Gitennes plans work on Nowyak property
Gitennes Exploration Inc GIT
Shares issued 26,255,831 Apr 21 close $0.24
Thu 22 Apr 99 News Release
Mr. Jerry Blackwell reports
Gitennes has recently acquired an option from Phelps Dodge Corporation of
Canada, Limited to earn a 50 per cent joint venture interest in the 17,495
acre Nowyak property. The Nowyak property is situated in Nunavut (formerly
the District of Keewatin, NWT), 330 kilometres southwest of Rankin Inlet.
The Nowyak property was staked by Phelps Dodge in 1998 and 1999 to cover
high-grade gold, silver and zinc mineralization. Initial prospecting by
Phelps Dodge geologists discovered a 100-metre wide zone of highly deformed
and altered volcanic rock in an area of little rock exposure. The Phelps
Dodge zone is evident in felsenmeer and outcrop, and is inferred to extend
for several hundred metres. Samples of subcropping mineralization returned
high-grade assays, including 9.86, 19.69 and 20.31 grams per tonne gold, up
to 1,400 g/t silver and 9.1 per cent zinc. The ultimate dimensions and
grade of this zone will be determined by drilling. However, it appears that
a significant target is present.
Under the terms of the option agreement, Gitennes will spend $650,000 to
earn its 50 per cent interest over a two-year period. This includes a
$400,000 committed expenditure within 12 months of signing, and an optional
expenditure of an additional $250,000 within 24 months to vest. Phelps
Dodge will be the initial project operator.
Planned work includes a detailed airborne geophysical survey, trenching and
mapping, prior to diamond drilling. No drilling is planned until completion
of groundwork.
The Nowyak agreement with Phelps Dodge is seen by Gitennes as an important
step in rebuilding the company's exploration property portfolio, following
the sale of the Virgen property in Peru to Cambior Inc. The Nowyak property
represents a superior target acquired under terms commensurate with market
conditions.
In addition, Gitennes is continuing its exploration work in Peru. At the
Azul property, field crews have begun a program of detailed soil sampling,
trenching and rock sampling. This work is expected to further define the
known zone of gold mineralization found to date, and aid in identifying
drill sites. initial reconnaissance sampling at Gitennes' 2,000-hectare
Lesbos property, immediately north of Pacific Rim Mining's Cofradia
prospect, will commence in May.
On a separate matter, Gitennes has been asked by the B.C. Securities
Commission to revise and reissue, by means of this news release, a detailed
breakdown of the administrative expenditures for the two years ended Dec.
31, 1996, and 1997. The request is a result of the BCSC's Continuous
Disclosure Review Program. The table follows.
Gitennes, with $2.1-million (U.S.) in its treasuries, is well financed to
cover exploration costs and is continuing to evaluate a number of potential
property acquisitions in South America and elsewhere.
ADMINISTRATIVE EXPENSES
Year ended Dec. 31
1997 1996
Advertising and
promotion $19,020 $2,212
Amortization and
depreciation 37,417 3,000
Audit and accounting 122,605 32,965
Bank charges 5,898 2,520
Shareholder
communication 258,634 18,045
Dues and fees 1,983 1,902
Filing fees 10,629 3,025
Legal 91,010 73,301
Miscellaneous 5,186 5,156
Office rent 68,371 16,482
Office common costs - 26,973
Office supplies 55,175 10,202
Postage and courier 10,066 2,493
Professional fees
other 5,025 -
Publications and
subscriptions 2,520 1,472
Salaries 373,552 120,173
Capital tax 6,381 586
Telephone and fax 84,168 15,248
Transfer agent 21,936 13,013
TSE listing 35,223 -
Travel hotel
and meals 97,343 43,262
Good will - 19,132
Loss on foreign
exchange 45,433 1,881
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Total $1,357,575 $413,043
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