ANNUAL REPORT REVIEW — Argosy drilling extends Slovakian deposits

Diamond drilling at the Kremnica project in Slovakia has extended the Sturec gold deposit, held by Argosy Mining (AGO-V).

Results from a 29-hole, 3,634-metre program are far beyond the junior’s expectations, and Argosy now plans to make the property its major focus in 1997.

Highlights include: 7.9 metres grading 1.88 grams gold and 9.2 grams silver in hole 1; 1.1 metres of 15.3 grams gold and 7.1 grams silver in hole 2; 8.8 metres of 1.64 grams gold and 5.8 grams silver in hole 31-B; and 14.8 metres of 1.35 grams gold and 23.7 grams silver, plus 26 metres of 2.48 grams gold and 54.2 grams silver, in hole 6.

Nine holes ended in mineralization, owing to drilling difficulties associated with old, unstable mine workings.

Results from those holes include: 41.5 metres grading 1.53 grams gold and 14.3 grams silver in hole 4; 49.4 metres of 2.61 grams gold and 20.3 grams silver in hole 4.1A; 69 metres of 1.66 grams gold and 12.1 grams silver in hole 4.1B; and 20 metres of 4.24 grams gold and 36.2 grams silver in hole 5.1.1A.

Argosy says hole 7, which returned 60.7 metres of 4.84 grams gold and 41.9 grams silver, “provides the most significant drill intercept at Kremnica to date.”

Assays from the bottom 22 metres of core have increased the average grade, previously reported as 38.7 metres at 3.95 grams. Also, hole AS-7 confirmed that a wide zone of high-grade gold mineralization extends 50 metres below previous data and remains open to depth.

Results indicate the deposit strikes north and dips to the east at 60-80, with thicknesses ranging from 10 to more than 100 metres over an 800-metre strike length.

Drilling will continue into December.

In addition to the Kremnica program, the Vancouver-based junior drilled a 2-sq.-km section of the Pukanec project, 35 km to the southwest.

The 35.6-sq.-km property is controlled through two separate joint ventures in which Argosy can earn up to a 75% interest by making staged expenditures and payments over four years.

Surface exploration and diamond drilling centred on a 2-by-1-km area of gold and silver mineralization known as Agras-Biela Bana. It is situated in the near-surface halo of a deep porphyry-copper system, which includes a central granodioritic stock, together with porphyry and rhyolite dykes.

At surface, the gold-silver mineralization is marked by hundreds of old, now-inaccessible mine workings. Dumps at the workings contain hydrothermally altered host rock and quartz-vein material averaging 1-2 grams gold, with high silver credits.

Drill results from Pukanec include: 3.6 metres grading 1.16 grams gold and 103.2 grams silver, plus 3.4 metres of 1.51 grams gold and 104.1 grams silver, in hole 2; 2.4 metres grading 0.51 gram gold and 61 grams silver in hole 3; 2.2 metres of 0.81 gram gold and 93 grams silver in hole 3A; 3 metres of 1.53 grams gold and 10.9 grams silver in hole 10; 6 metres of 0.83 gram gold and 11.5 grams silver, plus 3 metres of 1.8 grams gold and 12.1 grams silver, in hole 15; 6 metres of 2.55 grams gold and 104.7 grams silver in hole 15A; and 4 metres of 1.12 grams gold and 61 grams silver in hole 21.