Gammon Lake Resources Inc -
Gammon Lake begins sampling at Ocampo Brenda mine project
Gammon Lake Resources Inc
GAMLShares issued 8,301,962
1999-01-29 close $1.26
Tuesday Feb 2 1999
Mr. Terence Donahoe
reports Gammon Lake Resources' underground exploration program and the extraction of ore for bulk sampling at the Brenda mine site in Ocampo, Chihuahua State, Mexico have begun. The underground exploration consists of drifting, shaft sinking, bulk and channel sampling of the mineralized zones which is enabling GAML to determine structures and establish grades. At present a 200 plus ton sample of ore taken at a 45 metre depth within the Balvanera structure is being processed. The company has also completed the preparation of a drift at the San Amado zone for sampling. The Jesus Maria, Vetta Tierra, Balvanera, San Amado and La Zorra structures are all accessible from the Brenda mine site. The company's work on the Ressurrecion mine, approximately 800 metres to the southeast of the Brenda mine, will provide an underground bulk sample from the Ressurrecion main zone. In addition to its underground exploration, Gammon Lake has completed extensive surface sampling of a wide alteration zone near the entrance to the Brenda mine and is awaiting assay results from Chemex Labs. Reports produced by Behre Dolbear have estimated historic production in the Ocampo district, an area of approximately 25 square kilometres, to be in excess of 4,000,000 ounces of gold. The Brenda mine project comprises an area of 468 hectares. A report prepared by Lewis Geosciences, Inc. in June 1998 provided to Gammon Lake by its joint venture partner, Minera Fuerte Mayo S.A., has confirmed a 27.7 metre true width crosscut surface sample intersection from underground workings between the Jesus Maria and Vetta Tierra structures grading 2.5 grams per tonne gold and 75.5 g/t silver for a gold equivalent of 3.86 g/t. Company personnel visited the Juliana mine that is approximately 1 kilometre south from the Brenda mine which management believes to be on the same structure as Gammon Lake's San Amado zone based on a report prepared by Behre Dolbear in 1997. In particular the Juliana mine is host to high sulphide mineralization similar to the high sulphide ore recently encountered at the 42 metre level of Gammon Lake's San Amado zone. Current mining at the 300 metre level of the Juliana mine continues to yield high sulphide ore. GAML is completing detailed geological mapping with data provided from prior and current surface and underground sampling. The company is preparing a three thousand metre phase 1 drill program to determine the structure and depth of the mineralization between the underground structures. The holes will be 200 metres in depth with selective holes to 500 metres in depth. Mineral grades will be determined by the bulk sampling and the drill program. Although no feasibility work has been completed, due to extensive mine workings and mill infrastructure on the property, the cost to mine and process the potential deposit is expected to be low. The Brenda mine project includes a crushing and flotation facility on site which has been operating at 25 tons per day for purposes of bulk sample testing. |
