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Eaglecrest Explorations Ltd.
November 2, 1999 12G #82-603
NEWS RELEASE #99-21 EEL-VSE
SHARES OUTSTANDING: 39,906,763
New "Green" Quartzite Unit Yields
Multiple Visible Gold Occurrences
Eaglecrest Explorations Ltd. reported today that multiple occurrences of visible gold are being encountered in diamond drill holes testing the company?s 100 percent owned San Simon gold project in northeastern Bolivia. The significance of visible gold is noted in preliminary assay results where five occurrences returned values ranging from 2.15 grams to 33.2 grams per tonne.
The company said that assay results from an initial eight holes that are testing a recently defined "green quartzite" geological structure over a strike length of 940 metres are expected to be completed in two to three weeks. Visible gold has been noted in all eight holes drilled to date in the green quartzite package with occurrences ranging in depths from 23.5 metres to 143.6 metres. From one to 12 gold occurrences per hole has been noted in drill core logging. The favourable zone is open down dip and along strike both to the east and to the west where geochemical, geophysical and geological evidence outlines a combined anomaly for an additional two kilometres.
Eaglecrest said hole ESS 99-17, currently being drilled south to north to test the width of the green quartzite unit, has encountered 12 occurrences of visible gold throughout the approximate 45 metre true width intersection of the green quartzite.
Visible gold occurrences were noted in the green quartzite at the following intervals:
TABLE 1: Visible Gold Occurrences in the Green Quartzite Unit
Hole
Number of Occurrences
Interval (m)
Hole
Number of Occurrences
Interval (m)
ESS 99-09
9+90W, 2+75S
1
43.65
ESS 99-13
4+48W, 2+30S
6
51.3 ? 104.8
ESS 99-10
0+50W, 2+65S
1
23.5
ESS 99-14
5+50W, 2+60S
5
26.4 ? 92.1
ESS 99-11
1+68W, 2+48S
7
24.4 ? 110.2
ESS 99-15
6+50W, 2+25S
4
94 ? 122.3
ESS 99-12
3+50W, 2+27S
10
41.1 ? 143.6
ESS 99-17
3+50W, 3+50S
12
70 ? 108
The company said that 16 holes totaling 1,798 metres have now been completed in the current drill program. The first series of holes, ESS 99-01 to ESS 99-04 were drilled within a "tan-quartzite" which contains less vein density than the subsequently identified more favourable green quartzite. Although three of these holes were abandoned in sand seams, several intersections of potential significance were encountered, including the bottom of hole ESS 99-02 which intercepted the now interpreted favourable green quartzite at a depth of 118.9 metres to the bottom of the hole at 121.9 metres. The three metre intersection of ESS 99-02 which encountered the green quartzite unit returned assays of 16.86 g/t.
Full assay results are set out below.
Table 2: Assay Results
Hole #
Bearing/Dip
Total Depth (m)
From
(m)
To
(m)
Length
(m)
Results
(ppb)
Results
(g/t)
ESS-99-01
1350/-450
134.5
67.0
77.5
10.5
3,091
3.09
including
73.0
74.0
1.5
21,325*
21.33
ESS-99-02
1350/-450
121.9
10.5
12.0
1.5
1,072
1.07
ESS-99-02
22.5
27.0
4.5
2,787
2.79
ESS-99-02
64.5
67.2
2.7
1,372
1.37
ESS-99-02
118.9
121.9
3.0
16,856*
16.86
including
118.9
120.4
1.5
33,201*
33.2
ESS-99-03
1350/-450
19.8
Failed to reach target depth, abandoned in sand seam
ESS-99-03A
1350/-450
57.9
Failed to reach target depth, abandoned in sand seam
ESS-99-04
1350/-450
89.9
59.0
66.5
9.0
1,478
1.48
including
60.5
62.0
1.5
2,147*
2.15
including
62.0
63.5
1.5
6,309*
6.31
ESS-99-04
Failed to reach target depth, abandoned in sand seam
*- denotes occurrence of visible gold
All analysis is being performed by ITS Bondar-Clegg at its laboratory in Oruro, Bolivia. The core is being sawn into 1/3 and 2/3 fractions, with the 2/3 fraction being sent to the laboratory for full sample metallic screen analysis. The correlation between the positive assay results and the occurrence of visible gold appears to confirm that the assay technique now being used is better able to account for the "coarse gold" or "nugget" effect which is thought to have affected the assay results from the 1996 drilling program.
Eaglecrest said that it is continuing to work on a geologic model that suggests the San Simon plateau hosts structurally controlled Pre-Cambrian-aged gold mineralization extending over a district scale area. The company plans future exploration of a gold bearing conglomerate and other stockwork and veining systems on its extensive land holdings in the area.
The initial focus has been on assessment of the bulk tonnage, near surface target extending along strike from the guarampero-exploited Paititi pit. The current drilling is testing two distinct gold-bearing models ? the flat-lying quartz stockwork hosted in the green and tan quartzite units and a newly identified shear structure that contains a quartz vein ? crackle breccia which appears to define the southern boundary of the green quartzite. Work to date has now confirmed that the Paititi pit and the surrounding area contain two distinct size populations of gold, a coarse fraction and a fine fraction.
The geological, geochemical and geophysical work completed to date indicates that the south bounding thrust fault (shear zone) is mineralized. Shear zone mineralization is observed on the surface, along line 15+00W, and contains auriferous quartz veining. Eaglecrest has collected one, two-tonne bulk sample from the shear that recovered 6.80 grams of gold (3.40 g/t). The shear zone has been observed on line 15+00W and in the bottom of the holes undercutting the Paititi pit as well as in several of the holes west of the pit including holes on line 9+90W (ESS 99-09), 14+00W (ESS 99-08) and 20+00W (ESS 99-05). When intersected at depth, the shear zone appears as a strong, silica-flooded quartz vein crackle breccia zone with 20-30% quartz stringers. The shear zone now appears continuous from the Paititi pit to line 20+00W, a distance of 2.0 km. The shear zone mineralization occurs perpendicular to the Paititi mineralization and therefore cannot be properly drill tested by holes orientated to test the Paititi sheeted auriferous stockwork vein system. Assay results from the holes testing the western extension of the shear system also are expected within two to three weeks.
The company is encouraged by not only the results of the drill and bulk sample analysis received to date, but by the visible gold occurrences from the balance of the holes testing the favourable horizon within and to the west of the Paititi pit. The on-going drill program will continue to test the width of the favourable horizon as well as testing down dip and the eastern and western extensions of the gold-bearing strike length. The company noted that two holes in the current program, ESS 99-06 and ESS 99-16, were drilled to the north of the prospective zones and did not encounter the favourable horizons. Hole ESS 99-07 was collared south of the shear zone system and thus failed to intersect the target.
A full technical discussion of results to date, including maps and bulk sample results, is being posted on Eaglecrest?s web site: eaglecrestexplorations.com .
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On behalf of the Board of Directors,
"Gary Cope"
Gary Cope
President
For further information contact Investor Relations at (604) 684-9384, toll free 1-888-456-1112,
email at <corpdev@mnxltd.com> or visit the company?s web site at eaglecrestexplorations.com .
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release |
