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Gold/Mining/Energy : Francisco Gold - FGX.V -- Ignore unavailable to you. Want to Upgrade?

To: James N. Wilson who wrote (766)	5/4/2000 7:10:00 AM
From: Cage Rattler	Respond to of 1907

Correct.

To: James N. Wilson who wrote (766)	5/5/2000 9:02:00 AM
From: James N. Wilson	Respond to of 1907

Francisco Completes Agreement to Acquire Montana Gold Corp. Friday May 5 2000 Mr. Randy Reifel reports The company has concluded an agreement to acquire Montana Gold Corp., a private B.C. company. Through staking, Montana has acquired over 6,000 square kilometres of highly prospective mineral concessions along a major structural trend in western Guatemala. Prior to completion, Francisco undertook a due diligence review of Montana and its exploration portfolio. Montana's most advanced asset, the Marlin gold-silver property, was the primary focus of Francisco's technical evaluation. In February, Francisco reported Montana's sampling results from the Marlin gold property. Subsequently, Francisco completed a mechanized trenching and sampling program at Marlin to confirm Montana's assay results. Francisco and Rescan Engineering of Vancouver, B.C., separately collected two metre channel samples from the trenches. Rescan Engineering was contracted to independently check-sample Montana's and Francisco's trenching results. Francisco's samples were assayed at Chemex Labs in Vancouver, B.C., Acme Analytical Laboratories Ltd. of Vancouver, B.C., performed the assay work on the selected sample cuts taken by Rescan Engineering. In addition to Montana's exploration work, Francisco also excavated two trenches 40 meters west of TT1. Trenches TT21N and TT21S are separated by the access road to Marlin. Both trenches returned excellent values with 18 metres of 3.6 g/t gold and 12.1 g/t silver and 14 metres of 15.8 g/t gold and 111.9 g/t silver, respectively. Furthermore, sampling of a 3 metre deep pit dug into the core of the Main Zone encountered an average grade of 16.8 g/t gold and 10 8 g/t silver. On the eastern side of the Main Zone, channel sampling across the footwall of a post mineral fault intercepted 8 meters averaging 19.94 g/t gold and 33.9 g/t silver. These results suggest that the mineralization has been displaced as a down-faulted block. New trenching in the periphery of the Main Zone and along the Don Pancho-Don Tello structural corridor has delineated low grade mineralization including 16 meters of 1.06 g/t gold and 3.1 g/t silver, 30 metres of .71 g/t gold and 16.2 g/t silver, and 18 metres of .55 g/t gold and 7.5 g/t silver. Further work is planned to determine the extent of the large, low grade, mineralized halo that exists around the high grade core of the Main Zone. Overall, the Marlin district hosts over 10 square kilometres of strong argillic alteration which has yet to be explored. Recently, a new mineralized target was discovered 1.5 kilometres along strike southwest of the Main Zone. The new target covers an area of 600 metres by 200 metres with strong alteration including quartz veins and quartz stockwork breccia. Initial sampling results have yielded values up to 1.85 g/t gold and 15 g/t silver. To acquire Montana, Francisco has agreed, subject to regulatory approval, to amend the terms of the agreement that were originally announced (news release 01-2000). Francisco will now issue 650,000 shares instead of the previously reported 600,000 shares for the acquisition of Montana. Up to an additional 1.45 million shares will be issued on a sliding scale arrangement based on the mineable ounces (gold equivalent) that are discovered on Montana's properties. In the event of a change of control in Francisco, Francisco will now issue 350,000 shares (previously 300,000 shares) to the extent additional shares are not yet issued per the sliding scale arrangement. On a fully diluted basis, Francisco has agreed to issue a total of 2.1 million shares to Montana should 2.0 million mineable ounces (gold equivalent) be drill indicated on their properties. In preparation for a drill program, Francisco is currently constructing a base camp and upgrading the access road to Marlin. Francisco plans to commence an exploratory diamond drill program on Marlin's Main Zone within 30 days. Work to date an the Main Zone has delineated a mineralized area measuring 350 metres by 200 metres. Additional mapping and sampling together with an induced polarization geophysics survey is also planned to advance the nearby Los Cochis Zone and Don Pancho-Don Tello structural corridor to the drill ready stage. (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com