Hmmmmmmmm don't tell me this is the fund we were waitng for...lol!!!! :-)
Thursday June 22, 9:48 am Eastern Time
Company Press Release
Dayton Mining Receives Final Receipts From Securities Commissions
ENCOURAGING RESULTS FROM EL DORADO DRILLING
VANCOUVER, B.C.--(BUSINESS WIRE)--June 22, 2000-- Financing
Bill Myckatyn, President and CEO of Dayton Mining Corporation (AMEX:DAY - news; TSE:DAY - news) reports that on Friday, June 16, 2000, Dayton Mining received receipts from the securities commissions for the prospectus relating to its Cdn $9.0 million special warrant financing.
In accordance with the terms of the financing, the proceeds from the special warrants will be released to Dayton five business days following Dayton receiving these receipts. The special warrants will be exercised, without the payment of additional consideration, by the holders for a total of 4,090,909 common shares of the Corporation. The net proceeds of the offering will be used for the advancement of the El Dorado project and for general working capital purposes. Total shares outstanding after this issuance will be approximately 31.1 million.
El Dorado Project
On April 6, 2000 Dayton acquired Mirage Resource Corporation, which has four exploration licences in the country of El Salvador. The most advanced of these projects is the El Dorado project. Based on previous work and over 42,000 meters of drilling, the El Dorado project has been estimated to contain an indicated and inferred mineral resource of approximately 4.2 million tonnes grading 6.73 grams per tonne (g/t) gold and 49.22 g/t silver, equivalent to approximately 900,000 ounces of gold and 6.6 million ounces of silver.
Within this mineral resource is a high-grade area known as the Minita Vein System (Minita, Minita 3 and Zancudo veins) is comprised of 1.3 million tonnes grading 10.95 g/t gold and 74.59 g/t silver containing 457,000 ounces of gold and 3.1 million ounces of silver. The Minita Vein System is the target of Dayton's Year 2000 surface drilling program.
New York and El Salvador Mining Company Inc. commenced mining and milling activities on the El Dorado property in June, 1948. Four levels were developed and serviced by two vertical shafts. Total production during the five years the mine was in operation was approximately 270,200 tonnes, grading 9.59 g/t gold and 52.61 g/t silver. A total of 72,487 ounces of gold and 355,123 ounces of silver were recovered during this period.
A pre-feasibility study was completed on the project in 1995 by James Askew Associates, Inc. Since acquiring the project Dayton has been reviewing and evaluating historical data and formulating a development plan to advance the project to the feasibility stage.
El Dorado Update
Dayton has received results from the first three (3) holes, D00-190, -191 and -192, of a thirteen (13) hole drilling program at El Dorado. This program was designed to confirm and expand the resources in the Minita Vein System. The results from the first three drill holes provide additional confidence on the continuity and quality of gold mineralization within the vein system and are shown in the table below:
Drill Results from Hole Nos. D00-190, -191 and -192
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Hole From To Downhole True Gold Silver
Number (m) (m) Length Width Grade Grade
(m) (m) (g/t) (g/t)
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D00-190* 227.80 235.40 7.60 5.3 23.81 144.11
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D00-191* 231.20 240.80 9.60 7.30 12.98 134.55
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Includes 231.20 234.55 3.35 2.55 28.20 307.75
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D00-192** 240.40 252.10 11.70 7.5 20.48 130.10
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Includes 240.40 245.20 4.80 3.08 37.44 232.30
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Includes 250.55 252.10 1.55 1.00 33.61 230.45
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* Intercept includes both Minita and Minita 3 veins ** Intercept
includes Minita vein only
Bill Myckatyn, Dayton's President and CEO, states: ``We are extremely pleased with the progress of Dayton's exploration work on the El Dorado property and the early results from the program. Dayton is committed to advancing the El Dorado project to feasibility if justified by new exploration work and the economic conditions.''
Dayton's Year 2000 work program on the El Dorado property consists of spending a minimum of US $834,000 for surface core (HQ) drilling, metallurgical testing, environmental studies, and property maintenance expenditures. The initial 13 hole drilling program is estimated at 3,605 meters and targets the Minita Vein System immediately below the old mine workings. The program is on schedule and expected to be completed in late August 2000. The drilling program is being supervised by Dayton's Project Manager, Robert Johansing, Project Geologist, David Turner and consulting geologist, Carl Hering. Core samples are being assayed by Cone Geochemical, Inc. in Denver, Colorado.
Dayton's strategy for the El Dorado project is to evaluate the feasibility of a 500 tonne per day underground mine and mill operation. Once the initial drilling is completed and depending on results, the program may involve developing underground access for additional drilling, if economics justify. Alternately, additional drilling from surface is likely. The highest grade and thickest ore occurs within the epithermal 'bonanza' or 'boiling' zone of the Minita, Minita 3 and Zancudo veins between 450 and 900 feet below surface.
Studies will include additional metallurgical testing on new core composites, evaluation of alternative processing options, and establishment of mine and plant design criteria. Dayton has contracted Gochnour and Associates of Denver, Colorado to review and assess the environmental baseline studies and make recommendations for proceeding with project development toward completion of a Feasibility Study.
The Mining Law and the Environmental Law in El Salvador are relatively new and are untested by the mining industry. Dayton's representatives in El Salvador have been working with the government in the formulation of modifications to the Mining Law. Bill Myckatyn and Robert Johansing, Project Manager of El Dorado met with the Vice President and with the Minister of Economy of El Salvador in March 2000 and both offered their support and encouragement for the development of the El Dorado project by Dayton.
Dayton Mining Corporation holds a 100% interest in the Andacollo Gold Mine in central Chile, a 49% interest in the Denton-Rawhide Gold-Silver Mine near Fallon, Nevada and a 100% interest in the El Dorado Gold property in El Salvador.
``Safe Harbor'' Statement: The statements, which are not historical facts contained in this release, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from targeted results. These risks and uncertainties include but are not limited to significant declines in precious metals prices; currency fluctuations; increases in production costs; differences in ore grades, recovery rates, and tonnes mined from those expected; changes in mining, or heap leaching rates from currently planned rates; the results of current exploration activities and new opportunities; and other factors detailed in the Company's filings with the U.S. Securities and Exchange Commission.
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Contact:
Diane Thomas Garrett, Vice President,
Corporate Development and Investor Relations
604/662-8383 |
