NEWS RELEASE
International Wayside Gold Mines Ltd IWA
Shares issued 11,697,978 Jan 21 close $0.18
NEWS RELEASE
January 21, 1999
New Mineral Inventory Calculation - One Million Ounce Resource
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 971,057 oz
Indicated (Probable)tonnage
2,764,773 tons @ 0.048 oz Au/t for 132,707 oz
Inferred (Possible)tonnage
1,698,864 tons @ 0.054 oz Au/t for 91,739 oz
Total tonnage
18,536,932 tons @ 0.064 oz Au/t for 1,194,831 oz
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 894,754 oz
Indicated tonnage
1,615,341 tons @ 0.072 oz Au/t for 116,304 oz
Inferred tonnage
911,364 tons @ 0.089 oz Au/t for 81,111 oz
Total tonnage
11,130,114 tons @ 0.098 oz Au/t for 1,093,520 oz
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 833,716 oz
Indicated tonnage
996,591 tons @ 0.103 oz Au/t for 102,598 oz
Inferred tonnage
485,795 tons @ 0.146 oz Au/t for 70,926 oz
Total tonnage
7,437,500 tons @ 0.135 oz Au/t for 1,005,686 oz
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 552,388 oz
Indicated tonnage
1,536,932 tons @ 0.059 oz Au/t for 90,678 oz
Inferred tonnage
884,091 tons @ 0.060 oz Au/t for 53,045 oz
Total tonnage
10,201,136 tons @ 0.068 oz Au/t for 693,306 oz
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.
On Behalf of the Board of Directors,
J.Frank Callaghan,
President
THE VANCOUVER STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN.
FOR MORE INFORMATION CONTACT:
International Wayside Gold Mines Ltd.
Tel: (604) 669-6463 * Fax: (604) 669-3041
North America Toll Free: 1-800-663-9688
Website: wayside-gold.com
E-Mail: mailto:info@wayside-gold.com
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