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Newsflow GMG schould begin in next days for two weeks IMO
Waiting for contract and 101-43 ;)
German BB short it minimum since two weeks.
Gulfside Minerals to acquire Monster coal property
2007-06-21 14:42 MT - News Release
Mr. Robert Card reports
GULFSIDE ACQUIRES 'MONSTER' COAL PROPERTY
Gulfside Minerals Ltd. has signed a letter of intent with a private Mongolian company leading to the acquisition of the Monster coal property located in southwestern Mongolia. The Monster property, so named because of the presence of massive coal seams up to 100 metres thick, is located about 430 kilometres southwest of the capital Ulan Bator and within 200 km of the Chinese border. The property is 82 km to the railway and six km from a 35-kilowatt electric power line.
The history of the property dates back to 1963 with the first surveys conducted under the direction of Russian geologists. More work was done in 1986 to 1987 by the Russians when a large amount of coal was noted. In 2006, the present owner caused a number of holes to be drilled to test the coal-bearing layers. The depth of the drill holes were between 74 m and 240 m and intersected four coal seams with the total thickness of coal of between 41.5 m and 94.9 m. Additional holes show even thicker coal seams with the largest intersection of 129.3 metres. The potential reserves will be more fully integrated into the picture during a planned coal scoping study and a National Instrument 43-101 reserve study report. The property is estimated to contain up to 550 million tonnes of coal in the Mongolian C category and a much larger potential reserve of 2.5 billion tonnes in the possible and probable category. The area of the C category reserves is about 6.5 million square metres and 29 million square metres cover the possible/probable area of the deposit. Coal from this area sells for $20 to $40 per tonne. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
The company will be conducting additional drilling over the summer to determine reserves for a qualifying NI 43-101 report.
The coal deposit has a strike length in a southeasterly direction of 16 to 18 km and a width of six to eight km. It occupies a large area of Erdenetsogt hollow and Gobi-Gashuun dry land, which covers most of the territory of Altanshiree Soum. The coal deposit is ideal for the planning of a very high capacity open pit mine with coal quality and production capacity suitable for shipping to China by truck and train in very large amounts. The location lends itself as the fuel source for a large power generating operation. Another consideration is for coal to liquids production such as diesel and gasoline and research into the "holy grail" of the coal industry which is the in situ gasification of coal with the resulting gas being used in numerous applications.
The company has an agreement to acquire a 50-per-cent interest in a private company set up to hold the lease with an option to acquire an additional 16-per-cent interest within one year for a total of 66 per cent. A sliding scale royalty of 3 to 5 per cent is payable on production. The company will be the operator of the project. More details will be available after review of the transaction by the TSX Venture Exchange. Dr. Marc Bustin, PhD, PEng, is the company's NI 43-101 qualified person on this project and has reviewed this news release.
Project generation
The company is in the process of filing for additional leases with substantial previous exploration results which complement the presently owned Erdenet and Khentii projects.
Denison Mines gets resource estimate for Hairhan JV
2007-03-13 07:56 MT - News Release
Mr. Peter Farmer reports
DENISON ANNOUNCES NI 43-101 RESOURCE ESTIMATE ON HAIRHAN DEPOSIT IN MONGOLIA
Denison Mines Corp. has received an independent resource estimate on its Hairhan deposit within its Gurvan Saihan joint venture in Mongolia. Denison holds a 70-per-cent interest in the GSJV with the government of Mongolia, which holds 15 per cent, and the Russian government, through Geologorazvedka, which holds the remaining 15 per cent. The GSJV was formed in 1994 under a unique mineral agreement with the government of Mongolia. The estimate was prepared by Scott Wilson Roscoe Postle Associates Inc. in accordance with the requirements of National Instrument 43-101.
The GSJV currently has licences encompassing approximately 750,000 hectares and comprises the Hairhan, Gurvan Saihan, Choir, Ulziit, Urt Tsav and Hokh Tolgoi projects. The following resource estimates cover only the Hairhan deposit and the Haraat deposit, located within the Choir project area. In addition to the 70-per-cent-held GSJV properties, Denison holds a 100-per-cent interest in five other properties: Bayankhongor, Tsagaan Ovoo, Gobiguulin, Gobiguulin-2 and Gobiguulin-3, comprising 322,580 hectares.
In the report titled "Technical Report on the Uranium Exploration Properties in Mongolia" dated Feb. 27, 2007, Scott Wilson RPA estimated the Hairhan mineral resource detailed in the accompanying table using a cut-off of 0.1 metre per cent (grade times thickness, or GT) over a minimum of one metre. The average thickness of the indicated resources is 5.2 m and of the inferred resources is 5.7 m.
HAIRHAN CURRENT MINERAL RESOURCE ESTIMATE
SCOTT WILSON ROSCOE POSTLE ASSOCIATES INC.
Tonnes Grade U3O8
Category (000s) % U Tonnes U (million lb)
Indicated 4,726 0.064 3,036 7.9
Inferred 1,848 0.073 1,341 3.5
EAS went through a long dry spell about this time last year too. I am not sure why the volume disappears so dramatically in the late winter. The company remains active and the results they are reporting are very good. I just hold it and forget it, its a drawer stock, but I do consider buying more when the stock takes these nosedives, because I am pretty sure it will just plow ahead to set a new high later this year.
cheers!
COACH247
Somebody wants out of EAS really bad today.
I think the financials are on Sedar now. Wait and see is probably a good idea for now.
It seems to me that the market is more influenced by fear of loss from a potential nasty surprise with EAS, than they are motivated by greed based on the impressive drilling results that continue to be reported. Since the company admitted they will be filing their financial reports late, and also that our current president Lynden Bradish has resigned from his position of president of another mining company to avoid the possibility of a conflict of interest, the stock has been drifting lower. The trouble is that the trading volume has always been very low on this one, and they do not aggressively promote the story, so when a few players decide to take profits, it translates into a big drop in the market value. I am still bullish on the company, and have been tempted to wade in and buy more on the dips, but it certainly seems to me that the consensus opinion is 'wait and see...' I spoke with Bradish briefly in Vancouver last month, and I have no reason to think that anything is going off the rails with the company. I have to believe that as long as they continue to post strong exploration results that will eventually generate some buying.
cheers!
COACH247
Asia Gold fights Gobi ninjas; prepares for drilling
2006-02-16 09:29 ET - News Release
Mr. David Owens reports
ASIA GOLD TO DRILL TEST HIGH-GRADE GOLD VEINS AT NARAN BULAG, MONGOLIA; 'NINJA' SMALL-SCALE GOLD MINERS CLOSED DOWN
Asia Gold Corp.'s first drilling program to test the Naran Bulag high-grade gold quartz vein system is scheduled to begin in March. The Naran Bulag exploration licence is owned 100 per cent by Asia Gold. The veins were discovered by Asia Gold in August, 2005, and a seven-kilometre trenching and rock-channel sampling program was completed in November, 2005 (see news release in Stockwatch dated Jan. 23, 2006).
Naran Bulag is in the Gobi region of southern Mongolia, approximately 350 kilometres west of Ivanhoe Mines' giant Oyu Tolgoi porphyry copper-gold deposit and 60 kilometres southwest of Asia Gold's Khongor porphyry copper-gold discovery.
The first stage Naran Bulag drilling program will include approximately 2,500 metres of reverse circulation (RC) drilling and 1,000 metres of core drilling to test high-grade gold that was previously sampled at surface in the A-C, B and D quartz veins. A Universal 650 drill operated by Major Drilling will be used for both the RC and core drilling. A close-spaced RC drill hole grid pattern and an RC hole diameter of 133 millimetres will be used to optimize the sampling of the coarse-grained gold in the quartz veins downdip of the surface outcrop. Diamond drill holes will test for structural continuity and tonnage potential of the vein system.
Asia Gold also will continue exploration of two new veins discovered during the trenching program on the main veins in October, 2005, and November, 2005. Three representative three-kilogram rock grab samples from the South vein, located about 500 metres south of veins A-C and D, have assayed 20.0 grams per tonne (g/t), 6.5 g/t and 1.2 g/t gold. The White Hill vein, located about two kilometres west-northwest of the main Naran Bulag vein system, contains visible gold and two one-metre rock chip samples across the vein graded 5.2 g/t gold and 6.9 g/t gold.
Ninja gold miners
The discovery announcement of gold veins at Naran Bulag attracted unauthorized artisanal mining activity from small-scale ninja gold miners. Up to 400 ninjas were reported to be mining the B and C veins following the temporary winter shutdown of Asia Gold's exploration program in November, 2005.
Acting on the advice of local, provincial and state government officials, and with the support of the local police in Noyon soum and West Gobi province, Asia Gold has now established a full-time presence at Naran Bulag to discourage this artisanal mining activity which is unregulated and often carried out in unsafe and environmentally unfriendly conditions. Ninja mining activity has now ceased on the main Naran Bulag gold veins and there is no impediment to the resumption of exploration by Asia Gold in March.
It has been reported that a number of the ninjas that were active on the main Naran Bulag veins have moved on to a quartz vein system about five kilometres to the northeast on ground held by Asia Gold. This discovery will be explored in further in March. Should Asia Gold be successful in establishing conventional mining operations at Naran Bulag, training and employment opportunities will be made available within a local community that has clearly demonstrated an affinity for mining.
Sampling and analytical procedures
All rock samples were prepared and analyzed by SGS Mongolia LLC of Ulaan Baatar, Mongolia. Samples were crushed and totally pulverized to 90 per cent passing 75 microns and all preparation equipment was flushed by barren material after each sample was processed. Gold was determined by AAS following assay of a 30-gram charge. Samples that reported over 13,300 parts per billion (ppb) gold were reassayed by the same method but using different calibration ranges.
Asia Gold conducts a quality assurance-quality control (QA-QC) program that is independent from the analytical laboratory by inserting blind standards, blanks and duplicate samples into all batches of samples for analysis. SGS Mongolia operates an ISO accredited laboratory and is an international subsidiary of SGS SA.
David C. Owens, president, and Richard Gosse, vice-president exploration, both qualified persons as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
We seek Safe Harbor.
East Asia to refine Deren targets with drilling
2006-02-15 09:32 ET - News Release
Mr. Lyndon Bradish reports
EAST ASIA MINERALS REFINES DEREN DRILL TARGETS
East Asia Minerals Corp. has received final geochemical results from surface sampling at its Deren epithermal gold project, located approximately 270 kilometres south of Ulan Bator, Mongolia. Interpretation of these results confirms and reinforces geological drill targets first announced in Stockwatch on Jan. 9, 2006. Drilling and ground geophysics to further refine these targets and identify additional blind targets are scheduled to begin the first quarter 2006.
Observations and sampling indicate that the Deren project contains a large gold-bearing mineralizing system. Recent project mapping identified extensive veining and alteration, with abundant classic high-level epithermal textures such as sinter, bladed carbonate, colloform banding and cockade breccia noted over 6.5 kilometres of strike length. Analyses of chalcedonic veining returned gold values up to 0.55 gram per tonne (g/t) and silver up to 4.8 g/t. Previous sampling from the project assayed up to three g/t gold. Anomalous gold is coincident with high barium values.
Grid sampling of eolian deposits covering much of the project area produced a coherent and significant gold leakage anomaly approximately one kilometre by one kilometre in the southern portion of the known prospect. Quartz veins exposed within this anomaly exhibit textures indicative of slightly deeper erosional levels in the system compared with the northern portion where sinter has been observed.
The company has signed a contract with Major Drilling to complete a 2,500-metre combined RC percussion and diamond drilling program at Deren. In addition, Geomaster LLC will undertake a ground geophysical program consisting of 90 line kilometres of gradient array and more than five kilometres of dipole-dipole IP.
The 6,013-hectare Deren tenement lies within the Undershil belt, an underexplored portion of a large northeasterly trending, Jurassic to Cretaceous age epithermal belt that extends from central Mongolia into Siberia. This belt hosts the Balei deposit in Siberia, a giant 15-million-ounce (15 g/t Au) low sulphidation epithermal gold deposit. The Undershil belt has not been thoroughly explored for gold because most of the known epithermal systems are thought to be related to tin and tungsten systems which only rarely produce significant gold grades. East Asia geologists have discovered that several showings are related to younger, late Cretaceous (Balei) age gold systems.
"These systems are very well preserved and are often overlooked as the erosion level has not exposed the high-grade gold mineralization," commented Michael Hawkins, East Asia's vice-president of exploration. "The gold signature at Deren is exactly what we expected. Vein and gangue characteristics and pathfinder geochemistry indicate that bonanza grades could be discovered at relatively shallow depths. East Asia Minerals is positioning itself as a significant early entrant into exploring this belt and depending on results, Deren could be the first of several projects that will be acquired and tested by the company."
