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Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (3726)	7/19/1999 8:50:00 PM
From: Chuca Marsh	Read Replies (1) \| Respond to of 4066

Doug, I saw this while surfing: BEST, 2 you- Mongolia Gold Resources Ltd - Mongolia in deal to acquire up to 60% of Russell Lake Mongolia Gold Resources Ltd MGR Shares issued 26,582,902 1999-07-16 close $0.03 Monday Jul 19 1999 Dr. D.R. Webb reports Mongolia Gold Resources Ltd. has entered into an agreement with Fortune Mineral Limited to acquire up to 60 per cent of the Russell Lake volcanogenic massive-sulphide property. The property encompasses a recently discovered Archean volcanogenic massive sulphide copper, zinc and gold deposit. Mineralization consists of disseminated and massive sulphides occurring within a 200-meter-thick by 1,600-meter-long felsic volcanic unit. Agreement Subject to Vancouver Stock Exchange approval, the company can earn a 51-per-cent interest in the project by spending $400,000 prior to May, 2003, and may either form a joint venture after vesting at 51 per cent or may increase its interest to 60 per cent by incurring an additional $400,000 by May of 2006. There is an underlying 1-per-cent net smelter return on the property, half of which can be purchased for a one-time payment of $500,000 subject to certain conditions. Location The project area is located 90 kilometres west-northwest of Yellowknife, Northwest Territories, Canada. It is 60 km north of Highway 1, five km north of the high-voltage power line between the Snare hydroelectric complex and Yellowknife. The property is 24 km northeast of Russell Lake, which connects through Frank Channel to Great Slave Lake, providing barge access to the rail head at Hay River, or down the Mackenzie River to tidewater. Summary Extensive copper, zinc, and gold mineralization is associated with disseminated and massive sulphides in a mixed felsic tuff and chert horizon within an Archean volcanic sequence. The recently discovered VMS mineralization is analogous to mineralization mined at Noranda, Que., and elsewhere throughout the world. The property has not had systematic geophysics conducted on it, nor has it ever been drilled. Mineralization Copper, zinc, and gold mineralization is found within a poorly exposed 200-meter-thick sequence of cherty sediments and felsic pyroclastic rocks and can be traced along strike for 1,600 meters near the top of a mafic-to-intermediate sequence of volcanic rocks. Sericitic and siliceous schists (deformed felsic pyroclastic rocks) and cherty sediments contain up to 25 per cent disseminated and fracture-filling pyrite, pyrrhotite, arsenopyrite, chalcopyrite (copper), and sphalerite (zinc). Abundant semi-massive to massive sulphide zones occur within this unit. Sulphide-rich rocks are strongly oxidized on surface, and are replaced by zones of intense iron oxide development (gossans) that continue below the depth of initial trenching. One gossan exceeds 50 meters in width and can be traced for more than 200 meters in strike length to where it projects beneath a swamp and small lake. Samples collected from limited trenching in the gossans expose intensely weathered sulphides. In spite of the highly oxidized nature of the gossans, highly anomalous copper (0.30 per cent), zinc (0.33 per cent), and gold (1,3 grams per tonne), have been obtained from limited sampling. A footwall zone, referred to as the Isthmus gold zone, underlies the units described above, and includes felsic and intermediate lapilli tuff, tuff breccia and pyrociastic breccia. It ranges from four meters to greater than 10.5 meters in width and can be traced for more than 300 meters along strike. The sulphide-rich unit contains 10 per cent to 60 per cent disseminated and fracture-filling pyrrhotite and pyrite. Disseminations and masses of arsenopyrite occur throughout this unit. Significant gold values have been returned from the Isthmus gold zone, including the following: Sample Gold Grade Width Chip 7.57 g/t 4.0 meters Grab 33.20 g/t Chip 8.45 g/t 1.8 meters Chip 5.08 g/t 0.8 meters Chip 7.45 g/t 2.6 meters Samples were collected by Fortune personnel and analyzed by fire assay and ICP techniques at Barringer Magenta Laboratories (Alberta) Ltd., and Eco-Tech Laboratories Ltd. The company is very pleased with this acquisition and feels it has an excellent opportunity to identify several large Archean VMS deposits. The property's proximity to infrastructure and the established mining centre at Yellowknife will enhance the project's economic viability. The company plans to immediately start a program of ground work and geophysics with the intent to identify optimal diamond drill targets for followup. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com Chucaupt2(and NOW Diamonds are in Mineral Rights within Canadian Consessions!)Bingo, maybe.