Here is the News Release..... anybody have any comments on how the market will react tomorrow?
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: PERUVIAN GOLD LIMITED
VSE SYMBOL: PVO
DECEMBER 19, 1996
Peruvian Gold Ltd. - El Encanto Gold Project, Ecuador
Exploration Update
VANCOUVER, BRITISH COLUMBIA--Mr. David Henstridge, President,
Peruvian Gold Limited (VSE:PVO) reports that final assay results
from the Company's drill program (drill holes DD18 to DD29) at the
El Encanto Project did not give any significant gold results above
2 grams per tonne gold.
An onsite review of the 1996 exploration program by the company's
technical staff and an independent consulting geologist led to a
number of conclusions and recommendations for further work. In
summary these are:
1. The likely geological model is high grade, structurally
controlled, gold mineralization, associated with quartz veining
and pyrite and hosted within an intrusive porphyry.
2. The drill program, although testing the porphyry from various
angles, did not adequately test the structural gold setting and,
in places, may have missed the target.
3. The adits on both trenches 2 and 7 are showing that the surface
gold mineralization is real and that supergene enrichment has not
taken place.
4. It is concluded that adit development is the most effective way
to test the continuity of gold at El Encanto and that both the
area around Trench 7 and the mineralization located by the
drilling near Trench 4 must be tested by adits.
5. It was also concluded that regional prospecting must continue
within the drainage basins yielding highly anomalous gold
geochemical results. A six month budget was approved to
undertake this prospecting program and continue the adit
development.
Adit no. 2 is currently at 22 metres, heading west, and is located
directly behind the surface mineralization of Trench 7. The adit
will now be driven NE into the hillside to ascertain size and
continuity of the gold-bearing zone.
The heavy mineral stream sediment samples continue to discover
areas containing further highly anomalous gold. Regional
exploration crews are presently conducting a more detailed
exploration of the areas defined by this program. As part of this
program Peruvian Gold Limited has renewed its option agreement
with Minera Australiana for a further one year period.
Peruvian Gold Limited is a Canadian based, junior mining company
with significant land holdings in Peru, Ecuador and Canada. The
company trades on the Vancouver Stock Exchange under the symbol:
PVO.
On behalf of the Board:
David Henstridge, President
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