East Asia Minerals' annual filings
The company is pleased to announce that it has filed its audited annual financial statements and management discussion and analysis for the year ended Sept. 30, 2005. These are available for public viewing on Stockwatch SEDAR files.
Erdene Gold to issue three million shares to Xstrata
2006-02-14 09:24 ET - News Release
Mr. Peter Akerley reports
XSTRATA COAL ACQUIRES 9.8% STAKE IN ERDENE
Erdene Gold Inc. has entered into an alliance agreement with Xstrata Coal Canada Ltd., a subsidiary of Xstrata PLC, pursuant to which Xstrata Coal will subscribe for three million common shares of Erdene at $1.00 per share resulting in Xstrata Coal owning a 9.8-per-cent equity interest in Erdene. The transaction is expected to close Feb. 16, 2006, subject receipt of all necessary regulatory approvals.
"This agreement with Xstrata Coal marks a pivotal point in the growth of Erdene and is great news for our shareholders," said Peter Akerley, Erdene president and chief executive officer. "It will allow us to more aggressively test advanced projects and continue with the creation of new opportunities with an initial focus on coal. This partnership combines Erdene's strong pipeline of strategically located, early stage properties in Mongolia with Xstrata's established relationships in Asia and ability to invest in and support world-class projects."
"With this investment in Erdene, Xstrata Coal gains exposure to a strong inventory of projects and a senior management team with established local knowledge of mineral resources in Mongolia. We look forward to working with Erdene in helping advance their many exciting opportunities," said Xstrata Coal chief executive, Peter Coates.
Highlights of the alliance agreement
Xstrata Coal will be granted a first option to enter into a joint venture and earn a 75-per-cent interest in any coal opportunity in Mongolia identified by Erdene by financing all work through completion of a feasibility study. Should Erdene elect to develop or pursue third party participation in any non-coal projects or properties in Mongolia or elsewhere, Xstrata Coal will have a 60-day right to review all supporting project information and, if it wishes to participate in the project, to negotiate the terms of its participation before Erdene may make the opportunity available to another party or develop the property itself. Xstrata Coal will have the right to name a nominee to the board of directors of Erdene. The rights granted to Xstrata Coal under the alliance agreement expire if Xstrata does not maintain a 5-per-cent equity position in Erdene although parties' rights and obligations for any established joint venture survive.
Conference call and webcast
Management of Erdene will hold a conference call at 9:30 a.m. ET today to discuss the agreement and answer questions. Participants can access the call by dialling 1-800-814-4862 or 416-644-3414. The call will also be webcast live at the company's website.
A replay of the call will be available until midnight on March 1, 2006, by dialling 1-877-289-8525 or 416-640-1917 and entering passcode 21177079 (followed by the number sign).
About Xstrata
Coal Xstrata Coal is a wholly owned subsidiary of Xstrata Coal Pty. Ltd., one of the Xstrata PLC group of companies. It is amongst the world's largest producers of export thermal coal and a significant producer of coking coal. Xstrata Coal has interests in a diverse portfolio of over 30 coal mines located in Australia and South Africa with a project in Canada, and employs around 10,000 people, including contractors. Xstrata PLC is a major global diversified mining group, listed on the London and Swiss stock exchanges and is listed in the FTSE Top 50. The group is headquartered in Zug, Switzerland, and has approximately 24,000 employees worldwide, including contractors. Xstrata maintains a meaningful position in six major international commodity markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The group's operations and projects span five continents and eight countries: Australia, Canada, South Africa, Spain, Germany, Argentina, Peru and the United Kingdom.
We seek Safe Harbor.
Hi Coach
Any idea what's causing the weakness in EAS ?
With the results they've had I am surprised you can still buy it under a dollar.
Hi Ed!
No problem at all, and please feel free to cut and paste anything that I post elsewhere. I think EAS been overlooked by most investors and it is a quality story that will only get better. By the time the high paid promo people get to work, it will cost a lot more for retail investors to buy into the story, so hopefully a few will read the post and get enough of an overview to check it out for themselves.
cheers!
COACH247
Asia Gold Intersects 70 Metres Grading 0.67% Copper and 0.16 g/t Gold at Khongor, Mongolia
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 9, 2006) - Asia Gold Corp. (TSX VENTURE:ASG) is pleased to announce highly encouraging results from the initial drilling program to test the recently discovered Khongor porphyry copper-gold prospect. The program consisted of five HQ-size diamond drill holes totaling 935 metres and was completed in December, 2005. Khongor is in the Gobi region of southern Mongolia, approximately 350 kilometres west of Ivanhoe Mines' giant Oyu Tolgoi porphyry copper-gold deposit. (see News Release dated October 18, 2005).
Khongor North
Drill holes KPDH-3 to KPDH-5 were drilled beneath the Central Creek quartz stockwork located in Khongor North. KPDH-3 intersected strong zones of stockwork style copper sulphide mineralization from surface to a down-hole depth of 70.3 metres grading 0.67% copper and 0.16 grams per tonne (g/t) gold. This zone includes a higher-grade interval of 21.9 metres (9.1 metres to 31.0 metres) averaging 1.77% copper and 0.45 g/t gold. KPDH-3 was drilled at an angle of -45 degrees.
Drill hole KPDH-4 was drilled at an angle of -80 degrees from the same location as KPDH-3. KPDH-4 intersected 91.7 metres of lower-grade quartz stockwork copper mineralization grading 0.3% copper and 0.03 g/t gold. Drill hole KPDH-5 was drilled at an angle of -45 degrees approximately 60 metres southeast of KPDH-4. Weak copper mineralization occurring throughout the 110.5-metre length of the hole grades 0.15% copper and 0.03 g/t gold.
Khongor South
Drill holes KPDH-1 and 2 were located at Khongor South, approximately 600 metres southeast of holes KPDH-3, 4 and 5. KPDH-1 and 2 were drilled below a 54.0-metre surface rock-chip sample line in East Creek, which had an average grade of 0.72% copper and 0.13 g/t gold. (see News Release dated October 31, 2005). The East Creek drill holes intersected weak copper mineralization associated with crowded feldspar porphyry intrusions.
Hope you don't mind if I copy your post here.
I am going to present the case for EAS.V - East Asia Minerals
First, let me provide some background information. This is a company that is widely regarded to have one of the best management teams of any junior exploration company in the business. All of the senior management team have lengthy past service with established mining companies like Noranda and Anglogold Ashanti, in senior positions directly related to Asian mineral exploration. The credentials of this team are exceptional and no doubt they are also well connected in the Asian sphere of influence, where very often the personal relationships are what drives business deals. The company has a tight share structure, strong cash position, no debt, and an excellent suite of early stage exploration projects in Mongolia, some of which have already posted extremely high grade drilling and sampling results.
Now it is important to put the company story in the wider context of the metals markets. There are wildly differing forcasts for the price range that various metals are projected to trade in, but most analysts agree on one thing: it is Asian demand that will be driving the metals markets in the forseeable future. Some of the best grass roots exploration prospects in the world are to be found in Mongolia, a country that provides a stable, pro-mining environment that welcomes foreign investment. Like any country, there has been some widely reported friction where the pace of development activity has threatened a way of life that has remained almost unchanged for centuries, but the overall atmosphere in the country is supportive of the economic opportunity that new mining projects will provide. Mongolia is most likely going to be the source of much of the resources that China and other Asian nations will demand for their own growth and security.
In regards to copper production, analysts are again widely divided, but a growning realization that is advanced by many is that we are in an era where higher copper prices can be sustained. Contrary to what many have assumed, the expansion of copper production capacity will be about 2 years away before any significant new supplies enter the market, despite the much higher current prices. There is no shortage of money floating around the sector, but the development window to bring new mines into production has become elongated due to bottlenecks in supply of critical machinery, and a shortage of qualified mining personal. It is likely that majors will be interested to deploy some of their cash positions into buying up new deposits that are high grade, large tonnage, and low cost production profiles. This in an industry that thinks in terms of decades, and not over what may happen next year or the year after.
So it is very likely that EAS will get some serious attention from deep pocket senior mining companies. But is important to note that outside of the mining industry, very few people have even heard of East Asia Minerals. There is a lack of promotion by the analysts, and the stock trades thinly with a market cap of under $30 million. To make money trading junior mining stocks, one must be able to speculate on which companies will achieve success to define large new resource deposits, and one must also be right FIRST, before other speculators figure out what is going on. By the time the retail investors ever hear about EAS, the easy money will be made. So lets concentrate on the former...
The flagship property for EAS is the Khok Adar project. The company has identified several high priority targets from sampling and trenching of surface outcrops, and many other targets on the property have never been tested. Yet the small part of the project that is currently undergoing drilling has returned results that are exceptional:
"Highlights include KA-05-08 with 85 m @ 2.11% Cu (including 29m @ 4.85% Cu), KA-05-12 with 90 m @ 1.23% Cu (including 12 m @ 2.34% Cu) and KA-05-14 with 89 m@1.76%Cu (including 11m@ 7.52%Cu)."
http://www.eastasiaminerals.com/userimages/11-02-05%20EAS%20DH%20news%20release-final.pdf
To put those results into perspective, when you have wide intercepts of copper that originate close to surface, then you can define an open pit prospect for a bulk tonnage operation. These deposits will often be economic and profitable with average grades of about 0.45% copper. The deposit also involves polymetallic zones:
"Some of the chalcocite mineralization is hosted in semi-massive to massive pyrite replacement zones associated with the major shear zone. These holes also intercepted significant zones of zinc (43m@ 2.24% Zn in KA-05-21 and 31.5m@1.34% Zn in KA-05-20). KA-04-04, located 1.5km west of this target contained 135.8m@2.04% Zn."
The drill program is still in the early stages to step out the limits of the deposit:
"We have only tested the fringes of this target so we are encouraged by the 200m by 70m zone of copper oxide float over the target. The East Zone 1 target contains supergene-enriched chalcocite copper mineralization. This type of mineralization, along with the wide intercepts of hypogene zinc, may represent the outer edges of a large, zoned, primary copper system which could be the source of the copper in the oxide deposits.”
http://www.eastasiaminerals.com/userimages/12-2-05%20KA%20nr%20final.pdf
So we are at the early stages where an exceptionaly managed junior company is outlining what could amount to a massive, high grade base metal deposit, near surface, and almost no one in the retail investor community is remotely aware of the company. In a nutshell, this is the ideal scenario that every junior mining investor should search for when selecting where they want to put their money.
The reason I am pounding the table on this company today is that the stock has drifted down to a buying range of about a dollar a share, which on the chart represents strong support levels. The mining sector is surging at this point in the cycle, with both copper and zinc surpassing multi-decade highs, and analysts are forcasting short term metals shortages, so deposits rich in those metals are going to be getting attention. And finaly, EAS commenced a larger drilling program before xmas that will begin to supply news flow with drill assay results. If those results continue to be in line with what they have reported to date, then the set-up for EAS to rapidly increase in share value is fantastic. And because the stock is relatively unknown, and trades thinly, any new surge in buying will drive the stock higher very quickly. The time to be positioned for such a run is before the stock gets attention, so that one can be buying at cheap prices and patiently accumulate a position.
I think EAS is going to be one of the premier mining juniors in the years ahead. I have not even mentioned the other properties that are gold, silver, uranium and base metals targets. Also, the company recently closed a PP to raise over $15 million, so they are well financed to aggressively drill the hell out of their projects. I think EAS could become a core holding in a PF of junior prospects, and I doubt the company will be available at cheaper prices than today for any extended period of time in the future. It is worth noting that the last PP was completed at an offering price of $1.25 per share, and the stock is now trading well below that level, so it is unlikely that there will be a flood of cheap paper to drive stock prices lower when that placement becomes free trading in a few weeks.
I have done my best to present the facts on this company as accurately as possible. I would recommend that people who are interested in the company do their own research to verify what I have discussed, and I do not write to recommend the stock or have any promotional relationship whatsoever with anyone connected to the company. But I do endeavor to share the opportunities in the market that I find, and I do not know of a better company that is has a better upside potential, and trades at a lower value.
Cheers!
mike
PS: Voluntary personal disclosure: I have owned shares in EAS since the first PP at 45 cents over a year ago. I have never sold a share, have no plans to do so in the months ahead, and will most likely be a buyer to increase my personal holdings.
