CORPORATE UPDATE
The Company, through a non-brokered placement, has received subscriptions for $1,000,000 representing four ('4') million units @$0.25 per unit with each unit enabling investors to subscribe for a further share at a price of $0.35 during the first year and at a price of $0.50 during the second year. All documentation has been forwarded to the TSX Venture Exchange for approval.
EXPLORATION UPDATE
The focus of the Company's exploration program continues at the 15 km long by 3 km wide Comval Gold Project. Previously announced results have clearly demonstrated the existence of an extensive system of high grade gold veins as indicated by the following trenching results:
-------------------------- Au gpt Metres -------------------------- 118.70 1.80 22.70 1.50 42.60 1.10 32.60 0.70 34.80 0.75 148.00 0.65 28.80 2.00 10.00 12.0 --------------------------
Many other high grade grade veins also have been discovered since exploration commenced in mid May 2003.
The greatest concentration of high grade veins occurs at the very large and altered quartz diorite intrusion in the southern portion of the Comval Project Area known as BATOTO where, in addition to the more than 40 high grade structures found to date, the intervening ground between the veins contains an extensive system of small and micro quartz veinlets many of which carry significant gold values.
The exploration work to date confirms that it is imperative to sample fresh rock (as opposed to oxidized and weathered rock) in order to provide meaningful gold assays.
Accordingly, the Company is currently undertaking a dual program of:
- mapping, sampling and assaying the high grade vein systems focusing on obtaining samples from deep trenches and old adits in preparation for a Bulk Metallurgical Testing ('BMT') operation the planning of which recently commenced; and
- undertaking a detailed and comprehensive program of sampling between the numerous veins to demonstrate bulk mineability. The sampling program is focused on obtaining meaningful samples from fresh rock from deep trenches and old exploration and production adits.
While initial results support the model of large tonnage low-medium grade gold mineralization occurring over an area of approximately 500 metres by 1000 metres and over a vertical interval in excess of 400 metres, it must be emphasised that considerable work, including the extensive underground development sampling program (already underway) and a large drilling program (in the planning stage) will be required to substantiate the initial results.
COPPER-GOLD EXPLORATION PROGRAMS
The Company controls a series of gold-rich copper porphyry deposits some 5 km to the SE of the Batoto Gold Project. Previous drilling (24,000 metres) conducted in the 1970's established the existence of three ('3') deposits: one of which was placed into production in 1979 at a rate of 10,000 t/d.
Geophysical data obtained from a 1970's program indicates the presence of a very large and undrilled anomaly just south of the Tagpura copper-gold open cut where surface grab samples up to 11% copper have been obtained. Accordingly, the Company is pleased to announce its intention to undertake a modern geophysical survey in early 2004 to further refine the possible dimensions of this new target in preparation for an initial drilling program. The survey may be expanded over other zones in the Comval Project area.
T'BOLI GOLD PROJECT, SOUTH COTABATO PROVINCE
In addition to the various gold and copper-gold projects in the Comval area, the Company controls the T'Boli epithermal gold vein system where recent drilling and underground sampling outlined an inferred resource of 420,000 ozs gold and 1,600,000 ozs silver contained within 2.4 million tonnes grading 5.5 g/t gold and 21 g/t silver. Management believes that the potential to significantly add to this resource is excellent as the veins are open at depth and along strike and several other areas remain to be drilled.
The Company is planning additional exploration in the surrounding area and a trial Bulk Metallurgical Testing ('BMT') operation. Both activities are expected to commence during 2004. |
