Tackler's trades

[Ed Monton]

Glencairn releases follow-up results from Limon

2004-09-24 15:44 ET - News Release


Mr. Kerry Knoll reports

GLENCAIRN REPORTS MAJOR INTERCEPT ON VICTORIA ZONE AT LIMON

Glencairn Gold Corp. has released the results of follow-up drilling on the new Victoria zone discovered in August at the Limon mine concession in Nicaragua.

The highlight of this initial follow-up drilling is hole No. 3235, which intersected 16.5 grams per tonne gold over 36 metres of core length. Hole No. 3235, along with three other holes, were completed during the past month to follow up on discovery hole No. 3211, which intersected 15.8 metres grading 7.7 grams per tonne gold (see news in Stockwatch Aug. 13, 2004).

"I cannot overemphasize the significance of this drill hole for the Limon mine and for Glencairn," says president and chief executive officer, Kerry Knoll. "Hole 3235 is the furthest west of any drill hole on this zone. It is the widest vein intercept ever encountered on this property in 63 years of mining. It is almost three times the grade of our reserves, and, although we don't yet know the true width, this drill intercept is nearly 10 times as wide as what we are mining now."

The results of the follow-up drilling are as follows.

 
  
 Hole   From-To    Core   Gold  Internal 
 No.      (m)     length  grade  check 
                   (m)    (g/t)  (g/t) 
  
 3211(a) 392.58  15.80    7.7      7.4  
  (a)   -408.38 
  
 3219    351.00   1.55   35.3     35.8  
        -352.55 
         362.70   0.60   25.3     26.7 
        -363.30 
  
 3225   No values above 3.3 g/t, most 
        values below 1.5 g/t; see 
        comments below 
  
 3228    443.75    4.1    0.9      1.0 
        -447.85 
  
 3235    365.35  35.96   16.5     16.7 
        -401.35 
  
  
 

(a) Previously released.

Holes No. 3219 and No. 3225 were drilled on the same section as discovery hole No. 3211. Hole No. 3219 is approximately 40 metres above hole No. 3211, and hole No. 3225 is about 90 metres below hole No. 3211. In addition to the two high-grade gold intercepts encountered in hole No. 3219, there were also a number of other narrow (15-to-60-centimetre) quartz-bearing intervals throughout the hole with variable grades from 0.3 to 12.1 grams per tonne gold. Hole No. 3225 intercepted 75 metres (421.8 to 497.7 metres) of highly altered andesite that includes narrower quartz breccia and quartz stockwork intervals with low-grade gold values all below 3.3 grams per tonne. Geologically, these results indicate that hole No. 3225 cut the Victoria zone too deep -- that is, below the prospective gold-bearing horizon.

Hole No. 3228 was drilled parallel to, but about 50 metres northeast of, hole No. 3211, and did not intersect the Victoria zone. As reported above, it did intercept 4.10 metres of 0.9 gram per tonne in a quartz-breccia vein at 395 metres below surface. This deep intercept appears to represent a separate and new exploration target that will require follow-up drilling at shallower depths.

Hole No. 3235 was drilled to the southwest of the section and did intersect the Victoria zone approximately 65 metres to the southwest of hole No. 3211. The gold assays throughout the 36-metre mineralized interval are remarkably consistent in grade with 30 of the 38 samples having values greater than five grams per tonne gold and 21 of the 38 samples with values greater than 10 grams per tonne gold.

Additional drilling is required before the true width of the mineralized intercepts can be determined. The next planned hole will be drilled up-dip from the high-grade gold mineralization in hole No. 3235, and subsequent holes will likely be drilled farther to the west.

The Victoria zone is located on the west-to-southwest projection of the Talavera mine trend. This trend correlates with a ridge of silicification and clay alteration that indicates at least 1,000 metres of exploration potential beyond the mine area. The Victoria zone discovery lies on the northern flank of this ridge of alteration at its eastern end and clearly demonstrates the prospectivity of this trend.

The Limon mine has been in continuous production since 1941, producing almost three million ounces of gold. During that time, ore has been extracted from three distinct zones or vein systems, each zone producing about one million ounces. Talavera, where current mining operations produce about 1,000 tonnes of ore per day, is 4.5 kilometres west of the Limon mill. The average grade of current mineral reserves at Talavera is 6.1 grams per tonne.

Sampling, assaying and quality control

Samples are taken as half of the sawn core. The company's on-site Limon mine laboratory is used for sample preparation and assaying. None of the gold assays reported above have been cut.

The Limon mine laboratory uses normal industry procedures. A separate crushing and pulverizing circuit is reserved for, and was used for, these exploration samples. Core samples were crushed to pass 10-mesh-size sieve and a one-quarter split was then pulverized to have greater than 90 per cent pass the 200-mesh-sized sieve to produce a 100-gram homogenized subsample. The Limon laboratory uses a one-assay-ton aliquot (a 29.2-gram subsample) for fire assaying with a gravimetric finish to determine gold concentration.

Internal quality control programs include the use of blanks, duplicates, standards and internal check assaying. The internal check assays completed to date are reported above for comparison. External check assays are routinely performed at ACME Analytical Laboratories of Vancouver, with check samples submitted independently by the exploration group and the lab manager.

External check assays on the Victoria zone discovery hole No. 3211 reported in Stockwatch Aug. 13, 2004, were received from ACME Analytical Laboratories of Vancouver and confirm the Limon mine laboratory assays. External check assays of the specific data reported herein for the new holes are pending preparation of duplicate samples and shipment to Canada.

Qualified person

Michael Gareau, PGeo, vice-president of exploration for Glencairn, is the qualified person as defined by National Instrument 43-101. The drilling program is being conducted under Mr. Gareau's supervision. The laboratory certificates and the results reported herein were reviewed and verified by Mr. Gareau. Mr. Gareau has read and approved this news release.

WARNING: The company relies upon litigation protection for "forward-looking" statements.