_________________
www.smartinvestment.ca
I have been digging through the NRs from earlier this year. The drilling they did last year was in itself exceptional, reporting intercepts of 89m at 2% Copper. They followed up along the same drill fenceline later in the year and hit additional wide intervals of lower grade copper with some intercepts as high as 3% in those cores. With this most recent round of drilling they have succeeded in stepping out the limits to a new zone of much higher grades. They are still basicaly working from surface, and hitting multiple intervals of mineralized zones.
Just for reference, hole KA-05-05 reported a gross metal value equivalent to half an ounce of gold per ton over 56m, and within that interval was a 7m intercept of 1.2 ounce per ton gold equivalent resource worth about $650 a ton at the current prices. This is still a shallow system that will have open pit potential if they can step it out over a larger tonnage, so the probable operating costs to mine it would be in the range of $10-15 a ton, with a low stripping ratio, since the mineralization begins almost at the surface. Management believes they have not hit the highest grade portion of the deposit yet.
What a great start they are off to on this property, and from a prior news release, they have several other high-grade targets to follow up on nearby as well.
The market cap for EAS is getting up there, now over $30 million, but with such spectacular results right off the bat, and so much additional potential, it looks like this property will become a major story. For comparison, the Turquoise Hill project in discovery by IVN, and the surrounding JV with ETG, occurs at much greater depths with lower grades. It is too early to begin comparing Khok Adar with Turquoise Hill, but as they advance the project it could certainly amount to a massive asset value with attractive development potential.
And they still have other projects that have not even been tested yet.
cheers!
COACH247
EAS.V - East Asia Minerals News!
More absolutely off-the-charts results from drilling. It is amazing to me that this company is so far off the radar for investors. With such a small float, and the frequency that they have been able to present high-grade exploration results, this stock should be flying. This only underscores how important it is to have a popular analyst or newsletter writer supporting a company, as it seems that many investors only invest in selections they read about from an advisor. Here is the latest:
East Asia Minerals intercepts 56 meters of 7.40% copper at Khok Adar
VANCOUVER, Sep. 14, 2005 (Canada NewsWire via COMTEX) --
East Asia Minerals Corp. (TSXV-EAS) announced today initial drill hole results from the second stage drilling program at its Khok Adar copper oxide discovery in Bayan Ulgii Province, Mongolia. Several very impressive intercepts of high-grade copper oxide were encountered within the exotic copper zone, including Hole KA-05-05 which intersected 56.0 meters of 7.40% copper and Hole KA-05-06 which intersected 81.1 meters of 4.58% copper.
The phase II drilling campaign, including 16 core holes totaling 2714 meters and 9 reverse circulation holes totaling 954 meters and one combination RC/core hole totaling 171 meters has been completed. Drilling was focused on extending and defining the limits of the exotic copper deposit (herein after referred to as the EC-1 deposit) discovered in 2004 and testing secondary copper mineralization within zones previously identified by Soviet workers. Results (summarized below) have been received from five diamond drill holes and one reverse circulation drill hole. All the holes intercepted significant copper. Holes KA-05-04, KA-05-05, and KA-05-06 are the first holes reported from two fences of holes that were drilled at 50m centers along a section at 020 degrees azimuth and the other at 290 degrees azimuth into the EC-1 deposit. Results form the other holes are pending.
Holes KA-05-01 and KA-05-02 drilled to test copper mineralization at surface have discovered a new copper oxide zone approximately 700 meters east southeast of the EC1 deposit. Hole KA-05-03 was drilled approximately 40m south of KA-04-04 (14m of 2.44% Cu at the base of oxidation) along the strike of Zone 1 to test secondary copper enrichment at depth.
Khok Adar is a structurally controlled copper-silver-zinc mineralized system in Cambrian metasediments that has been overprinted by several later phases of epithermal alteration and mineralization. Much of the known mineralization is part of an exotic copper deposit formed within brecciated quartzites west of a north 15 degrees east-trending structure. Copper mineralization (predominantly as azurite, malachite, cuprite, tenorite, chrysocolla and native copper) fills fractures and pore spaces within the brecciated quartzite. Exotic copper deposits typically form near large, high- grade copper deposits. The source of the EC-1 mineralization represents an important priority exploration target at Khok Adar.
East Asia has an option to acquire a 75% interest in the project which consists of 4 contiguous licenses covering 100,000 hectares. Work to date has been focused on the core tenement. There are an additional 12 known Cu showings/targets within the other three tenements that are currently being investigated.
East Asia Minerals conducts rigorous and continuous QA/QC programs on all projects. Details of the QA/QC protocol can be found on the Company web site at www.eastasiaminerals.com. Mike Hawkins, M.Sc., P.Geo., the designated QP within the meaning of NI 43-101, has reviewed and approves the content of this release.
Click the link for the full table, it doesnt copy well:
http://www.stockhouse.ca/pfolio.asp?page=displaynews&portid=11988&viewid=1&newsid=504330...
Should you wish to receive Company news via email, please email alison@chfir.com and specify "EAS News" in the subject line.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
ETG Entree finds 3.06% Cu over 193.1 metres at Copper Flats
2005-08-04 10:35 ET - News Release
Ms. Mona Forster reports
ENTREE GOLD INC.: HOLE EGD016C ASSAYS CONFIRM CONTINUITY OF HIGH GRADE COPPER MINERALIZATION AT COPPER FLATS
Entree Gold Inc. has released assay results for hole EDG016C, which was reported in Stockwatch on June 28, 2005, to have intersected strong copper mineralization. A 193.1-metre downhole interval, between depths of 1,324 metres and 1,517.1 metres, has now returned average grades of 3.06 per cent copper and 1.08 grams per tonne gold or a copper equivalent grade of 3.75 per cent copper. The hole ended in high-grade mineralization at 1,517.1 metres due to drilling difficulties.
Greg Crowe, Entree's president and chief executive officer, commented: "The assays in hole EGD016C confirm the continuity of high-grade mineralization from the Entree-Ivanhoe boundary northward to hole EGD008, a strike distance of approximately 450 metres. The system remains open to the north and to depth. Ivanhoe Mines Ltd. continues to aggressively evaluate the potential along-strike continuation of the Hugo North copper-gold porphyry system."
Separately, the company reports that hole EGD020, which was collared an additional 450 metres north of EGD008, was lost due to drilling difficulties, before it could test the targeted depth of the potential mineralized system. Ivanhoe has now initiated a new hole (EGD053), located 150 metres north of EGD008 and 300 metres south of hole EGD020, to more conservatively test the continuation of the system and to attempt to avoid drill difficulties due to faulting.
The Ivanhoe earn-in
Under an earn-in agreement announced in Stockwatch in October, 2004, Ivanhoe has the right to earn an interest in approximately 22 per cent (40,000 hectares) of Entree's Lookout Hill property, Mongolia. By the terms of the agreement, Ivanhoe must spend a minimum of $20-million (U.S.) in order to earn any interest in the mineral rights to the project property and may acquire up to a 70-per-cent interest in mineralization above a depth of 560 metres and an 80-per-cent interest in mineralization below a depth of 560 metres by spending $35-million (U.S.). Thereafter, Entree has the right to require Ivanhoe to finance its share of subsequent joint venture costs through to production, to be recovered from production cash flow.
Recent fundraising
In October, 2004, Entree received $4.6-million from Ivanhoe in the private placement to Ivanhoe of 4.6 million units (each comprising a share and a warrant). The warrants were exercisable to purchase an additional 4.6 million Entree shares, at a price of $1.10 each, for two years.
In July, 2005, Entree received $13,875,226 from Rio Tinto PLC (NYSE: RTP)(LSE: RIO.L) in the placement to a subsidiary of Rio Tinto of 6,306,921 units (each comprising a share and two warrants) at a price of $2.20 each. The warrants are exercisable for two years to purchase an additional 6,306,920 shares, half at $2.75 each, and half at $3.00 each.
With the Rio Tinto placement, Entree received an additional $7,778,075 from Ivanhoe when Ivanhoe exercised its 4.6 million warrants at $1.10 and its pre-emptive right to participate in any private placement, by purchasing 1,235,489 units of the $2.20 unit placement.
Entree now has a treasury cash balance of approximately $26-million with which to accelerate the independent exploration of the its large Lookout Hill land position, surrounding Turquoise Hill and the Hugo North extension, and its Ulziit Uul copper gold porphyry target, located 120 kilometres north of Lookout Hill. Entree also continues to evaluate possible acquisitions.
Quality assurance and control
Robert Cann, PGeo, Entree's exploration manager and a qualified person as defined by National Instrument 43-101, is responsible for the preparation of technical information in the company's news. SGS Mongolia LLC prepares the split core at the project site and assays all samples at its facility in Ulan Batar, Mongolia. Ivanhoe's QA/QC program is monitored by independent consultant Dr. Barry Smee, PGeo, and managed on site by Dale Sketchley, MSc, PGeo. Prepared standards and blanks are inserted at the sample preparation lab on the project site to monitor the quality control of the assay data.
I horde it again, grey eyed one. It seems to work now and then. Don't know why. Ah! It's copied wrong in edit. Matt, bad software.. bad bad..
http://www.canada.com/national/nationalpost/financialpost/story.html?id=70c5fe9f-23f3-4401-b8bd-ce63...
Thanks EC, your link doesn't work but I found this...
http://www.canada.com/search/story.html?id=18204329-6621-4995-9b3c-cc5e156d01cd&page=1
New economic era dawns for Mongolia - mining's new frontier
Diane Francis - Financial Post
July 30, 2005
After years of obscure existence sandwiched between Russia and China, Mongolia is coming into its own and what could be the world's biggest mineral rush has western miners racing to get a piece of the action. Diane Francis recently visited the developing country.
SOUTH GOBI, Mongolia - The plane flies over miles of remote dirt roads, wild ponies, camels, goats and the occasional clutch of round tents, or gers, that house the nomadic descendants of Genghis Khan. Two hours out of the country's capital of Ulan Bator the gravel runway of a modern mining camp looms, punctuated by a wooden arch with the Canadian flag flying on top.
This is the exploration site of Ivanhoe Mines Ltd. of Vancouver, which believes it has discovered a gigantic copper and gold deposit here. It is spending US$10-million a month drilling holes, testing results and pouring a gigantic concrete shaft in preparation for production in about two years.
This is Mongolia's flagship mining prospect and has helped spawn a mining boom in this landlocked country of 2.5 million. Terry Ortslan, a Canadian mining engineer and independent research consultant to 15 large North American institutional investors, travelled to Mongolia recently to view a number of mining prospects. "Mongolia is now like Chile was in 1985," he said.
Like Chile, serious challenges must be met to bring about profitable mines in a country without infrastructure. There are issues of power generation, transportation, smelting, water and dust control. Overcoming such obstacles -- and negotiating who's going to pay for what and when -- are what the world's mining companies must do to exploit world-class ore bodies.
Mongolia's government and its advisors are wrestling with infrastructure and revenue issues as they negotiate individual agreements with Ivanhoe and other miners before granting long-term permits.
The process is time-consuming because all stakeholders must be consulted.
"This is what goes on everywhere," said Ivanhoe chairman Robert Friedland. "It is in everyone's interest that the deal is fair to the government and citizens in order to have a sustainable development franchise."
Despite the country's infrastructure shortcomings, the mining world will continue to beat a path to Mongolia because its big draw is proximity to China -- the biggest buyer of metals and minerals and hydrocarbons in the world. But many Mongolians worry this may become a problem if China turns into a marketplace bully.
For centuries, Mongolia was simply a moribund province of China, until 1921 when it became a Moscow-controlled military buffer state. The entire South Gobi, for instance, was a "no-go" military zone until the late 1980s. Foreigners were shot on sight by Soviet troops guarding the border. The Chinese also had dozens of divisions stationed on their side of the border to protect themselves from Soviet marauders.
The collapse of the Soviet Union forced Mongolia out of its servitude. Its communist leadership embraced reforms by opening up its economy and creating a democracy. This strategy was needed, they reasoned, to raise living standards and avoid Chinese domination. A constitution was passed, creating a parliamentary system, and in 1997 it passed the Mongolian Minerals Act which established a level playing field for exploration and production along with generous tax and royalty terms.
And the world's miners came.
Hundreds of companies, including many Canadians, have arrived. By June, 2003, China's newly-minted President, Hu Jintao, visited Mongolia to state that China had no territorial claims on Mongolia and to announce US$300-million in aid to help the financially strapped country build railways, power transmission lines and roads to bring resources down to slake China's enormous economic appetite.
The two governments are involved in infrastructure negotiations, but the Chinese are already building railways and roads right up to the Mongolian border in anticipation of doing big business with their neighbour to the north.
