Extension of Nkroful agreementÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
Shiega Resources Corpÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ SHG
Shares issued 19,510,619ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Jul 6 close $0.39
Mon 6 Jul 98ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ News Release
Also SEMAFO (SMF)
Also Samax Gold Inc (SMX)
Mr. Donald Nicholson reports Further to news in Stockwatch June 8, 1998, Shiega Resources and Samax Gold haveÿ signed an amendment to the existing heads of agreement. The agreement allows Samax to earn 65 per cent of the Nkroful licence, which is ownedÿ 85 perÿ centÿ byÿ Shiega,ÿ byÿ deliveringÿ aÿ bankableÿ feasibilityÿ study. In
addition, the amended agreement anticipates the combining of other projects inÿ theÿ vicinityÿ of the licence where the proximity of the deposits would indicate that a commonÿ treatmentÿ plantÿ andÿ miningÿ scheduleÿ shouldÿ be developed. The first result of the area of mutual interest conditionÿ isÿ thatÿ Shiega willÿ participate with Samax in a new joint venture announced July 6, 1998. Samax has reached an agreement in principle to form aÿ jointÿ ventureÿ with
SEMAFO,ÿ subjectÿ toÿ aÿ threeÿ monthÿ period for due diligence, to develop SEMAFO's 69.6 sq km Ebi/Teleku-Bokazo property in theÿ southwesternÿ region of Ghana contiguous to the Nkroful licence. In return for the delivery of a bankable feasibility study within the next two years, Samax will earn aÿ 75 perÿ centÿ interestÿ inÿ the Ebi/Teleku-Bokazo prospecting licence. Further development of the mining property will thereafter be under theÿ management of Samax with a 25 per cent participation of SEMAFO. Shiega will also have a 10 per cent carried interest out of the 75 per cent interestÿ ofÿ Samaxÿ inÿ the Ebi/Teleku-Bokazo prospecting licence. Further
development of the mining property will thereafter be under theÿ management of Samax with a 25 per cent participation of SEMAFO.
Shiega will also have a 10 per cent carried interest out of the 75 per cent interestÿ ofÿ Samax in the Ebi/Teleku-Bokazo licence. As a consequence, the final equity position in the licence will be Samax 65 per cent,ÿ Semafoÿ 25 per cent and Shiega 10 per cent.
A revised resource estimate at theÿ Anwiaÿ prospectÿ onÿ theÿ Teleku-Bokazo licence,ÿ whichÿ hasÿ previouslyÿ beenÿ reportedÿ by SEMAFO, was based on a complete re-evaluation of the geological controlsÿ toÿ goldÿ mineralization andÿ wasÿ conductedÿ byÿ an independent geological consulting firm. Results from the study confirm a drill-indicated resource of 251,000 ounces of gold held in:
Oxide zoneÿÿÿÿ 1.7 million tonnes at a
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ grade of 2.6 g/t Au
Sulphide zoneÿ 1.1 million tonnes at a
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ grade of 3.1 g/t Au
The resource was calculated to aÿ verticalÿ depthÿ ofÿ 70mÿ althoughÿ drill intersections to depths of up to 250m indicate the potential for increasing the size of the resource. Occuring within this gold resource are multiple high-grade gold zones which range from 7.2 g/t Au over 5m to 96.8 g/t Au over 4m. These zones appear to be similar to, and probably lie alongÿ theÿ sameÿ structureÿ as,ÿ theÿ gold
mineralizationÿ discoveredÿ byÿ Samaxÿ onÿ the immediately adjacent Nkroful licence. The current deep drilling program on theÿ Bokroboÿ prospectÿ about 2km south of SEMAFO's Anwia prospect, is designed to test the continuity of high-grade quartz veinsÿ whereÿ theÿ previouslyÿ reportedÿ firstÿ roundÿ of drillingÿ gaveÿ an average grade of 15.6 g/t Au over an average core length of 3.2m.
(c) Copyright 1998 Canjex Publishing Ltd.
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