Harte and Newmont Geologists Collaborate on Deep Drilling Program; Harte to Spend $1,000,000 on Stoughton Gold Property and Increase Its Interest to 50%.
TORONTO--(BUSINESS WIRE)--Jan. 26, 2004
Milt Klyman, President, is pleased to announce that Harte Gold Corp. ("Harte") (TSX VENTURE:HRT) will increase its ownership interest in the Stoughton Gold Property from 25% to 50% by spending a minimum of one million dollars ($1,000,000) on exploration and diamond drilling of the property. Newmont Mining Corporation ("Newmont") (NYSE:NEM) (ASE:NEM) retains a Right of First Offer on the property.
The Stoughton Gold Property is adjacent to and along strike from Newmont's Holloway Mine. Newmont presently owns a 50% interest in the property.
Geological data from the Stoughton Gold Property, when compared to the same type of data from the Holloway Mine, indicates that the promising gold mineralization in the upper portions of the Stoughton Gold Property is strikingly similar to the gold mineralization found in the upper portions of the Holloway Mine property above the ore deposit.
Newmont has recommended an initial 4,000 metre deep drilling program which will consist of holes drilled to a minimum depth of 650 metres. These specific drill holes have been recommended by Newmont's Holloway Mine geologists in conjunction with Harte's project geologist. The drill program is based on the following:
1. The Stoughton Gold Property has distinct similarities to Newmont's Holloway Mine.
2. The presence of a distinctive variolitic flow which is the primary host of gold mineralization at the Holloway Mine is present on the Stoughton Gold property.
3. The Stoughton Gold Property hosts a substantial alteration package which is distinctly similar to that at the Holloway Mine.
4. Both the Holloway Mine and the Stoughton Gold Property sit adjacent to the Destor-Porcupine fault.
Based on diamond drill availability, the deep drilling program is planned to begin during the second week of March, 2004. Upon completion and review of all geological and assay data from the March 2004 program, further drilling will continue on the property throughout the year 2004.
The Holloway Mine which produces approximately 100,000 oz. of gold per year is located along the Destor-Porcupine Fault in the Harker-Holloway gold area of the Abitibi Greenstone Belt.
More than 65% of Canada's gold has been produced from this belt. A substantial amount of this gold comes from deposits located along the Destor-Porcupine Fault, particularly, the gold deposits located in the Timmins-Porcupine gold camp of Ontario, Canada, 100 to 110 km west of the Holloway Mine and the Stoughton Gold Property, respectively.
The history of the Harker-Holloway area, along the Destor-Porcupine Fault in particular, reveals that it is usually necessary to drill at depth to properly evaluate a gold property's true potential.
The gold deposit at the Holloway Mine prior to Newmont's involvement is a prime example of this fact. Early historical exploration carried out by various exploration companies on the Holloway Mine property since the mid 1930's showed that interesting gold values were present on the property. However, gold values of economic interest and the discovery of an ore deposit did not occur until exploration drilling was finally conducted below the 200 to 250 metre level some 60 years later, during the mid 1990's.
Similarly, drilling by Newmont, Pelangio Mines Inc. and Harte since 1996 has shown that a substantial gold bearing zone is present on the Stoughton Gold Property over a strike length of 1.2 km. This gold mineralized zone extends from surface to approximately 400 meters below surface.
The management of Harte firmly believes that the opportunity of being able to share with and benefit from Newmont's geological input and expertise will greatly enhance the company's chances of near-term success with regard to the exploration and development of the Stoughton Gold Property.
In light of the foregoing, Harte has arranged, in principal, for a private placement of 300,000 UNITS at a price of $2.00 per UNIT. Each UNIT consists of two common shares with flow-through tax benefits and one share purchase warrant. Each share purchase warrant entitles the holder thereof to purchase one common share of the corporation at a price of $1.25 per share on or prior to September 25, 2004 or at a price of $1.50 per share between September 26, 2004 and December 31, 2004.
Kevin Filo, P.GEO, is the designated qualified person for this press release.
The TSX Venture Exchange has neither approved nor disapproved of this press release.
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|Date:||Jan 26, 2004|
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