Los Cangrejos Gold Project, Ecuador:
Positive Results From Drilling And Trenching
September 15, 1999
Odin Mining Exploration (40%) and Newmont Overseas Exploration Ltd, a subsidiary of Newmont Mining Corporation (NYSE; NEM) (60%) have an ongoing joint venture agreement over an area of interest of approximately 27500 hectares. Presently, 9 claims totalling 8266 hectares have been acquired, 4 claims totalling 1464 hectares are under option. Newmont is the operator of the joint-venture.
The area of interest is underlain by highly deformed, metamorphosed clastic sediments (meta-pelites, meta-greywackies), which have been intruded by Tertiary felsic granitoid bodies thought to be related to gold mineralization. Outstanding exploration results have been achieved from the recently finished diamond drilling and trenching programme in the Los Cangrejos sector.
7 diamond drill holes have been completed in the Los Cangrejos sector totalling 1515,47 metres. Gold mineralization is hosted primarily in dioritic intrusions and polymict hydrothermal breccias. The principal intercepts are:
Drill
Hole |
From
(meters) |
To
(meters) |
Width
(meters) |
Gold
(ppm) |
|
| C99-1 |
76 |
90 |
14 |
1.55 |
|
| |
156 |
168 |
12 |
1.39 |
|
| C99-2 |
114 |
122 |
8 |
1.18 |
|
| C99-3 |
174 |
249 |
75 |
1.01 |
|
| C99-4 |
4 |
108 |
104 |
1.02 |
including 28 m at 1.56 ppm |
| C99-5 |
14 |
214 |
200 |
1.05 |
including 60 m at 1.56 ppm |
| C99-6 |
6 |
138 |
132 |
1.19 |
including 44 m at 1.70 ppm |
| C99-7 |
40 |
44 |
4 |
1.06 |
|
Preliminary interpretation indicates that gold mineralization is controlled by silicification, chloritization with biotite+magnetite, and quartz-sericite-tourmaline alteration. Sulphides encountered are disseminated pyrite, pyrrhotite and chalcopyrite with minor molybdenite in quartz veinlets.
Diamond drilling was followed up by trenching and hand-pitting in the vicinity of the drillholes. The work programme considerably extended gold mineralization in bedrock:
Pits between diamond drillhole C99-4 and trench 1 confirmed continuity to the intrusive hosted zone with 100m at 1.36 ppm Au. Trench 2 (at C99-5) assayed 0.91 ppm Au over 100m. Trench 3 (150m west of C99-5) assayed 1.17 ppm Au over 25 m and 1.35 ppm Au over 130m. Trench 4 (at C99-6) assayed 1.21 ppm Au over 145m.
Second phase of diamond drilling will start end-September 99 and will focus on the continuity of intersections obtained in the first phase of drilling and on new targets outlined in the trenching/pitting programme.
Odin Mining believes there is significant room for a bulk open pit mineable gold deposit at Los Cangrejos, but considerable additional drilling will be necessary to establish a resource. Newmont is a world gold-producer with a leading operation in the northern Peru. We are confident that this experience will enable the project to be brought forward to feasibility even at depressed gold prices experienced at the moment.
ODIN MINING AND EXPLORATION LTD.
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