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Canadian Corporate News --- Hot Off The Wire
News Release for CHURCHILL RESOURCES LTD
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: GREYSTAR RESOURCES LTD.
VSE SYMBOL: GSL
AND CHURCHILL RESOURCES LTD.
VSE SYMBOL: CHK
JANUARY 2, 1997
Greystar Resources and Churchill Resources - Drill
Results
VANCOUVER, BRITISH COLUMBIA--Greystar Resources Ltd. (GSL-VSE) and
Churchill Resources Ltd. (CHK-VSE) are pleased to announce that
the first core drilling of La Alta zone has resulted in the
apparent discovery of another large gold mineralized zone. Drill
Hole AL-96-3 returned the following geochemical assay results.
/T/
AL-96-3 284.4M TOTAL DEPTH - 55 degree inclination
Depth Interval Gold Silver Copper
(m) (m) (g/t) (g/t) (percent)
58.4-61.2 2.8 1.82 5.1 TR
89.0-93.0 4.0 1.30 10.45 TR
126.0-283.0 157.0 1.24 6.0 TR
including
132.0-132.5 0.5 20.0 85.0 TR
147.0-168.0 21.0 2.5 6.76 TR
159.6-160.6 1.0 20.0 13.9 TR
254.0-255.0 1.0 10.2 4.6 TR
269.0-270.0 1.0 10.3 43.0 0.75
282.0-283.0 1.0 12.4 6.0 TR
/T/
The above assay results could be substantially higher when fire
assayed. The upper limit of detection for geochemical assaying is
20 g/t and previous fire assays of samples above 5 g/t have
typically increased by 20 percent or more. Metallic screen assays
which will be run on all higher grade samples usually have
significantly better values than conventional fire assays probably
because of free gold in the higher grade zones.
Drill Holes AL-96-1 and AL-96-2 were also in La Alta zone but were
abandoned at shallow depths because of rock conditions. The La
Alta zone is located immediately north of the Road to El Silencio
zone and to the east of the Mina El Diamante zone.
The geology of the new gold-silver bearing zone consists mostly of
dark gray brecciated chert and subordinate silicified porphyry
with pyrite disseminations and stockworks of quartz-pyrite
stringers. The estimated true width of the mineralized
chert-silicified porphyry structure is in the order of 100 meters.
La Alta zone, which host rock is similar to Los Laches host rock,
is located about 800 meters west-southwest of Los Laches.
In addition, five drill holes for a total of 1071 meters were
drilled within West Los Laches zone. WLL-96-3, WLL-96-4 and
WLL-96-5 were abandoned due to rock conditions and did not reach
the intended mineralized target. The geology of the drilled area
consists mostly of porphyry which is often kaolinized and
bleached. Minor bands of gneiss were cut in holes WLL-96-1,
WLL-96-2 and WLL-96-3. Rock alteration such as intense
silicification and pyritization, which is usually associated with
gold-silver mineralization, is weakly developed within the West
Los Laches drilled area. It is still probable that the Los Laches
zone continues into the West Los Laches zone and beyond, but
further drilling will be required. The geochemical assay results
are as follows:
/T/
WLL-96-1 Depth 290.4M Inclination - 55 degrees
Depth Interval Gold Silver
(m) (m) (g/t) (g/t)
66-69 3.0 0.77 TR
168.0-170.1 2.1 1.14 32.86
203.9-207.0 3.1 0.75 28.64
WLL-96-4 Depth 150M Inclination - 48 degrees
Depth Interval Gold Silver
(m) (m) (g/t) (g/t)
21.4-31.5 10.1 1.18 4.8
WLL-96-5 Depth 152.4 Inclination - 57 degrees
Depth Interval Gold Silver
(m) (m) (g/t) (g/t)
97-99 2.0 2.06 2.6
128-131 3.0 0.94 4.8
144-146 2.0 3.05 3.1
Hole WLL-96-2 had no significant gold values.
/T/
The 1996 drilling program at the Angostura Project was completed
on December 13, 1996. One hole, ES-96-9, remains to be reported
and was drilled parallel to ES-96-8, about 50 meters to the east.
Assay results are pending and will be announced when available.
The Companies believe 1996 was an exceptional year for the
Angostura Project and are looking forward to recommencing drilling
in January 1997. The plans for 1997 are still being formulated,
but will include an expanded drilling program utilizing a second
drill with a depth capacity of about 600 meters. Detailed
processing of the 1996 data is underway. Cross sections, resource
estimates, and possibly preliminary pit design will be available
in late January, 1997.
The Angostura Project consists of about 1750 hectares in Northeast
Colombia near the city of Bucaramanga. It is owned by Greystar
Resources Ltd. with current work being funded by Churchill
Resources Ltd., under an agreement whereby Churchill can earn 50
percent of the project by funding US$2,000,000 in exploration
between April 1996 and April 1997 and issuing 1,000,000 of its
common shares to Greystar.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Greystar Resources Ltd.
David Rovig
(406) 245-9520
or
Greystar Resources Ltd.
Tony Spat
(604) 689-1428
or
Churchill Resources Ltd.
Tanya Gunther
(604) 683-6556
or
Churchill Resources Ltd.
Paul Conroy
(604) 687-1334
The Vancouver Stock Exchange has neither approved nor disapproved
the information contained herein.
INDUSTRY: MNG
SUBJECT: DRM
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