NEWS RELEASE
Alliance Pacific Gold Corp -
Year end property review
Alliance Pacific Gold Corp APGShares issued 125036271998-04-14 close $0.34Wednesday Apr 15 1998Mr Brian Lueck reports During the past year, the company continued to expand its asset base through the acquisition of new properties and to enter into joint venture agreements with major companies. Alliance Pacific has joint ventured projects with Cyprus Canada (now Kinross Gold Corp) and Teck Exploration in the Yukon Territory and the Philippines, respectively. These projects are optioned for a total work commitment of approximately $18 million. The company is in the final stage of negotiation with several other companies for joint venture activities in the Philippines. In Indonesia, a heap leach mine permit has been issued to commence production from the surface oxide deposit, and a 2500m drill program has been commenced with drill mobilization currently under way. This confirms the quality of the properties being sought by the company and enables the company to further expand its asset base through the development of these properties. The Buduk gold deposit, Indonesia, continues to be exciting. The Buduk KP has been issued a mining lease from the Indonesian government, which includes the right to heap leach mine. It is the first heap leach permit ever issued in Kalimantan. The company has also entered into an agreement with MRA Consultants whereby MRA will mine the eluvial gold resources and upon assignment of the company's rights, MRA will grant to Alliance an 8% carried profits interest in any mining operation undertaken by MRA on the eluvial resources. The company still retains 100% of its interest in any hardrock deposits on the property. The Buduk gold deposit has been successfully mined since the late 1800s by Dutch, Chinese and British miners. Significant old mine workings can be found throughout the property. Presently, there are nearly 100 local miners successfully mining gold from the surface oxide deposit. Geological data to date suggests that all of these areas may comprise a single stratabound zone which occurs as a domal structure centred at Buduk Hill. The gold mineralized zone is hosted by coarse volcanic tuffs with a distinctive fossil shell horizon associated with the gold. This horizon occurs in all areas where gold has been noted to date. A potential resource of 1.5 to 3 million ounces is the exploration target for the next drill program. The objective of this program is to drill test strong coincident resistivity and IP anomalies which indicated a stratabound formation with high sulphide content. These anomalies produce three east-west trending zones which extend over 1,400 metres. The three anomalies along each line extend between 100 and 300 metres in the north-south direction. All anomalies are to be tested with the highest priority given to the extremely strong southern anomaly. Yukon Territory Kinross is expected to continue exploration, as the company's joint venture partner on all of its large porphyry gold properties in the Yukon Territory. This arrangement does not include the Plata silver mine which Alliance Pacific continues to develop itself. Kinross is a large company with the financial assets and the technical expertise to advance the project. Alliance has invested close to $3.0 million in exploration to date. Cyprus's commitment to spend a further $4.0 million is an endorsement of initial work. Cyprus has expanded the land position significantly and is awaiting the results of its testing program conducted last summer. The Plata-Inca property is a well known, gold-rich, silver deposit in the Mayo Mining District, Yukon Territory. Approximately $250,000 was spent on this project during the 1996 field season. The Plata mine property is unique in Canadian mining history in that it was the only significant helicopter and fixed-wing transport operation for raw ore, made possible by its high grade silver ores (150-300 oz/t). To date, 3,500 tons of this high grade silver ore from 11 showings has been shipped to smelters. From 1983-1986, Dawson Eldorado Mines concentrated on exploiting a number of the original 40 showings. The winter exploration program at Plata mine was completed April 7 1998. The exploration program consisted of trenching and shallow drilling of the Plata thrust zone. The aims of the program were to delineate proven reserves of open pittable, direct shippable, high grade ore. Previous drilling, such as DDH No. 4 has indicated such grades as high as 163.34 oz/t Ag and 0.143 oz/t Au over a 0.8m interval, with previously mined ore from this zone grading 105 oz/t Ag and 0.155 oz/t Au. The company anticipates confirming reserves which would generate immediate cash flow through direct shipment to a smelter via a winter road. The Thrust zone which has a strike length of more than 4km is open in both directions. The program is designed specifically to bring the P4 zone into the proven and probable reserves category. The Philippines Projects In August 1997, the company announced the acquisition of four new properties in the Philippines and shortly thereafter announced a joint venture agreement with Teck Exploration which called for Teck to spend a minimum of US$5,000,000 on the Manit property. Teck has committed to pay all expenditures associate with the completion of a feasibility study in order to earn a 70% interest in the