U.S. REPORT Related juniors report exploration results

Two associated juniors, U.S. Precious Metals (NASDAQ) and Centurion Gold (NASDAQ), reported encouraging exploration results from their respective gold projects in Nevada and California.

The companies are related by way of common management, and both are based in Auburn, Calif.

Centurion released results from recent drilling on its Big Horn deposit in the San Gabriel mountains of southern California. This year’s program is the first to be carried out by the company on its 100% owned property.

Hole 91-4 returned 110 ft. grading 0.12 oz. gold per ton. It was drilled to offset hole 31 drilled earlier which returned 83 ft. grading 0.32 oz. gold. Both results are uncut and represent actual drill hole length.

Centurion President Tim Callaway said the results to date “tend to confirm my personal opinion that the Big Horn has the potential for a major gold deposit.”

Further drill results and details of ongoing work programs are expected shortly. At this stage, however, the project is viewed as a disseminated gold deposit (average thickness 20-50 ft.) which if proven up would be amenable to room-and-pillar underground mining methods.

As for U.S. Precious Metals, the company announced results from a 1990 exploration program by the U.S. Nevada Gold Search joint venture in which it holds a 40% interest. The project area is near Beatty, Nev.

A recent hole returned a 5-ft. interval grading 0.53 oz. gold and 1.63 oz. silver from 617-622 ft. within a zone where a 20-ft. intersection graded 0.19 oz. gold between 612-632 ft.

The Joshua Hollow area is reported to contain a preliminary resource of 2.8 million tons grading 0.39 oz. gold per ton. The latest drill results are considered significant because of a geologic resemblance between the Joshua Hollow surface oxide deposit and the nearby producing Stirling mine.

Results were also reported from drilling in the Mother Lode zone, where hole 306 intersected 150 ft. of 0.059 oz. gold and hole 338 intersected 240 ft. of 0.062 oz. gold. The latter hole terminated in material grading 0.059 oz. gold.

This deeper sulphide deposit is reported to contain a preliminary reserve estimate of 9.4 million tons grading 0.046 oz. gold. It remains open and untested in two directions.

Further exploration is planned for both the Joshua Hollow and Mother Lode areas which are several hundred feet apart. Both project areas are contained within the U.S. Nevada joint venture.

U.S. Precious Metals, and partners N.A. Degerstrom and Gexa Gold, produced 30,000 oz. gold in 1990 from the Mother Lode deposit on the joint venture property.

Limited production will continue into 1991, as work continues to prove up reserves from the Joshua Hollow and Mother Lode areas.