Blue Desert completes option/purchase agreements
Blue Desert Mining BDE
Shares issued 7,648,072
Feb 18 close $0.18
Fri 19 Feb 99
News Release
Mr. Brian Fairbank reports
Blue Desert Mining has formally completed its option/purchase agreements with the Hunter Group, originally announced in Stockwatch Jan. 21, 1999 on the Portal and West Point properties in the Pogo gold area, Alaska. The claims were staked between Oct. 26 and Nov. 19, 1998 and thus all the locations have cleared a 90-day grace period for recording and there are no competing claims. Blue Desert has an option to purchase a 100 per cent direct ownership of both properties, subject to a 2 per cent net smelter royalty.
Staking activity in the region has been brisk following an announcement in Stockwatch Oct. 29, 1998 by Teck Corp., Sumitomo Metal Mining and Sumitomo Corp. of an updated geological resource of 9,980,000 tons grading 0.52 ounce per ton or 5.2 million ounces of gold in the L1 and L2 zones on the Pogo property. Exploration and underground development planned in 1999 is
anticipated to increase the overall gold resource.
Blue Desert's Portal property, which includes the Gobi block, is immediately adjacent to the Pogo property and encompasses approximately 26 square miles (16,640 acres). The company believes that north-south and northeast trending faults and intrusive dikes may localize gold on the Blue Desert ground.
The West Point property covers 28 square miles (18,000 acres) and is 35 miles northeast of Pogo. Highly anomalous bismuth (200-600 parts per million) and other trace elements indicating gold potential are reported in stream sediments draining the property.
Blue Desert also owns the Sahara property, five miles east of the Pogo property, separately from the Hunter Group agreement. The Sahara property covers 17.5 square miles (11,200 acres) and is along an intrusive contact between Cretaceous granodiorite and Precambrian schist/gneiss that is on one of the controls of gold mineralization on the Pogo property.
The three properties are in favourable geological environments for the formation of Pogo style gold deposits. Blue Desert is negotiating joint venture agreements on the properties.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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