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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: Mike Gold who wrote (14071)	5/19/1999 9:22:00 AM
From: Handshake™	Respond to of 25548

Wednesday May 19, 8:55 am Eastern Time Company Press Release Caledonian Signs Chilean Agreements; Cenizas Porphyry Gold Project; Milagro Epithermal Gold Project; Resguardo Skarn and Shear Hosted Gold Project VANCOUVER, BRITISH COLUMBIA--Caledonian Pacific Minerals N.L. is pleased to announce the signing of a Letter of Intent with Fremont Gold Corporation [OTC BB:FGLD - news] to explore the Cenizas, Milagro and Resguardo Gold Projects within the world renowned copper-gold belts of northern Chile. Under the terms of the agreements Caledonian can earn a 75 percent interest in Cenizas, 80 percent interest in Resguardo and 55 percent interest in Milagro by completing the next stage of exploration. Caledonian will be the operator on all projects. Cenizas The Cenizas Gold Project is a large property covering some 13,000 hectares, located on the southern section of the West Fissure Fault Zone, a regional geological structure in northern Chile that hosts some of the world's largest copper/gold deposits including El Salvador, Escondida, Chuquicamata, El Abra and Collahuasi. This part of Chile is the most productive copper province in the world, and the gold content of the copper deposits is known to increase progressively toward the south. Significant gold is now being produced in the El Salvador-Potrerillos district 100 km south of the Cenizas property. This area of the West Fissure Fault has recently become the focus of attention for companies exploring for large copper and gold porphyry systems and there are currently a number of active exploration projects in close proximity to Cenizas. The property is underlain by Jurassic to Cretaceous marine sedimentary, volcanic and volcaniclastic rocks which have been intruded by Tertiary monzonitic to dioritic stocks with large-scale porphyry style hydrothermal alteration exhibiting the potential for large bulk-mineable gold mineralisation. Although there are no old mine workings on the Cenizas property there are a number of old silver and base metal mines peripheral to the project area. Gold mineralisation was first discovered at Cenizas in 1993 by Rio Tinto Mining and Exploration Ltd (''Rio Tinto'') following a regional geochemical program along the West Fissure Fault. Work by Rio Tinto has consisted of geological mapping, geochemical sampling, geophysical surveys, trenching, short rotary drill holes and twenty-three deeper reverse-circulation drill holes. This work has been successful in defining two broad areas of highly anomalous gold mineralisation known as the Cenizas and Nueve Vidas zones. Gold is hosted by quartz! -sericite-clay altered volcaniclastic and dioritic endoskarn lithologies. Results of trench sampling by Fremont at the Nueve Vidas zone includes 42 m @ 1.00 g/t, 28 m @ 1.10 g/t and 4 m @ 6.6 g/t gold. This gold mineralisation appears to continue to the west under shallow gravel cover where enzyme leach geochemistry, completed by Fremont, has started to define a large gold anomaly untested by drilling. Resguardo The Resguardo project comprises approximately 5,300 hectares and covers a 9 km segment of the Atacama Fault, a regional structure and one of the most important metallogenic structures in northern Chile. Gold mineralisation at Resguardo is hosted by retrograde altered skarn within and adjacent to the Atacama Fault Zone. After a program of surface sampling and trenching identified strong gold anomalies in several zones, Fremont completed a total of 1,000 m of diamond and 4,000 m of RC drilling. This program identified a zone of gold mineralisation at least 700 m in length, which is open both along strike and downdip. Additional drilling is necessary to determine the strike, depth and width extensions of the system. Follow up drilling is also warranted in other target areas where drill intercepts of up to 21.25 m averaging 4.04 g/t Au remain to be fully evaluated. Apart from the main shear zone other targets on the property have not been tested; one of these is the intrusive contact at the base of the skarn sequence where mineralisation may extend laterally from the main shear and feeder structures. There are also a number of copper showings at Resguardo both to the north and particularly to the south of the area drilled by Fremont that require detailed evaluation. The Resguardo project area is underlain by a sequence of volcanic, volcaniclastic and carbonate rocks of probable Jurassic age which have been intruded by a Cretaceous granodioritic to tonalitic plutonic complex and a younger generation of mafic dikes. The property is bisected by the north-south trending Atacama Fault Zone, a near vertical system of anastamosing shears and brittle fracturing within an older, broader zone of ductile deformation characterised by extensive mylonite development. In the project area the Atacama Fault Zone justapoxes altered skarn and quartz-chlorite-tourmaline mylonite to the east and unaltered quartz-biotite mylonite to the west. The brittle portion of the Atacama Fault Zone is the primary control of alteration and mineralisation and has an average width of 200 m on the property. Work by Fremont has been focused on a 4 km segment of the Atacama Fault Zone in the central part of the property where numerous shallow pirquinero (local small scale mine! rs) workings follow narrow high grade structures. Surface sampling and trenching indicate that strongly anomalous gold mineralisation also extends out into altered wallrocks between high grade shears where early prograde skarn associated with the Cretaceous intrusives is replaced by a chlorite-carbonate-epidote-sericite rich assemblage. This retrograde, gold bearing alteration is most strongly developed within and immediately adjacent to the Atacama Fault Zone. In addition to the strong structural control there also appears to be an association of higher grade mineralisation with more calcium rich skarns (or more calcareous protoliths) in proximity to the Atacama Fault Zone. Drilling to date has tested only targets within the main shear zone. Potential also exists for blind mineralisation in favorable skarn horizons extending laterally away from the main shear and along the intrusive contact. Milagro The Milagro property is located approximately 100 km south of Resguardo in the southern part of the Atacama desert in northern Chile. Gold mineralisation occurs in flat lying tuffaceous rocks that have been mined historically by both open cut and underground methods at several locations. These old workings are exposed in both sides of at least one valley over a distance of greater than 1 km. The lack of veining or other obvious high grade structures suggest that mineralisation is disseminated in pervasively altered specific stratigraphic units. Although mining has generally occurred over widths of 2 to 3 meters, the alteration and mineralisation appears to extend over much greater widths. Local small miners have mined several thousand tons of material from the old workings and typically they require at least 3 g/t gold to break even. The mineralised horizon appears to extend under shallow cover to the north, south and west. Several hundred meters to the east of the old workings, there are signs of strong epithermal mineralisation in close proximity to an extensively altered intrusive. Preliminary work has identified lithologies interpreted to be indicative of the upper and peripheral positions of an epithermal system. The gold mineralisation occurs in footwall rocks to a major thrust fault in which a silica flooded breccia in the upper plate appears to have sealed a hydrothermal system. On behalf of Caledonian Pacific Minerals N.L. Terence J. O'Leary, Managing Director Graeme Rabone, Chief Operating Officer (M Aus IMM FAIG Dip App Geol) -------------------------------------------------------------------------------- Contact: Kim Oishi & Associates Ltd. - North America Kim Oishi (604) 682-8030 1-888-553-6777 (604) 682-8034 Email: Kim@koaltd.com Website: www.caledonian-pacific.com or Caledonian Pacific Minerals N.L. - Australia Terry O'Leary + (07) 5531 7359 + 61 75531 7359 (International) + (07) 5531 5899 Email: minerals@fan.net.au or Caledonian Pacific Minerals N.L. Graeme Rabone + (07) 5531 7359 + 61 75531 7359 (International) + (07) 5531 5899 Email: minerals@fan.net.au --------------------------------------------------------------------------------