6mo results
Gitennes Exploration Inc GIT
Shares issued 26,212,831 Sep 1 close $0.40
Wed 2 Sept 98 Company Review
Mr. Jerry Blackwell reviews the company
During the past quarter Gitennes made significant progress in advancing La
Virgen project in Peru. On Zona Rio Suro the company completed 1,786 metres
(16 holes) of underground drilling from four stations. These holes detail
the gold mineralization within a 125 metre long by 150 metre deep segment
of the overall (600 metre) oxide gold zone. These holes provide valuable
geological information applicable to the remainder of the deposit and
outline a starter pit area with excellent grades and open pit dimensions.
Of the 16 holes drilled, 12 intersected a large high grade lens grading
from 3.9 to 9.8 g/t gold, while two others were lost prior to completion.
Two additional sub-zones of high grade had been found during earlier
surface drilling, one at the northern end of the zone, and one at the
south.
In order to simulate a heap leach pad with Zona Rio Suro ore material, a
series of column tests were run by an independent consulting firm. These
tests project gold recoveries of between 77 per cent and 88 per cent,
suggesting the project should expect overall recoveries to exceed 80 per
cent. This is encouraging since all samples were collected from underground
and are run of mine, with no sorting, crushing or milling required to help
liberate the gold. Heap leach gold mining operations with similar
metallurgical characteristics are the lowest cost producers in the world.
Gitennes is currently planning the next phase of exploration at La Virgen.
Additional reserve definition drilling will be required at Zona Rio Suro,
as well as environmental baseline studies. Elsewhere on the property, a
thorough review of the company's database has been completed over the past
10 weeks and new opportunities have been recognized. The company is
finalizing the results on these targets, and look forward to releasing
these when they are completed.
CONSOLIDATED STATEMENT OF LOSS
Six months ended June 30
1998 1997
Revenue $ 97,900 $ 63,236
Admin and
general expenses 807,804 490,969
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Loss $(709,904) $(427,733)
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Loss per share (3 cents) (2 cents)
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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