project. Subsequently, Teck signed a letter of intent for the Tawi-Tawi project in the Philippines, whereby Teck can earn a 70% interest in the project by completing a feasibility study on this large copper-gold porphyry deposit. Minimum expenditures to complete a feasibility study are set at US$5 million. Alliance has also entered into option agreements with MRA Consultants to acquire a 100% interest in a number of other gold -copper projects in the Philippines. Lobo/Boneng This copper gold deposit is currently being reviewed by a number of major mining companies which may enter into a joint venture agreement with Alliance on the development of the deposit. The 135 million tonne deposit currently has over 1.57 million ounces of gold as well as 884 million pounds of copper in proven and probable, open pittable reserves. Located north of Manila, in the prime copper-gold mining belt of the Philippines, this deposit is one of the largest unmined mineral reserves in the region. In 1981, exploration work at the Mainit property, conducted by Goldfields Asia, indicated high gold and silver values in strongly silicified outcrops within an extensive alteration zone. Reconnaissance sampling by the Bureau of Mines in 1983 returned assays between 0.20 to 6.0 g/t Au with high silver values. Reconnaissance work for Benguet Exploration, in 1982 obtained averages of 3.39 g/t Au in mineralized silicified rock and 1.73 g/t Au in clay-rich soil over the deposit. The Ag:Au ratio was over 20. Free gold has been noted. In 1981, Goldfields Asia calculated a gold resource potential (based on surface sampling) at Mainit in the order of 30 million to 90 million tonnes containing 3 to 10 g/t Au assuming a 10 to 30 metre surface thickness of good mineralization over an area of one sq km. The metal resource potential for such a target is 3 to 30 million ounces of gold. Kilong-Olao and Bayosen These properties are exposed porphyry copper deposits in Abra Province. Both were last explored (only for copper) in the early 1970s. The prospects are centred on diorite intrusives within an andesitic volcanic terrain. A soil geochemical survey at Kilong-Olao by Marcopper Mining in 1972-73 delineated a north-south oriented 4.5km x 1km copper anomaly with values above 500 ppm. Several smaller anomalies occur a kilometre north of the main one. Marcopper had reported a initial open ended drill-indicated resource of 50 million tonnes of 0.4% copper in the southern half of Kilong-Olao where drilling was focused. Al Magan's review of Marcopper data indicated a resource of 68 million tonnes at 0.32% Cu. The deposit is open to the north as indicated by the soil copper anomaly that extends another 2km north from the drilling. The deposit is open at depth and has unknown gold content. The Bayosen deposit is found 12km due south of Kilong-Olao. Soil geochemical sampling on a 200m x 50m grid by Carpentaria Exploration Company Pty in 1976 delineated a north-south oriented 3km x 1km copper anomaly of between 500 ppm and >2,000 ppm. Copper anomalies of between 500 ppm and 2,000 ppm, but of smaller dimensions, occur immediately around the main one such that the entire width of anomalous ground is about 1.5km. Bayosen has not been tested by drilling but offers strong possibilities for a major copper-gold resource. Malitao is a copper-zinc-gold massive sulphide occurring above unroofed dioritic intrusives, which in turn, may possibly host a largely intact porphyry copper-gold deposit. The main mineralized outcrop is traceable for more than 300m and appears to be a replaced favourable bed that strikes north and dips 10 to 15 degrees to the east. Strong clay and pyrite alteration and silicification with a width of about 20 to 30 metres encloses the mineralization. Main copper minerals are bornite, chalcopyrite and chalcocite. Grab samples by Bureau geologists returned an average of 20% Cu, 8.84% Zn and 1 to 2 g/t Au within the main mineralized zone. The associated pyritic altered zone contained 0.32% Cu. The Mayantoc copper-gold prospect is a highly altered Au-Cu mineralized diorite intrusive over a kilometre across intruding andesitic to basaltic volcanics. Rock chip, float chip, and stream sediment samples indicate a significant anomaly in copper and gold within the diorite intrusive and its general contact area with the volcanics. Reconnaissance work by a private field party obtained results from samples suspected to be gold bearing ranging from 1.96 g/t Au to 6.67 g/t Au and from 1.95 g/t Ag to 10.00 g/t Ag. Mayantoc has not been tested by drilling. The 1990 reconnaissance work by the Bureau of Mines only covered the central section of the tenement. Present information indicates that the Mayantoc property has good potential for the discovery of porphyry-style Cu-Au and/or epithermal gold mineralization. MANAGEMENT TEAM The management team of Alliance Pacific Gold is structured to include geological, financial, legal, and political expertise necessary for the successful acquisition, financing and development of mining ventures throughout the world. The board of directors consists of chairman, J. Douglas Brown (formerly vice-president of Citibank Private Banking, Switzerland); president Brian Lueck, vice-president Colin Johnson; and director Dr Abdullah Basodan, chairman of Nimir Petroleum. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
I cannot believe this stock is trading at 30c.
Mr Metals |
