Encouraging assays from South Pipeline

Encouraging assay results were released by Royal Gold (NASDAQ) from the South Pipeline gold project in Nevada. The Denver-based company owns a 20% net profits interest in the property where a deeper high-grade gold zone has been uncovered (T.N.M., Dec. 14/92).

The 4,000-acre land package is one-half-mile south of the Pipeline gold discovery being explored by Placer Dome (TSE).

Placer also operates the South Pipeline project (which hosts preliminary reserves of nine million tons grading 0.082 oz. gold per ton) and recently encountered mineralization 1,000 ft. west of the known

reserves.

Several reverse circulation drill holes at South Pipeline confirmed the presence of near-surface oxidized gold mineralization, in addition to indicating the new, higher-grade zone at depth.

The first hole, PR-39, encountered 130 ft. grading 0.1 oz. gold per ton from 140-270 ft. The second hole returned three mineralized intersections: 60 ft. of 0.063 oz. gold from 120-180 ft., 60 ft. of 0.03 oz. gold from 300-360 ft., and 140 ft. of 0.027 oz. gold from 700-840 ft.

Hole PR-41 returned an impressive 1,240 ft. of 0.061 oz. gold from 150-1,390 ft., including 100 ft. of 0.42 oz. gold from 1,150-1,250 ft. and 20 ft. of 1.09 oz. gold from 1,180-1,200 ft.

Hole PR-42 returned 1,300 ft. of 0.054 oz. gold from 90-1,400 ft., which includes a 90-ft. interval from 1,130-1,220 ft. that encountered sulphide mineralization grading 0.3 oz. gold. (All other mineralization in this and other holes appears to be oxidized.)

The fifth hole encountered 830 ft. of 0.05 oz. gold from 230-1,060 ft. Royal Gold said the two deep high-grade intercepts occur at about the same elevation, suggesting a continuous zone of mineralization over the 400-ft. distance between these drill holes.