CHESBAR RESOURCES INC ("CBI-TM;CHSBF-L") - Continues Work In Venezuela
Chesbar Resources Inc. is pleased to provide a progress report on its property in the Anacoco area in Venezuela, further to the Company's news release number 99-04 dated March 1, 1999.
A study of the results of work to date indicates the potential for extensive additional gold mineralization, particularly on the Anacoco II property for which results of four diamond drill holes were reported in news release 99-04. The shape and orientation of this mineralization was not obvious and detailed magnetometer surveys are being conducted over selected areas to help clarify the picture. This work is continuing, and the Company's management believes it is necessary before commencing further diamond drilling.
For the information of shareholders and the public, the attached maps, diagrams and tables summarize the results of diamond drilling and other work to date on the Company's holdings in the Anacoco area of Venezuela. The drilling information on the La Salle gold zone is reproduced from the Company's News Release No. 98-04 dated June 17, 1998. Other maps* and tables provide an update and summary of work carried out to date on the rest of the Company's holdings, including the northern part of the La Salle II property and the adjoining Guaiquinima II and Anacoco II properties.
Thirty six holes have been drilled on the La Salle gold zone along a length of 750 metres (2460 feet) in a north-south direction. This appears to be the extent of this gold bearing zone, which is cut off by a fault at its northern end, while to the south the gold values diminish rapidly with a change in the geological environment from predominantly volcanic to predominantly sedimentary rocks. The grades and lengths of the drill intersections within the La Salle gold zone are considered very encouraging by the Company's management, particularly since much of this material is in the soft weathered ("saprolite") material near surface which is quite soft and could therefore be mined and milled inexpensively. Given the size and extent of the La Salle gold zone, thirty six drill holes are not sufficient to define mineable reserves and this will require further drilling.
Geochemical soil sampling for gold has outlined an extension of the gold bearing horizon, northwards from the fault which offsets the La Salle gold zone for a distance of 2,000 metres to the north boundary of the La Salle property and thence continuing onto the adjoining Guaiquinima II property. At this time eight widely separated holes have been drilled on the northern part of the La Salle II property and another three holes on the Guaiquinima II property, as shown on the accompanying map*. Although results have not been spectacular, all of the holes (except for 98-37 which was drilled west of the zone) intersected gold values as listed in the accompanying table. With only eleven holes drilled within a strike length of 3 kilometres, it is the opinion of management that this section of the properties deserves more work with the objective of identifying higher grade sections within the broad gold bearing structure.
On the Company's northernmost property, the Anacoco II, geochemical sampling for gold has outlined numerous areas of anomalously high gold values, as shown on the accompanying map*. Only one of these has been tested to date, by the four holes drilled in 1999 and reported in News Release No. 99-04 dated March 1, 1999, which are also summarized in the attached table of drill results. The Company's geologists consider these results to be promising and the current geophysical work is designed to better determine the orientation of the gold bearing structures in this area. Because there is no outcrop of hard bedrock in this part of the property, it is necessary to use indirect methods of determining the geological structure and in planning future drilling. At present detailed magnetometer surveys are being carried out over the gold anomalies and in the vicinity of the four holes drilled to date.
The recent decision by Placer Dome to proceed with construction to bring the Las Cristinas mine into production is seen by the Company as a strong vote of confidence in the mining future of Venezuela. Another favourable indication of outside interest is the agreement by Hecla Mining (subject to due diligence) to acquire the La Camorra mine of Monarch Gold. It may be noted that the La Camorra mine is located 45 kilometres west of the La Salle I property and the Las Cristinas is 90 kilometres south-west of La Salle I. All three properties are in the same belt of "Greenstone", predominantly volcanic, rocks of the Guyana Shield. As shown on the accompanying map* there are a number of other mining centres, including El Dorado and El Callao, in this area in the same geological environment.
In summary, management of the Company believes that the gold mining situation in Venezuela remains positive and that the Company's properties have the potential to be an important part of its development.
Chesbar Resources Inc. is a public company whose shares are listed on the Montreal Exchange: Symbol "CBI" *For a hard copy of the maps referenced in this release, please call 416-363-1124
CHESBAR RESOURCES INC.
