Platosa yields mixed results (November 26, 2001)

Vancouver — Three drill holes at the Platosa base metal property in west-central Mexico have returned significant mineralization for Excellon Resources (EXN-V).

Two of the holes tested the lateral offset of the previously encountered mineralization. Hole 30 cut 1.3 metres grading 295.5 grams silver per tonne, 4.1% lead, and 4.1% zinc from a down-hole depth of 146.6 metres, whereas hole 33 returned 16.8 metres averaging 892.7 grams silver, 6.7% lead, 8.4% zinc and 0.12% copper.

Meanwhile, hole 35, which tested potential feeder zones around the tabular zone, intersected 283 grams silver, 19.1% lead and 0.16% zinc at 149.3 metres down-hole. Farther down the hole, drill crews encountered a new zone of mineralization, grading 8,186.4 grams silver, 5.9% lead and 5% zinc at 160.6 metres down-hole.

Five holes tested geophysical and soil anomalies but failed to return any significant values.

So far, 12 holes have been completed, and about 500 metres remain in the planned 3,000-metre program.

Situated in Durango state, the 144-sq.-km property hosts a number of tabular bodies known as mantos. Three of these were mined locally in the 1970s, and, in 1999, Apex Silver Mines (SIL-X) drill-tested two more. The style and complexity of the mineralization encountered suggested a large-scale, silver-lead-zinc replacement system. The mantos are hosted by a paleo-channel of dolomitic grainstone in limstone sedimentary debris breccias.

Excellon can earn a 51% interest in the project by spending US$2.2 million by Aug. 1, 2003.

Placer eyes South Carlin

Vancouver — Picking up where Rio Tinto (RTP-N) left off, Placer Dome (PDG-T) has inked a deal to earn up to a 70% stake in Nevada Pacific Gold‘s (NPG-V) South Carlin project in northeastern Nevada.

Placer can earn an initial 60% interest in the 17-sq.-mile property by paying US$71,000 in cash and spending US$4.6 million on exploration over five years. It can then earn an additional 10% by completing a bankable feasibility study.

“The combination of Placer Dome’s technical expertise and financial resources represents a renewed effort to test the exploration potential of our sizable Carlin trend holdings,” says Nevada Pacific’s chief executive officer, David Hottman.

Nevada Pacific will act as operator during the initial phase of exploration, which will include soil sampling, geophysics and drilling.

So far some US$900,000 has been spent exploring the property. In February, Nevada Pacific and Kennecott, a subsidiary of Rio Tinto, agreed to end their partnership in the area, which began in July 1998. The joint venture controlled 18 sq. miles in northeastern Nevada and included the South Carlin, Tomera Ranch, High Dollar and Dixie Flat properties. Exploration expenditures and underlying property payments were shared 50-50 by the pair. Kennecott had the option to earn up to a 60% interest in any discovery area by meeting expenditure requirements.

Nevada Pacific retained all the properties except Dixie Flat, which was brought to the alliance by Kennecott.

Queenstake boosts Magistral

Vancouver — Drilling by Queenstake Resources (QRL-T) has increased the size of the high-grade core of its wholly owned Magistral gold deposit in Mexico’s Sinaloa state.

The program targeted a 150-metre strike length of the La Prieta zone. Spaced 25 metres apart, the 16 holes tested the mineralization to 90 metres downdip.

Results indicate a series of zones, generally grading between 1 and 6 grams gold per tonne. Three of the better intersections were:

– 21 metres grading 9.99 grams gold per tonne;

– 28.5 metres grading 4.58 grams gold; and

– 33 metres grading 6.61 grams gold.

Other higher-grade intersections included 3 metres grading 10.1 grams gold and 7.5 metres grading 12.63 grams gold. Narrower intersections, generally 3-6 metres long, often carried grades of 1-2 grams.

Based on these results, the company intends to increase the reserve base, which stands at 6.1 million tonnes grading 1.86 grams gold.

Queenstake acquired the property through a merger with Toronto-based Santa Cruz Gold in May 2000.

In early September 2001, Queenstake inked two agreements which together provide the financing and equipment required to advance Magistral to the production stage.

Normabec drills Verneuil

Vancouver — Drilling by equal partners Soquem and Normabec Mining Resources (NMB-V) has hit significant gold mineralization under two surface showings at the Verneuil property in Quebec’s Abitibi East Cty.

Three holes tested for mineralization under the 1B trench.

Hole 13 cut 17.2 metres grading 2.4 grams gold per tonne at a down-hole depth of 35.6 metres, including a higher-grade portion running 6.6 grams gold over 4.8 metres.

Collared at 50 metres to the east, hole 14 returned 3.3 metres averaging 11.1 grams gold from 33.5 metres down-hole.

Hole 15 was collared a further 50 metres to the east and hit 7.1 grams gold over 0.4 metre from 21.1 metres down-hole.

Some 400 metres southeast of the No. 1 showing, a third hole, no. 12, tested the depth extension of surface mineralization encountered in trench 12, which returned surface grab samples of up to 38.5 grams gold. This hole cut two zones yielding 6.8 grams gold and 138 grams silver over 0.5 metre from 158.5 metres down-hole.