White Knight Resources Ltd -
Quito drill test begina; Yahoo update
White Knight Resources Ltd WKR
Shares issued 22,071,844 1998-10-15 close $0.58
Friday Oct 16 1998
Mr. John Leask reports
Quito
The company has commenced a 7,000 foot reverse circulation drill program on the Quito project, south of Austin, Nevada. Drilling will test an area of gold mineralization that is open along strike and at depth. Previous drilling by Meridian Gold encountered gold intersections grading to 0.056 oz/t over 65 feet within Upper Plate sediments of the Vinnini formation. Drill holes are designed to test the extent of gold mineralization in the Upper Plate and to follow mineralization into the Roberts Mountain formation of the Lower Plate. The Roberts Mountain formation hosts the majority of gold reserves in Nevada.
The company believes the Quito project has the geologic, structural and hydrothermal characteristics of a multimillion ounce gold system. White Knight is earning a 100 per cent interest in the Quito project from Meridian Minerals Corporation for $2-million (U.S.) in exploration expenditures over a four year period. Meridian has a onetime election to earn back 51 per cent by spending the next $3-million (U.S.) on exploration.
Yahoo
Results from the initial three hole drill program which was completed in September have been received from Inmet Mining (U.S.) Inc. A distinct zone of hydrothermal alteration, consisting of decalcification and silicification, was encountered in brecciated limestone over a 50 foot interval in hole No. 1. The interval, from 275 to 325 feet, contained anomalous arsenic, antimony and mercury, however, gold results were insignificant. Hole No. 2 and No. 3 contained no significant results. Inmet is currently evaluating the mineralization encountered in hole No. 1 and additional untested targets to the east which lie along a prominent west-northwest structural zone. This west-northwest structural zone appears to strike into Homestake's Archimedes deposit approximately three miles to the east and the company believes the structure was important in emplacing gold mineralization in the region.
The Yahoo property is comprised of 259 unpatented lode mining claims, covering approximately 2,150 hectares, in Eureka County, Nevada. Inmet may earn a 51 per cent interest in the property by making payments totalling approximately $150,000 (U.S.) and incurring exploration expenditures of $1,500,000 (U.S.) over a four year period.
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