From: newsout@canada-stockwatch.com
Date: Thu, 09 Jul 1998 02:32:34 -0700
Subject: Stockwatch: Consolidated Magna Ventures Ltd - News Release
To: ajanko@erinet.com
Koala project sampling results
Consolidated Magna Ventures Ltd CMV
Shares issued 21,484,464 Jul 8 close $0.17
Thu 9 Jul 98 News Release
Mr. Bradley Aelicks reports
Eight holes, for a total of 1654.9m, have now been completed at the Koala
project in Chihuahua, Mexico. The phase 1 diamond drilling program has been
targeting replacement-style lead-zinc-silver-copper mineralization similar
to the nearby Naica and Santa Eulalia deposits.
The drill targets were generated by a detailed geophysical survey including
real section deep penetrating induced polarization which produced an
extensive chargeability anomaly stretching over 3.5km. Coincident with the
geophysical anomaly was a 500m wide zone of alteration that is continuous
over 3km of strike length and associated with a major regional fault.
Numerous showings consisting of shallow pits and outcrops of
semi-continuous dykes and shears occur within the alteration zone.
Surface sampling of these showings confirmed the presence of good grade
base metal mineralization in selected grab samples. Assay results include
the following:
Selected Grab Samples from
Surface Showings:
Cu Pb Zn Ag
1.51% 50 ppm 220 ppm 4.8 ppm
2.67% 3520 ppm 8220 ppm 9.8 ppm
3.92% 1260 ppm 2610 ppm 46.3 ppm
115 ppm 1.51% 5460 ppm 4.4 ppm
178 ppm 8530 ppm 5.42% 9.6 ppm
0.08% 2.63% 16.7% 32 ppm
0.05% 6.36% 4.7% 96 ppm
The first two holes at Koala were drilled to vertical depths of almost 400m
in order to test the IP chargeability anomalies below the level of
oxidation (200m). The sulphides intersected in these holes consisted
predominantly of pyrite stringers with uneconomic values of base metals.
Six shallower holes were then drilled in order to gain a better
understanding of the mineralizing system as it relates to the pits and
surface showings. All of these holes returned sections of highly anomalous
values of base metals but no economically significant grades, indicating an
erratic nature to the mineralization this high within the system.
Based on the results to date, it appears that base metal mineralization at
Koala is primarily associated with intermediate sills, iron and silica rich
lenses or pods, and barite plus/minus calcite veins. The sills appear to be
somewhat continuous along strike (hundreds of metres) and are moderately
dipping to the north, towards the main fault. They are highly weathered and
are recessive in the field, making them difficult to identify. The lenses
and veins tend to occur within zones which are tens of metres wide and
hundreds of metres long, paralleling the main fault but, individually, are
discontinuous and appear to be related to open space fillings within the
folded limestones. Several of the surface showings contain intrusive rocks
and lenses plus/minus vein material, suggesting that the best
mineralization may be related to the intersection of these features.
The sill-related type of mineralization appears to be similar to the manto
style observed at the Santa Eulalia West Camp deposits, whereas the
siliceous lenses observed at Koala look like the chimney-style
mineralization at Naica. At Koala, however, mineralization observed to date
is erratic in nature, suggesting that Magna is higher in the system than
both Santa Eulalia and Naica. Magna geologists have also mapped in several
crosscutting faults that are believed to be important in localizing
mineralization.
Alteration, brecciation and veining are extensive at Koala and management
still believes that a significant hydrothermal system exists at depth here.
The company is continuing with surface mapping and sampling, with
particular emphasis on the sills, in order to know how to correlate these
zones with the deeper geophysical data. Further recommendations for
exploration will be made following a thorough compilation of the data.
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