Chinese state-owned enterprises have been exploring here and this year a new lead-zinc mine will open in partnership with the Mongolian government.
"Mongolia looks forward to becoming a mining powerhouse," said Mongolia's Minister of Resources, Lursanvandan Bold, in an interview in his office in Ulan Bator. He spoke flawless English and German to a group of European money managers assembled to learn about the country's mining regime. "Last year, 4% of all exploration dollars spent around the world were invested here," he said. "We are now one of the top 10 exploration destinations in the world and the only Asian country on that list."
Before the 1997 Minerals Act, the country's mining industry consisted of a handful of foreign explorers and a few inefficient Russian mines. Today, there are 6,000 licences for exploration and mining granted to 800 companies. Nearly one-third of its total land mass, which is three times' bigger than France, has been licenced for exploration.
The country is an Asian version of Canada, complete with cold climate, open space, sparse population and resource wealth which includes everything from oil and natural gas to coal, uranium, gold, copper, lead, zinc, rare earth elements, phosphorite and silver. There are also discoveries of massive underground water reserves beneath the Gobi.
So far, Mongolia has done a good job of escaping the fate that has befallen the other resource-rich, but hapless, former Soviet states.
"Mongolia is the poster child of the former Soviet countries. It is not run as a kleptocracy," said Ken de Graaf, a chemical metallurgist and vice-president exploration for Western Prospector Group Ltd. of Vancouver, in an interview in Ulan Bator. "Ivanhoe has a high quality project and is an anchor for these other companies."
Western Prospector obtained the rights to a dormant Russian uranium mine which was closed after the Russian pullout. "They basically got a phone call to come home in 1987 so it was shut down. I grabbed the properties," he said. "Under the Mongolia Minerals Act I have seven years to explore and I have the exclusive right to apply for a mining licence that will last 60 years with an extension possible for another 40 years."
Ivanhoe's Mr. Friedland, who scours the world for opportunities, was attracted to Mongolia as a result of its 1997 legislation. The company explores in several countries and has operating mines in Kazakhstan and Myanmar.
"We went to Mongolia after the country adopted a Canadian-style mining law that guarantees tenure," said Mr. Friedland.
The land where Ivanhoe made its discovery became available after BHP Billiton World Exploration Inc. of Australia, walked away from its higher risk plays in 47 countries in the mid-1990s. Ivanhoe snapped up the lands in 2000, then spent $8-million and five years drilling dry holes.
In 2001, its geologists decided to listen to the advice of Garamjav Dondog, a Mongolian anthropologist and geologist. "He said drill on Turquoise Hill and you will find gold. We did," Mr. Friedland said.
His reasoning was simple. The Hill was where Tibetans mined turquoise 5,000 years ago to make jewellery. Turquoise is oxidized copper and copper happens to be often found with gold.
They took his advice and in August, 2001, drilled their 151st hole on the site. On September 12, 2001, Ivanhoe announced exceptional results. The property is called Oyu Tolgoi in Mongolian, which means Turquoise Hill.
Other Canadians have been finding success. In 1998, uranium giant Cameco Corp. of Saskatoon arrived in Mongolia looking for uranium and gold. Its spinoff, Centerra Gold Inc., in 2003 opened its Boroo mine. Last year, it produced 200,000 ounces of gold in the northern part of the country.
Now the rest of the world has begun to recognize Mongolia's potential. A year ago, Rio Tinto Zinc of Britain publicly heaped scorn on Mr. Friedland's copper-gold prospect in the South Gobi. Last month it reversed its strategy and bought 9% of Entree Gold Inc. of Vancouver, whose property borders Ivanhoe's. Ivanhoe owns 17.8% of Entree, but news that RTZ was investing in the play sent Entree's stock soaring.
"As soon as I saw RTZ involved I said, 'Wow, that's got to be even more interesting,'" said Canaccord Capital analyst and geologist Wendell Zerb in an interview at the mining camp in Mongolia.
"Robert Friedland has a lot of credibility but in the post Bre-X world everyone wants lots of affirmation. This is an exciting project. There are not many gold copper projects that are comparable in size to this and the proximity to China's market makes it work."
RTZ's endorsement followed the re-entry in June of BHP Billiton, which negotiated the right to own up to 51% interest in all Mongolian properties held by Bayfield Ventures Corp. of Vancouver, which also border Ivanhoe's copper-gold deposit.
Exploration activity is underway in virtually every corner of the country. AngloGold Ashanti is here, as is Barrick Gold Corp., Brazil's CVRD, Denison Mines, International Uranium and hundreds of wanna-be juniors.
Offices are opening up and local hotels and watering holes are jammed nightly with consultants, money managers, geologists, engineers and suppliers sniffing out opportunities.
Others are moving their families here even though Ulan Bator is a grim, polluted city designed by Soviet engineers. Its population of one million live mostly in unadorned highrises built beside pipelines. Others, fleeing the hardship and rigours of raising livestock in an arctic climate, live in shantytowns on the outskirts in traditional tents.
Today, small businesses are springing up everywhere to capitalize on the newcomers' expense accounts, from restaurants to dress stores, nightclubs and peep shows. The buzz is constant as rumours fly daily about who will become partners with whom to build gigantic mines.
The good news is the country's leaders understand the reality of mining economics and how activity can lift living standards, said elected party leader and coalition member Oyn Sanjaasuren in an interview in her home outside Ulan Bator.
She is respected as a "moral voice" in Mongolian politics after running for office following the murder of her brother, Zorig Sanjaasuren, in 1998. Dubbed "Mr. Clean," he was poised to become Prime Minister of the country. The crime remains unsolved.
She interrupted a mining career herself to continue his crusade to bolster the country's democracy with integrity and transparency. But she believes Mongolia is not in danger of turning into an oligarch-controlled economy. "Of course we have nouveau riche but, unlike the Russians, they did not acquire enormous assets through privatizations. Also unlike Russia, Kazakhstan, Uzhbekhistan or Azerbaijan we didn't have huge oil reserves. Now Mongolia is recognized as potentially minerals rich, but most of the deposits found before the transition were small or medium size, especially gold and copper," she said.
Years before entering politics, Ms. Oyn was involved in exploration with Rio Tinto Zinc in 1992 on lands which eventually became Ivanhoe's discovery site.
"I earned my PhD in metallurgy at Cambridge University from 1992 to 1994 and while there I was part of a geological team that looked at the Ivanhoe property in Mongolia for Rio Tinto Zinc. We thought it had possibilities and recommended that it take the property," she said. "But BHP Billiton beat us by two weeks."
In May, 2000, Ivanhoe made its initial deal with BHP for the Mongolia property.
Mining is already making a difference for Mongolia's urbanized people as a result of the increase in GDP, Asia's highest at 10.6%. But such growth is off a miniscule base of US$1.5-billion. The country's agrarian or nomadic populations are either unaffected by mining activity, or are seeing some benefits if they are working on mining sites as labourers, security guards or drivers.
Mining now accounts for 64.7% of industrial output and more than 57.5% of export earnings.
In Ulan Bator, there's a noted shift in university enrolment to engineering, sciences and geology as the highly literate Mongol youths realize the transformation that's going to take place. And schools are teaching English as a second language, instead of Russian, from the age of eight onwards.
As for investors, the risks are great but must always be weighed against rewards.
Mr. Friedland reasons: "We know countries like we know stocks and Mongolia is a Buddhist country with peaceful people, with world-class resources beside the Chinese market. What could be better?"
© National Post 2005
Ore Bin there and dune that.
Author Out For a Stroll
EC<:-}
You've been working to hard and clearly not getting enough sleep...
Since you won't be talking about this, may I suggest a little light reading to take your mind off these "exploration issues"?
Mongolian Death Worm May Kill Ivanhoe
Rare Mongolian Death Worm, 1/20th Actual Size
Electric death worm may be real.
Will kill Ivanhoe project as workers refuse to go into sacred Death Worm Area.
I am clamming up and refusing to talk about this. It's bad luck.
EC<:-}
HOT HOT HOT
Look at SGGV.OB
Sterling Group Ventures, Inc. (SGGV) is poised to benefit from the economic and investment boom that is now taking place in China.
SGGV has entered into an agreement that will permit the company to mine lithium. Indeed, the Jiajka deposit is one of the largest lithium mineral deposits in the world and the largest in South East Asia. The deposit, which is near the surface, is high grade. Mining will be open pit with good accessibility by existing infrastructure.
The company has retained consulting engineering firms in both Canada and China to work on the necessary studies required to put the Jiajika lithium property into production by the end of 2005.
The net present value (NPV) of SGGV at a 10% discount rate is estimated to be over 400$ million – 25 times the company’s market cap.
Globe says Entree, Erdene looking good in Mongolia
2005-06-07 06:31 ET - In the News
See In the News (C-ETG) Entree Gold Inc
The Globe and Mail reports in its Tuesday edition that two Canadian mining firms announced developments in their Mongolian exploration programs Monday. The Globe's Wendy Stueck writes that Entree Gold released encouraging assay results from a drill hole just north of the Ivanhoe Mines' Oyu Tolgoi deposit. And Erdene Gold announced it has struck an alliance with Erdenet Mining, a Mongolian-Russian joint venture that runs a huge copper mine in northern Mongolia. Entree staked its first Mongolian properties in 2002. Last November, Entree struck a deal with Ivanhoe that gives Ivanhoe the right to earn up to an 80-per-cent interest in part of Entree's Lookout Hill property by spending $35-million (U.S.) on the project and financing Entree's share of any subsequent project costs. Entree said Monday that assay results from a hole known as Copper Flats contained significant amounts of copper and gold, with one 322-metre interval containing 4.59 per cent copper and 1.07 grams a tonne of gold. Erdene, meanwhile, was trumpeting its deal with Erdenet, which will see the company pay for exploration and could see the parties co-operate on developing future discoveries.
UGL cuts 3.38 g/t Au over seven metres at South Valley
2005-05-31 17:01 ET - News Release
Mr. Paul McKenzie reports
PROGRESS REPORT ON COPPER AND GOLD DRILL PROJECTS, MONGOLIA
UGL Enterprise Ltd. has provided a progress report on the company's copper and gold projects in Mongolia, including the Shavar Uul, the Bayan Undur and the Khondloy properties. A summary of results to date from the diamond drill program on the South Valley property is also provided.
Exploration is under way and continuing on the company's 100-per-cent-owned Mongolian copper-gold portfolio. Based on preliminary geological and sampling completed in the last field season, UGL's geologists have recommended a program of further detailed mapping, prospecting and sampling. The program will commence on three projects -- the Shavar Uul, Bayan Undur and Khondloy -- to better define Cu-Au targets. This exploration program will determine the areas within the licences that will be followed up with geophysics and diamond drilling.
Exploration crews are being mobilized with the plan to complete the exploration program over the next three months to allow for potential diamond drilling prior to the winter season. The three licences to be worked are all situated within the Gobi area of Mongolia.
South Valley summary of drill results
The South Valley property is located near Choilbasen in the Dornod province and is held under an option agreement with a Mongolian licenceholder to earn a 60-per-cent interest. The property is prospective for copper-gold porphyry mineralization, and previous surface sampling and trenching work indicated four anomalous zones for copper and gold.
The company completed a diamond drill program of 12 holes (with one additional abandoned hole) comprising 3,429 metres. Ten of the 12 holes were directed at porphyry targets, defined by soil and rock geochemistry and geophysics (magnetics and induced polarization). Holes SV-11 and SV-12 were directed at geological targets outside the interpreted porphyry system. All holes except SV-11 and SV-12 returned significant and/or anomalous values of copper, gold and silver. The following is a presentation of only the higher-value intervals, however wide zones of anomalous values of copper and gold mineralization were also intersected. Holes SV-1 to SV-4 were previously released (see news in Stockwatch dated Oct. 22, 2004), but the highlights are restated below.
Mineral-
Inter- zation
Hole From To section Au Ag Cu
No. m m m g/t g/t %
SV-01 245.0 265.8 20.8 0.82 2.6
SV-02 205.8 208.8 3.0 1.27 12.7
SV-03 274.0 280.0 6.0 0.26 6.7
SV-04 28.0 249.0 221.0 0.09 3.7 0.20
Incl. 10.0 21.0 11.0 1.07 18.9 0.06
Above data were previously released and new data follow below.
