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Gold/Mining/Energy : CORNUCOPIA RESOURCES CNP.t -- Ignore unavailable to you. Want to Upgrade?

To: Ed Fishbaine who wrote (139)	2/26/1998 12:24:00 AM
From: Lhn5	Respond to of 336

Here is the text: Bonanza Grade Gold Intercept Reported From Cornucopia's Ivanhoe Property VANCOUVER, British Columbia, Feb. 25 /PRNewswire/ -- Andrew F.B. Milligan, President and Chief Executive Officer of Cornucopia Resources Ltd. (Nasdaq: CNPGF) (TSE: CNP) is pleased to announce highly encouraging assay results from select vein intercepts in three of six core holes recently completed by its joint venture partner, Great Basin Gold Ltd., operator of the Ivanhoe project located on the Carlin Trend, Nevada. Great Basin is earning a 75% interest in the property by spending US $2.8 million on exploration. The initial drill program consisted of a fence of six vertical holes drilled on 25 foot spacings across an area of known, gold-bearing feeder structures. This program was designed to test the feeder structures at moderate depths before drilling down through Valmy Formation rocks towards potential high-grade, lower plate, carbonate-hosted gold deposits at greater depth. Great Basin utilized the latest drilling technology to obtain excellent core recovery and successfully complete all holes in an area where historic drilling produced either poor sample recovery or resulted in lost holes. To prevent potential sample bias and maximize sample size, whole core was taken, under the supervision of Chemex Labs Ltd., from select intervals in three of the six core holes. Assay result highlights from 134.7 feet of the whole core samples analyzed are listed below, while the balance of results from 2,246 feet of core utilizing half core for analysis are expected in March. Drill From To Intercept Hole (feet) (feet) (feet) IH-002 961.5 994.7 33.2 incl. 968.0 976.0 8.0 also 984.5 990.0 5.5 IH-003 975.4 984.7 9.3 IH-004 607.1 617.7 10.6 incl. 613.1 617.7 4.6 634.5 647.1 12.6 Intercept Gold Silver (metres) (oz./ton) (g/tonne) (oz/ton) (g/tonne) 10.12 0.132 4.53 3.2 110 2.44 0.243 8.33 1.8 62 1.68 0.178 6.10 13.4 460 2.83 0.278 9.53 2.1 72 3.23 4.964 170.23 47.8 1639 1.40 11.130 381.69 103.4 3546 3.84 1.635 56.07 39.0 1337 Further drilling of the gold-rich feeder structures is required before true width calculations can be accurately completed. Careful core logging and detailed microscopic and microprobe analysis indicates that the high grade gold-silver mineralization intersected in Valmy Formation rocks in this initial drilling is very similar to the recently discovered Ken Snyder Mine located 15 miles northwest of Ivanhoe on the Midas Property owned by Franco-Nevada and Euro-Nevada Mining Corporations. Most importantly, the Valmy mineralization at Ivanhoe and the Midas system are both characterized by coarse-gold as electrum with locally abundant silver mineralization occurring as naumannite and aguilarite within finely banded quartz veining. A recently announced high grade intersection from the Midas Property was 3 feet grading 12.91 oz gold per ton and 65.73 oz silver per ton; a result similar to Great Basin's drill hole IH-004. At Ivanhoe the potential for the Valmy Formation to host a mineralized system similar to the underground Ken Snyder Mine is very significant. Although the Ken Snyder deposit is contained within a narrow corridor of multiple veins averaging only 3 to 5 feet thick, the current mineable reserves calculated at US $300 per oz gold and US $6 per ounce silver, are 2.17 million tons, grading 1.04 oz gold per ton and 11.65 oz silver per ton containing 2.25 million ounces of gold and 24.3 million ounces of silver. In today's environment of depressed gold prices, the importance of having "quality ounces" is obvious. At Midas, the US $84 million, 500 ton per day Ken Snyder Mine is scheduled for commercial production in mid-1999 at a rate of 250,000 ounces of gold equivalent per year. Cash operating costs are forecast to be under US $80 per ounce, which will make the Ken Snyder Mine one of the lowest cost gold producers in the world. At Ivanhoe, nearly 900 historic holes have delineated a near surface, 3 million ounce gold mineral inventory in the Hollister Resource area. Although very few of these drill holes penetrated down to the underlying Valmy Formation, 34 holes (mainly reverse circulation drilling) intercepted at least 5 feet grading +0.20 ounces gold/ton in Valmy rocks across an area measuring 3,600 feet by 2,800 feet. The recognition of these Valmy intercepts as possible Ken Snyder-style mineralization points to the high potential for the delineation of an extensive, high-grade Valmy gold-silver system on the Ivanhoe Property. Now that the significance of the discovery has been recognized, the joint venture partners plan to aggressively pursue exploration of the Valmy system and make it a primary target for extensive drilling. In addition, extensive, work to date on the property continues to show excellent potential for discovery below the Valmy Formation of a classic, carbonate-hosted Carlin-type deposit as found elsewhere along the Carlin Trend. In the coming months, the Ivanhoe Property will be explored for both Ken Snyder-style systems in upper plate Valmy rocks and for deeper Post-Betze-style analogues in lower plate carbonate rocks. The Company also announces that Robert F. Dunlop has resigned as a director. Mr. Dunlop has retired from active business and has taken up residence in Cyprus. Cornucopia also owns and operates the Mineral Ridge Gold Mine in Esmeralda County, Nevada where mining operations have been temporarily suspended but residual leaching and the production of gold continues. SOURCE Cornucopia Resources Ltd. CO: Cornucopia Resources Ltd. ST: British Columbia IN: MNG SU: 02/25/98 18:43 EST prnewswire.com To edit your profile, go to keyword NewsProfiles. For all of today's news, go to keyword News.