Here is why there has been a load of selling lately.
1550 - 409 Granville Street
Vancouver, B.C. V6C 1T2
Tel. (604) 685-5254
Fax: (604) 685-2814
May 28, 1999
Trading Symbol (VSE-MGJ)
Shares Issued: 38,152,643
News Release
#99-14
NEGOTIATIONS TERMINATED ON THE
HAMMERDOWN GOLD PROPERTY
Major General Resources Ltd. has been notified by McWatters Mining Inc.
that they will not be proceeding with the acquisition of the Hammerdown
Project at this time. McWatters has based their decision solely on the
fact that they are currently expanding two of their existing operations,
and therefore cannot commit to the development of a new project until
sometime in the year 2000. They will, however, continue to monitor the
Hammerdown Project without exclusivity.
McWatters has expended approximately $100,000 on the project conducting a
due diligence program which consisted of 4 drill holes and a subsequent
re-calculation of the ore resource. As a result of their program, there
was a 2% increase in the gold resource at the Hammerdown-Rumbullion
deposits producing an additional 5,000 ounces of gold. McWatters
calculated a resource of 458,000 tonnes grading 17.32 g/T (255,000 ounces)
while previous calculations by Major General yielded a resource of 447,000
tonnes grading 17.40 g/T (250,000 ounces).
The Hammerdown gold property is located in the Springdale-King's Point
mining district of Newfoundland. In 1995, the high grade
Hammerdown-Rumbullion gold deposits were the subject of a scoping study
that was conducted by the engineering firm of Flour Daniel Wright.
Utilizing a recoverable resource of 245,000 ounces with gold recoveries of
94%, the estimated production costs were US$144 per ounce of gold.
Glenn G. Shevchenko
President
Contact: Clive Massey
Corporate Communications Manager
Major General Resources Ltd.
(604) 685-5254
1-800-667-7866
majorgeneral.com
Email:info@majorgeneral.com
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
Steve Joy |
