News Release
Lustdust drilling results
Alpha Gold Corp ALQ
Shares issued 7,547,710 Oct 5 close $0.40
Wed 7 Oct 98 News Release
Mr. Paul Mattinen reports
The company has received results following the most recent phase of
exploration on its 100 per cent owned Lustdust property in the Omineca
mining division, 264 kilometres northwest of Prince George, B.C.
The Lustdust property hosts multiple zones of gold, silver, zinc, and lead
mineralization in carbonate rocks and copper, and gold mineralization in a
large, open-ended skarn system. The 1998 program involved the drilling of
14 shallow holes for a total of 1,103 metres. The program was designed to
test extensions of mineralization in the No. 1 zone and No. 3 zone, and to
obtain structural and stratigraphic information ancillary to these zones.
No. 1 Zone
The No. 1 zone is a high grade vein structure recognized over a 450 metre
strike length. Underground development, surface trenching and limited
drilling (1953-1968) identified a resource of 56,261 tonnes grading 4.12
g/t Au, 802.6 g/t Ag, and 5 per cent combined lead and zinc. Outcropping
mineralization was sampled by Alpha and returned:
Au g/t Ag g/t Pb % Zn %
2.1m 2.6 497.8 2.74 3.51
2.1m 8.3 436.7 4.18 0.12
Dump 2.9 384.8 4.57 3.36
Drilling by Teck Exploration under the prior Teck/Alpha joint venture,
intersected the No. 1 zone in holes LD-97-13 (360m north of the No. 1 zone
adit portal) and LD-97-15 (450m north of the No. 1 zone adit portal) with
the following values.
Au Ag Pb Zn
Interval Metres g/t %
Hole LD-97-13
157.7-159.1 1.4 0.34 430 0.10 0.27
Hole LD-97-15
31.4- 36.0 4.6 1.20 167 1.16 2.37
The Alpha drilling program intersected the No. 1 zone in three holes.
Au Ag Pb Zn
Interval Metres g/t %
Hole LD-98-1
9.7- 9.9 0.2 2.53 152.3 5.72 3.60
Hole LD-98-13
48.6- 49.8 1.2 0.58 53.7 0.36 0.68
Hole LD-98-14
58.3- 61.2 2.9 2.72 145.2 1.37 2.54
80.7- 83.0 2.3 2.04 838.1 1.68 0.58
Hole LD-98-1 was drilled on the same section as LD-97-13 and intersected
the No. 1 zone 80 metres updip from the LD-97-13 intersection. Hole
LD-98-13 and LD-98-14 were collared from the same set-up 240 metres north
of the No. 1 zone adit portal.
The Teck and Alpha drilling programs have extended the No. 1 zone a further
200 metres north from the sampled outcrop area. The most northerly hole,
LD-97-15 indicates that the mineralized zone is widening in a northerly
direction (4.6 metre intercept). Also, the deeper high grade intercept in
hole LD-98-14 (838 g/t Ag over 2.3 metres), within an altered felsic dike,
is a new discovery and indicates the potential for multiple zones of No. 1
style mineralization on the property. North of hole LD-97-15 the No. 1 zone
can be projected a further 1,000 metres based upon a well-defined soil
geochemical trend (Pb-Zn-Au-Ag) in prior surveys by Noranda (1980) and Teck
(1996). Within the geochemical trend and 500 metres north of hole LD-97-15,
Teck drilling, at depth in hole LD-97-06, encountered 10.3 g/t Au and 28
g/t Ag over 1.3 metres. Structural and lithologic controls to the No. 1
zone are currently under review to optimize future target selection. The
extent and persistence of No. 1 zone mineralization indicates good
potential for developing a significant gold, silver, lead and zinc deposit.
Assuming historic grade and indicated dimensions, Alpha is confident that
the No. 1 zone has the capability of hosting a gold equivalent resource of
1,000,000 ounces.