Mineral-
Inter- zation
Hole From To section Au Ag Cu
No. m m m g/t g/t %
SV-05 188.0 205.0 17.0 1.27 0.8
SV-06 43.0 56.0 13.0 0.20 3.1 0.20
SV-07 Abandoned at 41.0 m
SV-07A 23.0 217.0 94.0 0.10 1.8 0.10
SV-08 21.0 46.0 25.0 0.06 0.9 0.12
SV-09 67.0 121.0 54.0 0.10 8.2 0.32
260.0 386.0 126.0 0.10 2.3 0.20
SV-10 73.0 80.0 7.0 3.38 24.2 0.16
190.6 240.6 50.0 0.23 13.3 0.29
SV-11 No significant values
SV-12 No significant values
Entree Gold JV partner extends mineralization
2005-05-13 13:01 ET - News Release
Mr. Greg Crowe reports
HIGH-GRADE COPPER MINERALISATION EXTENDED 450 METRES INTO ENTREE'S LOOKOUT HILL
Entree Gold Inc.'s joint venture partner Ivanhoe Mines Ltd. has revealed that continuing step-out drilling has now extended high-grade copper mineralization 450 metres into the Copper Flats region of Entree's Lookout Hill property, in Mongolia's South Gobi region.
Hole EGD 008
Copper Flats is contiguous with, and directly north of, Ivanhoe's Oyu Tolgoi project, in an area that is being jointly explored by Entree and Ivanhoe. Hole EGD008, drilled on an azimuth of 270 degrees, inclined at negative 75 degrees and collared approximately 450 metres northeast of, and parallel to, hole EGD006, has intersected approximately 120 metres of very strong chalcopyrite and bornite (copper sulphide) mineralization, with minor visible gold associated with bornite, beginning at a downhole depth of 1,380 metres (true depth of approximately 1,340 metres). The mineralization is hosted in quartz monzodiorite, with intense quartz stockwork and quartz flooding.
EGD008 is still drilling ahead in visibly very strong copper mineralization at a downhole depth of 1,500 metres (true depth of approximately 1,460 metres below surface). The mineralization could project 400 metres to 500 metres up dip to the projected apex of the deposit relative to EGD006 and also is open down dip. Completion of the hole and assaying of the drill core are expected to take approximately one month.
Entree president, Greg Crowe, commented: "This intersection marks the northeastly strike extension of the high-grade Hugo Dummett deposit onto Entree's property. It should also be noted that holes EGD007 and EGD010, which currently are drilling in volcanic stratigraphy that typically lies above the Hugo North mineralization at Oyu Tolgoi, are located approximately one kilometre and 1.65 kilometres, respectively, northeast of hole EGD006.
"The strength of the mineralization to the north of Oyu Tolgoi emphasizes the richness of the Hugo Dummett deposit, which is developing into an extensive, regional porphyry system. Elsewhere in the world, these systems are known to host several deposits over many square kilometres. Exploration at Lookout Hill outside the Entree/Ivanhoe joint project property (currently at zones 1, 2 and 3) is in progress. Several areas known to host strong, porphyry-style alteration, with gold and copper values, will be tested by Entree to help determine the regional extent of what is developing into the world's richest copper-gold porphyry camp."
Holes EGD006 and EGD006A
Recently completed hole EGD006, collared on Entree's Lookout Hill, five metres north of the Oyu Tolgoi boundary, intersected 258 metres grading 2.56 per cent copper and 1.17 grams per tonne gold, with 108 metres of 4.63 per cent copper and 2.06 grams per tonne gold (copper equivalent grade of 5.94 per cent), starting at a depth of 1,008 metres.
Hole EGD006A, a navi-drill daughter hole from EGD006 to test the downward extension of the mineralization 80 metres downdip, has intersected approximately 200 metres of visibly very strong bornite-dominated copper mineralization, starting at 1,146 metres downhole, with a true depth of 1,125 metres below surface. The hole also intersected 112 metres of moderate-to-strong chalcopyrite mineralization, beginning at 1,038 metres downhole, which continued to the start of the higher-grade and deeper, bornite-rich zone at 1,146 metres. The hole is currently drilling at 1,320 metres in very strong, bornite-rich mineralization.
EDG008 has visibly extended the strike length of the Hugo North copper-gold discovery to greater than 2.2 kilometres. Hugo North is part of the now 3.5-plus-kilometre-long Hugo Dummett deposit which, in turn, is part of the 6.5-kilometre-long chain of copper and gold deposits discovered to date by Ivanhoe at Oyu Tolgoi.
Other drilling at Lookout Hill
Ivanhoe has six, deep-hole-capacity rigs drilling on Lookout Hill to test for the northeasterly extension of the Hugo North deposit. Holes EGD007 and EGD010 have been collared one kilometre and 1.65 kilometres, respectively, northeast of EGD006 to test for the potential strike extension of the deposit. The holes are targeted on the eastern flank of a geophysical induced polarization anomaly that extends approximately three kilometres north-northeast from the Entree/Ivanhoe property boundary. EGD007 and EGD010, currently at downhole depths of 1,009 metres and 1,073 metres, respectively, are drilling in volcanic and volcaniclastic rock units that typically overlie the Hugo deposit. A third drill hole, EGD016, collared midway between and parallel to EGD006 and EGD008, is currently drilling at a downhole depth of 960 metres and is expected to intersect the deposit between 1,000 metres and 1,050 metres downhole.
Quality control and assurance
Robert Cann, PGeo, Entree's exploration manager and a "qualified person" as defined by National Instrument 43-101, is responsible for the preparation of technical information in the company's news releases.
Remember this penny ?
Solomon to acquire 80% in 20 Mongolian projects
2005-03-02 16:02 ET - News Release
Mr. Lawrence Nagy reports
SOLOMON OPTIONS 20 GOLD AND BASE METAL PROJECTS IN MONGOLIA
Solomon Resources Ltd. has signed a memorandum of agreement with Gallant Minerals Ltd. to acquire up to an 80-per-cent interest in each of 20 gold and base metal projects in Mongolia.
Gallant Minerals Ltd. is a mineral exploration company founded in 1997 and controlled by Mohamed Al Fayed, owner of the Harrods Group of businesses of London, England. Since incorporation, Gallant's investment in exploration activity has been financed entirely from Mr. Al Fayed's personal resources. Gallant has been successful in identifying and acquiring a number of early-stage discoveries in Mongolia which it is now offering to experienced and capable partners for further exploration and development. Solomon is pleased to have the option to acquire a major interest in one or more of 20 quality, exploration projects in Mongolia including all of Gallant's most advanced gold properties.
Gallant owns and manages 38 exploration licences covering 188,000 hectares of land in Mongolia. The portfolio is divided into three major groups, based on the types of commodities sought and the level of exploration. The following table is a summary of the Gallant properties in Mongolia subject to the MOA.
GMML
Mongolia Area
properties Projects Licences (Ha)
Gold
projects 6 17 85,490
Porphyry
and base
metal
projects 6 10 32,187
Prospects 8 11 70,571
Totals 20 38 188,248
Property summaries
The highlights of the properties under option pursuant to the MOA include the following.
Bayantsagaan gold project
The Bayantsagaan gold project is located in the North Khentii gold belt, 80 kilometres northwest of Ulan Bator. It is centred over a kilometric-scale alteration zone with coincident geochemical and geophysical anomalies. The project is located 35 km southwest of the new Boroo gold mine (10.2 million metric tonnes at 3.5 grams per tonne gold, or 36 tonnes of gold) and has excellent infrastructure.
Gold mineralization was identified at Bayantsagaan during exploration carried out by a joint Mongolian-Hungarian expedition. The central target area contains an east-west-trending ridge, which is flanked to the north and south by alluvium-filled drainages containing small gold placer deposits. Gold mineralization, exposed on the ridge, is hosted by granitic rocks with silica-sericite-sulphide alteration. Surface rock chip sampling by Gallant has identified values up to 24 g/t gold.
An induced polarization geophysical survey identified a chargeability anomaly, reflecting greater than 1 per cent disseminated sulphide, which coincides with the strong geochemical anomalies, and persists to the south and west beneath alluvial cover. Historic drilling along the crest of the ridge line showed alteration and mineralization from surface to the ends of the holes at 100-to-200-metre depth. Assays were highly anomalous in gold but require confirmation. Historic drilling was completed in the north end of the main anomaly which is about 600 m by 1,000 m in size. Future exploration should focus on the coincident anomalies and the continuation of the IP chargeability anomaly beneath alluvial cover. Bayantsagaan is a high-priority drill target, with multimillion-ounce potential, located close to a new mining operation, with excellent infrastructure.
Nurag Uul gold project
The Nurag Uul project is located 100 km west of Dalandzadgad, the aimag capital, and 700 km south of Ulan Bator. Access to the property takes about 2.5 hours by gravel road, from Dalandzadgad, which has regular air service to Ulan Bator. Gold mineralization was discovered by generative exploration programs in year 2000 and subsequent work identified multigram gold values at surface, including a six-metre channel sample that assayed 52 g/t gold. Mineralization and alteration are exposed within an east-west-trending zone that is roughly 100 m wide and has been mapped over a 3,000-metre strike length. Gold mineralization occurs with silicified breccias and quartz vein systems that are exposed in a small range of hills, protruding through regionally extensive Cretaceous alluvial sediments. The gold zone trends directly under cover on the southwestern edge of the Paleozoic bedrock.
Initial drilling, completed in July, 2003, intercepted anomalous gold mineralization, in all holes, over a strike length of 430 m. Multiple zones of gold mineralization (at a cut-off of 0.1 g/t) were encountered in each of 11 holes, completed along six close-spaced fences.
Gold mineralization is continuous for 430 m along strike and remains open at both ends and at depth, below 140 m. Less than 30 per cent of the system's known strike length has been tested. The system disappears under shallow alluvial cover 100 m west of the drilling and becomes progressively less exposed east of the drilling. The logical next exploration step to advance this project would be a comprehensive IP survey along the entire gold system and its possible concealed extensions followed by another round of drilling to test all significant chargeability and resistivity targets.
Zos Uul gold project
The Zos Uul project is a grassroots discovery of sediment-hosted gold mineralization, located approximately 100 km north of the Bayan Obo rare-earth (iron-oxide-copper-gold) mine in China and 700 km southeast of Ulan Bator. Gold mineralization is present in many areas, with the highest value of 5.5 g/t over one metre from outcrop samples.
The project area contains a northeast-trending horst block with folded and highly faulted sedimentary rocks, intruded by felsic to intermediate intrusives. Gold mineralization occurs with jasperoid, silicified breccias and structures in calcareous siltstone, and alteration is accompanied by elevated concentrations of typical Carlin-suite trace elements. Systematic programs led to the targeting and completion of 11 trenches and nine drill holes. Drilling has intercepted widespread, subeconomic gold values. Recent ground magnetics surveys have confirmed the presence of prospective alteration zones, adjacent to known mineralization and extending under cover. Drill targets have been identified and are ready for testing.
The Gallant portfolio also includes six exploration projects that target copper-gold-molybdenum (Cu-Au-Mo) porphyry systems, held within 12 exploration licences.
The projects, at variable stages ranging from projects that have received phase I drilling to early-stage reconnaissance projects are listed below.
Exploration
Property target Licences Hectares
Bor
Khairkhan
(B1 Cu-Au
plus B2) porphyry 4 3,995
Oyut Cu-Mo
Ovoo porphyry 3 5,478
Sairyn Cu-Mo
Khundii porphyry 1 5,464
Toste Cu-Au
T-1 porphyry 1 4,790
Cu-Au-Mo
Tsakhir porphyry 1 12,460
Totals 10 32,187
Tsakhir copper-gold-molybdenum project
The Tsakhir project is located in Omnogobi aimag in south-central Mongolia, approximately 600 kilometres southwest of Ulan Bator and about 125 km from the aimag capital of Dalandzadgad. Tsakhir contains over 18 square kilometres of hydrothermal alteration, including a four-square-kilometre area containing strong sericite with local quartz-veinlet stockwork, iron-oxide filled stockwork, and elevated copper and molybdenum values within a polyphase breccia. Tsakhir contains a well-developed leached cap within a porphyry system.
Leached outcrops of breccia are exposed on the east side of a covered valley and contain elevated copper (greater than 100 parts per million) and molybdenum (greater than 300 parts per million). GMML completed one stratigraphic test hole within the breccia to examine the continuity of alteration and geology of the host rocks. Strong alteration was intersected from surface to the end of the hole at 141 m, with elevated copper, including up to four m at 0.12 per cent. The Tsakhir project lies within the South Gobi arc terrane that hosts the giant Oyu Tolgoi copper-gold deposit, located 300 km to the east. The Tsakhir project contains a well-defined copper-gold porphyry target, which has good potential for supergene enrichment.
