well it looks like things are finally shaping up for SDD w/ the new pres Jon Stewart.
1 - the have a PP underway - well this is supposed to close in a week or so and is being done at .15 - a big premium to the market. This money will allow for the drillling as noted in the NR below.
2 - JOINT VENTURE - well this is excellent news - there are a few interested parties who want to take it to production. Production from a 150x150Mx60M sq block which is only a piece of the deposit. A few new holes stand to move up the size of the deposit significantly. This high grade deposit has values based on today metal values.
3 - Jon Stewart is doing some rounds in Vancouver and bringing up to date the market as to what SDD is worth + up too!.
4 - the Ag property was dropped - the focus is Promontorio and new properties may come into play down the raod - but the Prom is worth too much to leave siting around.
Sierra Nevada makes plans for 1999 Promontorio drilling
Sierra Nevada Gold Ltd SDD
Shares issued 17,086,456 Jan 5 close $0.05
Wed 6 Jan 99 News Release
Mr. Jon Stewart reports
Sierra Nevada Gold is making plans for the 1999 drilling program on its
Promontorio property in Chihuahua, Mexico. The Promontorio, acquired by
Sierra Nevada Gold in 1995, was previously held under lease by Can Mex, a
subsidiary of Placer Dome. Can Mex completed 34 reverse circulation drill
holes during programs in 1993/1994. At that time, it identified several
areas of interest on both the Promontorio and Hidalgo mineral claims which
comprise the property now referred to as Promontorio.
Since acquiring the property in 1995, Sierra Nevada Gold has drilled over
24,000 feet of NQ core in 58 holes, concentrating thus far on one area
approximately 150 metres by 150 metres on the Hidalgo claim, extending the
tonnage downdip from 80 metres to 140 metres below the Santiago adit level,
Within this block there have been at least five major structures
identified. The Veta Grande (northwest/southeast) is the largest of the
structures measuring up to 50 feet in width. There are at least four cross
structures to the Veta Grande (Santiago, Mina Vieja, San Felipe and Mina
Vieja hanging wall). Limited high-grade copper mining in this area occurred
during the early 1900s.
Based on the results of Sierra Nevada's drill program, Mine Development
Associates of Reno, Nevada was retained to prepare a preliminary resource
calculation during 1997, Using various copper cutoff grades, the following
resource was identified. Dollar values are calculated using U.S. metal
prices of:
Gold $300/oz or $9.65/g
Silver $5/oz or 0.16/g
Copper $0.67/lb
Value
per
Tonnes Au Ag Cu tonne
g/t g/t %
Cutoff 0.5% Cu
Indicated
625,000 2.61 65.79 4.04
Inferred
393,000 1.19 59.16 3.87
Total
1,023,000 2.45 63.21 3.97
In-Situ Value $94,392,210 $192.27
Cutoff 1.0% Cu
Indicated
449,000 3.21 84.58 5.35
Inferred
288,000 2.81 77.22 5.12
Total
737,000 3.05 81.70 5.26
in-Situ Value $88,462,110 $120.03
Cutoff 2.0% Cu
Indicated
329,000 3.75 103.43 6.80
Inferred
182,000 3.42 102.03 7.23
Total
511,000 3.63 102.93 6.96
in-Situ Value $78,739,990 $154.09
The 1999 drilling program, expected to commence in February, will extend
the Veta Grande downdip 300-400 metres below the Santiago level. This
drilling could increase the resource potential two to four times.
The company also plans to test several anomalous areas of the Hidalgo and
Promontorio claims where previous drilling by both Sierra Nevada and Can
Mex indicated promising gold values.
Holes drilled by Sierra Nevada in the La Cascada area on the Promontorio
claims not included in Mine Development Associates resource estimates,
included:
Inter-
Hole Interval cept Au Ag
m m g/t g/t
P96-27 27.5 - 50-0 22.5 0.945 7.6
87.5 -101.0 13.5 1.119 5.0
107.0 -123.0 16.0 1.068 11.8
P96-28 13.0 - 34.0 21.0 1.426 11.1
P96-31 282.1 -296.9 13.7 1.24 6.2
P96-33 21.5 - 42.0 20.5 2.115 15.5
P96-34 10.0 - 22.0 12.0 1.989 23.1
36.0 - 42.0 6.0 1.993 10.7
48.5 - 59.0 10.5 1.864 35.5
99.0 -103.5 4.5 2.143 9.6
Drill holes on various other anomalous areas of the property completed by
Can Mex were reported as follows:
Inter-
Hole Interval cept Au Ag
m m g/t g/t
P93-10 76.2 - 86.9 10.7 2.72 64.4
P93-11 3.1 - 35.1 32.2 1.62 2.9
P93-12 57.9 - 80.8 22.9 1.12 10.9
109.8 -117.4 7.6 3.18 29.4
125.0 -128.1 3.1 1.72 13.0
P94-23 4.57 -19.81 15.24 1.99 26.6
P94-25 7.62 -21.34 13.72 2.11 13.7
P94-32 65.53 -82.29 16.76 1.39 11.0
P94-37 18.30 -48.78 30.4 2.19 17.1
or 0 -67.06 67.06 1.10 12.5
The company is presently negotiating a private placement that will supply
the funds for the 1999 drilling program. In addition, the possibility of a
joint venture with another company is being explored.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
