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Friday June 5, 2:54 pm Eastern Time
Company Press Release
Widely Extensive Mineralization At Sinchao
VANCOUVER--(BUSINESS WIRE)--June 5, 1998--Results from the Company's drilling program at Sinchao
have confirmed the presence of a very large mineralized system hosted in dacitic volcanics and porphyry containing
copper, gold and silver mineralization. The mineralization is open in all directions.
HIGHLIGHTS OF THE DRILLING RESULTS HOLE SRC-21 FROM 0 - 200 M (hole bottom) averaged 0.72%
Copper, 15.3 g/t Silver and 0.45 g/t Gold over the entire hole with the last 30 M averaging 0.92% Copper, 0.31 g/t
Gold & 18.4 g/t Silver.
HOLE SRC-17 FROM 20 - 216 M (hole bottom) averaged 0.43% Copper, 0.31 g/t Gold, 3.5 g/t Silver with the last
10 m averaging 0.68% Copper, 0.25 g/t Gold and 9.1 g/t Silver.
HOLE SRC-19 FROM 152-202 M (hole bottom) averaged 0.44 % Copper, 0.29 g/t Gold, 4.11 g/t Silver with the last
10 m averaging 1.27% Copper, 0.56 g/t Gold, 8.8 g/t Silver.
The results of the RC Drilling program are extremely encouraging. A recent re-interpretation of the mineralized
structures by the Company's Consulting Geologists has indicated that the preferred drill orientation is azimuth of 180
degrees to 235 degrees dipping at 60 to 75 degrees. Only hole SRC-21 was drilled with this orientation with higher
values. The twin diamond drill hole drilled through dacitic volcanic intersected porphyry rock at 280 m vertical
depth. This equated to the same elevation that the porphyry rock was intersected in previous drilling 700 m to the
west. The interpretation indicates that dacitic volcanics overly a very large mineralized porphyry with lateral extent
in excess of 1000 m and open to the north, south and at depth. Results of the drilling are set out in the table below:
Drill Plan attached.
Hole Az Dip From To Interval Interval Cu % Au Ag Zn %
(deg)(deg) (m) (m) (m) (ft) (g/t) (g/t)
-------------------------------------------------------------------------
SRC-15 135 -60 0 200 200 656.17 0.33 0.23 3.3 -
SRC-16 135 -60 0 91 91 298.56 0.23 0.18 2.7 -
SRC-17 135 -60 0 216 216 708.66 0.40 0.14 3.4 -
including 20 216 196 643.04 0.43 0.15 3.5 -
including 206 216 10 32.81 0.68 0.25 9.0 -
SRC-19 135 -60 152 202 50 164.04 0.44 0.29 4.1 -
including 192 202 10 32.81 1.27 0.56 8.8 -
SRC-20 135 -60 0 143 143 469.16 0.26 0.27 11.0 0.29
SRC-21 225 -60 0 202 202 662.73 0.72 0.45 15.3 0.33
including 172 202 30 98.43 0.92 0.31 18.5 0.26
--------------------------------------------------------------------------
The Company's concern regarding RC drilling not providing representative samples has been moderated by the
results from a twin diamond drill hole. This provides confidence that the RC drilling sample assay values are
representative. The results of the twin diamond drill hole currently at a depth of 571 m will be reported when the hole
is completed.
Drilling is continuing in the porphyry in four diamond drill holes and results will be reported when received. SDD-2
current depth 571 m is continuing in mineralization, passed through the epithermal mineralization in dacitic
volcanic and intersected porphyry of 400 m (vertical depth 280 m). Drilling will continue to the end of
mineralization or mechanical depth capacity of drill. Recoveries are in excess of 80%. SDD-3 current depth 327 m;
SDD-5 current depth 229 m; SDD-6 current depth 214 m. SDD 1 & 4 were abandoned at shallow depths due to
difficult ground conditions.
HIGH GRADE SILVER AT CONSULADO
Bonanza silver values of up to 25 ounces silver per ton over 2 m have been received from the Company's Consulado
Drill Program 5 km south of the Sinchao property. The drill holes contained widespread zinc mineralization. The
Company's plan is to define high grade ore from San Nicholas and Consulado properties as a potential initial feed to
a larger operation at Sinchao. The drilling intersected widespread zinc mineralization with associated zones of
economic gold and silver values. The drill results are summarized below.
Hole Az Dip From To Interval Interval Au Ag Zn %
(deg) (deg) (m) (m) (m) (ft) (g/t) (g/t)
--------------------------------------------------------------------
CRC-3 360 -60 6 200 194 636.48 0.21 43.4 1.42
including 8 20 12 39.37 0.08 - 2.10
including 20 50 30 98.43 0.67 194.1 0.31
including 50 74 24 78.74 0.55 29.5 2.88
including 80 138 58 190.29 0.03 1.5 2.40
CRC-4 360 -60 0 134 134 439.63 0.12 7.1 0.86
including 42 100 58 190.29 0.27 14.5 1.82
including 42 134 92 301.84 0.15 9.7 1.18
--------------------------------------------------------------------
See attached Drill Plan
DRILL SAMPLING - INDEPENDENT VERIFICATION The Board has received the initial report of A.C.A. Howe
Ltd. through their Chilean subsidiary Howe Chile Ltda.
CPM GROUP
El Misti has retained the services of New York based CPM Group, led by Mr. Jeffrey Christian for investment banking
services. CPM is a consulting and research group working with clients worldwide. CPM has recently expanded its
services to merchant banking, arranging financing and mergers for its corporate clients. Looking into the 21st
century - the broadening of services to the international mining community is a logical step for CPM. The
professional approach and broad client base has culminated in El Misti forming an association with CPM. The term
of the initial agreement is one year.
''El Misti Gold is Focused on Growth in Shareholder Value'' The Vancouver Stock Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of this release.
Contact:
El Misti Gold Ltd.
Robin Slaughter/John F. Huguet, 604/681-6186
888/EL MISTI (356-4784)
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