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(PR NEWSWIRE) DJ: Medinah Energy Inc. Announces New Phase of Mining Develo
DJ: Medinah Energy Inc. Announces New Phase of Mining Development Near
Santiago, Chile
LAKE ELSINORE, Calif.--(BUSINESS WIRE)--July 8, 1998--The intensive field
work of recent months in Chile was focused upon (1) delineating and
developing potentially commercial portions of the extensive gold placers
along the Puangue River and (2) re-opening of the idle underground gold
mines with the intention of shipping crude ore to the ENAMI smelter facility
owned and operated by the Chilean Government.
The presence of commercial gold values at the Puangue River are reported to
be confirmed. Along this river, Company concessions extend for more than ten
kilometers. Paul Jones, V.P, Mining and Exploration reports, "I am expecting
significant gold production just as soon as we can mobilize a larger suction
dredge with appropriate equipment for treating concentrates. A new excavator
that has just been delivered will greatly enhance our productive capacity."
A geochemical exploration program between the Catan Mine and the Santa Lucia
Mine yielded two virgin gold veins. The Santa Maria vein assayed on surface,
6.00 grams of gold per ton and 28 grams of silver per ton over a width of
0.4 meters at the discovery cut. The Santa Monica vein yielded 0.55 grams of
gold per ton and 2.6 grams of silver per ton over 1.6 meters at the
discovery cut and 3.54 grams of gold per ton and 7.3 grams of silver per ton
across 1.5 meters, 100 meters along strike. These veins were previously
unknown.
Work is continuing to provide access to and rehabilitation of the San Genaro
gold mine to determine whether significant amounts of high grade gold ore
can be mined by open pit methods. Information, provided to the Company by
the property owner, indicates high grade gold values in both the hard rock
and placers. In December, 1990 the owner shipped 16.9 metric tons that
assayed 23.10 grams of gold per ton and 45 grams of silver per ton. A second
shipment of 12.8 metric tons a year later, assayed 16.2 grams of gold per
ton and 30 grams of silver per ton.
Original intentions for early production from the Catan property have been
modified to incorporate a new approach to the vein systems. These systems
may be amenable to open pit mining methods which are more economical than
conventional tunnel and custom milling operations.
Mr. Jones has recommended that the Company will be better served by
installing its own mill. Medinah Energy Inc. has available a vat leach
system, tried, proven, and operating in Pocone County, Brazil.
Management concludes that the current data delivered by Mr. Jones, although
positive, is as yet insufficient to determine the ultimate commercial
capability of the Puangue placer grounds. Mr. Jones and his team, in the
time allotted, have only been able to review a small portion of the Santiago
placers and hard rock properties. A team of Independent North American
geologists have been retained to further evaluate the Puangue placers, the
open pit potential of the San Genaro, Santa Maria, Santa Monica and other
gold veins, and expand upon the work done by Mr. Jones.
For further information please contact investor relations: 1-888-572-0170
On behalf of the Board of Directors Per:
Larry Regis, President
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