Pangea Goldfields announcement/update
(Full text of press release from Canada NewsWire)
1998 program completed on Pangea Goldfields' Fenn-Gib
property
High-Grade Gold Values Encountered in Proposed Open-Pit
Zone
TSE Symbol: PGD
TORONTO, Oct. 14 /CNW/ - The recently completed drill
program on Pangea Goldfields Inc. Fenn-Gib property has identified high-grade gold mineralization within a proposed open-pit zone. The $1 million program undertaken by Pangea and financed by joint-venture partner St Andrew Goldfields Ltd., completes St Andrew's expenditure commitment for the initial year of the agreement.
During 1998, a total of 49 holes were drilled, 39 of which - or 6,487 meters - were drilled to detail the proposed open pit area while 10 holes - or 5,808 meters - were drilled to confirm deeper mineralized zones. This new data will be integrated into a resource update and a comprehensive review of several development scenarios previously proposed, including the development of a large open-pit with 18.6 million tonnes grading 1.28 g/t and alternatively a combined open-pit/underground ramp access mine based on a resource of 1.95 million tonnes grading 5.13 g/t outlined in the top 230 meters.
Eleven holes in the proposed open pit area intersected high-grade gold values of 6 to 30 g/t. High-grade intersections included 10.2 g/t over 13.9 m (G-98-190), 16.5 g/t over 3.0 m (G-98-191), and 12.1 g/t over 5.1 m (FE-98-34). The high-grade zones are expected to impact positively on revised resource calculations that will be completed by year end.
A number of shallow holes showed very wide mineralized intervals: G-98-184 intersected 94 meters grading 1.7 g/t, G-98-197 intersected two zones of 19.9 m grading 4.2 g/t and 31.1 m of 2.6 g/t, and FE-98-34 intersected 67.0 m averaging 2.3 g/t.
Additional exploration targets have been identified by geophysical IP surveys, one of which extends the full length of the property and may be a splay of the Destor-Porcupine Fault Zone along which most of the prolific gold mines in the Timmins camp are located. These anomalies will be drill tested in the next exploration phase.
The Fenn-Gib property is operated as a joint venture between Pangea and St Andrew who can earn a 50% interest in the property and become operator by making payments totaling $200,000, expending $6 million and providing excess mill capacity at cost, at the close-by Stock Milling Complex.
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