Here is some information Bernard received last night
Hemisphere Development Corp. - Developing the high grade
silver-lead-zinc Sunrise deposit.
June 4, 1999
Issued: 13,055,618
Cusip: 423628
52 Week High/Low: $023 - 0.05
Closing Price: $0.13
Trading Symbol: HSD:VSE
COMPANY PROFILE
Hemisphere Development Corp. is an aggressive Canadian exploration
company actively exploring for Volcanogenic Massive Sulphide (VMS)
deposits in the Northwest Territories, home of Canada's newest world
class diamond mine. The company is jointly developing on a 50-50 basis
the Sunrise polymetallic VMS deposit near Yellowknife.
LOCATION
The Sunrise deposit is located in the Beaulieu River Greenstone Belt
approximately 110 kilometres northeast of Yellowknife, NWT. An
all-weather road extends to within 55 kilometres of the deposit, a
winter road by passes the deposit to within 15 kilometres. The
right-of-way for the proposed Ingraham Trail extension passes to
within 5 kilometres of the deposit.
THE SUNRISE DEPOSIT
The Sunrise Project is a high grade VMS deposit with the primary
metals being silver-lead-zinc the deposit also contains a good gold
and copper enrichment. Since the properties discovery in 1987 over 100
drill holes comprising 21,774 m has established a drill inferred
resource of 2.06 million tonnes grading 8.9% zinc, 4.2% lead, 404.5
g/t (11.5 oz/t) silver, 0.98 g/t gold, and 0.1% copper by the
independent engineering firm Roscoe Postle and Associates. The reserve
at Sunrise is contained within a massive sulphide lens measuring 2 to
16 metres in thickness, 120 metres along strike, and 540 metres down
dip. The main sulphide lens dips on a 70° incline.
WHY VMS DEPOSITS?
VMS deposits are volcanic eruptions through hydrothermal vents on the
floor of ancient oceans. These type of deposits occupy a unique
position of importance among mineral deposits. Economically, deposits
of this type are a major source of copper, zinc, lead, silver, and
gold, and a range of by-products including tin, cadmium, antimony, and
bismuth. For example the total production from Canadian mines during
the period 1977-78, about 30% of the copper, 63% of the zinc, 27% of
the lead, 58% of the silver, and 8% of the gold were produced from VMS
deposits. VMS deposits have historically been known to be company
builders. Many large multi-national mining companies can claim their
origin to VMS discoveries such as: Noranda, Rio Tinto, Megallshaft, &
Cominco.
VMS deposits posses characteristics which make them very attractive
exploration targets. For instance:
* They are polymetallic ie. containing more than one mineral such
as gold, silver, lead, zinc, copper, cadmium, tin etc.
* They are usually found in clusters over an area of 10 - 20 km and
contain multiple stockwork zones within each deposit with the vent
areas usually being the most highly mineralized. In Canada VMS
districts contain on average about 9 deposits.
* VMS deposits are usually high grade which allows them to be mined
more profitably.
* They tend to be large tonnage deposits in some cases in excess of
100 million tonnes.
EXCELLENT POTENTIAL FOR RESERVE EXPANSION AT SUNRISE
Early this year Hemisphere Development received an independent report
by Beavon Consulting on the Sunrise project area. Mr. Roy Beavon is a
35 year geologist considered to be one of the most authorative
geologists on VMS deposits in Canada. His report indicates that a
large volcanic centre situated 10 km from the Sunrise deposit within
the M1, M2 claims shows strong likelihood to develop large tonnage
silver-lead-zinc reserves and likely represents the Vent area. The
geology within the M1, M2 claims is identical to Sunrise, contains
several strong ground conductors, and strikes for over 5 km.
CONCLUSION
Work will commence in June at Sunrise with a focus of further
expanding the reserve base. Work will focus on the M1, M2 claims which
show excellent potential to develop bulk tonnage reserves.
Many analysts now feel that base metals prices have come off the cycle
lows and are now trending upwards. Also, the London Metal Exchange
reports that zinc inventories continue to fall while consumption
continues to rise. As of May inventories at the LME were just over
300,000 tonnes, a seven year low, down from 1.2 million tonnes in
1994. The COMEX reports that silver inventories presently stand at 13
year lows with consumption exceeding demand for much of the '90's.
At current metals prices the current reserve base at Sunrise averages
over USD $175 per tonne and ranks as one of Canada's highest grade VMS
deposits. Combined with the prospect of developing bulk tonnage
reserves on the M1, M2 claims and the likelihood of improved metals
prices, management believes that the Sunrise deposit holds excellent
potential for a new world class mine in Canada.
For further information contact:
Charles O'Sullivan, President
Telephone: (604) 685-9255
Toll Free: 1-800-449-4435
Website: www.hemdev.bc.ca
Email: info@hemdev.bc.ca
|