Toste T1 copper-gold project
The Toste project is located approximately 140 km north of the railhead at Ejin Qi, China, and 300 km southwest of Dalanzadgad, the aimag capital. The project contains a 20-square-kilometre area of porphyry and high-sulphidation-style alteration, which surrounds a two-square-kilometre leached cap.
Initial exploration targeting gold within quartz-alunite alteration and incorporated systematic programs leading to the targeting and completion of 14 drill holes within the high-sulphidation assemblages. Drill results identified extensive low-grade copper and molybdenum in the Downs Dome area, and the initial hole in the Alunite Dome area ended in 12 m of 0.50 per cent oxide copper, beneath a leached high-sulphidation alteration zone. Subsequent work has identified an outcropping copper-gold porphyry target within an exposed leached cap at the Stockwork zone. The logical next step for this program is the completion of an induced polarization survey, to identify drill targets.
The Gallant portfolio also includes eight early-stage gold and base metal projects that have received initial prospecting and require additional follow-up work to properly access their potential. These eight projects are listed below.
Exploration
Property target Licences Hectares
Cu-Au
porphyry
Arshaant target 1 20,088
Volcanic
Bosoo epithermal
Khar gold 2 20,497
Javkhlant Epithermal
Uul gold 1 1,414
Cu-Au
Porphyry
near Oyu
Khan Bogd Tolgoi 1 14,777
Khatan Epithermal
Nuur gold prospect 2 1,078
Recon
Nariin property
Khar with silica-gold
Uul system 1 962
Recon
property with
epithermal
alteration,
possible hot
spring gold
Nomgon system 1 2,560
Reduced
intrusion-hosted
Tumur gold
Tolgoi target 2 9,275
Totals 11 70,571
Agreement summary
Payments by Solomon
Pursuant to the MOA, Solomon will pay Gallant:
the sum of $50,000 (U.S.) as a good faith payment (paid on the date of signing);
if closing (signing of a formal definitive agreement) does not take place by March 31, 2005, a further sum as a good faith payment equal to the land payments due on the properties between April 1, 2005, and the date of closing, not to exceed $25,000 (U.S.), to be paid on the later of the date of closing or April 30, 2005; and
if the parties agree to extend the closing date by up to 30 days to no later than May 30, 2005, a further sum as a good faith payment equal to the land payments due on the properties between May 1, 2005, and the date of closing, not to exceed $40,000 (U.S.), to be paid on the later of the date of closing or May 30, 2005, which payments will be non-refundable unless Solomon terminates the MOA because the representations and warranties made by Gallant are not true and accurate in all material respects.
Solomon's option and financial obligations
On the closing date Gallant will grant to Solomon an exclusive and irrevocable option to acquire 60 per cent of the shares of the holding company to be incorporated to hold the properties. The option will be exercisable upon the payment of $1.00 (U.S.) to Gallant during a period of three years after the closing date, on the condition that Solomon makes the following payments and expenditures:
on the closing date, Solomon will deliver to Gallant:
one million common shares of Solomon, listed for trading on the TSX Venture Exchange, which shares will be subject to any hold period imposed by applicable securities regulatory authorities; and
$100,000 (U.S.);
on or before the first anniversary of the closing date, Solomon will complete $1-million (U.S.) of work expenditures on the properties or pay any remaining balance to Gallant;
on or before the first anniversary of the closing date, Solomon will deliver to Gallant:
common shares of Solomon, calculated in value as worth the Canadian dollar equivalent of $200,000 (U.S.) based on the nominal rate of exchange for U.S. to Canadian dollars posted on the website of the Bank of Canada and the average closing price of the shares over the 10 days of trading immediately preceding the fifth trading day prior to the anniversary date, listed for trading on the TSX Venture Exchange and legended as to any hold period required by securities regulatory authorities; and
$200,000 (U.S.);
on or before the second anniversary of the closing date, Solomon will expend a total of $3-million (U.S.) of work expenditures (including expenditures spent during the first year after the closing date) on the properties or pay any remaining balance to Gallant;
on or before the second anniversary of the closing date, Solomon will deliver to Gallant:
common shares of Solomon, calculated in value as worth the Canadian dollar equivalent of $450,000 (U.S.) based on the nominal rate of exchange for U.S. to Canadian dollars posted on the website of the Bank of Canada and the average closing price of the shares over the 10 days of trading immediately preceding the fifth trading day prior to the anniversary date, listed for trading on the TSX Venture Exchange and legended as to the applicable hold period required by securities regulatory authorities; and
$300,000 (U.S.);
on or before the third anniversary of the closing date, Solomon will expend a total of $6-million (U.S.) of work expenditures (including expenditures spent during the first and second years after the closing date) on the properties or pay any remaining balance to Gallant; and
on or before the third anniversary of the closing date, Solomon will deliver to Gallant $400,000 (U.S.).
Further option
On the closing date Gallant will grant to Solomon a second option, subject to Solomon making all payments and exercising its option to acquire 60 per cent of the shares of the holding company, to acquire an additional 20-per-cent interest in any property on which Solomon commits to spend, and then does spend, a further $1-million on work expenditures on or before the fourth anniversary of the closing date.
Gallant's option to participate or dilute or convert to net smelter return royalty
For any property on which Solomon has earned an additional 20-per-cent interest, taking its total direct and indirect interest in that property to 80 per cent, Gallant may at its sole discretion then elect either to:
participate in all future expenditure on that property pro rata to its remaining 20-per-cent interest or accept dilution on industry standard terms (such that the property will be valued at 125 per cent of Solomon's cash payments) and share issuances to earn such 80-per-cent interest, and each of Solomon and Gallant will be deemed to have, at any time, that percentage interest in the property equal to its actual and deemed expenditures divided by the total actual and deemed expenditures of both of them, and should a party's interest be reduced to 5 per cent or less, that party will exchange such interest for a net smelter return royalty equal to 50 per cent of the royalty described in paragraph 16; or
convert its 20-per-cent interest to a net smelter return royalty.
The transaction is subject to the satisfactory completion of due diligence investigations by Solomon, execution of definitive formal agreements and approval by all applicable regulatory authorities.
The parties anticipate the closing of this transaction will take place before March 31, 2005.
Qualified person under National Instrument 43-101
Solomon's president, Lawrence J. Nagy, PGeol, a qualified person for the purposes of National Instrument 43-101, has reviewed the information contained in and supervised the preparation of this news release, however, such information has been acquired from Gallant and has not verified by him or any independent qualified person.
Entree Gold Inc.: Ivanhoe Mines Commences Drilling of
Shallow IP Target at Copper Flats, Mongolia
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2005) - Entree Gold
Inc. (TSX VENTURE:ETG) ("Entree" or the "Company") announces that
Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(ASX:IVN) ("Ivanhoe") has
commenced drilling of a secondary, relatively shallow Induced
Polarization ("IP") target in the Copper Flats area of Entree's 100%
owned Lookout Hill property, Mongolia. The target is located within the
"Project Property" as defined in the October 2004 Equity Participation
and Earn-in Agreement ("Earn-In Agreement") between Entree and Ivanhoe.
The shallow IP target is located approximately two kilometers west of
the deeper IP target that defines the potential northward projection of
the Hugo Dummett Deposit. Drilling of the potential extension of the
Hugo Dummett Deposit onto Lookout Hill will not commence until
larger-capacity drills become available. Ivanhoe is currently drilling
systematic northward step-outs along the Hugo Dummett Deposit
approximately 150 meters south of the Ivanhoe - Entree property boundary.
"Large porphyry deposits often host satellite zones of mineralization
that could contain significant economic concentrations of
mineralization," said Greg Crowe, Entree's President and CEO. "The
selection of this secondary IP target as Ivanhoe's first drill test of
the Copper Flats area is due principally to the current availability of
smaller-capacity drills. The results of this drill program will have no
impact on the along-strike potential of the Hugo Dummett Deposit itself."
Since November 2004, Ivanhoe has been conducting a deep-probing IP
geophysical survey over Entree's Copper Flats area. As reported in
Ivanhoe's news release of December 6, 2004, this work has outlined a
four kilometer extension to the Hugo Dummett IP signature onto Entree's
Lookout Hill property. In this preliminary survey, several other
sizeable chargeability anomalies were also identified. Of particular
note was a more than three kilometer long, north-northeast trending, and
relatively shallow IP anomaly located approximately two kilometers west
of the northward projection of the Hugo Dummett Deposit. Follow-up
detailed IP section work, conducted since mid-December 2004, has better
defined these chargeability anomalies to depth and along strike. The
initial drill hole, which has been collared on the eastern side of this
western anomaly less than 100 meters north of the joint Ivanhoe - Entree
property boundary, will test this IP target to a vertical depth of
approximately 750 meters.
Under the Earn-In Agreement, Ivanhoe has the right to earn an interest
in approximately 22% (40,000 hectares) of Entree's Lookout Hill
property, Mongolia. Ivanhoe must spend a minimum of US$3 million in
order to secure surface-rights to the "Project Property" and must spend
a minimum of US$20 million in order to earn a 51% interest in the
Project Property. Ivanhoe can acquire up to an 80% interest in
mineralization below a depth of 560 metres by spending a total US$35
million. Thereafter, Entree has the right to require Ivanhoe to fund its
share of subsequent joint venture costs through to production, to be
recovered from production cash flow.
Mr. Crowe noted that Entree is well financed, with approximately CDN$7
million in its treasury, allowing it to explore the remaining 78% of its
Lookout Hill property, including the Zone I/II, Zone III and Bayan Ovoo
areas. Exploration of its wholly owned Ulziit Uul property, located in
the Kharmagtai area approximately 100 kilometers to the north of Lookout
Hill, will also be undertaken.
Robert Cann, Entree's Exploration Manager, a qualified person as defined
by National Instrument 43-101, supervised the preparation of the
information in this release.
ABOUT ENTREE GOLD INC.
Entree Gold Inc. (www.entreegold.com) is an exploration stage junior
resource company engaged in the exploration of gold and copper
prospects. The Company is a large landholder in Mongolia's south Gobi
Desert, near the Chinese border. Entree maintains 100% royalty-free
ownership in the 179,590 hectare Lookout Hill (Shivee Tolgoi) property
which completely surrounds Ivanhoe Mines' 8,500 hectare Turquoise Hill
(Oyu Tolgoi) holdings. Entree has an earn-in agreement with Ivanhoe
Mines covering approximately 22% (approximately 40,000 hectares) of
Lookout Hill. The Company trades on the TSX Venture Exchange under the
symbol "ETG".
This News Release contains forward-looking statements. Forward-looking
statements are statements which relate to future events. In some cases,
you can identify forward-looking statements by terminology such as
"may", "should", "expects", "plans", "anticipates", "believes",
"estimates", "predicts", "potential" or "continue" or the negative of
these terms or other comparable terminology. These statements are only
predictions and involve known and unknown risks, uncertainties and other
factors that may cause our or our industry's actual results, levels of
activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements
expressed or implied by these forward-looking statements.
Forward-looking statements in this news release include those concerning
the Company's belief that the drilling program of Ivanhoe on the
Company's property may discover a host satellite zone of Oyu Tolgoi
porphyry related mineralization.
While these forward-looking statements, and any assumptions upon which
they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost
always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested herein.
Except as required by applicable law, including the securities laws of
the United States, the Company does not intend to update any of the
forward-looking statements to conform these statements to actual
results. Readers are referred to the sections entitled "Risk Factors" in
the Company's periodic filings with the British Columbia Securities
Commission, which can be viewed at www.SEDAR.com, and with the United
States Securities and Exchange Commission, which can be viewed at
www.SEC.gov.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Primoris Group
Kelly McCauley
(866) 368-7330
Email: ETG@primorisgroup.com
Website: www.entreegold.com
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
ERD Erdene Gold reviews results of Virgin property drilling
2004-12-23 12:38 ET - News Release
Mr. Peter Akerley reports
TEMUUJIN DRILLING IDENTIFIES SIGNIFICANT POLYMETALLIC MINERALIZATION ASSOCIATED WITH EXTENSIVE PORPHYRY-TYPE ALTERATION; DRILL WITH GREATER DEPTH CAPABILITY SECURED FOR 2005
Erdene Gold Inc. has released the results of its reconnaissance drilling campaign in the Temuujin district of the Virgin property in southeastern Mongolia. Erdene completed 19 diamond drill holes for a total of 6,196 metres from mid-August to the end of November, 2004. The drill program confirmed an extensive porphyry-type alteration system within the Temuujin II prospect area and identified other similar systems within the Temuujin district. The Virgin property is located approximately 90 kilometres west of the Trans-Mongolian railway and 40 kilometres north of the China-Mongolia border.
