants has provided the results of a compilation that included re-logging all 22 drill holes, compiling the data into a G.I.S. computer database, interpreting the geology, and making recommendations for future work. A summary of Dr. Thurlow's conclusions are as follows:
1. The style, size, and strength of mineralization and alteration are commensurate with that expected on the immediate periphery of an orebody sized volcanogenic massive sulphide (VMS) system.
2. Remarkable similarities to the former producing Buchans Mines and other Kuroko type VMS systems.
3. Numerous high grade base metal sulphide clasts; encountered in hole No. 22 (press release 98-05) indicate the source deposit has economically attractive grade. Samples of two of the clasts assayed as follows:
Size of Cu Pb Zn Au Ag
Clasts(s)(cm) % % % g/t g/t
Sample HH-22-A (Depth 219.20)
3.0x3.0x2.0 0.92 1.17 16.40 5.28 122.07
Sample HH-22-B (Depth 220.62)
2.5x4.0x2.0 1.56 3.34 15.40 2.06 167.34
4. The project is in a low strain structural environment and complications by late faulting are minimal.
5. The project warrants a systematic well financed exploration program proceeding both along strike and down-dip.
The high grade clasts occur within a package of altered volcanic rocks described as polylithic breccia conglomerate (debris flow rocks) and rhyolite breccia. The debris flow rocks were encountered in drill hole No. 22 between a drill depth of 193.74 and 256.60 metres. Within this unit, numerous 3 cm to 20 cm diameter massive sulphide clasts occur from 202.71 to 220.67 metres.
Celtic geologists, since 1995 have been performing detailed studies including geological, geochemical, geophysical surveys, and drilling over a package of volcanic rocks that exhibit strong similarities to the Buchans area volcanics. Buchans was a former high-grade base metal producer 16.5 kilometres northwest of the Hungry Hill project. The Buchans mine produced a total of 16.2 million tonnes of ore from two in situ and three transported (debris flow) ore bodies with an average mill head grade of 1.33 per cent copper, 7.56 per cent lead, 14.51 per cent zinc, 1.37 g/t gold and 126.00 g/t silver.
Management of Celtic and Jilbey are encouraged by the results of the compilation. The next phase of exploration is anticipated to include elements of geochemical sampling, geophysics, and a substantial drill program.
* Samples were shipped to Loring Laboratories of Calgary, Alberta for analysis. Gold results are reported from values obtained using the fire assay technique, while copper, lead, zinc, and silver results are reported from values obtained using the atomic absorption analytical technique. All cores were drilled with NQ size drill rods.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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