Golconda Resources Ltd. Updates Gold Prospects in Nevada, Idaho and California.
An ongoing drill program, started by Golconda in February has discovered a potentially 6,500 ft. long zone, which might be up to 1,000 ft. wide with blanket type gold-silver mineralization. The gold zone is blind and starts at a depth of 60 to 100 feet. The deepest holes, which due to very difficult drilling conditions had to be abandoned between 500 and 560 ft. depth, show either continuous gold mineralization in the range of 0.010 to 0.020 oz/t Au with 20 times silver down to the end of the holes or show a marked increase to these grades at depth.
As the alteration and veining increases with depth as well and is the strongest at the end of the holes, it is possible that the mineralization represents leakage from a large underlying gold deposit. In order to test this possibility, drilling has been temporarily suspended and a more powerful drill rig is expected to arrive on the property immediately.
VAR - GOLD PROSPECT - IDAHO - This gold property is 1,640 acres in southwestern Idaho and contains widespread gold mineralization. Golconda and Naneco Minerals Ltd. are 50:50 joint venture partners in this project. A geological resource of 120,000 ounces of gold has been outlined in previous drilling.
A second zone outlined by the joint venture offers an excellent prospect for the development of a large, open-pitable gold deposit.
Drilling will start on the 25th of May.
SPANISH CREEK - CALIFORNIA - Golconda owns 126 claims (2,520 acres) which cover two pipes with outcropping lamproitic tuff and potentially three other pipes which are covered by overburden.
With the recently reported discovery of diamonds in a lamproitic pipe in California by Diadem Resources Ltd., exploration for diamonds in the western United States is finally gaining credibility.
The outcropping lamproitic tuff in the two pipes contains diamond indicator minerals: pyrope, chrome diopside, DSF chromite and ilmenite. Samples have recently been taken from the outcropping lamproite and have been sent off to be tested for diamonds. Diamonds ranging in size from microscopic to about 2 carats have been found within 1 mile downstream from both pipes.
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
CONTACT: Golconda Resources Ltd.
Guenter Liedtke, 403/232-6828 ext.24 or 403/232-6463
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|Date:||May 21, 1996|
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