===================================================================
Canadian Corporate News --- Hot Off The Wire
News Release for "ARGOSY MINING CORP"
===================================================================
*** As of January 1, 1997, many Canadian public companies are
*** required to electronically file their disclosure documents.
*** Visit tefa.com for more information.
===================================================================
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: ARGOSY MINING CORP.
VSE SYMBOL: AGO
FEBRUARY 3, 1997
Argosy Mining Kremnica Gold Project - Sturec Structure
Extended
VANCOUVER, BRITISH COLUMBIA--In December 1996, Argosy completed a
Phase II, 10 hole diamond drilling program at its Kremnica Project
in the Slovak Republic. The purpose of the program was to extend
the Sturec vein system south of the area drilled by Argosy between
June and September 1996. The program expanded a previously
defined resource of 428,000 ounces gold equivalent - the Sturec
deposit.
Seven drill holes on 100 metre spacing demonstrated that the
mineralized vein system extends for at least 500 metres south of
the Sturec gold deposit and continues open to the south and at
depth. The width of the mineralized zone ranges from 17 to 92
metres, averaging 57 metres. The gold content is summarized in
the table that follows.
The southern sector of the Sturec structure defined by the Phase
II program has a similar width to the main deposit, with shallow
zones of low-grade gold in all the holes. Based on drilling of
the Sturec deposit, a minimum of 8 additional holes is planned to
identify higher grade ore sections and determine ore grades.
Two diamond drill holes were completed on the Katarina Prospect
400 metres west of Sturec before bad weather curtailed activity.
Both holes were drilled at the southern end of the 600 metre by
200 metre target area, as defined by extensive underground
workings and surface mapping. The drill holes intersected
multiple vein sets up to 30 metres wide. Extensive underground
workings resulted in loss of core through areas of previous
mining. Drill hole KAT-1 intersected, from surface, 30 metres at
0.61 g/t Au and KAT-2 intersected 18 metres at 0.97 g/t Au at a
depth of 127 metres. A reverse circulation drilling program is
planned to test for potential near surface zones of gold
mineralization, where old surface mine workings indicate zones up
to 60 metres wide.
At Kremnica, the previously untested northern sector of the
property is interpreted to be an excellent exploration target for
large scale reserves. Within this zone, the Wolf Prospect is a
250 metre long rhyolite-hosted quartz vein system which was
extensively surface- mined in the medieval period across apparent
widths of 200 metres. This area of mineralization will be a
priority for drilling this year.
Argosy has set a 1997 budget of $4 million to advance the Kremnica
project to the pre-feasibility stage and to assess its other
exploration prospects. Resource calculations and metallurgical
testwork for the Sturec deposit are underway at present. Drilling
will resume in April with an 8000 metre program of both diamond
and reverse circulation drilling planned, principally at Kremnica.
The initial priority will be to test the Sturec deposit at depth
where excellent gold grades and widths were reported from Argosy's
Phase I program. The deepest intersection of that program (AS-7)
intersected 60.7 metres averaging 4.84 g/t gold and 41.9 g/t
silver, including 24 metres averaging 9.3 g/t gold. The drill
hole was terminated in ore grade mineralization due to drilling
difficulties.
In Eastern Slovakia Argosy controls two exploration licences
covering 947 square. kilometres. Field programs will commence in
April to further define targets for drilling.
/T/
PHASE II DRILLING - MINERALIZED INTERCEPTS
at 0.25 g/t Au Cutoff
Drill Hole From-To Length g/t
(m) (m) Gold
AS-101 38 - 55 17 1.19
129 - 131 2 1.25
AS-103 56 - 114 58 0.50
includes 56 - 64 8 1.11
and 73 - 90 17 0.57
153 - 154 1 2.37
164 - 167 3 1.79
177 - 180 3 1.14
AS-106 8 - 100 92 0.34
includes 75 - 83 8 0.50
and 85 - 100 15 0.44
AS-107 35 - 119 84 0.56
includes 43 - 53 10 0.70
and 65 - 119 54 0.65
AS-110 6 - 79 73 0.51
includes 71 - 79 8 1.57
AS-112 6 - 47 41 0.37
includes 22 - 26 4 0.60
AS-115 48 - 81 33 0.50
includes 63 - 81 18 0.58
KAT-1 0 - 30 30 0.61
173 - 176 3 0.56
286 - 287 1 2.13
298 - 300 2 2.08
KAT-2 115 - 118 3 0.87
127 - 145 18 0.97
/T/
ON BEHALF OF THE BOARD
YALE R. SIMPSON, President
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Argosy Mining Corp.
Yale R. Simpson
President
(604) 689-5529
(604) 689-5079 (FAX)
1-800-851-7423
The Vancouver Stock Exchange has neither approved nor disapproved
the contents of this News Release. |
