Corner Bay receives Alamo Dorado drill results
Corner Bay Minerals Inc
BAY
Shares issued 10,941,109
1999-11-01 close $1.75
Tuesday Nov 2 1999
An anonymous director reports
Corner Bay has completed its results from six infill holes at Alamo Dorado,
additional assays from nine newly extended holes, as well as assays from two
wildcat holes drilled several hundred metres northwest of the main mineralized
zone.
COMPARISON OF 1998 AND 1999 DRILL
PROGRAM RESULTS, ALAMO DORADO PROJECT
Section Width Silver Gold
(metres) (g/tonne) (g/tonne)
Old New Old New Old New
30OS* 86.0 100.5 73.3 94.2 0.22 0.21
250S 227.0 78.7 0.23
200S 128.5 206.5 87.0 84.2 0.26 0.30
150S 161.0 79.2 0.40
100S 134.8 162.8 70.4 52.9 0.30 0.24
050S 147.0 36.8 0.14
00 94.5 129.5 52.3 37.6 0.15 0.12
05ON 118.5 41.9 0.11
10ON 96.8 109.8 34.9 36.8 0.13 0.17
----- ----- ---- ---- ---- ----
Avg. 108.1 151.4 65.3 62.7 0.22 0.22
% change 40% -4% 2%
COMPARISON OF 1998 AND 1999 DRILL
PROGRAM RESULTS, ALAMO DORADO PROJECT
Silver Grade X
Section Equiv. Thickness
(g/tonne) (g Ag-equiv. X m)
Old New Old New
30OS* 85.4 105.8 7,344 10,628
250S - 91.4 - 20,736
200S 101.3 100.7 13,017 20,795
150S - 101.2 - 16,293
100S 86.9 66.1 11,714 10,761
050S - 44.5 - 6,542
00 60.6 44.2 5,722 5,724
05ON - 48.0 - 5,682
10ON 42.1 46.2 4,070 5,067
---- ---- ----- ------
Avg. 77.4 75.0 8,374 11,359
% change -3% 36%
*Deep, relatively narrow/low-grade intercepts not included in averages.
The infill and extension program at Alamo Dorado has proven highly successful.
The average width of the mineralized zone has increased approximately 40 per
cent, compared with the 1998 program. At the same time the grade has held
essentially steady -- previously (see the company's note of July 24, 1999), the
company was somewhat skeptical of the high grades included by the company in a
so-called starter pit zone. The new drilling has borne out the original very
impressive grades. Taking all the new data together, the grade-thickness
calculations suggests an addition of over 35 per cent. The previous resource
calculation did extend the estimated resource up to 5O metres below the bottom
of the drill holes, so the company expects that the increase in tonnage may be less
than the 40 per cent suggested below.
The company does note, however, that the new drilling has indicated that the
mineralized zone may extend to the northwest (widths of 20 metres to 120 metres
at grades of approximately 20 grams per tonne Ag-equivalent). In addition there is
apparently a deeper mineralized zone underlying the main Alamo Dorado zone.
Three holes encountered this mineralization, with widths of 20 metres to 50 metres
at grades around 30 g/t Ag-equivalent. Though the present grades are far from
spectacular, the presence of additional mineralized zones offers hope for further
expansion of the project.
What's next?
The next few months should include a steady stream of news from the company.
First, the company anticipates the release of a revised resource estimate within the
next two to four weeks. This should show a healthy (up 25 per cent) increase over
the previous global resource of 65 ounces of silver (plus gold). At the same time
the company expects the company to provide some updated economic
parameters on projected capital and operating costs. These will likely be based on
previous estimates of heap leach recoveries, which, as the company indicate
below, are now the key issues for Alamo Dorado.
Large diameter core drilling for metallurgical testing has started, with, the company
understands, one hole already complete. The drill core will be used for crushing
and column leach tests to determine the suitability of the deposit for heap leaching.
Previous minicolumns, using crushed reverse circulation drill cuttings suggest that
the silver and gold are leachable. The question is whether acceptable recoveries
can be achieved with attainable crush sizes.
If the Alamo Dorado ores do respond well to heap leaching, the deposit appears
to have very compelling economics. The company would expect life of mine cash
costs (on a silver-equivalent basis) of less than $2.50 per ounce, and capital (also
life of mine) of less than 50 cents per ounce, making this one of the better precious
metal projects the company is aware of at the prefeasibility/feasibility stage.
Conclusion
As additional data has become available, Alamo Dorado has continued to
improve. If the metallurgical testing yields positive results the company expects the
project to proceed rapidly to development -- either with Corner Bay, or with an
acquirer of the company. The company maintains its BUY recommendation.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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