"Generally, what we are observing is the occurrence of polymetallic mineralization associated with a very extensive porphyry-type alteration system that now continues over at least four kilometres at Temuujin II and III. The areas tested to date display typical characteristics of the distal portion of a zoned porphyry with extensive pyrite, low-grade copper and gold over the central portion and higher silver, lead and zinc values associated with jasper and chalcedonic breccias in the extreme east and west," said Peter Akerley, president and chief executive officer. "The drill program confirms the Temuujin district and the Temuujin II and III prospects in particular, as high-potential target areas for hosting a porphyry copper-gold deposit. Further deep drilling will commence in March, 2005, to locate the source of the mineralization."
The initial 14 holes of the 19-hole Temuujin drill program tested multiple targets throughout the 20-kilometre by eight-kilometre area, and determined that the northeast portion of the district warranted more detailed evaluation based on extensive polymetallic mineralization and intense porphyry style alteration. The remaining five holes completed in 2004 were used to provide further geological information and controls on mineralization within the Temuujin II and III prospects areas to assist in designing the next phase of drilling. The 2005 follow-up drill program is planned to begin in March with a more powerful drill rig capable of deeper drilling to more thoroughly test the large mineralized area at Temuujin II and Temuujin III.
Temuujin II and III prospect areas
Drilling has confirmed the four-kilometre-long Temuujin II and Temuujin III areas represent a porphyry-related deposit environment containing significant polymetallic sulphide mineralization (pyrite, arsenopyrite, sphalerite, chalcopyrite). Nine holes were completed totalling 3,745 metres, and were collared from 400 to 800 metres apart. Average hole depth was 416 metres with the deepest hole (TDD-02) drilled to a vertical depth of 540 metres. Three distinct zones of mineralization and alteration have been identified by the drilling.
Propylitic breccia zone (Temuujin II)
Four holes tested this gold- and copper-enriched zone of pyritic- and pervasively propylitic-altered andesite breccia within the central part of the Temuujin II prospect. Initial drilling included TDD-01 and TDD-02 in the central part of the zone where phyllic (quartz-sericite-pyrite) alteration increases at depth accompanied by increased copper-gold values. TDD-02 contained gold concentrations of up to 1.1 grams per tonne, and copper values up to 0.32 per cent in the deeper sulphide zones (see news in Stockwatch dated Oct. 22). The recent drilling included holes TDD-17 and TDD-18, and tested the extreme eastern and western ends, and extended the zone over a strike distance of 1.9 kilometres. This zone remains open in both directions. TDD-17 drilled 500 metres west of the TDD-01, intersected intensely sheared and brecciated propylitic to argillic trachyandesite with weakly anomalous gold, copper and zinc values. TDD-18 collared 800 metres east of TDD-02, contained a zone of propylitic altered andesite underlain by a zone of intense argillic (clay) alteration containing disseminated and locally abundant pyrite and very minor chalcopyrite. Anomalous gold values (maximum 0.18 gram per tonne) occur throughout associated with zones of weak phyllic alteration. Anomalous zinc concentrations (maximum 0.19 per cent) are associated with the argillic alteration. Both alteration types are interpreted to represent alteration/mineralization adjacent to a buried porphyry system.
Tourmaline monzonite zone
A sulphide-rich, tourmaline monzonite and tourmaline-breccia dike located to the northwest of Temuujin II was tested over a strike distance of 1.2 kilometres by three drill holes (TDD-03, TDD-10 and TDD-15). All three drill holes intersected pyrite- and arsenopyrite-rich tourmalinized intrusive from surface to a maximum vertical depth of approximately 330 metres. The monzonite contains disseminated and vein-type pyrite and local minor chalcopyrite associated with quartz-tourmaline stockwork and tourmaline breccia zones. Sulphide content, stockwork veining and tourmaline alteration are most intense in TDD-15 with copper values up to 0.18 per cent and isolated intervals of high silver content (12 to 20 parts per million). TDD-15 is the western most hole in the mineralized intrusive which continues west for a minimum of 1.6 kilometres.
Argillic breccia zone (Temuujin III -- one kilometre east of Temuujin II)
Two holes (TDD-11 and TDD-19) tested Temuujin III and intersected argillic and silicified trachytic andesite and siliceous breccia containing fine-grained disseminated and stringer-type sulphides and jasper breccia with minor disseminated sulphides. TDD-11 intersected several zones of argillic breccia containing disseminated and stringer-type sulphides. The most significant assays occur within a 16-metre section from 197 to 215 metres containing an average of 8.6 grams per tonne silver (one to 34 grams per tonne). Also within this section is a six-metre zone which assayed 14.3 grams per tonne silver, 0.16 per cent lead, 0.29 per cent zinc with anomalous gold (average 0.041 gram per tonne). Other isolated high silver assays up to 20 grams per tonne were obtained from this hole. TDD-19 was collared 75 metres south of TDD-11 to test the down dip extensions of sulphide-bearing argillic alteration zones intersected in TDD-11. The most significant polymetallic assays from TDD-19 were obtained from a 10-metre-wide zone of siliceous breccia (220 to 230 metres), which averaged 0.2 per cent zinc (maximum 0.8 per cent), 0.1 per cent arsenic (maximum 0.5 per cent), and very anomalous lead (maximum 0.1 per cent) and gold (average 0.05 gram per tonne). Similar, but narrower zones of gold-, zinc- and arsenic-enriched breccia occur over the entire drill hole; 0.11 gram per tonne gold over one metre (254 to 255 metres), 0.1 gram per tonne gold over four metres (295 to 299 metres), 0.48 gram per tonne gold over one metre (360 to 361 metres), 0.05 gram per tonne gold over five metres (376 to 381 metres), including 0.29 per cent zinc over one metre, 0.11 gram per tonne gold and 0.4 per cent zinc over two metres (399 to 401 metres). These assays occur within much wider zones of anomalous assay results.
Togrog Uul prospect (western Temuujin district)
TDD-04 tested a pyritic hydrothermal breccia associated with tourmaline monzonite and returned anomalous gold (0.12 gram per tonne over one metre) and enrichment in zinc (maximum 0.24 per cent over six metres), lead (maximum 0.11 per cent over two metres) and arsenic (0.12 per cent over eight metres) associated with limonitic and siliceous hydrothermal breccia. The second hole (TDD-05) intersected altered rhyolite passing into discrete zones of pervasive and fracture-controlled, limonitic, argillic and silicified rhyolite breccia with results indicating significant silver enrichment with an 18-metre zone averaging 11 grams per tonne silver (114 to 132 metres).
Temuujin IV prospect
Anomalous gold values (up to 0.15 gram per tonne) were returned from argillic alteration zones characterized by angular rhyolite fragments in a black (often sooty) matrix (121 to 239 metres) in hole TDD-12. The argillic zones are characterized by pervasive, white clay alteration with the local occurrence of variably oriented barren quartz stringers.
Temuujin I prospect
Hole TDD-09 intersected 85 metres of intensely argillic altered intrusive rock containing disseminated to near massive pyrite mineralization over 33 metres (44 to 77 metres) with anomalous gold, silver, copper, zinc values.
Temuujin VI prospect
Anomalous copper values up to 0.12 per cent (one metre) were intersected in the oxide portion of the two shallow holes testing an area of copper oxide mineralization at surface.
Regional drilling results
Two vertical holes to test geophysical anomalies were also completed four kilometres south and six kilometres west of Temuujin II. TDD-13 returned several zones of gold-zinc enrichment including 0.1 per cent zinc over 14 metres (241 to 254 metres), which includes 0.1 gram per tonne gold over one metre (242 to 243 metres) and 0.1 gram per tonne gold, 0.26 per cent zinc over two metres (250 to 252 metres). Hole TDD-14, which intersected volcanic breccia containing coarse carbonate and disseminated and vein-type magnetite, and narrow jasper plus magnetite breccias, did not return any significant assays.
Summary
The Virgin property is situated within the inferred northeast continuation of the island-arc environment, which hosts significant copper-gold porphyry mineral deposits, including the world-class Hugo deposit at Oyu Tolgoi. Erdene's exploration to date has focused on the 20- by eight-kilometre Temuujin district in the northeast part of the 95-kilometre-long Virgin claim block. Drilling has confirmed a porphyry-related deposit environment within the Temuujin II prospect area. It is probable that the Temuujin II, and Temuujin III prospects are part of a single system in excess of four kilometres long. Extensive porphyry-type propylitic and phyllic alteration within andesitic volcanic rocks and sulphide-rich, tourmalinized and quartz stockworked monzonite intrusive intersected in the Temuujin II area are typical of the distal part of a zoned porphyry system. Drill results also suggest the presence of porphyry-related alteration and potential mineralized environments at the Togrug Uul, Temuujin I and Temuujin IV prospect areas.
Erdene intends to fully evaluate all exploration results from the Virgin property over the next two months in preparation for a follow-up drilling program scheduled to begin in March, 2005, within the Temuujin district using a Longyear 44 rig capable of penetrating to greater depths.
Qualified person
This news has been prepared under the supervision of Michael Corey, PGeo, who serves as the qualified person under National Instrument 43-101. All samples are assayed at SGS Laboratory in Ulan Batar, Mongolia. In addition to SGS Laboratory internal checks, Erdene Gold incorporates a QA/QC sample protocol using prepared standards, sample splits and duplicates.
IVN Ivanhoe Mines finds gold-rich copper porphyry targets
2004-11-29 10:04 ET - News Release
Mr. Robert Friedland reports
IVANHOE DISCOVERS IMPORTANT NEW GOLD-COPPER PORPHYRY DISTRICT IN SOUTHERN MONGOLIA; NEW PORPHYRY DISTRICT NOW NAMED BRONZE FOX
Ivanhoe Mines chairman, Robert Friedland, and executive vice-president, exploration, Douglas Kirwin, along with the company's exploration team, have discovered four significant, gold-rich copper porphyry targets in the newly named Bronze Fox district in southern Mongolia. The latest discoveries are approximately 140 kilometres northeast of Ivanhoe's world-class Oyu Tolgoi copper-gold project and 430 kilometres south-southeast of Ulaanbaatar.
This newly discovered district lies within a 100-kilometre-long, highly prospective copper-gold porphyry belt that extends northeast from the Shuteen project and hosts other well-preserved, late Devonian to early Carboniferous mineralized porphyry and skarn systems. Ivanhoe Mines has a 100-per-cent interest in the Bronze Fox district and the majority of the ground over this belt (see location map on the company website at www.ivanhoemines.com).
The Bronze Fox discovery is the result of persistent exploration efforts in Mongolia whereby systematic exploration across the extensive groundholdings has defined a new district with highly anomalous gold-copper grades.
"The large numbers of rock samples with strong gold and copper values collected throughout the district are indicative of a large and highly mineralized gold and copper porphyry system," said Mr. Kirwin. "The presence of sheeted quartz veins and unidirectional solidification textures (USTs), as well as tourmaline veins and breccias with highly significant gold and copper values, demonstrate that the upper mineralized parts of the porphyry intrusions have been preserved."
The Bronze Fox district comprises four new auriferous porphyry targets: Bronze Fox, East Fox, West Fox and Tourmaline Hills. These targets occur within a 14-kilometre-long corridor of alteration and mineralization that is associated with monzodiorite to granodiorite intrusions that were emplaced into a package of Devonian volcano-sedimentary rocks. The targets are primarily defined by surface mapping, geophysics and extensive rock-chip sampling. The recent field magnetic survey indicated that several of the prospects are characterized by central magnetic lows surrounded by circular magnetic highs, a feature similar to many gold-rich porphyry systems and related to alteration associated with magnetite destruction.
Work completed during the 2004 field season included 5,701 rock-chip samples (table 1) and a ground magnetic survey comprising 1,729 line kilometres. Work has been primarily centred on the Bronze Fox prospect, where 2,862 rock-chip samples averaged 0.51 gram per tonne gold. However, the 266 rock-chip samples at the more recently defined West Fox prospect average 3.1 grams per tonne gold. Elevated arsenic, lead and molybdenum occur at most prospects.
Summaries of the four main prospects
Bronze Fox
Gold-copper-molybdenum-arsenic mineralization at the Bronze Fox prospect is associated with sheeted quartz veins and associated quartz-albite-sericite alteration that is centred on quartz diorite porphyry dikes within a multiphase intrusive complex. The zone strikes northwest over a distance of approximately 1,500 metres and varies in width from 200 to 400 metres.
