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Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?

To: Paul-D who wrote (1435)	10/10/2000 5:48:15 PM
From: Nick Morvay	Read Replies (2) \| Respond to of 4409

Corner Bay's final column results higher than expected Corner Bay Minerals Inc BAY Shares issued 11,541,109 Oct 6 close $2.35 Tue 10 Oct 2000 News Release Mr. Peter Mordaunt reports Final column leach tests on the company's 100-per-cent-owned Alamo Dorado silver/gold deposit in Sonora, Mexico, have confirmed the viability of heap leaching ore at the project. In fact, test results received last week indicate that recoveries will be higher than the assumed values used in the MINTEC inc. expanded resource and reserve prefeasibility study recently completed. The column leach test work was carried out by Metcon Research Inc. of Tucson, Ariz. Samples for this program came from large diameter diamond drill core collected by the company in the fall of 1999. All drill cores were shipped to the Metcon research facility in Tucson where Metcon prepared the composite samples. All analyses were completed by Metcon at its facilities in Tucson. Recoveries, for gold and silver, are sensitive to crush size. The final results reported here are for material that was sized to 100 per cent passing three-eighths. Two composite samples created from the drill core and placed under leach are reported in the following table: Table of column leach results (with low grade and high grade) Leach Column time Ag Au sample (days) Recovery Recovery Phase I pit composite 206 75% 76% Overall composite 207 67% 77% Interpretation of results Phase 1 pit composite (with low grade and high grade) Metcon reports that the phase I pit composite has yielded 76 per cent gold and 75 per cent silver recovery over 206 days. The phase I pit composite is representative of material to be mined during the initial years of production. Phase I material in the MINTEC study assumed recoveries of 70 per cent for silver. An additional 5 per cent as determined by the column test will have a significant impact on the economics of the deposit. Although gold recoveries of 85 per cent were assumed in the MINTEC study, the lower value has little economic impact given gold represents a small by-product contribution for the deposit. Overall composite (with blended low grade, mid-grade and high grade) The overall composite with low-grade, mid-grade and high-grade samples has yielded 77 per cent gold and 67 per cent silver in 207 days. The overall composite material in the MINTEC study assumed recoveries of 65 per cent. An additional 2 per cent will also have a positive impact on the economics of the deposit. Again, gold recoveries of 85 per cent were assumed in the MINTEC study. The lower value has little economic impact given gold represents a small by-product contribution for the deposit. This column contained low-grade material (10 to 25 grams AgEq per tonne) that is now considered as waste in the MINTEC study. Separate column tests for high-grade, mid-grade and low-grade materials are currently being leached to determine if recoveries could be increased particularily for mid-grade by removing the low-grade material. These columns are also looking at the effect of height (columns six metres high) on leaching. Preliminary results have shown there appears to be no effect on height. Future work at Alamo Dorado The results of this metallurgical test program reported by Metcon indicate that heap leaching at Alamo Dorado is technically and economically feasible. Based on these positive results, the company is now in a position to advance planning for development of an open-pit, heap leach, silver/gold mine. The company recognizes a fundamental need to strengthen the management team with respect to mining and has initiated a search for key individuals who would develop a bankable feasibility study which would lead to mine construction and ultimately, mining operations. In addition, the company believes significant exploration potential still exists on the property and is planning to continue aggressive exploration on the property during the development of the bankable feasibility study. An expanded resource and reserve prefeasibility study on the Alamo Dorado project was recently completed by MINTEC inc. of Tucson, Ariz., in September, 2000. That study indicated a resource of 118 million ounces of silver and 448,000 ounces of gold and a reserve containing 106 million ounces of silver and 394,000 ounces of gold. Corner Bay's management is extremely encouraged by these preliminary results and is pursuing financing to complete a bankable feasibility and allow for continuing exploration at the project. Peter Mordaunt has been elected chairman of the board of directors upon the resignation of J.T. Flanagan. Mr. Flanagan remains as a director of the company. (c) Copyright 2000 Canjex Publishing Ltd. stockwatch.com