Release from nearby property. Jim
NEWS: Drill Target identified in Timmins.
Pacific Vangold Mines Ltd -
Drill target identified on Timmins property;
diamond drill program in Uganda
Pacific Vangold Mines Ltd
PVM
Shares issued 12,563,412
1998-10-29 close $0.19
Friday Oct 30 1998
Mr. Dal Brynelsen reports
The combined magnetic-electromagnetic induced polarization survey completed
earlier this year on Pacific Vangold's joint venture property in Thomas Township,
Timmons area, identified a number of IP anomalies, several of which have been
selected as drill targets. The property lies on a regional geological trend
approximately 6 kilometres southwest of the copper-zinc-silver massive sulphide
zone currently being drilled by Cross Lake Minerals.
The ground geophysical program conducted by the company consisted of 79km
of magnetics, 58km of IP and 25km of EM surveying. Three of the best IP
anomalies gave chargeability responses of 40, 59 and 108 mV/V combined with
low resistivity and high metal factor responses. Several of the IP anomalies are
associated with airborne and ground EM anomalies. Several other moderate IP
anomalies that show moderate chargeability with strong, sharply delineated
resistivity responses have been interpreted by the company's geophysicist as
possibly indicating shear zone hosted sulphide type gold targets.
The company is currently considering several next step options, either to extend
the geophysical grid to cover several promising airborne EM anomalies before
beginning a drill program or to proceed directly with a drill program to investigate
the known IP anomalies.
The Thomas Township property consists of 236 claim units that are under option
from Canadian Golden Dragon Resources and East West Resource Corporation.
The agreement with Dragon, which was signed on Nov. 3, 1997, concerns 80
claim units. In order to exercise its option to acquire 50 per cent interest Pacific
Vangold must pay $55,000 cash over two years, issue 50,000 shares and expend
a total of $1,500,000 over five years. According to a subsequently agreed upon
extension to the cash payment and exploration commitment schedule, the
company has cash payments of $10,000 due on April 1, 1999 and $13,500 due
on Oct. 15, 1999 and is committed to exploration expenditures of $100,000 by
Nov. 3, 1999. To date the company has made $32,000 cash payments and
expended $40,000 on exploration.
The agreement with East West, also signed on Nov. 3, 1997, concerns 156 claim
units. In order to exercise its option to acquire 50 per cent interest Pacific
Vangold must pay $55,000 cash over two years, issue 50,000 shares and expend
a total of $1,500,000 on exploration within five years. According to a
subsequently agreed upon extension to the cash payment and exploration
commitment schedule, the company has cash payments of $7,500 due March 1,
1999, $10,000 due June 3, 1999 and $10,000 due Aug. 1, 1999, and is
committed to exploration expenditures of $200,000 by June 3, 1999. To date the
company has made $27,500 cash payments and expended $100,000 on
exploration.
In Uganda, Avmin Limited, a subsidiary of Anglovaal Minerals of South Africa,
and Pacific Vangold's joint venture partner in Uganda, has begun diamond drilling
on the first of five ground and airborne EM targets in special exploration
prospecting licence 4150. Pacific Vangold's total mineral concessions in Uganda
cover 10,329 square miles. Licence 4150, which is 2,873 square miles in area,
covers the northeastward extension of the rocks that host the former Kilembe
copper-cobalt mine, which produced 15.4 million tons of ore grading 1.9 per cent
copper and an estimated 0.135 per cent cobalt before closed in 1977 because of
political unrest. A news release on the results of the drilling will be released when
sufficient information is received.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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