a NR detailing some of the work that is going on - note that they talk about the visible gold in the trenching - hopefully a good sign of things to come.
Ecuador plans
Balaclava Mines Inc BIL
Shares issued 6,488,892 Jun 1 close $0.91
Tue 2 Jun 98 News Release
Mr. Simon Ridgway reports
The company has made exploration and development plans for the El Corazon
property, which is in the Western Cordillera of Northern Ecuador. This
property is 60 kilometres northwest from Quito, the capital of Ecuador, in
the province of Imbabura. It is road accessible by four-wheel drive
vehicle.
The company has acquired an option on the property from the underlying
owner, Rodrigo Mena. Details of the option agreement were previously
reported in Stockwatch Feb. 27, 1998.
Stream and rock geochemical work conducted on the property by previous
owners outlined an area of approximately 45 square kilometres with high
gold values. The area, anomalous in gold, is coincident with a circular
feature visible in both air photos and landsat imagery, indicating a
possible collapsed caldera structure.
Rio Tinto conducted a program of geophysics including CSAMT and magnetics,
and minimal trenching over 74 drill holes during 1995/96. This work focused
on two zones, the Rio Chico Verde and the Tres X, which cover only six of
the 45 square kilometres geochemically anomalous in gold, and are in the
southern, more accessible region of the prospective area. Significant drill
results obtained by RTZ were detailed in the February news release.
Both the Rio Chico Verde and the Tres X zones are at the southern end of
two north trending, coalescing ridges. These ridges trend toward the centre
of the previously mentioned circular feature. Trenches conducted by RTZ at
the completion of the drill program to the north of the Tres X zone, along
the ridge, intersected some exceptionally high grade veins (Stockwatch
April 2, 1998). Although the trenches conducted by RTZ do not crosscut the
vein swarm but more parallel the ridge, the high grade results are
reproducible and the size of these structures is impressive.
In recent weeks, the company has conducted further trenches along the Tres
X ridge to the north and south of the high grade zones in the RTZ trenches.
This work has uncovered more veins with similar orientation. No results
from samples taken from these veins are available to date but visible gold
has been noted in some of these structures.
At present a compilation of all work conducted to date on the property is
under way. Two senior geologists have been employed to design and implement
a program to explore the whole region anomalous in gold. The program will
include trenching, pitting, drilling and tunneling the ridges, with the
goal of evaluating and prioritizing all target areas and testing both the
bulk mineable/open pittable and the select mining high grade vein potential
of the property.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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