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Gold/Mining/Energy : ECM.VSE - El Callao Mining. -- Ignore unavailable to you. Want to Upgrade?

To: virginijus poshkus who wrote (1225)	9/17/1999 8:18:00 AM
From: Alex Harrington	Read Replies (1) \| Respond to of 1253

Here's some news: El Callao Mining Corp - El Callao receives Lo Increible drilling results El Callao Mining Corp ECM Shares issued 41,090,418 1999-09-15 close $0.09 Thursday Sep 16 1999 Mr. Clive Johnson report El Callao has received assay results from a recently completed geostatistical drill program on the open pit reserves on the Lo Increible property in Bolivar state, Venezuela. This drill program is the first phase of the feasibility study drill program. The program's results will aid in assessing grade variability within the zone and help determine optimum drill spacing for the feasibility study. The drilling consisted of 19 close-spaced (12.5 metres by 12.5 metres to 12.5 by 15 metres) HQ diamond drill holes (geostat cross) along strike and down dip on the mineralized structure at La Victoria and La Cruz zones. Eleven holes totalling 1,100 metres were drilled at La Victoria and eight holes totaling 800 metres were drilled at La Cruz. The data, assay results and grade variability from the close spaced holes will be reviewed by Mineral Resources Development Inc. (MRDI) of San Mateo, Calif., which worked with El Callao on the prefeasibility study. Significant results from the program are as follows: Hole Interval Length True Au No. (m) (m) Width(m) g/t La Victoria Zone 99-263 25.2- 35.6 10.40 10.40 6.51 42.1- 45.9 3.80 3.80 1.49 54.4- 61.2 6.80 6.80 5.16 99-264 35.8- 51.0 15.20 15.20 3.59 63.0- 72.5 9.50 9.50 3.04 99-265 45.1- 50.5 5.40 5.40 127.77 cut to 34 g/t 45.1- 50.5 5.40 5.40 22.57 59.5- 65.8 6.30 6.30 1.70 70.4- 79.9 9.50 9.50 3.00 99-266 68.9- 74.4 5.50 5.50 2.94 82.0- 97.3 15.30 15.30 3.70 99-267 71.6- 78.5 6.90 6.70 6.32 82.2- 89.1 6.90 6.70 7.74 99-268 77.0- 94.3 17.30 16.80 6.00 99-269 44.8- 68.5 23.70 19.90 5.10 73.6- 80.5 6.90 5.80 10.19 87.5- 91.8 4.30 3.60 1.54 99-270 50.2- 53.3 3.10 2.60 1.75 58.2- 65.3 7.10 6.00 3.52 71.6- 90.3 18.70 15.70 4.61 99-271 69.9- 80.4 10.50 8.80 4.07 99-272 55.1- 60.6 5.50 4.60 8.10 67.1- 72.1 5.00 4.20 5.78 99-281 122.0-125.8 3.80 3.00 10.93 139.6-151.1 11.50 8.90 10.69 155.6-156.9 1.30 1.00 5.94 The high-grade intersection in hole 99-265 appears to be localized as adjacent holes did not intersect similar material, however, the intersection highlights that infill drilling has the potential to encounter further high-grade pods that could increase the average gold grade of the La Victoria deposit. Hole Interval Length True Au No. (m) (m) Width(m) g/t La Cruz Zone 99-273 53.6- 63.6 10.0 8.2 8.41 82.1- 86.3 4.2 3.4 2.24 99-274 56.3- 68.8 12.5 10.5 5.37 81.9- 86.1 4.2 3.5 1.30 99-275 48.0- 59.7 11.7 11.5 4.61 99-276 54.9- 72.5 17.6 14.3 3.18 99-277 62.0- 79.0 17.0 12.1 6.29 99-278 73.0- 89.5 16.5 9.9 7.56 103.0-105.0 2.0 1.4 3.34 99-279 55.0- 66.6 11.6 9.6 8.28 99-280 49.0- 54.5 5.5 4.4 7.00 61.5- 70.5 9.0 7.2 2.89 These results are consistent with previous drilling at La Cruz. St. Lambert Drilling completed the drill contract and Monitor Labs in Puerto Ordaz, Venezuela, is the primary lab performing all gold analysis. As part of El Callao's quality control program, one standard, one duplicate and one field blank is inserted every 20 samples. In addition, one in 15 duplicate pulp samples from the primary lab will be sent to Chemex Labs in Canada for confirmation. One in 20 of these will include a standard. The 1998 prefeasibility study reported a diluted mineable open pit reserve of 11.4 million tonnes grading 3.14 grams per tonne gold for a total of 1.1 million ounces of recoverable gold from six open pits. The prefeasibility study was based on data from 268 drill hole (43,277 metres) drilled by El Callao between 1994 and 1997. The Victoria and La Cruz deposits account for 780,000 ounces of gold or 71 per cent of recoverable ounces. The prefeasibility study recommended processing 3,000 tonnes of ore per day for the first six years. Ore would be processed with a conventional CIL circuit with gold recoveries of 92 per cent. The operation would produce an average of 97,000 ounces of gold per year over 11 years. The average waste to ore stripping ratio would be 6.74 to 1. Direct operating costs are estimated to be $167 (U.S.) per ounce and total costs, including capital, would be $235 (U.S.) per ounce of gold. The project carries a pretax internal rate of return of 26.1 per cent at $325 (U.S.) per ounce gold and 19.9 per cent at $300 (U.S.) per ounce of gold. An additional significant gold resource below the proposed open pits will not be addressed during the feasibility study. The grades and widths of the material below the pits could sustain an underground mine. The underground potential will be further evaluated at a later date. Bema Gold owns 38 per cent of El Callao and manages its affairs. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com