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Gold/Mining/Energy : Peruvian Gold Ltd. PVO -- Ignore unavailable to you. Want to Upgrade?

To: kidl who wrote (704)	9/30/1999 5:48:00 PM
From: kidl	Read Replies (1) \| Respond to of 892

Peruvian Gold to expand Silvertip drill program Peruvian Gold Limited PVO Shares issued 14,227,466 Sep 29 close $0.60 Thu 30 Sept 99 News Release Mr. David Henstridge reports The board of Peruvian Gold has approved a $1.15-million budget to immediately undertake the next exploration program at the Silvertip silver-zinc-lead project in Northern B.C. Additional drilling will proceed from underground workings using an existing adit and decline which passes within 100 metres of the mineralization intersected in the recently completed SSD 99-2. This approach will result in considerable savings and increased accuracy compared with deep surface drilling. The project is supported by a fully winterized camp, repair shops and water settling ponds, enabling work to continue through winter. Drilling will commence immediately after receipt of all necessary work permits and dewatering of the adit. The mineralized zone discovered in SSD 99-2 will be fan drilled to test its continuity and orientation. Hole SSD 99-2 yielded an outstanding intercept that assayed 318 g/t silver, 8.65 per cent zinc and 5.53 per cent lead over 31.4 metres. This is the thickest intersection yet encountered at Silvertip and is thought to be the first recognized major intercept of feeder-style chimney mineralization. The significance of this intercept is that chimney-style mineralization, which is normally thicker and more continuous than manto-style mineralization, and constitutes the bulk of the known mineralization at Silvertip, could greatly increase the value of this resource, especially if multiple chimney zones are present. The Silvertip project contains a resource (as reported by Imperial Metals Corporation) of 2.57 million tonnes grading 325 grams per tonne (9.5 ounces per ton) silver, 8.8 per cent zinc, 6.4 per cent lead and 0.63 g/t (0.02 of an ounce per ton) gold, which is equivalent to an in-situ metal value of about $500-million (U.S.) at current metal prices. In April, 1999, PVO entered into an option agreement with IPM over the Silvertip deposit, 100-per-cent owned by IPM. PVO has the right to earn a 60-per-cent interest in the project by spending $5-million over three years with a minimum commitment of $450,000 in 1999. IPM retains the right to earn back a 20-per-cent interest by spending $2-million within 18 months of completion of PVO?s earn-in. In September, 1999, a three-hole deep diamond drill program, which included SSD 99-2, was completed to test three separate untested targets based on geological and geophysical data. The company is now in receipt of assay results from the first drill hole, SSD 99-1, a 250-metre step-out to the southwest from the known mineral resource, which yielded 117 g/t silver, 9.7 per cent zinc and 2.1 per cent lead of manto-style mineralization over 3.22 metres. This intersection represents a substantial expansion of the mineral system and increases the potential for discovery of additional resources as the mineralization remains open in all directions. ¸ Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com