North American provides Central zone assays
2004-10-04 10:48 ET - News Release
Mr. Buck Morrow reports
LATEST ASSAY RESULTS FROM CENTRAL INDICATE THE POTENTIAL FOR A STRUCTURAL RELATIONSHIP BETWEEN NORRA, AVAN AND CENTRAL
North American Gold Inc. has provided the latest assay results from the Central zone drilling program at the Barsele project in northern Sweden.
Hole No. From To Au Ag Zn
(m) (m) (g/t) (g/t) (%)
DDH 04-06 19.9 37.5 4.9 98 1.5
Incl. 24.9 29.1 11.6 88 3.1
DDH 04-07 48.6 86.6 0.9 - -
Incl. 66.5 68.5 4.6 - -
DDH 04-08 52.3 54.0 9.3 - -
DDH 04-09 8.6 12.5 4.9 - -
and 100.7 105.7 2.3 - -
DDH 04-10 115.0 115.9 27.2 - -
The results of holes 04-06 through 04-10 suggest the presence of a northwest-trending quartz-sulphide breccia vein zone located at the western margin of the Central zone. The drilling indicates that the vein zone may trend southeast into the main low-sulphide Central zone, and is open
to the northwest. A plan map of drill hole locations has been posted on North American Gold's website www.northamgold.com.
Buck Morrow, president of North American Gold, said: "The latest assay results from the Central zone suggest a new, higher-grade, vein-type zone is present outside of the previously drilled area. We have not seen these high silver and zinc values previously at the Central zone. Some of the high-grade mineralization is very close to surface, as in holes 06 and 09, and we are considering a trench to expose this zone for detailed structural studies and metallurgical testing. The high-grade intercept in hole 10 is significant because it demonstrates that new gold mineralization remains to be discovered along the Norra-Avan-Central corridor. With more exploration, including drilling, we may find that the three zones are structurally linked."
Drilling has now commenced at the Skirasen zone and assays remain pending from holes 04-11, 04-12 and 04-15 through 04-27 at the Norra zone -- Cee Lake targets. North American has now fulfilled its 2004 exploration obligations at the Norra project and, once the Skirasen drilling is complete, the Barsele obligations will also have been met. All exploration data are now being compiled, integrated and reviewed to assess the next round of drill targets.
National Instrument (NI) 43-101 compliance
The 2004 drilling program is being supervised by Harmen Keyser, PGeol, a qualified person under NI 43-101, who has verified the data disclosed in this release. It is not yet possible to make a conclusive statement relating sample interval to true width, as the structural controls on mineralization remain poorly understood. The silver value reported in hole 04-06 contains several assay overlimits, and is subject to revision upon receipt of more assays. Assays have been performed by Omac Laboratories (ISO 9001:2001) of Loughrea, Ireland, and ALS Chemex (ISO 9001:2000) of Vancouver, B.C., Canada, using standard fire assays for gold and AAS for silver and zinc.
North American has an option to acquire a 60-per-cent interest in the adjoining Norra and Barsele properties from Minmet PLC by incurring a total of $3.5-million (U.S.) in exploration expenditures and issuing 400,000 shares to Minmet by Nov. 3, 2006 (see news release in Stockwatch dated Nov. 3, 2003). For more information, please refer to North American's website www.northamgold.com or call Kareen McKinnon toll-free at 1-888-627-9378.