Majestic returns channel sample results from Fekenyun
2005-02-16 20:15 ET - News Release
Mr. Rod Husband reports
UNDERGROUND CHANNEL SAMPLE RESULTS - SONG JIAGUO
Majestic Gold Corp. has received geochemical results on channel samples taken in drifts of the level 4 underground workings of the Fekenyun mine on the Songjiaguo licence, located in Shandong province, People's Republic of China.
A total of 107 contiguous channel samples were taken from two subparallel drifts, located approximately 258 metres below surface. The drifts are orientated perpendicular to the strike direction of known high-grade structures and provide an excellent opportunity to evaluate the host conglomerate for bulk-minable potential.
A total of 68 samples covering 103 metres were collected along the south drift. Assays ranged from 18 to 121,176 parts per billion gold across 1.5 metres and results are summarized in the following table.
FEKENYUN GEOCHEMICAL RESULTS
Drift From To Width Grade
(metres) (ppb Au)
South 0 103.0 103.0 2,297
incl. 0 13.5 13.5 1,199
and 62.9 103.0 40.1 5,222
incl. 68.9 70.4 1.5 121,176
..........
A total of 40 samples covering 60.2 metres were collected along the north drift, which is located 60 metres along strike from the south drift. Assays ranged from 12 parts per billion to 8,789 parts per billion gold across 1.5 metres and results are summarized in the following table.
FEKENYUN GEOCHEMICAL RESULTS
Drift From To Width Grade
(metres) (ppb Au)
North 0 60.2 60.2 585
incl. 0 25.5 25.5 1,076
incl. 0 12.0 12.0 1,460
........
"The results further indicate that the gold mineralization permeates out from the higher-grade structures, forming halos around them within the host conglomerate sequence. We are likely dealing with a situation where there is coarse free gold in the system, and will adjust our sampling and assaying techniques to properly address this style of mineralization. As a first pass, we are very encouraged with these geochemical results," says Warren Robb, PGeo, senior consulting geologist for Majestic. Previously reported historical drill results are tabulated below to further demonstrate the widths and grades encountered throughout the conglomerate.
HISTORICAL DRILL RESULTS
Drill From To Width Grade
hole No.
(metres) (ppb Au)
ZK19 224.52 244.79 20.27 12,580
ZK9 183.90 192.30 8.40 5,410
ZK51 25.88 38.09 12.21 930
ZK16 369.00 401.63 32.63 1,580
ZK10 11.98 22.68 10.70 1,350
ZK6 289.90 305.00 15.10 710
ZK1 231.90 241.70 9.80 830
High-grade gold mineralization is hosted by a series of steeply dipping, subparallel north-northeast-trending fault zones, as is typical in the region.
A mineral resource of 1.8 million tonnes of 6.76 grams per tonne (g/t) Au was published in 1998 by the Shandong 3rd Geological and Mineral Institute. While all of the historical data reviewed are considered complete and procedure dictated in Chinese exploration manuals appear to be reliable, the company has not completed the necessary work to verify the classification of this resource. Therefore, the company is not treating them as a National Instrument 43-101 resource verified by a qualified person, and as a result, the historical estimate should not be relied upon. Review of the data indicates that the high-grade structures hosting this mineralization remain open at depth and along strike in both directions.
Majestic continues its underground channel sampling program on levels 3 and 2, located approximately 210 metres and 170 metres below surface respectively to continue to evaluate the gold mineralization within the conglomerates and makes plans for a drill program to commence as soon as practical after the current Chinese holiday.
"We have two targets that require follow-up: a proven gold target in the high-grade structures with considerable upside both at depth and along strike; and the untested bulk-minable target within the conglomerates that has great potential," says Rod Husband, PGeo, president of Majestic. "We look forward to continued success in 2005."
Song Jiagou is one of 13 licences and covers 4.11 of a total of 75.06 square kilometres that fall under an agreement with Shandong Yantai Muping gold mine on the Jiaodong peninsula of Shandong province. Under the terms of this agreement, Majestic has the right to earn a 60-per-cent interest in a joint company established to hold the title to the exploration licences by spending approximately $4.2-million (U.S.) over four years on exploration. Upon completion of the required exploration expenditures by Majestic, Muping is required to finance its pro rata share of exploration or have its interest diluted down to 15 per cent.
All samples collected were processed at Langfang laboratories in Beijing, selected samples from this data set have been couriered to Acme Analytical Laboratories in Vancouver to be analyzed by fire assay techniques.
This news release was reviewed by qualified persons as defined by National Instrument 43-101, including Warren Robb, PGeo, who has prepared the technical information contained herein.
Majestic has amended the terms of the warrant attached to the non-brokered private placement financing of up to 4.5 million units announced in Stockwatch on Jan. 19, 2005, at a price of 70 cents per unit. Each warrant will entitle the holder thereof to purchase one additional common share in the capital of the company for two years at 90 cents per share, with forced conversion if the shares of Majestic trade over $1.80 for more than 20 consecutive days.
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