From 2,862 rock-chip samples collected from Bronze Fox, 534 samples returned results over 0.5 gram per tonne gold, including 166 samples over 2.0 grams per tonne gold, with a maximum assay of 46.50 grams per tonne. A total of 577 samples returned copper values over 0.5 per cent, including 98 samples over 2 per cent copper, with a maximum value of 8.1 per cent copper.
East Fox
East Fox lies approximately 3.5 kilometres northeast along strike from the Bronze Fox prospect. The two prospects are hosted by the same monzodiorite-granodiorite intrusive complex. Gold-copper-molybdenum mineralized sulphide veinlets and quartz veins are associated with calc-sodic (actinolite-albite-sericite-quartz) alteration. The 1,831 rock-chip samples from East Fox have an average gold content of 0.94 gram per tonne, with 116 samples assaying over 2.0 grams per tonne and a maximum assay of 109 grams per tonne. A total of 216 samples returned copper values over 0.5 per cent, including 34 samples over 2 per cent copper, with a maximum value of 11.6 per cent copper.
West Fox
Reconnaissance mapping 4.5 kilometres northwest of the Bronze Fox prospect has identified a series of gold-arsenic-lead silver mineralized in en echelon quartz-hematite veins. These are associated with narrow diorite porphyry dikes that have been emplaced into a package of hornfelsed siltstones, sandstones and basic to intermediate volcanic rocks. The veins are distributed over a 1,500-metre by 350-metre area, where 266 rock-chip samples returned an average of 3.08 grams per tonne gold, with a maximum assay of 53.4 grams per tonne, as well as anomalous silver and base metal assays.
Tourmaline Hills
The gold-copper mineralized tourmaline-hematite veins and breccias of the Tourmaline Hills prospect outcrop over an area of approximately six square kilometres and are hosted within a multiphase monzodiorite-granodiorite stock. The mineralized zone has a strike length of at least 1.5 kilometres and is open in both directions. The mineralized veins and breccias are generally less than six metres wide, but are up to 20 metres wide at vein intersections. The 742 rock-chip samples from the prospect returned 165 results over 0.5 gram per tonne gold, including 52 samples over 2.0 grams per tonne gold, with a maximum assay of 26.7 grams per tonne.
Continuing exploration and planned drilling
Geologic mapping is continuing throughout the Bronze Fox area. Ivanhoe's exploration team believes that there is a strong possibility of discovering additional mineralized porphyry gold-copper targets within the district, as well as along the defined structural corridor. Detailed induced polarization (IP) and field-based gravity surveys will commence shortly, with an aggressive drilling program planned for early in the 2005 field season.
Douglas Kirwin, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information in this release.
Ivanhoe has a 100-per-cent interest in the Oyu Tolgoi gold and copper project in Mongolia, and owns or controls exploration rights covering approximately 118,000 square kilometres in central and southern Mongolia. Ivanhoe produces London Metal Exchange Grade A copper from its Monywa joint venture in Myanmar and iron ore products from ABM Mining's Savage River mine in Australia.
Thanks for reminding me.
Looks like that predicted run in BCP is well under way.
UGL UGL provides Huren Tologoi final phase 1 drill assays
2004-11-18 15:01 ET - News Release
Mr. Arnold Armstrong reports
FINAL DRILL RESULTS-PHASE 1 PROGRAM; HUREN TOLOGOI PROJECT, MONGOLIA
UGL Enterprises Ltd. has released results of the remaining drill holes from the initial diamond drilling program on the Huren Tologoi project.
The Huren Tologoi property is located in central Mongolia, approximately 50 kilometres south of the provincial capital (Aimag) of Bayanhongor. In total 14 holes were drilled comprising 3,997.25 metres (m), for an average hole depth of 285.5 m. Deepest hole was PH-1 at 352.5 m and the shortest hole was PH-10 at 135.6 m.
Assay results from holes HT-1 and HT-2, and a portion of HT-3, have been released (see UGL news release in Stockwatch dated July 5, 2004) and showed widespread anomalous gold mineralization, indicative of a very robust gold-bearing system related to a large area of intense silicification and associated strong clay alteration of kaolinite and pyrophyllite in volcanic rocks.
Previous results have been released from hole HT-3 down to 101.00 m. Significant gold mineralization was intersected to a depth of 242.10 m in this hole, including a intersection from 212.65 m to 216.30 m, returning 6.09 grams per tonne (g/t) over 3.65 m, including 38.35 g/t over 0.5 m. A wide mineralized zone is indicated in hole HT-3 from 4.40 m to 224.0 m, returning 0.53 g/t over 219.60 m.
echarters@sympatico.ca
416-428-4260 (Cell)
Wildcat has been in the bush this summer. Drumming up Moly, Gold and other properties. A bit of success, a bit of sobering insight.
Some reports out and some due. Pre-production properties with resources identified and acquired.
Nothing uraniferous or in Mongolia though.
EC<:-}
Globe/Reuters say Oyu boy! Ivanhoe excites investors
2004-11-19 07:37 ET - In the News
The Globe and Mail reports in its Friday, Nov. 19, edition that Ivanhoe Mines climbed to an intraday high of $9.05 before settling back to finish ahead 21 cents at $8.66 in Toronto Thursday as the market lapped up a batch of strong new drilling results from the miner's Mongolian copper and gold project that included the highest grade intersection found on the property. A Reuters dispatch to The Globe reports that the data also showed a high-grade mineralized area in the north of its Oyu Tolgoi discovery extended for 300 metres beyond its previous northern limit. "It looks very encouraging," said an anonymous analyst. It "should improve the overall economics of the project," said the unnamed analyst. Ivanhoe calls Oyu Tolgoi one of the world's biggest undeveloped copper and gold deposits. The results reflect early stage drilling and more work is required before a mineral resource can be defined. First Associates analyst Tom Meyer said the potential additional tonnage as a result of the new drilling did not change his company's valuation because of the already long life of the project. Mr. Meyer targets the stock at $8 in one year and has a "hold" recommendation.
Storm Cat Energy Corporation Announces 'Agreement in
Principle' with Petroleum Authority of Mongolia
CALGARY, ALBERTA--(CCNMatthews - Oct. 28, 2004) - Storm Cat Energy
Corporation (the "Company") (TSX Venture: SME) announces it has agreed
in principle with the Petroleum Authority of Mongolia ("PAM") to
negotiate the terms of a formal Joint Exploration Agreement with respect
to the exploration by the Company on additional lands in Mongolia
covering various substantial coal deposits in which Storm Cat believes
may be appropriate for the extraction of Natural Gas from Coals. Thus
far, there is no binding commitment to either party. Any agreement
entered into by the Company will be subject to regulatory approvals.
By Order of the Board of Directors of Storm Cat Energy Corporation
Carmen Etchart, Corporate Secretary
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Storm Cat Energy Corporation
Investor Relations
(604) 836-5440
Email: info@stormcatenergy.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this news
release.
QGX to begin drilling at Shuteen in November
2004-10-26 12:39 ET - News Release
Mr. David Anderson reports
QGX LTD.: 2 PORPHYRY TARGETS IDENTIFIED AT SHUTEEN--DRILLING TO COMMENCE IN NOVEMBER; SIGNIFICANT PORPHYRY ALTERATION DISCOVERED 25 KM ESE OF OYU TOLGOI
QGX Ltd. advises that recent exploration efforts at Shuteen and on a licence block 25 kilometres east-southeast of Oyu Tolgoi (OT East) have identified three new porphyry Cu-Au targets. Targets identified at Shuteen will be drilled starting in mid-November. The discovery of porphyry-style alteration at OT East occurred in the latter part of the field season and is considered significant, given its close proximity to the Ivanhoe Mines Ltd. Oyu Tolgoi porphyry copper-gold deposit.
David Anderson, chief executive officer of QGX Ltd., commented as follows: "I am pleased that our exploration team has been able to develop drill targets at Shuteen so quickly. It confirms our belief in the mineral potential of Shuteen. I am also pleased with the new prospect discovery at OT East. This property is at an early stage of exploration but the presence of widespread advanced argillic alteration at surface, its occurrence on the same regional gravity trend that hosts Oyu Tolgoi and its close proximity to Oyu Tolgoi give this prospect a high-priority rating."
Shuteen
The Shuteen property was originally acquired by QGX in 1997 and joint ventured to Ivanhoe Mines Ltd. in 2002. QGX regained control of the lease this past summer (see news in Stockwatch July 26, 2004). Under the new structure, QGX has an 80-per-cent interest in the Shuteen property, and Genghis Holding Company Ltd., owned jointly by Ivanhoe and Jinshan Gold Mines Inc., retains a 20-per-cent carried interest in the property. QGX has committed to expend $710,000 (U.S.) on Shuteen within 24 months.
The Shuteen prospect is located approximately 120 kilometres north-northeast of Oyu Tolgoi and occurs within the southern Mongolian mineralized belt hosting Oyu Tolgoi and the Kharmagtai/Ovoot Hyar properties that are subject to a separate joint venture between QGX and Ivanhoe. The three licences that form the Shuteen property cover approximately 220 square kilometres.
QGX initiated an extensive review of the historical data before commencing geophysical and geological surveys at Shuteen in early August of 2004. Over 200 kilometres of gradient array induced polarization lines and 20 kilometres of Insight induced polarization lines have been conducted to date. In addition, a gravity survey covering over 190 square kilometres of ground has been completed. These surveys have been conducted principally over four areas: Black Hills, Southwest Breccias, the southern portion of the Main alteration zone and the Taana veins. Two of these areas, Black Hills and Southwest Breccias, have been advanced to a drill-ready stage. Work continues on the south Main alteration zone and the Taana veins as well as other areas.
The following is an update on the two drill targets identified to date, the Black Hills and Southwest Breccias.
Black Hills
Black Hills consists of an approximately six-square-kilometre area located in the northeastern corner of the Shuteen licence. The area is characterized by favourable geology consisting of multiple porphyry dikes and plutons, as well as tourmaline breccia bodies, emplaced into andesitic flows and volcaniclastic rocks. Unidirectional solidification textures, which are magmatic-hydrothermal features observed in porphyry copper plutons worldwide, are present at Black Hills.
The favourable geology is also coincident with magnetic and induced polarization anomalies. The primary geophysical features of interest are a series of gradient-array induced polarization highs typically coincident with resistivity highs within a magnetic low. These anomalies occur over a distance of 2.2 kilometres along an 80-degree trend (one of the most prominent structural trends of the district) and are interpreted to represent the intrusive centres of the porphyry system. Past drilling by Czech geological teams in the perimeter areas of the Black Hills returned anomalous copper, including multiple intersections greater than 0.5 per cent Cu. QGX advises that the historical drilling completed by the Czechs was not made in compliance with current National Instrument 43-101 standards. Given the close proximity of the Czech holes to the current drill targets, QGX geologists believe the copper intersected by the Czechs was generated by the Black Hills porphyry plutons.
Geological mapping is continuing at Black Hills to uncover additional mineralized porphyry copper centres as well as to constrain the interpretation of the geophysical data.
Southwest Breccias
Previous trenching in the Southwest Breccias area by Ivanhoe yielded values of up to 800 parts per million copper, 1.7 parts per million gold, 100 parts per million arsenic, greater than 1,500 parts per million zinc and greater than 10 parts per million molybdenum. The mineralization is hosted within hydrothermal tourmaline breccia as well as tourmaline-replaced andesite and volcaniclastic sedimentary rocks. The mineralization is also coincident with a well-defined induced polarization resistivity high. This anomaly is localized by the intersection of two prominent structural trends striking northeast and west-northwest. The strongest response is associated with the northeast trend and has dimensions of approximately 300 metres long by 140 metres wide. The slightly lower amplitude anomaly trending west-northwest measures approximately 500 metres long by 260 metres wide.
Drilling at the Black Hills and Southwest Breccias areas is planned to commence in mid-November.
OT East
Reconnaissance mapping on the OT East licence block has identified a zone of silicification and advanced argillic alteration approximately 25 kilometres east-southeast of Ivanhoe's Oyu Tolgoi porphyry copper-gold deposit. The altered rocks are similar in age to the rocks that overlie the Oyu Tolgoi deposit and are located on the same regional gravity trend. Advanced argillic alteration is characteristic of the upper portions of many porphyry systems and is well developed in the Central Oyu zone of the Oyu Tolgoi deposit. The presence of similar alteration at OT East makes this a high-priority area for QGX. Additional mapping and geophysical programs are planned for the property.
Patrick Redmond, chief geologist of QGX Ltd., is the qualified person (as defined by National Instrument 43-101) who has reviewed and approved the technical information contained in this press release.
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