Metallic Ventures cuts Esmeralda shoot

Underground core drilling by Metallic Ventures (MVG-T) has intersected a new high-grade ore shoot along strike of the Martinez vein system on the Esmeralda property, 100 miles southeast of Reno, Nevada.

The new shoot is situated some 300 ft. feet west of the known Martinez resource on the Morning Glory Vein. Highlights from the drilling include:

• hole 6 – 4 ft. (from 45 ft. below surface) grading 0.1 oz. gold and 0.2 oz. silver per ton, 5 ft. (from 92 ft.) grading 0.35 oz. gold and 1.1 oz. silver, and 11.5 ft. of 0.3 oz. gold and 0.6 oz. silver.
• hole 7 – 5.4 ft. (from 22.6 ft.) running 0.1 oz. gold and 0.3 oz. silver;
• hole 8 – 3.5 ft. (from 89.5 ft.) of 0.07 oz. gold and 0.3 oz. silver; and
• hole 9 – 3 ft. (from 87 ft.) averaging 0.16 oz. gold and 0.2 oz. silver.

The company says the mineralization occurs along strike and within the same vein system that plays host to the Martinez resource. The zone remains open along strike and down-dip. Underground and surface drilling continues.Meanwhile, recently completed drilling on the Prospectus vein system has confirmed the continuity of gold mineralization and expanded the 3800 high-grade ore shoot. Selected results include:

• hole 36 — 6.2 ft (from 42.8 ft.) grading 1.36 oz. gold and 10.7 oz. silver, including 2.2 ft (from 44 ft.) of 2 oz. gold and 11.6 oz. silver;
• hole 37 — 3 ft. (from 63 ft.) of 1.9 oz. gold and 7.9 oz. silver);
• hole 38 — 5 ft. (from 81 ft.) running 2.4 oz. gold and 10 oz. silver.

The intersection are situated 50 ft. southwest of the 3800 zone in a previously undrilled section.

A new underground resource figure for Prospectus will be calculated once the current drill campaign wraps up. At last count, underground resources for the vein stood at 187,993 tons grading 0.49 oz. gold and 1.9 oz. silver.

Overall measured and indicated resources at Esmeralda stand at 30.7 million tons grading 0.031 oz. gold, for 952,700 contained ounces. An additional 9.2 million tons of material running 0.025 oz. gold are classified as inferred.

Metallic hopes to have Esmeralda producing at full steam by early 2004. The company is fine-tuning the operation’s 350-ton-per-day, carbon-in-leach mill to handle feed from stopes on the Prospectus and nearby Martinez veins.

Underground development of declines, crosscuts, and diamond drill stations continues. The project is fully permitted.