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Gold/Mining/Energy : Donner Minerals (DML.V) -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (6853)	8/28/1998 8:47:00 AM
From: kidl	Read Replies (1) \| Respond to of 11676

OFF TOPIC - Denstone NR: Chinese exploration contract Denstone Minerals Ltd DSL Shares issued 2,177,279 Aug 27 close $0.24 Fri 28 Aug 98 News Release Mr. Daniel Sung reports Denstone Minerals has entered into a sino-foreign economic contract to evaluate a 1,500 square kilometre area in Guandong Province, China and to explore for base and precious metals. The Chinese partner is Team 706 of the Guandong Bureau of Geology and Mineral Resources. Team 706 previously completed in 1996 a regional stream sediment geochemical survey over the entire region, district-scale grid soil geochemical and EM geophysical surveys at two locations, and some drilling in the area. The geophysical surveys and drilling were confined to the Dagougu-Xinzhou Mining District where gold is presently being produced from underground vein deposits and placers. Work by Team 706 also identified the potential for contact metamorphic base metal-gold mineralization in the northwest corner and for gold deposits in the east central portion of the exploration area. The Dagougu-Xinzhou District in the north-central portion of the exploration area has been the focus of historic gold mining in the region. A government sponsored mining company is presently extracting and recovering gold from about 40 tonnes of ore per day from one vein, and numerous independent miners are prospecting and producing from shallow veins and placer gravels. The district contains an estimated 12 kilometre strike length of veining and altered, mineralized shear zones which have been surficially mined in places, but remain to be systematically explored and tested at depth. Mineralization in the Dagougu-Xinzhou District is characterized by free gold with pyrite in albitized mylonite, and by younger quartz veins with gold accompanied by pyrite, arsenopyrite and minor base metal sulphides. The host rock is Cambrian and Sinian mica schist, quartzite and phyllonite. Mineralization occurs along both low-angle thrust faults and high-angle reverse faults. In the Taoyuan District in the northwest corner of the exploration area, numerous north-south trending granodiorite dikes intrude Devonian to Pennsylvanian calcareous marine metasediments. Several steeply dipping quartz veins occur in the vicinity of the dikes. The veins have yielded grab samples of ore-grade auriferous quartz, and grab samples containing up to 16 per cent combined Pb-Zn-Cu. The veins have not been systematically sampled. The entire district will be explored for contact-metamorphic type, bulk mineable base metal-gold deposits. Little is known of the Yuba gold prospect in the east central portion of the partnership's exploration area. Geology at Yuba is largely obscured by soil and colluvium. Through trenching, guandong Bureau of Geology Team 706 has been able to trace a shear zone in mica schist and sandstone at the prospect along a strike length of 700 metres. Weathered rock samples from the shear zone were hydrothermally altered and geochemically anomalous in gold. Team 706 has drawn parallels between the shear zone and its altered, mineralized rock and features at the Hetai mine (50 tonne gold reserve), about 100 kilometres to the southeast. Hetai and Yuba occupy the same regional geologic structure and are hosted by the same rock formation. Their similarities warrant further exploration at Yuba. Under the terms of its agreement with bureau of Geology Team 706, Denstone has the right to explore for base and precious metals in the area of interest for five years. Denstone may earn up to a 70 per cent interest in any discovery by investing $3.8-million (U.S.) in exploration work. Denstone may gain additional equity in the property by providing further financing for mine development and plant construction. Denstone is presently acquiring and evaluating data for the area. Once the data evaluation has been completed, management will determine whether or not to proceed with exploration activities on this property. c Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com