No. 3 Zone
The No. 3 zone is an ovoid body with an upper, oxidized, zone of iron rich,
earthy, gossan after primary sulphides of pyrite, sphalerite and galena
with values in gold, silver and zinc and a lower, unoxidized, zone of
primary massive sulphides. The zone is approximately 850 metres northwest
of the No. 1 zone adit portal. Trenching by Teck (1996) and drilling by
Alpha (1991) and Teck (1997) in the pit area has defined a geologically
inferred resource of 630,000 tons with a good equivalent grade of 0.15
ounces per ton. Three large composite samples were taken during the current
program from separate areas of the pit and returned the following values:
Pit Au Ag Pb Zn
Samples g/t %
North/15m 3.40 19.8 0.11 0.39
Middle/6.5m 12.10 49.0 0.11 0.11
South/10m 1.22 75.9 0.15 0.58
Bottle roll cyanide solubility tests carried out on the above samples show
an average gold recovery of 78.5 per cent. These data indicate that gold
and silver in No. 3 zone oxide material is amenable to heap leach
processing.
No. 3 Zone North Extension
Teck's 1996 exploration program discovered a mineralized zone approximately
150 metres long lying immediately north of the No. 3 zone pit
mineralization. The zone consists of earthy, iron rich, gossan carrying
values in gold, silver, lead and zinc. Teck exposed the zone in six
trenches with an average width of 4.35 metres grading 3.26 g/t Au, 97 g/t
Ag, 0.47 per cent Pb, and 1.36 per cent Zn. One of two holes, 250 metres
northwest of the No. 3 zone pit, drilled by Teck (1997) into the zone
encountered 352 g/t Ag, 4.4 per cent Pb and 0.41 per cent Zn over 0.8
metres. Alpha drilled one hole, LD-98-12 below the zone confirming the
westerly dip to the controlling structure.
No. 3 Zone South Extension
Earthy, iron rich, gossan can be traced as a linear feature 250 metres
south of the No. 3 zone pit. Trenching by Teck (1996) identified values in
gold, silver, lead and zinc. Teck drill hole LD-97-12, 150 metres south of
the pit, intersected 13 per cent over 3.3 metres within this zone. Alpha
drill intersections on the No. 3 zone south extension are as follows:
Au Ag Pb Zn
Interval Metres g/t %
Hole LD-98-4
62.7- 64.8 2.1 0.28 10.40 0.12 9.80
Hole LD-98-6
15.0 - 16.7 1.7 8.53 42.99 1.42 4.03
Hole LD-98-8
56.4- 62.1 5.7 0.02 7.26 0.08 3.66
Hole LD-98-4 is on the same section as hole LD-97-12 and 70 metres east of
the collar. Hole LD-98-6 is 340 metres south-southeast of the No. 3 zone
pit. Hole LD-98-8 is 290 metres south-southeast of the No. 4 zone pit.
The No. 3 zone south extension remains open south of drill hole LD-98-6.
No. 2 Zone
The No. 2 zone is an earthy, iron rich, in part siliceous, gossan between
the No. 3 zone south extension and the No. 1 zone. Trenching carried out by
Teck (1996) opened up a mineralized structure grading an average 2.84 g/t
Au, 130.2 g/t Ag, 2.48 per cent Pb, and 2.49 per cent Zn over 3.8 metres.
Alpha holes LD-98-2 and LD-98-3, drilled to test the structure, were
collared on the footwall, or east side, and did not intersect the zone thus
confirming the westerly dip of the structure.
No. 4 Zone/No. 4B Zone
No work was carried out on the No. 4 zone or the No. 4B zone during the
current program. The No. 4B zone hosts a massive sulphide replacement
deposit with high grade zinc and associated gold values. The No. 4 zone is
a large garnetite skarn body carrying highly anomalous to ore grade values
in copper and gold associated with the Mt. Tom pluton. The skarn and
associated mineralization is open to the north and is largely untested.
Data from the No. 4 zone and No. 4B zone is currently being compiled and
will be reported on at a later date.
Alpha believes that the No. 3 zone pit area, containing an inferred
resource of 630,000 tons of oxide mineralization grading 4.4 g/t Au and
43.6 g/t Ag for a total, geologically inferred, resource of 94,500 ounces
gold equivalent, may represent a near-term development opportunity. In
addition, the No. 3 zone pit material could be supplemented with oxide
mineralization from the No. 2 zone and No. 3 zone north extension to
further enlarge the indicated resource. Production of gold and silver from
the No. 3 zone pit could provide substantial cash flow at present metal
prices, using low cost open pit mining and heap leach extraction
technology. Alpha is currently investigating the economic viability of
developing the No. 3 zone under this scenario. Results of this study will
be reported on at a later date.
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