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Gold/Mining/Energy : Macdonald Mines

MMP 69.00

0.0%

Sep 25 5:00 PM EST

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To: David Graham who wrote (27)	1/30/1997 1:26:00 PM
From: Rob	of 135

David, There was some work done on the sulphides as far as tests go re last press release... Initial cyanidation tests indicate high gold recoveries from both oxide,ranging from 93 to 99%, and from sulphide, ranging from 85 to 93%, all with low cyanide consumption and a short activation time. An ongoing feasibility analysis has established target tonnages and grades required to commence an economic heap-leaching operation. These tonnages and grades now appear to be achievable from the current season's planned program, based on all results to date. The foregoing resource estimates relate only to the Golden Hill and Florencia Sector target areas. Considerable potential for the discovery of further new gold and copper resources exist in the Maclama, Tres Casas and Palo Seco target areas, which will all be drill tested in the current season's program ... Any more details that you could provide on the GHMC deal would be appreciative. Rob

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