Echo Bay working Mexican project

Exploration work at the Paredones Amarillos gold project in Baja California Sur, Mexico, is proceeding at full speed.

As of the end of 1994, Echo Bay Mines (TSE) had spent US$3.3 million on the property, and it expects to complete its US$4.5-million earn-in by June, 1995, almost 18 months ahead of the property agreement deadline. The Denver-based company is earning a half interest from Baja Gold (TSE) by spending US$4.5 million on exploration and paying US$700,000. It can earn an additional 20% by spending another US$2 million and paying a further US$1 million.

After completing a 5-month due diligence review in January, 1994, Echo Bay drilled 80 holes for a total footage of almost 50,000.

An updated resource estimate is not expected until prefeasibility work is completed towards the end of 1995. The deposit was last estimated to contain 8.9 million tons grading 0.051 oz. gold per ton. Much of Echo Bay’s drilling has been conducted outside the old resource area.

Metallurgical work is taking the form of heap-leach tests on various crush sizes.

Three drills are on site, and the 1995 program is expected to include 90 reverse-circulation holes plus 20 core holes.

Drilling is also testing strong induced-polarization anomalies to the northeast of the Main zone. Baja reports that sulphide mineralization is present in the core but that assays are not yet available.

Selected results for newly released holes from last year’s work on the Main zone include a 98.4-ft. intersection grading 0.053 oz. gold in hole 66; a 178.8-ft. intersection grading 0.051 oz. in hole 70; a 137.8-ft. interval grading 0.049 oz. in hole 79; and a 93.5-ft. interval grading 0.07 oz. in hole 82.