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Gold/Mining/Energy : Major General Resources Limited

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To: Bobby Yellin who wrote (11)12/2/1996 12:02:00 PM
From: Robert Saito   of 123
 
Major General Resources Ltd MGJ VSE December 2, 1996

Orion Gold Zone Extended Visible Gold Encountered

The first diamond drill hole underway to test for depth extension of the Orion Gold Zone encountered over 50 grains of visible gold in the Discovery Vein. The drill hole intercept is at a vertical depth 260 metres below surface and constitutes an 80 metre down plunge step out from a previous ore grade drill hole. Preliminary rush assay results have returned a grade of 39.46 g/t Au over 0.5 metre (1.15 oz/T Au/1.8 feet). A crushed core split sample is being sent to a Vancouver assayer for a metallic check assay. Until recently, it had been considered that the Orion Gold Zone pinched out and further potential was limited. The Company's project geologist, when plotting detailed sections, noted a flexure in the hosting rock sequence and structure which may have caused the apparent gold zone pinched at about 200 metres depth. This drill hole now confirms that the Orion Zone carries gold below the constricting flexure. At this time, there are no constraints on extending the zone to depth. When this hole was completed drilling through the entire Orion Deformation Zone, expected within one day, another stepout hole a further 80 metres down plunge with be drilled.

TEL: (604) 685-5254 Don Willoughby, IR FAX: (604) 685-2814
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