Southwestern and Global-Pacific commence drilling at Haoya project
Southwestern Gold Corporation SWG
Shares issued 15,298,280 Apr 16 close $5.00
Mon 19 Apr 99 News Release
Also Global-Pacific Minerals Inc (GPJ)
Mr. George H. Plewes reports
Southwestern Gold Corporation and Global-Pacific Minerals Inc. have
declared that drilling has commenced on the CSH prospect situated within
the companies' Haoya project in northern China. Presently, three diamond
drill rigs are in operation on the eastern portion of a 4.8 kilometre long
northeast/southwest trending gold zone. The first four drill holes will
test, to a depth of 300 metres, the continuity of a 150 metre wide gold
system averaging 1.8 grams per ton gold. A shallow decline excavated to 40
metres depth was completed and confirmed continuity of surface grades. If
the grades are confirmed to 300 metres depth over the widths indicated in
trenches, then a 10,000 metre drill campaign will be started to define the
size of the resource. Initial drill testing of the CSH zone should be
completed next month. The CSH prospect has the potential to contain a large
low grade open pittable gold resource.
The CSH prospect is one of many within the Haoya project. Mineralization is
hosted within carbonaceous sediments and associated with Hercynian
granites, a geological environment similar to the large gold deposits
occurring at Sukoi Log in Russia. The Haoya project is comprised of 135,000
hectares of exploration concessions within the Autonomous Region of Inner
Mongolia, about 650 kilometres northwest of Beijing and is accessed by
paved and gravel roads.
The Southwestern (70 per cent)/Global (30 per cent) joint venture can earn
80 per cent of the CSH prospect by spending $2.5-million (U.S.) on
exploration and making certain cash payments over a three-year period. Once
the option is exercised, Southwestern will have a 56 per cent working
interest, Global 24 per cent and the Chinese partner 20 per cent. Further
exploration expenditures will be on a pro-rata basis.
Several other prospects within the Haoya project are currently being
trenched and surveyed in preparation for drill testing.
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