MINING IN MEXICO — Placer Dome focuses on Mulatos

Exploration and infill drilling are continuing at the Mulatos project in Mexico’s Sierra Madre mountains.

Placer Dome (TSE) acquired the property from Minera Real de Angeles in May, 1993, for US$5 million. The major subsequently struck a deal with Kennecott that included all of the latter’s ground in the area, resulting in a 70-30 joint venture in favor of Placer.

Placer has released a measured and indicated resource estimate to the tune of 54 million tons grading 0.047 oz. gold per ton at a cutoff grade of 0.029 oz. An ongoing prefeasibility study is expected to be submitted by year-end, to be followed by a full feasibility.

The 1994 budget at Mulatos is US$4.5 million, including Kennecott’s share. Placer operates in Mexico through Can-Mex. The wholly owned subsidiary, which was formed in January, 1991, is involved solely in exploration, and Mulatos continues to be its main project.

Northeast of Mulatos, Minefinders (VSE) has outlined three areas of gold-silver mineralization along an en echelon, 3,000-ft.-wide band over a strike length exceeding 2 miles.

The mineralization is contained in an altered, intercalated sequence of sheared, brecciated and silicified rock. Surface sampling along the zones returned values of up to 0.34 oz. gold and 18.6 oz. silver.

Exploration on the property is on hold while the company completes a share offering to raise $4-5 million. The next phase of work will include drilling, although no budget has been set.

Nearby is a land package held by Republic Goldfields (VSE), which is conducting geological mapping, prospecting and sampling.

To finance exploration of various property interests, Republic plans to raise US$1.2 million through a private placement of 500,000 units at US$2.50 each. A unit consists of one share and one warrant exercisable at US$3 per share until Dec. 6, 1995.