Akiko Gold reports progress and refutes newsletter.VANCOUVER, B.C.--(BUSINESS WIRE)--Nov. 4, 1994--Akiko Gold Resources Ltd. reports that it approaches its November 30, 1994 fiscal year end with $600,000 in treasury, no debt, approximately $3 million in appreciated shares of two public companies, and prepaid exploration programs progressing at its two primary projects: - First, at the high-grade New Burgin silver/lead/zinc deposit in Tintic, Utah, shaft maintenance for underground exploration access has been completed, and drift maintenance required to reach and prepare the initial underground drill-station is nearing completion. Drilling is expected to commence by mid-November. Akiko Gold has already funded the US $1 million program for reserve in-fill and extension drilling and feasibility work on the New Burgin deposit and for drilling of related gold targets. Akiko is earning a 50% joint venture interest from property owner, Chief Consolidated Mining Co. - Second, at the highly prospective Mud Springs and Bru-Lovie gold exploration projects in Nevada's Battle Mountain - Eureka Gold Trend, Ramrod ram·rod n. 1. A rod used to force the charge into a muzzleloading firearm. 2. A rod used to clean the barrel of a firearm. 3. A harshly demanding overseer; a disciplinarian. tr.v. Gold now expects to commence drilling by mid- November. A 20 hole program is planned for Bru-Lovie and a 12 hole program for Mud Springs; both will test regional structures and indicated gold resources. These two projects encompass over 12,500 acres, beginning 4 miles north of Placer Dome's 8 million ounce Pipeline gold deposits in Crescent Valley, Nevada Crescent Valley is an unincorporated community located in Eureka County, Nevada. It contains Crescent Valley Elementary School.
In addition, Akiko's Vice President-Exploration, Ray Irwin, is in Ghana this week seeking final government approval of the Company's recent application for a property concession on the west side of Ghana's "Bibiani" Greenstone Belt Greenstone belts are zones of variably metamorphosed mafic to ultramafic volcanic sequences with associated sedimentary rocks that occur within Archaean and Proterozoic cratons between granite and gneiss bodies. . Select samples taken by Mr. Irwin from the property this summer produced encouraging gold assays (ranging from 0.28 to 0.99 opt gold) from the tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. of an old underground mine and from a near-surface quartz veined zone being manually mined by locals. The high-grade Bibiani mine produced approximately 1.5 million ounces of gold at an average grade of 0.3 opt. The high grade Obuasi Mine operated by Ashanti Goldfields n. 1. A small slender woolly annual (Lasthenia chrysostoma) with very narrow opposite leaves and branches bearing solitary golden-yellow flower heads; it grows from Southwestern Oregon to Baja California and Arizona; - it is often cultivated. in Ghana's major producing belt parallel to the Bibiani belt, produces over 750,000 ounces of gold annually and is expanding. There is, however no assurance that final government approval will be received by the Company. Notwithstanding the above progress, the Company's stock price has fallen from $1.28 Cdn to approximately $0.70 Cdn this week because an influential newsletter decided to remove Akiko Gold from its recommended list. This decision appears to be based in part upon confusion between the Old and the New Burgin, and upon certain inaccurate or misleading information, some of which was provided to the newsletter by another mining company competing for projects in the Tintic District. The following is therefore to refute re·fute tr.v. re·fut·ed, re·fut·ing, re·futes 1. To prove to be false or erroneous; overthrow by argument or proof: refute testimony. 2. or clarify the resultant misconceptions Misconceptions is an American sitcom television series for The WB Network for the 2005-2006 season that never aired. It features Jane Leeves, formerly of Frasier, and French Stewart, formerly of 3rd Rock From the Sun. for our stockholders: - Akiko Gold has not given any part any kind of first refusal right to finance Akiko's participation in the Battle Mountain Gold Trend at Bru-Lovie, Mud Springs, or elsewhere. Nor has Akiko reduced its interest or commitment to achieving exploration success at these important Crescent Valley, Nevada projects. - Akiko Gold does still believe that "Springpole exhibits the potential to be a producing mine" in Ontario. That is why Akiko has retained the right to acquire a 20% interest from Gold Canyon Resources for reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of 150% of future costs prior to feasibility. Meanwhile, Akiko can (as stated in its June 16, 1994 press release) concentrate its resources upon development at Tintic, Utah and exploration in Crescent Valley, Nevada. - Akiko's "shift to overseas involvement in places like Ghana " has focused upon the above referenced property concession application in Ghana's Bibiani Greenstone Belt. Ghana is located within the Precambrian Shield of West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. which contains greenstone belts similar to those hosting world class gold discoveries in Canada, Venezuela and Guyana. - Moving on to Tintic, Utah, Akiko Gold is not "developing the old Burgin base-metal/silver mine." That lower grade mine was developed and mined-out (both above and below the water table) 20 years ago by Kennecott Copper Corp. Akiko and Chief are now starting in-fill and expansion drilling of the New Burgin deposit, which is not yet a mine and which was proven-up by Sunshine Mining Company's drilling ten years ago. This New Burgin high-grade deposit (which is open to expansion along strike and down dip) is primarily situated several hundred feet northwest and down dip from the old Burgin mine. While limited portions of the old mine workings above the water table have now been recommissioned for underground drilling access purposes, actual development and mining of the New Burgin deposit (when expanded by the forthcoming drilling) will involve virtually none of the old mine workings except for ventilation shaft Noun 1. ventilation shaft - a shaft in a building; serves as an air passage for ventilation air duct, air passage, airway - a duct that provides ventilation (as in mines) shaft - a vertical passageway through a building (as for an elevator) purposes. The current status of these old mine workings is therefore not relevant. - However, the availability of the actual experience and detailed results of the 20 year old Burgin mine operation is invaluable for