X-Cal reviews Sleeper data, Mill Creek permit under way
2005-11-08 11:17 ET - News Release
Mr. Shawn Kennedy reports
X-CAL RESOURCES LTD.: NEVADA UPDATE
Sleeper Gold project: Humboldt county, Nevada
X-Cal Resources Ltd. is initiating a review of the large volume of exploration data generated by the Sleeper Gold Corp. joint venture and has requested master copies of all current Sleeper data to facilitate the process.
The review will incorporate outside consultants to assist X-Cal with development of an updated overview of the Sleeper Gold project. Geologic data, expenditures by the joint venture, overall project potential and recommendations for continued exploration will be covered. The process will be funded independently by X-Cal as a management tool.
X-Cal participates in Sleeper technical sessions on a regular basis. Ken Snyder, PhD, Larry Kornze, PEng, and X-Cal president, Shawn Kennedy, attend Sleeper joint venture technical sessions on behalf of X-Cal.
X-Cal's current view of the Sleeper Gold project is that Sleeper is one of only a handful of Nevada gold exploration properties with a district scale landholding centred on a historic producer, with an advanced digital data package.
The review will focus on exploration potential for three styles of gold mineralization at Sleeper with a lower priority on a fourth style:
structurally controlled, high-grade gold mineralization in the Sleeper volcanics;
lower-grade, potentially heap-leachable gold in the volcanics;
potential for Hishikari-style gold mineralization at the volcanic/sediment contact. The review will request input from internationally recognized consultants on this topic. Future exploration success aimed at this type of hypothetical target is expected to be dependant on identification of structural intersections and favourable horizons; and
Florida-Canyon-type gold mineralization in the sediments currently has a lower priority rating.
New Sleeper Gold Corp. is the operator of the Sleeper joint venture. The joint venture is financed 50 per cent/50 per cent by the partners X-Cal Resources and New Sleeper Gold. Resource figures and an updated National Instrument 43-101 are being prepared under the direction and timing of the operator. The additional data from the operator are anticipated before the end of 2005.
Mill Creek gold project: Lander county, Nevada
The plan of operations application announced July, 2005, has been filed and the review process is well under way. The outcome and amount of bonding, if the permit process is successful, is not known at this time. The intent of the plan of operations application for Mill Creek is to facilitate comprehensive exploration of this property (see Stockwatch news dated July 11, 2005).
Mill Creek is currently under option to Placer Dome US. Two holes have been drilled, one in the southwest corner of the property to a depth of approximately 2,500 feet where it was terminated due to ground conditions. The second hole, drilled to a depth of 1,600 feet northeast of the deeper test, was also terminated due to ground conditions. The structural preparation evident in both holes is encouraging. Both holes were drilled from an existing access road as the current permits limit disturbance. X-Cal has yet to receive drill logs or geochemistry from the initial testing by Placer Dome (see Stockwatch news dated June 29 and Aug. 12, 2005, and property maps on the company website).
An NI 43-101 report detailing the results of X-Cal's 2004 work program at Mill Creek can be viewed at the company website.
Reese River pediment project: Lander county, Nevada
X-Cal/Placer Dome
X-Cal, Placer Dome Exploration and Placer Dome US are expanding the binding Reese River pediment project letter agreement (as reported in Stockwatch on Sept. 15, 2005) into a more detailed document. The detailed agreement is expected to be completed this month (see property map at X-Cal's website). The Reese River exploration program will be designed by personnel from both companies. Drill permit applications will be filed at the earliest opportunity. A variety of surface surveys, designed to augment existing targeting data, are scheduled and awaiting field crew.
Summary
Mergers in the gold industry do not make new reserves.
To date, consolidations have resulted in talented exploration people becoming available as consultants. X-Cal has attracted some top technical people with Nevada records to assist with its work and will continue to foster relationships with able explorationists.
X-Cal intends to continue to look at corporate growth opportunities with the assistance of capital markets advisory.
X-Cal still believes strongly in the potential of Sleeper.
The company's early stage Mill Creek and Reese River pediment gold properties are also well located.
The company feels that the giant gold companies will inevitably have to move to exploration to sustain production.
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