El Misti Gold Ltd -
Progress in financing Santa Rosa project
El Misti Gold Ltd EMGShares issued 35,260,8451998-11-03 close $0.11Tuesday Nov 3 1998Mr. John Huguet reports Santa Rosa Project Feasibility Study The initial meetings in Peru with the financial community for the financing of the Santa Rosa project have made solid progress. While not concluded, the concepts as developed by K.C. Dodd Engineering and Speechly Mining are well advanced and provided the basis for the meetings. A resource estimate has been completed by Speechly Mining Consultants and Brian Speechly, principal mining consultant. Mr. Speechly has consulted on over 284 projects around the world. He is a mine design specialist for both open pit and underground mines with over 35 years experience. This resource estimate has been audited by John D. Wyatt, geological consultant. Mr. Wyatt has over 45 years experience, both in Australia and overseas in mineral exploration, underground mining, regional mapping and engineering geology. The resource estimate is based on a total of 143 reverse circulation drill holes, totalling 14,053m in the open pit mineralized zone and carried out on a 50 by 25m grid pattern. Results have confirmed near-surface gold/silver mineralization. This zone of interest measures approximately 400 by 250m and was the subject of small scale mining operations previously carried out by Minera Sucahuaylla (450,000 tonnes processed). The resource estimate will be incorporated into the feasibility study scheduled to conclude in 1998. Results and conclusions of the feasibility study including the resource estimate will be issued upon receipt. Geological Potential Santa Rosa has excellent geological potential for locating mineralized zones, similar to those found in the open pit area, along a 6km strike length. The company will, in the near future, develop an exploratory drill program to extend the deposit and test for additional mineralized areas. An induced polarization geophysical survey done in the vicinity of the open pit area (400 x 250m), shows several highly anomalous chargeability areas which indicate the presence of disseminated and/or semi-massive sulphide mineralization including:
Length Width
Prospect area (m) (m)
known as IP anomaly IP anomaly
Carelo-Huayumpay 1,800 450
Titiminas 2,000 400
(open to the
north and
south)
Caripay 850 250
(open to the (open to
east) the south)
Miraflores 200 425
(open to the
north)
Rio 375 250
Virundo 200 100
The company is encouraged by the geological potential within the 12,000 hectare claim area of Santa Rosa. Several potential zones remain totally unexplored. Sinchao Project New agreements for the Succession Montoya, both Viruca and Cleopatra payment terms have been reached following the company's recent meetings in Lima. Obligations have been rescheduled for payment on Oct. 31, 1999, 2000 and 2001. Financings The board believes the proper thing to do is to first pay for, receive and publish the Sinchao assay results, have the market see the grades and size potential of Sinchao and then proceed to finance to satisfy working capital requirements. Until then, only minimum financings are being considered. Meanwhile El Misti has moved to significantly reduce the day to day costs in Peru and Canada. Staff, office rents, communication, storage, transportation, security, legal, consultants and investor relations have all been reviewed and sized to the company's current needs. Stock Options Further to news in Stockwatch Oct. 15, 1998 announcing the granting of stock options, an amendment has been made such that a total of 2,340,000 options have been granted at 15 cents per share for three years. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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