Blue Hill Creek drilling results; Kilgore drilling under way
Latitude Minerals Corp LTU
Shares issued 2,901,842 Oct 8 close $0.46
Thu 8 Oct 98 News Release
Mr. John Carden reports
The following news release is dated Sept. 2, 1998.
Assay results have been received from the company's nine hole, 4,528 foot
drilling program on its 100 per cent owned Blue Hill Creek project near the
southern Idaho border. The hot spring gold system was recently acquired by
Latitude to test step-out potential on a 170,000 ounce open-pittable,
disseminated, gold resource comprised of intercepts open to depth and in
every direction laterally as defined by 17 previously drilled RC holes. The
current drilling program was designed to test for the presence of
north-trending feeders and explore for mineralization in the carbonate
basement rocks underlying the Tertiary hot spring system. <P> All nine
holes from the current drilling program intercepted significant thicknesses
of ore grade to subore grade gold mineralization ranging from 45 to 285
feet thick. The most significant intercepts obtained from the drilling
program are listed below. These holes confirm the 170,000 ounce resource
indicated by Meridian Mineral's 1986-1987 drilling programs and have
increased the deposit size. To date, 22 of 26 holes drilled on the property
have intersected significant mineralization, with 10 holes bottoming in
rock containing in excess of 0.01 opt Au. Dimensions of the main target
(Ampa zone) stand at 1,100 feet x 800 feet x 250 feet. The deposit remains
open in all directions, laterally and at depth.
Of major importance is the discovery of gold mineralization in underlying
Paleozoic carbonate rocks that have been altered to a gold bearing
jasperoid breccia with quartz veins. Hole LBR-29 intersected highly broken
jasperoid on the edge of a feeder system cutting the underlying Paleozoic
section, peripheral to the north trending structural core of the Ampa zone.
This significant mineralization indicates both genetic and structural ties
to the overlying Tertiary hosted gold system and implies the presence of a
new target in the yet unexplored sediment hosted sequence underlying the
property at depth. Oxidation extends throughout the entire length of most
holes and into the carbonate basement suggesting potential for good deposit
metallurgy. Bottle roll tests are in progress, with results expected by
Sept. 30.
Drilling results also reveal the presence of buried sinters and as much as
250 foot thick sections of variably mineralized Tertiary volcaniclastic and
epiclastic rock containing strong argillic to quartz-sericite alteration
below unaltered postmineral latite flow and ash beds. With much of the
surrounding ground covered by this postmineral rock, management believes
that the exploration potential is excellent to expand the area of known
mineralization. A deposit model partly based on the Grassy Mountain gold
deposit in southeast Oregon is being developed where 200-300 foot thick
sections of low grade mineralization and hot spring sinter exist
above/around a higher grade feeder, mostly capped by postmineral volcanics.
At Blue Hill Creek, it is believed that feeders extend into and have
mineralized the carbonate basement rock. A second round of drilling is
being planned to test the suspected feeders that cut basement rocks for
higher grade, and to explore the Paleozoic section for the presence of a
sediment hosted system.
Additionally, the company has agreed to a private placement of up to 1.5
million units at 15 cents. Each unit consists of one share and one two year
warrant to purchase an additional share at 15 cents in the first year and
17.25 cents in the second year. Proceeds will be used in part to finance
drilling at the Kilgore gold deposit as well as for working capital. A
finder's fee is payable on a portion of the placement.
The company has also agreed to grant 98,000 incentive stock options to
officers and employees, exercisable at 25 cents for two years.
Additionally, the company has agreed to reprice 76,000 previously granted
stock options to 25 cents per share.
HOLE DEPTH INTERVAL THICKNESS AU
No. (ft) (ft) (ft) oz/t
98 LBR-24 600 140 - 190 50 0.021
205 - 225 20 0.011
425 - 545 120 0.017
98 LBR-25 580 25 - 270 245 0.014
Including 220 - 270 50 0.018
98 LBR-26 460 70 - 355 295 0.017
Including 140 - 275 135 0.022
Including 150 - 170 20 0.029
98 LBR-27* 580 330 - 580 250 0.011
Including 435 - 455 20 0.017
Including 485 - 580 95 0.017
Including 515 - 550 35 0.022
98 LBR-28 590 135 - 220 85 0.016
98 LBR-29* 635 280 - 290 10 0.025
310 - 320 10 0.019
430 - 455 25 0.011
570 - 635 65 0.014
98 LBR-30* 249 205 - 249 45 0.016
98 LBR-31 390 195 - 315 120 0.016
Including 260 - 270 10 0.036
335 - 360 25 0.012
98 LBC-1* 444 279 - 290 11 0.012
365 - 444 79 0.018
Total
Footage 4,528
* Holes bottomed in less than or equal to 0.010 opt Au.
Mr. John Carden also reports
The following news release is dated Oct. 8, 1998.
Drilling is under way at the Kilgore gold deposit in eastern Idaho. The
deposit is a 417,000 ounce mineable reserve discovered and developed by
Placer Dome, Pegasus and Echo Bay Mines. The deposit is an epithermal hot
spring disseminated gold deposit.
In late 1996 Echo Bay drilled what appears to be a new discovery hole
encountering 100 metres of gold mineralization on the north side of the
Bear Cat fault approximately 4,000 feet west of the main body of the
deposit. The drill program of up to 6,000 ft is designed to test a portion
of a two square mile sinter blanket which overlays the host rock. Holes
will be drilled at 200 ft intervals to depths of approximately 600 ft
stepping out from the 1996 discovery hole.
The company has closed the private placement referred to in the Sept. 2,
1998 news release. Proceeds from the placement are to be used to finance
the drilling program at Kilgore as well as for working capital.
Additionally, the company has agreed to grant incentive stock options to
acquire 150,000 shares to directors, offices and employees, at 46 cents per
share for two years.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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