Here's a company with some exciting things on the go!
Ecuadorian Minerals Corporation -
Ecuadorian arranges $2,225,000 private placement
Ecuadorian Minerals Corporation
EMC
Shares issued 44,910,951
1999-04-07 close $0.53
Thursday Apr 8 1999
Mr. Stephen Kay reports
Ecuadorian has arranged non-brokered private placement with private investors
which will provide funds to the company of $2,225,000 (approximately
$1.5-million (U.S.)). Under the agreed-upon terms, the company will issue a total
of 4.45 million units at 50 cents per unit. Each unit consists of one share and one
warrant exercisable for three years at 60 cents for the first year, 80 cents for the
second year and $1 for the third year. A finder's fee commission of 4 per cent of
gross proceeds is payable in units (178,000 units) to an arm's length third party
with respect to this financing. Closing of the placement is expected to occur by the
end of April. Proceeds will be used for drilling at the Vetaspata gold project in
Peru and the Beroen gold-silver project in Ecuador, for exploration activities in
Peru and Ecuador and for working capital for general corporate purposes.
Vetaspata, Peru
Situated about 300 kilometres east of Cuzco in southeastern Peru, EMC has
discovered, during an initial sampling program, high-grade gold mineralization at
surface and in underground workings within a stacked series of flat-lying horizons
(mantos) contained within sediments (see Stockwatch Dec. 8, 1998). To EMC's
knowledge, this style of gold mineralization has not been previously identified in
southeastern Peru. Eighty-seven rock panel samples from the three known mantos
in the immediate mine area averaged 16.6 grams per tonne gold over an average
width of 1.0 metre. Extensive sampling of underground workings by EMC
reported 54 metres at 17.9 g/t gold (uncut) in the Rosario adit and 32 metres at
39.7 g/t (uncut) in the Calisaya adit. Individual gold values within the underground
workings range from 3.6 g/t to 184.0 g/t and visible gold is present in several
samples. Extensive Spanish colonial workings (both open pit and underground)
are situated within 500 metres of the adits and appear to have mined the
host-rock sediments but not the mantos. Additional exploration work is required
to define the target of the Spanish workings.
The initial primary area of interest, as outlined so far, covers 700 metres by 500
metres as part of a 60 square kilometre property position. Surface cover in the
area is extensive and the full extent of the mineralized zone is not known at this
time, although other gold-bearing mantos have been identified on the property.
EMC intends to carry out a 1,500 metre core drilling program comprising eight to
10 drill holes which is expected to start in late June or early July. This drill
program will evaluate the continuity of the mantos away from the underground
workings and will also test for additional manto horizons at depth below the
known mantos.
Beroen, Ecuador
Situated in southwestern Ecuador, the property covers an extensive, epithermal
gold/silver system (the Beroen deposit) that persists for a strike length of
approximately 1.8 kilometres, is 800 metres wide and spans approximately 1,000
vertical metres (see Stockwatch June 10 and Oct. 14, 1998). High-grade,
bonanza-style gold/silver mineralization occurs within veins, silicified zones and
breccias. In addition, based on EMC's surface geochemical sampling results, there
is potential for bulk-mineable, multimillion ounce, precious metal mineralization
within the volcanic sequence.
In 1997, Rio Tinto carried out extensive surface rock geochemical sampling and
completed approximately 6,000 metres of core drilling but only partially tested
three of the nine known mineralized zones. Rio Tinto's drill results included
intercepts starting at surface of 34.5 metres at 12.3 g/t gold and 109 g/t silver
(LLP-9) and 27 metres at 10.4 g/t gold and 103 g/t silver (LLP-10). A formal
gold resource or reserve estimate was not completed by Rio Tinto.
A total of over 900 surface rock samples collected by Rio Tinto from the nine
known mineralized zones within the overall Beroen deposit gave an average value
of 2.5 g/t gold, with a high of 113 g/t gold. On the undrilled San Luis concession,
two major mineralized zones (designated Minerva and Alejandra) along a 350
metre trend averaged 11.1 g/t gold and 49 g/t silver from 65 surface rock
samples. The San Luis concession, immediately north of the high-grade intercepts
in LLP-9 and 10, was not drilled by Rio Tinto because drill permits had not been
acquired for that concession at the time of their drilling program.
Recent EMC surface rock grid sampling on the San Luis concession indicates that
the Minerva and Alejandra zones form part of a much larger area of alteration and
mineralization covering approximately 850 metres by 750 metres which is still
open to the north, northwest and northeast. Highly anomalous gold, antimony,
mercury and arsenic values within the volcanics in this area appear to result from
leakage of possible significant precious metal mineralization at depth. Geophysical
data (chargeability and resistivity) generated by Rio Tinto also indicate the
presence of an extensive altered and mineralized zone within this same area.
Approximately 800 metres to the southwest of the San Luis concession, in the
Dorada zone on the Canoas concession, Rio Tinto collected 130 rock samples
within a 200 metre by 200 metre area which averaged 6.3 g/t gold (with a high of
159 g/t). Again a major chargeability and resistivity geophysical anomaly was
identified by Rio Tinto in this area. Three vertical drill holes, on the margins of the
sampled area, did not adequately test the subvertical, mineralized, high-grade
structures in this zone. Vertical drill hole LLP-16, however, reported 40.5 metres
at 1.7 g/t gold and 12 g/t silver (including 13.9 metres at 3.1 g/t gold and 15 g/t
silver) within the host-rock volcanics but did not cut the high-grade, subvertical
mineralized structures.
EMC is planning a 1,500 metre core drilling program comprising eight to 10 drill
holes to test the high-grade mineralized structures at San Luis and Dorada
together with the area of highly anomalous geochemical values on the San Luis
concession. Drilling is expected to start this summer following completion of the
Vetaspata drill program.
Pursuant to the financing, the common shares and the warrants (together with the
shares deliverable upon the exercise of the warrants) have not been, and will not
be, registered under the United States Securities Act of 1933, and may not be
offered or sold in the United States absent registration under such act or
compliance with an applicable exemption from such registration requirements.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
old url (better for printing)
|
