VANCOUVER, British Columbia, July 9, 2001 (PRIMEZONE) -- Eaglecrest Explorations Ltd. (CDNX:EEL) reported today that high grade gold values have been recorded in analysis of five separate grab samples from a newly identified steeply dipping sulphide veining system at the company's San Simon gold project in northeast Bolivia.
The company said sulphide zones encountered during underground development at the project are associated with steeply dipping quartz veins that may indicate a feeder system to the previously identified sheeted quartz veining stockwork system. These veins trend at about 100 degrees and dip to the north. Associated with the veins are 1-3% sulphides as well as visible gold. Sulphides occur in clots of up to 10-15 cm (locally up to 60 cm) and consist of mainly pyrite (iron sulphide) and lesser galena (lead sulphide) and arsenopyrite (arsenic sulphide). Arsenopyrite typically occurs in disseminated form. Also of note is the occurrence of sphalerite (zinc sulphide) in trace amounts. Black oxide is also present in two forms, likely replacing the sulphide clots and seams.
Summary of assay results:
Sample Name Au Ag Pb Zn As
g/t g/t % % %
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BR 298 8.25 243.0 9.88 LT 0.01 3.3
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BR 300 a 2.40 2.1 0.01 LT 0.01 1.47
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BR 300 b 92.40 71.0 0.08 LT 0.01 0.36
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BR 306 3.40 39.8 3.19 0.04 0.59
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26374 (BR 300) 50.80 822.9 0.04 0.02 0.31
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LT = less than
Note: samples analyzed by fire assay at International Plasma
Laboratory of Vancouver
Eaglecrest said the company will undertake additional sampling of the system encountered between blast rounds 289-306, and a new second system seen between blast rounds 333 and 341, as soon as flooding that temporarily stopped underground development on June 21, is brought under control.
The company said that the project technical team has reported the potential for five-to-six of the sulphide-rich feeder zones within a currently defined area of 600m by 200m based on surface exposures, drill intercepts and underground observations. Depth is unknown at this time. Currently, the feeder system has been identified on surface within the Paititi pit and at the decline depth of 70 metres. Visible gold has been reported in diamond drill holes to a depth of approximately 160 metres.
Eaglecrest said the sulphide zones encountered in underground development lie below the instrument detection limits of an induced polarization survey conducted in l996. The company plans an immediate new IP survey utilizing a different array of the instruments to assist in defining the extent of the sulphide mineralization.
The company also is reviewing its underground sampling process as the current plant on site was designed solely as a "gravity" circuit and was not designed to test for fine-grained gold in sulphides.
Eaglecrest president Gary Cope said the identification of the sulphide feeder system may well be the key to solving the question of the source of the widespread gold on the 20 X 40 kilometer San Simon plateau. "Overall it is another positive development and only improves the potential of the Paititi mineralized system. One additional positive aspect to the presence of the 5-6 parallel (or more) feeder veins and the resulting flat-lying veins which seem to splay off these core veins is that the target becomes a better open pit mineable target," he continued.
"The high grade gold and silver values seen in the hand samples are extremely encouraging and may indicate that we have encountered the top of a larger mineralized system. We hope to have the flooding under control by mid-July and recommence underground development. Immediately ahead is the, as yet, unsampled second sulphide zone (blast rounds 333-341) and the high grade gold intercepts of diamond drill holes l2 and l7, still some 60 metres away," Cope noted.
"At the moment, we are planning to advance approximately 100 metres beyond the 12-17 zone, and complete a series of cross cuts and raises to provide a three dimensional view of the mineralized horizons," Cope said.
On behalf of the Board of Directors, "Gary Cope" Gary Cope President
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