Diamond Drill Hole Intersections on La Salle Gold Zone
Line Hole No. From(m) To(m) Gold (grams /tonne) Intercept(m)
2050N Gold Zone Offset by Faulting
2050N 98-25 No significant gold values
98-26 39.00 41.00 2.13 2.00
98-27 No significant gold values
195ON 98-20 135.00 146.00 1.18 11.00
98-21 40.00 52.00 1.12 12.00
70.00 82.00 1.22 12.00
91.00 98.00 + 5.30 7.00
98-22 68.00 86.00 1.61 18.00
98-23 64.00 68.00 1.96 4.00
84.00 94.00 2.10 10.00
98-24 0.00 13.00 5.66 13.00
1875N 95-01 4.00 19.00 1.93 15.00
95-02 11.00 37.00 1.58 26.00
48.00 58.50 2.13 10.50
73.00 80.00 1.74 7.00
95-03 4.00 10.00 8.90 6.00
24.00 50.00 7.52 26.00
95-04 2.00 10.00 4.65 8.00
32.00 64.00 7.20 32.00
75.00 101.00 0.98 26.00
95-10 0.00 9.00 2.30 9.00
67.00 76.00 2.46 9.00
83.00 118.00 2.03 35.00
95-11 99.00 106.00 1.58 7.00
95-12 97.00 120.00 2.01 23.00
151.00 158.00 1.06 7.00
95-13 47.00 53.00 0.72 6.00
1800N 97-01 94.00 99.00 0.94 5.00
115.00 128.00 1.37 13.00
144.00 149.00 1.40 5.00
97-02 166.00 178.00 2.19 12.00
97-03 16.00 28.00 1.58 12.00
42.00 49.00 3.02 7.00
98-01 26.00 33.00 3.52 7.00
43.00 59.00 2.46 16.00
69.00 74.40 4.99 5.40
98-28 0.00 15.00 1.80 15.00
51.00 55.00 1.16 4.00
98-29 8.00 13.00 1.89 5.00
26.00 32.00 2.52 6.00
+ High gold assays cut to 30 grams/tonne
CHESBAR RESOURCES INC.
Diamond Drill Hole Intersections on La Salle Gold Zone
Line Hole No. From(m) To(m) Gold(grams /tonne) Intercept(m)
170ON 97-04 5.00 15.00 + 5.88 10.00
71.00 73.00 1.97 2.00
135.00 138.00 1.60 3.00
97-05 11.00 21.00 4.97 10.00
71.00 74.00 4.46 3.00
97-06 23.00 27.00 1.23 4.00
40.00 48.00 1.05 8.00
91.00 98.00 3.22 7.00
98-02 71.00 76.00 1.54 5.00
98-03 17.00 22.00 1.65 5.00
50.20 57.00 2.66 6.80
82.00 85.00 1.27 3.00
98-30 11.00 23.00 1.25 12.00
98-31 20.00 32.00 2.28 12.00
98-32 21.00 24.00 1.54 3.00
1600N 97-07 28.00 31.00 2.12 3.00
97-08 48.00 59.00 2.39 11.00
1400N 98-04 57.00 71.90 1.41 14.90
98-05 78.00 81.00 3.11 3.00
98-33 7.00 9.00 1.08 2.00
130ON 98-19 23.00 29.00 1.49 6.00
+ High Hold assays cut to 30 grams/tonne
CHESBAR RESOURCES INC.
Reconnaissance Drilling North of La Salle Gold Zone
Property Line Hole No. From(m) To(m) Gold Intercept(m)
(grams
/tonne)
Anacoco II 6100N 99-04 115.00 119.00 3.20 4.00
99-05 133.00 153.00 1.27 20.00
OR 133.00 164.00 0.92 31.00
99-06 0.00 6.00 1.06 6.00
6050N 99-07 14.00 18.00 4.68 4.00
48.00 70.00 1.37 22.00
Guaiquinima
II 4750N 99-03 0.00 6.00 0.53 6.00
32.00 40.00 0.52 8.00
430ON 99-01 43.00 48.00 0.39 5.00
53.00 57.00 0.60 4.00
La Salle I 3845N 95-09 32.00 33.00 0.79 1.00
3832N 95-07 0.00 8.00 0.38 8.00
95-08 0.00 4.00 0.80 4.00
285ON 98-34 7.00 12.00 1.89 5.00
OR 0.00 38.00 0.62 38.00
2755N 95-05 21.00 38.00 2.05 17.00
95-06 36.00 52.00 0.63 16.00
265ON 98-35 11.00 14.00 2.13 3.00
25.00 27.00 2.11 2.00
OR 0.00 43.00 0.41 43.00
255ON 98-34 0.00 18.00 0.30 18.00
2450N 98-37 N.S.V.
(off zone)
TEL: (416) 363-1124 FAX: (416) 360-0728 Website: www.chesbar.com E-mail: chesbar@istar.ca
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