Cannon production exceeds Asamera’s expectations

Calgary-based Asamera Minerals recently released a progress report on a number of its key properties located in Germany and the U.S. Results of exploration and production from five of these projects are as follows:

* Production at Asamera’s Cannon Mine in Wenatchee, Wash., has exceeded initial projections, the company said recently. The mine produced 66,464 oz gold and 88,247 oz silver at an operating cost to the company of $147.43 per oz of gold.

Asamera says gold recovery averaged 90.66% and continues to increase as additional modifications are made to the mill circuits.

Although a new reserve estimate is being calculated, discovery of two new zones in the Cannon mine area has increased both reserves and mine life, according to the company.

As reported (N.M., April 20/87), a new B-4 zone which extends to the west and north of the B North (which is the main source of gold for current production at the Cannon mine) added 544,000 tons of proven and probable reserves grading 0.236 oz to the mine.

* Asamera continues to encounter what the company calls “significant mineralization” at its Inyl Cty., Calif., precious metals prospect.

“Drilling in the “B Area,” a skarn target, has encountered grades of up to 2.5 oz at depths of less than 300 ft. Drilling in the “Detailed Grid” area has shown shallow mineralization with grades averaging about 0.08 oz from surface to a depth of approximately 100 ft. Asamera says drilling on the prop erty will continue for two more months before beginning a pre- feasibility evaluation.

* According to the company, exploration results at its recently acquired 103,000-acre Western Nevada gold project, east of Reno, have also been encouraging.

“Surface samples taken in the area of the Ramsey Mining District, included in these properties, have shown gold values of up to 1.25 oz, associated with a massively altered area in the Kate Peak volcanics,” the company says.

The alteration is known to cover a minimum area of four to five sq mi. Drilling of several target areas will begin this fall after detailed mapping is completed.

* Still in Nevada, Asamera says exploratory drilling will begin soon on the company’s Trout claims which are located south of Echo Bay’s McCoy mine and recent Cove gold discovery.

* In Germany, the company is currently earning a 75% interest in the Erzbuck gold project. Drilling sampling of the target zone, a silicified arkosic sandstone is under way. Visible gold is present in at least two areas on the 20 sq mi concession, according to Asamera. Results from the first set of drill samples are expected soon.

Asamera Minerals is a 90.05%- owned subsidiary of Asamera Inc.