PLEASE PROVIDE COMMENTARY ON THIS RELEASE
ONE MILLION OUNCES (NEWS)
NTERNATIONAL WAYSIDE GOLD MINES LTD
("IWA-V;IWYGF-L") - New Mineral Inventory Calculation -
One Million Ounce Resource
J. Frank Callaghan, President, on behalf of the Board of Directors
of International Wayside Gold Mines Ltd. (the "Company") is
pleased to report the results of the recent Mineral Inventory
Calculation for the Company's 100% optioned Cariboo Gold Project at Wells, British
Columbia
completed by Geologic Systems Ltd. of New Westminster, British Columbia. Since
completing the
first Mineral Inventory Calculation in September 1997, additional drilling has increased
the total
uncut gold inventory 300% to over one (1) million open pitable ounces of gold, above
the 4200 foot
elevation on the side of Cow Mountain. A similar gold inventory is indicated in the down
dip
continuation of the open pitable mineralized zones to 3900 feet and beyond. The results
of the new
calculation show a substantial improvement in the tons and grade available for mining.
Three different cutoffs are shown as Management is considering the most economical
way to mine,
i.e. bio/heap leach or conventional milling methods. Two result tables are shown; an
uncut, in which
all assays were used and a cut, in which assays over 0.5 oz Au/t were cut to 0.5 oz Au/t
for the
block calculation. Assays that were cut were then restored to the block that contained
the drill hole.
This ensures that high grade, which is present in the deposit, is included in the calculation
but
prevents the high grade intersections from being used to calculate any of the surrounding
blocks.
Management considers this to provide a reasonable accurate resource estimate.
At a 0.01 oz Au/t cutoff there is an uncut inventory of;
Measured
(Proven) tonnage 14,073,295 tons @ 0.069 oz Au/t for 971,057oz
Indicated
(Probable) tonnage 2,764,773 tons @ 0.048 oz Au/t for 132,707oz
Inferred
(Possible) tonnage 1,698,864 tons @ 0.054 oz Au/t for 91,739oz
Total tonnage 18,536,932 tons @ 0.064 oz Au/t for 1,194,831oz
At a 0.02 oz Au/t cutoff there is an uncut inventory of;
Measured tonnage 8,603,409 tons @ 0.104 oz Au/t for 894,754oz
Indicated tonnage 1,615,341 tons @ 0.072 oz Au/t for 116,304oz
Inferred tonnage 911,364 tons @ 0.089 oz Au/t for 81,111oz
Total tonnage 11,130,114 tons @ 0.098 oz Au/t for 1,093,520oz
At 0.03 oz Au/t cutoff there is an uncut inventory of;
Measured tonnage 5,955,114 tons @ 0.140 oz Au/t for 833,716oz
Indicated tonnage 996,591 tons @ 0.103 oz Au/t for 102,598oz
Inferred tonnage 485,795 tons @ 0.146 oz Au/t for 70,926oz
Total tonnage 7,437,500 tons @ 0.135 oz Au/t for 1,005,686oz
When cut to 0.5 oz Au/t at a 0.02 oz Au/t cutoff there is;
Measured tonnage 7,780,114 tons @ 0.071 oz Au/t for 552,388oz
Indicated tonnage 1,536,932 tons @ 0.059 oz Au/t for 90,678oz
Inferred tonnage 884,091 tons @ 0.060 oz Au/t for 53,045oz
Total tonnage 10,201,136 tons @ 0.068 oz Au/t for 693,306oz
The difference between the two overall grades is the result of the cutting, which is
severe; given the fact
that previous mining has shown that the high grade material does exist. Additional work
is required in
order to establish the true resource which should lie between the uncut and cut values.
In addition,
blocks accounting for a total of 47,443,182 tons could not be calculated within the
model as no
composites could be found within the search distances. It can be reasonably assumed
that 5% or 2.3
million tons of this material would become part of the resource, if the grade distribution
remained the
same. Finally an additional 7 to 10 million tons of resource has been identified below the
4200 foot to a
depth of 3900 feet, which is 100 feet below 15 level. This resource is the down dip
continuation of the
mineralized zones and has not been drilled by the Company, it is reasonable to believe
that an
additional million ounces is in this area.
Geologic Systems Ltd. is now proceeding to calculate a mineable resource calculation
by putting a pit
around the block model. Once the economic mining parameters have been determined,
this calculation
will be used to produce a mineable reserve required for a feasibility study.
The resource was calculated by using a standard industry approved geological
controlled inverse
squared distance block model method. The following assumptions and dimensions are
used in the
calculation.
- Block sizes used measured 25 ft. wide by 25 ft. long by 10 ft.
vertically.
- All assays from 374 drill holes were used to calculate 10 foot
vertical composites. Unassayed intervals were assumed to be zero
grade.
- Two types of composites were calculated: Uncut and Cut. Cut
composites were calculated by cutting all assays over 0.5 oz Au/t
to 0.5 oz Au/t
- Three classifications of resource were calculated based on
distances from the block center to assay composites.
MEASURED 50 feet wide by 50 feet long by 20 feet vertical
INDICATED 75 feet wide by 75 feet long by 30 feet vertical
INFERRED 100 feet wide by 100 feet long by 40 feet vertical
All composites found within each of the areas are used to
calculate the grade of an individual block.
- A tonnage factor of 11 cubic feet per ton was used.
- Each block was identified as being within or outside the
mineralized zone. Such that only composites belonging to the same
geology as the block, were used to calculate individual blocks.
- The block model calculation was from 4740 feet to 4200 feet
(13 level) in elevation.
- Total number of blocks in model is 225,421.
Work resumed at the Cariboo Gold Project January 11, after the
Christmas break. The work plan for 1999 exploration will include:
- The computerized 3D model of the Cariboo Gold Project will be
updated with all the new information included. A new enhanced pit
design, and 3D model of the BC Vein will be included in the model.
- A bulk sample will be taken for metallurgical testing, including a
bottle-roll and column analysis for a bio/heap leach study at
Lakefield Research Laboratories.
- An application will be submitted to the B.C. Provincial Government
to start the Environment Assessment process to obtain a mine
permit.
- 1500 Level (4,000 elevation) rehabilitation and underground
drilling will be undertaken to evaluate the additional resource
indicated by the new Mineral Inventory.
- 10,000 feet of surface drilling on the BC Vein will be completed:
as only 600 feet of the exposed 2,400 of strike length has been
drilled.
- Mapping and channel sampling of the two new targets Black Bull and
Canusa Veins which lie parallel to the BC Vein.
- 5,000 feet of surface drilling will be completed on the Wells
mineralized trend, which is parallel to the open pit zone.
- A 20 km soil geo-chemical survey will be completed around
Barkerville Mountain
- A surface exploration program on Cow Mountain will be undertaken
to locate and trace the limestone band which is the host rock for
the higher grade replacement ore.
TEL: (604) 669-6463
International Wayside Gold Mines Ltd. FAX: (604) 669-3041
J. Frank Callaghan, President NORTH AMERICA TOLL FREE: 1-800-663-9688
INET :
www.wayside-gold.com EMAIL: info@wayside-gold.com
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