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Gold/Mining/Energy : Consolidated Magna Ventures (CMV.V) -- Ignore unavailable to you. Want to Upgrade?

To: jerry janko who wrote (345)	10/5/1999 7:58:00 PM
From: Jesse	Respond to of 380

Firesteel to option 70% of Cons Magna's Reyna de Oro property Consolidated Magna Ventures Ltd CMV Shares issued 21,484,464 Oct 5 close $0.08 Tue 5 Oct 99 News Release See Firesteel Resources Inc (FTR) News Release Mr. David DuPre reports Firesteel Resources has signed an agreement to option the Reyna de Oro property from Compania Minera La Metalica de Chihuahua (a private Mexican company) and Consolidated Magna Ventures Ltd. Firesteel can initially earn a 70-per-cent interest in the property by incurring total staged exploration expenditures of $3-million (U.S.) and cash or share equivalent payments of $203,500 (U.S.) over four years. This option agreement is contingent upon Firesteel's satisfactory completion of a three-month due diligence review. Upon fulfilling the required commitments, a joint venture will be formed with Firesteel holding a 70-per-cent interest and Magna holding a 30-per-cent interest. Metalica retains a 2-per-cent net smelter return which can be purchased for $2.5-million (U.S.). Any joint venture partner that does not contribute to continuing work programs will have its interest diluted on a straight-line basis. If this interest falls to 10 per cent, an automatic conversion to a 1-per cent nsr will be triggered. The contributing company has the right to purchase this 1-per-cent nsr for $1.25-million (U.S.). Thus, the total nsr purchase amount is $3.75-million (U.S.). The 1,467 hectare, road accessible property is located in the southwest portion of Chihuahua state in the heart of the Sierra Madre gold-silver-copper belt. This district has experienced continuous mining activity since its discovery in 1632. Numerous mines and significant undeveloped epithermal gold/silver/copper deposits occur in this area. The Reyna de Oro property adjoins Francisco Gold's El Sauzal holdings. El Sauzal hosts one of the largest gold resources in Mexico and has reported a mineable resource of 23.5 million tonnes at a grade of 2.98 grams per tonne of gold. An independent review states that numerous geological similarities exist between the Reyna de Oro prospect and El Sauzal. The Reyna de Oro property hosts a significant epithermal gold-copper prospect that was formerly part of the Mexican mineral reserve. Previous work has delineated the main mineralized zone over a strike length of 400 metres. Recent prospecting has identified gold mineralization up to one kilometre west and 400 metres east of the main zone. Five previous surface and underground sampling programs confirm the potential of the mineralized system. These are highlighted by: a surface sample from the Vicente zone which gave 57 metres of 4.52 g/t gold and 0.28 per cent copper, as well as a road-cut channel sample which returned 60 metres of 3.41 g/t gold and 0.18 per cent copper; underground channel samples of 3.16 g/t gold over 63 metres, 3.44 g/t gold over 54 metres and 2.51 g/t gold over 45 metres; In 1997 a drilling program tested the mineralized zone over a strike length of 150 metres. Almost all of the holes encountered lengthy sections of significant gold and copper mineralization. Drill hole RDO 97-01 returned 61.2 metres of 1.44 g/t gold and 0.42 per cent copper. (This intersection had a core recovery of only 60 per cent.) The upper 29.8 metres of this hole gave 2.89 g/t gold and 0.42 per cent copper despite only a 36-per-cent core recovery. Channel sampling of an adit 15 metres above this drill hole returned 6.64 g/t gold and 0.21 per cent copper over 25.8 metres. (The gold values intersected in drill holes through the mineralized zone under-represent the true grade because of the poor core recovery. In this case, much of the free gold is hosted by soft, altered volcanics which are easily washed away during drilling.) Firesteel's planned exploration program will be directed toward expanding the known mineralized zone at depth and along strike. This program will involve geological mapping, induced polarization, trenching and soil geochemistry followed by a drill program. Firesteel's immediate objective is to define a world class gold/copper deposit. Previous exploration on Reyna de Oro and adjoining neighbor El Sauzal has shown that this region is capable of hosting this type of very large deposit. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com