Fairmile Extends Gold Mineralization at Buffalo Valley
FAIRMILE GOLD CORPORATION
October 8, 1998
ASE: FLA
Fairmile Extends Gold Mineralization at Buffalo Valley
Vancouver, BC - Fairmile Gold Corporation (Fairmile, ASE:FLA) has
completed a drill program consisting of 8 holes (5,440 feet) on its
wholly-owned Buffalo Valley gold property, located along the prolific
Battle Mountain/Eureka Gold Trend in north-central Nevada. Seven of
the holes were drilled at Target L; a gravel-covered area located
immediately west of the known 600,000-ounce A/B/O Complex resource.
The drilling tested anomalies identified by geochemical and
geophysical work. The results show strong ability to expand the A/B/O
Resource to the west and identified feeder structures that could
expand the gold resource further. Several areas require additional
drilling.
Holes F98-2 through -7 were drilled in the eastern portion of Target
L, where geophysical data indicated that a series of
northwest-trending faults lay under gravel cover. These interpreted
faults were anticipated to parallel the Buffalo Valley Fault, a
high-grade feeder structure for the A/B/O Complex. Drill results
identified two, and possibly three, new mineralized faults which could
have acted as feeders for Target L.
Highlights of the recent drilling program are shown below.
Drill Hole# Total Depth ft Orientation Intervals in feet averaging +0.01 opt Au
F98-4 705' -80, S60W 425'-510' (85') 0.021 opt Au (incl. 20' 0.067 opt Au)
600'-630' (30') 0.010 opt Au
F98-6 765' -60, N60E 395'-435' (40') 0.041 opt Au
485'-570' (85') 0.034 opt Au (incl. 10' 0.140 opt Au)
655'-700' (45') 0.037 opt Au
F98-7 705' -75, N60E 505'-510' (5') 0.062 opt Au
540'-555' (15') 0.017 opt Au
F98-8 705' -70, N60E 390'-555' (165') 0.018 opt Au
Holes F98-4, -6 and -7 were drilled into one of these faults. These
holes intersected significant gold mineralization (see table) between
Target L and the Target B portion of the A/B/O Complex, demonstrating
the continuous nature of the gold mineralization.
While Holes F98-2, -3, and -5 did not encounter economic
concentrations of gold, they did identify strongly altered sediments
and Tertiary dikes along other geophysical lineaments. Hole
geochemistry indicates that the holes drilled were interior to
projected gold zonation. Further drilling is required to define the
gold zone.
Hole F98-8 lies in the western portion of Target L. This hole
intersected a favorable gold mineralized host rock that has now been
encountered in four widely spaced holes in this area. Each of the
four holes encountered long intervals of continuous gold
mineralization. Significantly higher-grade mineralization may occur
where feeder structures cut this favorable host. Several locations
within Target L have a similar geologic setting to the setting that
hosts the 600,000-ounce gold resource at the A/B/O Complex.
One condemnation hole (F98-1) was drilled on leased land southeast of
Target L, where it did not encounter significant gold mineralization.
Fairmile's recent drilling program confirms the existence of several
mineralized structures that are parallel to the Buffalo Valley Fault
zone and provides the potential to expand the Buffalo Valley gold
resource. Fairmile will seek a joint-venture partner at Buffalo
Valley in order to follow-up on this year's successful drilling
program.
A technical summary of the 1998 program is being prepared, and it will
be posted on the Company's Web site in about two weeks. For further
information visit Fairmile's Web Site at fairmile.com or
contact Investor Relations at 1-888-599-6777.
"Thomas R. Kelly"
Thomas R. Kelly, President
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
Telephone: 1-888-599-6777 Toll Free
Fax: (604) 608-2949
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