Yellow Point,Riviera test Czech deposit

Junior companies Yellow Point Mining (VSE) and Riviera Explorations (VSE) have a joint venture agreement with a private Czech company to explore, develop and mine the Kasperske Hory gold deposit about 80 miles from Prague, Czechoslovakia.

The private Czech company acquired the project earlier this year from the Ministry of Economic Policy and Development of the Czech Republic, which had explored and partly developed the deposit through expenditures of about $2.9 million.

This work involved 53 surface and 14 underground diamond drill holes totalling 54,662 ft., and underground development totalling 5,066 ft. The property, located in a historic mining region, has also been designated a “production area” by the government.

Yellow Point holds the major interest in the joint venture and will operate the program to further explore and develop the deposit which has preliminary reserves of 10.2 million tons (indicated and inferred) with a weighted average grade of 0.22 oz. gold per ton.

The project has additional potential for a further 4.9 million tons averaging 0.23 oz. Open pitable reserve potential also exists.

The deposit is open-ended along strike east and west, and to depths beyond the drilled area. Yellow Point President Thomas Tough said the property has potential for additional reserves in other zones.

The majority of the gold-quartz mineralization is shear-hosted. Gold is present mainly in its native state, with a high degree of fineness (averaging 95% fine). Yellow Point said some metallurgical test work has already been done, and recoveries of 88-91% are indicated.