planning with confidence how best to successfully utilize modern ventilation equipment, adequate dewatering Dewatering (dē′wöd·ər·iŋ) is the removal of water from solid material or soil by wet classification, centrifugation, filtration, or similar solid-liquid separation processes. in advance of mining, and appropriate heavy ground mining techniques in the New Burgin. It is clear with hindsight for example that a new, wider, concrete lined primary mine shaft should be sunk north of the New Burgin deposit into the competent hanging wall quartzite quartzite, usually metamorphic rock composed of firmly cemented quartz grains. Most often it is white, light gray, yellowish, or light brown, but is sometimes colored blue, green, purple, or black by included minerals. rock instead of into the clay altered ground of the footwall foot·wall n. Geology 1. The mass of rock underlying a mineral deposit in a mine. 2. The underlying block of a fault having an inclined fault plane. , as unfortunately was done at the old Burgin mine. In conjunction with improved technology, this will allow access and mine workings to proceed in much more competent, cooler, dry rock than previously encountered. Such conditions are successfully managed in numberous well-known underground mines such as the Mt. Taylor Mine in New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). in the late 1970's, the Nica Mine still in production in Mexico, and potash potash: see potassium carbonate. potash Name used for various inorganic compounds of potassium, chiefly the carbonate (K2CO3), a white crystalline material formerly obtained from wood ashes. mines in Saskatoon Saskatoon (săskət  n`), city (1991 pop. 186,058), S central Sask., Canada, on the South Saskatchewan River. and Regina, Saskatchewan over the past decade. Akiko and Chief are fortunate in being able to assemble core management teams/consultants with impeccable credentials and expertise in effectively planning for and routinely managing precisely such situations. - The ore at the New Burgin is decidedly high-grade, not "relatively low-grade silver". The New Burgin deposit, conservatively calculated by Pincock, Allen & Holt as existing diluted, in-place mineable reserves are 1.14 million tons grading over 19 opt silver, 22% lead and 7.6% zinc. The New Burgin deposit is metallurgically susceptible to higher recovery rates than the old Burgin. At current metal prices, it has a value of approximately $320/ton. With anticipated cash operating costs operating costs npl → gastos mpl operacionales of approximately $77/ton, the value of the known ore added to the likelihood of significantly expanding the reserve, especially in light of the relatively modest capital costs, make the ultimate feasibility and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay of the project without excessive dilution of Akiko's stock very achievable. - Sunshine was not "unable to get at the higher-grade ore." It was Kennecott, not Sunshine, that mined the old Burgin mine. Kennecott did "get at" and mine all the "higher-grade ore" in the old Burgin. Through Kennecott's mining only yielded 6 opt silver and was burdened with an excessive unit lease royalty, the proceeds paid the costs of developing the Trixie gold mine, constructing the Burgin Concentrator, exploring the Ball Park lower grade but vast lead/zinc/silver resources, and discovering the Holmansville gold resource in the East Tintic district. Nevertheless, Kennecott ceased Tintic development and mining due to the excessive royalties, depressed metal prices, and a corporate decision against all but the largest projects. - Notwithstanding the economic feasibility and likelihood of expansion of the New Burgin and the vast potential of the East Tintic to be a multi-deposit silver and gold underground mining camp, it is not surprising that Sunshine could not attract a joint venture partner in the 1980's since the New Burgin deposit was then burdened with an excessive 10% net smelter return royalty (now reduced to a modest 1.7%). Also, precious metal mining companies strongly preferred bulk tonnage open pit gold deposits during the 1980's. Meanwhile, Sunshine was involved in oil and gas, then raised the New Burgin financing via silver-indexed bonds but expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. the funds otherwise and threatened to file a prepackaged pre·pack·age tr.v. pre·pack·aged, pre·pack·ag·ing, pre·pack·ag·es To wrap or package (a product) before marketing. Adj. 1. Chapter 11 bankruptcy. Chief Consolidated filed suit against Sunshine for treble damages A recovery of three times the amount of actual financial losses suffered which is provided by statute for certain kinds of cases. The statute authorizing treble damages directs the judge to multiply by three the amount of monetary damages awarded by the jury in those cases over the non-development of the property, and Sunshine ultimately settled in December 1992 by returning the improved property to Chief, before a change in senior management again redirected Sunshine successfully. The New Burgin deposit represents a unique opportunity in the mining scene today to quickly develop a profitable high grade silver/lead/zinc deposit, with a significant gold target. The East Tintic district of 14,500 acres of patented mining claims (insulated in·su·late tr.v. in·su·lat·ed, in·su·lat·ing, in·su·lates 1. To cause to be in a detached or isolated position. See Synonyms at isolate. 2. from royalty burdens threatened in the U.S. Congress) offers outstanding potential for the discovery of additional deposits of both silver as well as gold, that can be serviced by the existing infrastructure and yield profitable production from this prospective mining camp well into the 21st century. Successful achievement of the anticipated expansion of reserves and completion of bankable bank·a·ble adj. 1. Acceptable to or at a bank: bankable funds. 2. Guaranteed to bring profit: a bankable movie star. feasibility would result in the Company owing approximately one ounce of silver reserves for each share of Company stock then outstanding, plus sufficient lead and zinc reserves to effectively pay for the costs of mining the silver. Meanwhile, commodity experts predict further strengthening of the prices of silver and lead (as well as gold). On Behalf of the Board of Directors "Stephen E. Flechner" Stephen E. Flechner President & C.E.O. CONTACT: Akiko Gold Resources, Vancouver Christine Reynolds, 604/689-0988 INDUSTRY KEYWORD: MINING REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-330-5311 or 80 |
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