To All here's Intergolds response: (I got the following off of there web site)
July 27, 1998
ÿAttention: Vivian Danielson, Editor Northern Miner 1450 Don Mills Don Mills, Ontario M3B 2X7
RE: <Picture>Article, page 5, Northern Miner Issue July 20-26, 1998, "Intergold Claims Carlin-Sized Deposit".
Dear Ms. Danielson:
In my capacity as president of Intergold, the following is my response to the above referenced article.
I would request that the Northern Miner print this letter in it's entirety to correct various errors contained in your article, to address certain issues that need clarification and to issue an invitation to qualified interested parties, the opportunity of performing verification test work under a mutually acceptable framework at Intergold's expense.
Geology of the Blackhawk Property, Lincoln County, Idaho.
The property is located within the Magic Reservoir eruptive center from which voluminous amounts of olivine rhyolite flows were extruded during an interval 6-5 million years before present. These lavas, know as the Moonstone rhyolites, are believed to have been generated by mixing of anatectic rhyolitic magma with mantle derived material related to a mantle hotspot (the Yellowstone hotspot).
The Moonstone Rhyolite is characterized by a disequilibruim phenocryst assemblage of olivine, quartz, sanidine, orthopyroxene and clinopyroxene. The lava was erupted at a temperature estimated to have approximated 1000 degrees C (Honjo and Leeman, 1987). Phenocrysts generally account for between 20-30% of the rock, the crystals being set in variously devitrified and glassy ultra-fine grained matrices. Silica content approximates 65%.
In the discovery area at Blackhawk, the olivine ryholite is a complex of flow material into which numerous small ryholite domes are emplaced. The lava flows' in this area lack recognizable "tops" and "bottoms", whereas to the south and north, individual rhyolite flows can be discerned.
The chaotic nature of the olivine ryholite in the discovery area would imply that this was a source of vent area for the surrounding lava field.
July 27, 1998, letter to Vivian Danielson, Editor Northern MinerPage 1 of 4 ------------------------------------------------------------------------
Presence of Gold.
Gold in anomalously high concentrations was first detected in rocks collected from the discovery area in 1992 by Dean Eskridge, a Twin Falls-based assayer, using a fire assay method known as "multiple slag fusion".
Since 1992, representative rock samples have been submitted for scanning electron microscope (SEM) examination, which showed gold particles less than 1 micron in size disseminated throughout the rock (Bowles, 1996-97).
The gold does not report to the "standard fire assay" for reasons not fully understood, but can be extracted by various wet chemical methods and the gold recovered by precipitation with lead, among other procedures.
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Independent Verification of Gold Values.
Intergold engaged a well qualified international mining/metallurgical consulting engineering firm commencing in September, 1997 to drill two core holes twinning prior reverse circulation holes at Blackhawk and hold the core in its custody. Analytical work was performed under the supervision of the consultant engineer by reputable chemists under strict chain of custody protocol, which ultimately produced recovered gold in the range 0.025-0.035 ounces per ton from these drill cores (see May 26, 1998 press release).
Development work undertaken earlier by Intergold, obtained larger gold recoveries by the same method used by the consulting engineer, but employing more aggressive (less conservative) test parameters.
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Gold Grade Indicated by Test Work to Date.
Intergold has data to support a gold grade in the range 0.05-0.20 ounces per ton. The gold appears to be disseminated as ultra-fine grained particles and to be syngenetic, with the possibility of enrichment of the syngenetic gold content by introduction of epigenetic gold via the agency of rhyolite dome emplacement.
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Rock Alteration.
The most obvious alteration observed in drill holes is hematite flooding, particularly in vesicular rocks within the mineralized zone. Otherwise, rock alteration is lacking with the exception of the introduction of carbonate in rocks peripheral to gold mineralization.
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Size of the Mineralized Zone.
Surface sampling reveals a zone of gold enrichment 2500 feet by 6000 feet in surface area; drilling indicates mineralization extends to depths of between 200-500 feet within the zone.
The gold discovery would thus be inferred to be large, but present drill/assay data can only be taken as an indication of the potential for size.
A coring program planned to commence on or about August 1, 1998 to drill 38 vertical HQ-holes each to 500 feet will provide the necessary drill/assay data on which to base a first estimation of the size/grade potential.
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July 27, 1998, letter to Vivian Danielson, Editor Northern MinerPage 2 of 4 ------------------------------------------------------------------------
An Apology for the Comparison to the Carlin Trend.
In a press release by Intergold dated June 19, 1998 it was stated that the area of the planned drilling contained a rock volume of 500 million tons and coupled that statement with reference to Nevada's Carlin Trend.
This press release was written and release by Intergold's shareholder communications people without first clearing the form and content with Intergold's technical staff.
As soon as I saw this unfortunate news release, I instructed that it be "pulled" and that there be no further reference/comparison to Carlin by the shareholder communications people.
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An Invitation to Qualified Parties to Verify the Blackhawk Gold Occurrence.
Qualified parties wishing to examine the Blackhawk Property are invited to take drill cores of twin holes drilled under their supervision, with the core being placed under chain of custody.
An assay procedure recently developed and tested by Intergold will be used to assay the core for gold and other metals at a third party chemical and assay laboratory mutually acceptable to Intergold and the party conducting the verification work. Intergold will pay all reasonable expenses incurred in performing the proposed verification work.
This invitation will be restricted to only one, not several, qualified entity. In the event of more than one interested qualified party - a generally acceptable selection process will be worked out.
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Intergold's Comment of Certain Matters of Error Contained in The Northern Miner Article of July 20 - 26, 1998.
Intergold has not claimed, as per your quote: "it hosts a potential resource of 21-70 million oz. of gold".
Nor has Intergold stated as per your article that: "The June 19 press release boosts the tonnage to 500 million tones".
The number of samples said to represent 710 feet of core was 43 not 23 as asserted by your article.
It would be confirmed that Mr. Ron Markham has nothing to do with the operations/direction of Intergold Corporation for as long as I have been President of the Corporation (appointed December, 1997).
Your statement that the initial results have not been verified by certified labs or independent consultants is in error as pointed out in the body of this letter.
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July 27, 1998, letter to Vivian Danielson, Editor Northern MinerPage 3 of 4 ------------------------------------------------------------------------
References:
N. Honjo and William P. Leeman, 1987: Origin of hybrid ferrolatite lavas from Magic Reservoir eruptive center, Snake River Plaine, Idaho. In Contributions to Mineralogy and Petrology.
Bowles, J.F.W. May 1996 and January 1997: Mineralogical and Electron Microprobe Study of Rock Samples from the Blackhawk Property, Idaho.
A report commissioned by Intergold.
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INTERGOLD CORPORATION
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Michael B. Mehrtens, President |