CME.A News Release (13/3/97)
Interest in Sulu gold project acquired
Celtic Minerals Ltd CME
Shares issued 11,200,000 Mar 12 close $1.10
Thu 13 Mar 97 News Release
Mr David Graham reports
The company has signed a memorandum of understanding with Sulu Resources Development Corp of Manilla, Philippines whereby Celtic will acquire a 70% beneficial interest in the Sulu gold project on the Batangas Peninsula, Philippines.
Three highly prospective areas for epithermal gold deposits are covered by 29 claim blocks totalling 2,349 hectares and include the Sulu, Pulong Anahaw, and Mt Panay targets. These areas were previously worked by Kenmare Minerals during 1989 and 1990. Despite highly encouraging results, it has been confirmed by Kenmare that work stopped as a result of financial constraints during 1991.
Results of Kenmare's work indicate excellent potential for the presence of a multi-million ounce high grade and bulk tonnage epithermal-style gold deposit. Diamond drilling at the Sulu prospect, where a total of 804.5 metres in 10 shallow holes, identified bonanza gold veins grading 12.5 g/t and 14.4 g/t over metre widths. Broader zones of strong gold mineralization are indicated by intercepts of 15.7 metres of 1.6 g/t and 7.3 metres of 1.64 g/t. Kenmare tested only 200 metres of the structurally controlled Sulu vein system that has an indicated strike length of over two metres. Mr Graham reports that an economic resource could be rapidly outlined by performing shallow drilling along the trend of the vein and at depth to test the roots of the system.
At the Mt Panay area, a 1000 by 2500 metre strong clay-altered zone, containing 5 to 7% sulphides has yet to be tested. It has been described as having similar geological characteristics to the Lepanto, Philippine epithermal deposit area, where an ore reserve of 35 million tonnes of 300 g/t gold and 3% to 5% copper has been delineated.
At the Pulong Anahaw area, similar veining and clay-pyrite alteration to the Sulu zone exists. Grab samples from veins exposed in trenches returned assays between 2.5 and 17.1 g/t gold, and 0.1 to 1.3 g/t gold from the enveloping clay-pyrite alteration.
Under the terms of the MOU, Celtic will make certain cash payments and share issuances to Sulu over a five year period to earn its 70% beneficial interest. The agreement is subject to due diligence by an independent consultant and regulatory approval.
The Sulu project acquisition will provide Celtic with immediately drillable targets with near-term multi-million ounce discovery potential for its shareholders.
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