News is out. Slovakian holes were duds. I wonder how this will open tomorrow...
Magestic Gold enters joint venture in Sawayaerdun
2003-12-15 13:19 ET - News Release
CHINA JV SIGNED / CESKE BREZOVO DRILL RESULTS
Further to Magestic Gold's co-operation agreement announced in Stockwatch Aug. 5, 2003, Majestic Gold has entered into a joint venture agreement, dated Nov. 7, 2003, with the Xinjiang Bureau of Geology and Mineral Resources (XBGMR). Under the terms of the agreement, Majestic has the right to earn a 90-per-cent interest in a joint venture company that will be established to hold the Sawayaerdun gold project in Xinjiang province of China. To earn its interest, Majestic is required to contribute 100 per cent of the exploration and development costs to the joint company, including certain minimums in the first four years. The XBGMR will contribute the property and all geological information collected to date in exchange for its interest.
The agreement calls for Majestic to incur minimum cumulative exploration expenditures over four years of $2-million (U.S.) as follows:
cumulative expenditures of at least $300,000 (U.S.) before Dec. 31, 2004;
cumulative expenditures of at least $700,000 (U.S) before Dec. 31, 2005;
cumulative expenditures of at least $1.35-million (U.S.) before Dec. 31, 2006; and
cumulative expenditures of at least $2-million (U.S.) before Dec. 31, 2007.
At any time in the first two years Majestic can elect to establish the joint venture company to conduct continuing exploration and development. In the event Majestic does not establish the joint venture company within the initial two years, it may renew its exploration option for a subsequent two years and establish the joint venture company at any time in the next two-year period.
When established, the joint venture company will be owned 90 per cent by Majestic and 10 per cent by XBGMR and Majestic will continue to finance 100 per cent of continuing exploration and development.
About Sawayaerdun
The Sawayaerdun project covers approximately 240 square kilometres, between longitude 74 degrees 10 minutes and 74 degrees 23 minutes east and from 40 degrees nil minutes north to the border of Kyrgyzstan. The project lies in the Tian Shan gold belt which stretches from Inner Mongolia west to Uzbekistan and which hosts such deposits as Muruntau (over 140 million ounces of gold) and Kumtor (over 13 million ounces).
XBGMR reports that the gold mineralization at Sawayaerdun is hosted by Silurian-aged carbonaceous phyllites in a system that breaches surface in over 20 separate zones. Zone IV has received the most attention to date, mainly due to the fact that its surface expression can be traced for over four kilometres and because it is bisected by the local access road. At a cut-off of three grams per tonne gold (g/t), the combined higher grade portions of Zone IV can be traced for over 1.6 kilometres along strike and average approximately 8.4 metres thickness with an average grade of approximately 3.3 grams per tonne gold from the trench, adit and drillhole data that have been reported to date by XBGMR.
In preparation of an independent geological report for the company, 33 continuous chip samples were taken from eight trenches along a two-kilometre strike length of Zone IV. All of the samples were two metres in length and continuous within each trench. These samples were taken by Calvin Church, PGeo (a qualified person under National Instrument 43-101), and were transported to Vancouver, B.C., and submitted for assay at Acme Analytical Laboratories. Gold mineralization was consistent throughout these samples and a summary of the results is tabulated below:
Location Assay Values
Trench 12 1.96 g/t over 12 metres
Trench 23 2.62 g/t over 10 metres
Trench 24 0.48 g/t over 4 metres
Trench 31 1.87 g/t over 10 metres
Trench 35 0.92 g/t over 4 metres
Trench 39 1.79 g/t over 10 metres
Trench 64 2.35 g/t over 8 metres
Trench 68 3.47 g/t over 8 metres
(incl. 9.26 g/t over 2 metres)
All trenches mentioned were open in both
directions
Weighted Average: 2.10 g/t over 8.25 metres
It is important to note that the check sampling did not cover the entire length of any of the previous trenches and was not possible in all of the previous trenches due to slumping and other disturbances. The check-sampling program was designed to confirm previous results and will serve as a basis to design future drill programs to test the continuity of mineralization at depth. The IV zone has been tested by XBGMR at depth in 16 adits and 11 drill holes and demonstrates good continuity.
XBGMR report a total inferred resource (Chinese category D and E) of 26,044,174 tonnes containing 45,246,840 grams (over 1.4 million ounces) of gold (average of 1.75 g/t Au) in a 2,000-metre section of the IV zone alone. Approximately 15 per cent of this is reportedly oxidized. (The estimates were completed by Chinese professionals but not pursuant to National Instrument 43-101 or current CIM guidelines. The company has performed limited work and review to date and is not able to substantiate the reported finding at this time, but has engaged its qualified person to make this review and his findings will be published when available and thus, the current information alone should not be relied on for investment purposes).
XBGMR reports three additional gold zones have been trenched on surface for a combined length of over 7,500 metres and have not been tested at depth in either adits or drill holes and represent excellent additional targets. Average widths and grades at surface are reportedly 4.37 metres and 1.37 g/t gold.
The company is continuing to compile data from previous work done on this project and is currently making plans to begin exploration at Sawayaerdun in the first quarter of 2004.
The company is also actively evaluating several other projects in China.
Ceske Brezovo, Slovakia update
Majestic has not encountered significant gold or other mineralization in any of the four diamond drill holes drilled on the Ceske Brezovo property in Slovakia. Majestic was attempting to confirm and expand on gold mineralization reported by a government-funded exploration program in the region between 1991 and 2000.
All holes were logged by Bohumil Molak PGeo, Majestic's qualified person, and split under his supervision. Samples were stored in a locked warehouse and packaged and air-freighted, via UPS, to Acme Analytical Laboratories Ltd. in Vancouver, B.C., for analysis. The core was assayed using a standard 30 element ICP package and gold analysis was conducted by fire assay.
Majestic will do further investigation with its assayers to confirm that no gold was missed in the assay procedures. Majestic will suspend property payments and will seek an indefinite extension of its next payment date to allow time to explain the discrepancy in assays.
The company has over $2-million in working capital and will continue to pursue its mandate of evaluating, acquiring and exploring advanced staged projects globally.
AI
