SKN Updates High Grade Silver-Gold Projects in Henan, Central China.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--April 26, 2004 SKN SKN St. Kitts & Nevis (Caribbean) SKN Skeen SKN Spezial Kommando Nord (gaming clan) SKN Stock Keeping Number Resources Ltd. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:SRL 1. SRL - Bharat Jayaraman. ["Towards a Broader Basis for Logic Programming", B. Jayaraman, TR CS Dept, SUNY Buffalo, 1990]. 2. SRL - Schema Representation language. 3. SRL - Structured Robot Language. C. Blume & W. Jacob, U Karlsruhe. ) ("SKN") is pleased to announce that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Victor Mining Ltd, has signed a final cooperative joint venture contract with a subsidiary company of the Henan Provincial Governmental Geological Bureau ("HPGGB"), to acquire a 70% interest in the high grade "YING" silver-gold project, located in Henan Province, central China. The Ying Project consists of the SGX SGX Singapore Exchange SGX Supergreenx (trance/electronic musician) Silver and YDG Silver-Gold Properties. The SGX Property is comprised of five exploration permits covering 52.4 square kilometers (km) and the YDG Property, which is about 85 km southeast of the SGX prospect, consists of three exploration permits totaling 27 square km. The properties are located about 200km south of Zhenzhou, the capital city of Henan Province, and are easily accessible by road. HPGGB's Resource Estimate and Geology In late 2003, HPGGB completed a resource estimate on the Ying project. On April 21, 2004 Mr. Chris Broili, C.P. Geo. & L.P. Geo., completed a National Instrument 43-101 technical report on the Ying Project. In the report, Mr. Broili did not carry out an independent resource study, however, he has reviewed the extensive HPGGB data in detail and concluded that the Chinese resource estimate was professionally prepared, followed the rules promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. by the Geological Survey of China The Geological Survey of China is a government-owned, not-for-profit, Chinese organization researching China's mineral resources. It is the largest Geoscience agency in China since being reconstructed in 1999. and that the Chinese estimates can appropriately be referred to as Inferred and Indicated resource categories within the framework of CIM (1) (Computer-Integrated Manufacturing) Integrating office/accounting functions with automated factory systems. Point of sale, billing, machine tool scheduling and supply ordering are part of CIM. guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . In the NI 43-101 Technical Report, Mr. Broili made the following statements: "On the SGX property, about 40 mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. veins were identified by surface channel sampling and underground channel sampling with about 1 meter average width. Mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. is hosted in a set of quartz-carbonate veins cross-cutting Precambrian age mafic maf·ic adj. Containing or relating to a group of dark-colored minerals, composed chiefly of magnesium and iron, that occur in igneous rocks. and felsic fel·sic adj. Containing a group of light-colored silicate minerals that occur in igneous rocks. [fel(dspar) + s(ilica) + -ic. gneisses. In the western part of the project quartz-carbonate veins with silver-lead-zinc mineralization are manifested as 22 mapped vein-alteration zones. On the surface they exist as long (usually 1 km or greater) NNE NNE abbr. north-northeast Noun 1. NNE - the compass point that is midway between north and northeast nor'-nor'-east, north northeast trending structures, commonly filled by altered andesite andesite Any member of a large family of rocks that occur in most of the world's volcanic areas, mainly as surface deposits and to a lesser extent as dikes and small plugs. dikes and quartz-carbonate veins, and more uncommonly as altered gneiss gneiss (nīs), coarse-grained, imperfectly foliated, or layered, metamorphic rock. Gneiss is characterized by alternating light and dark bands differing in mineral composition and having coarser grains than those of schist. along these structures with local quartz-carbonate veins. Six of the better explored veins at SGX have resource estimates listed in Table 1."
Table 1. Resource estimate of Ag-Pb-Zn mineralization on the SGX
property by HPGGB
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Grade In Situ Metal Resource
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Resource Resource Ag Pb Zn Ag Pb Zn
Type (Tonne) (g/t) (%) (%) (ounce) (tonne) (tonne)
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Indicated 630,100 412.66 6.57 3.18 8,359,713 41,429 20,015
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Inferred 6,901,800 237.33 4.84 3.11 52,663,286 333,983 214,390
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"On the YDG property, about 35 mineralized veins were identified by surface channel sampling and underground channel sampling with about 1 meter average width. Mineralization is hosted in a set of quartz-carbonate veins cross-cutting Precambrian age mafic gneisses and volcanic flows. The system consists of quartz-carbonate veins with lead-zinc-silver mineralization trending NNE with a shallow (22-45 degrees) westerly Westerly, town (1990 pop. 21,605), Washington co., extreme SW R.I., between the Pawcatuck River and Block Island Sound; inc. 1669. Its textile industry dates from 1814, and granite has been quarried there since c.1850. dip. The country rock these veins crosscut is mostly basalt basalt (bəsôlt`, băs`ôlt), fine-grained rock of volcanic origin, dark gray, dark green, brown, reddish, or black in color. Basalt is an igneous rock, i.e., one that has congealed from a molten state. and andesite flows metamorphosed to lower greenschist facies greenschist facies One of the major divisions of the mineral facies classification of metamorphic rocks, encompassing the rocks that formed under fairly low temperatures (480–660 °F, or 250–350 °C) and pressure conditions and usually produced by and locally containing approximately 1% pyrite pyrite (pī`rīt) or iron pyrites (pīrī`tēz, pə–, pī`rīts), pale brass-yellow mineral, the bisulfide of iron, FeS2. . The altered zones persist along the length of these NNE trending structures with quartz abundance varying along the length. On the surface the alteration Modification; changing a thing without obliterating it. An alteration is a variation made in the language or terms of a legal document that affects the rights and obligations of the parties to it. along the vein consists of chloritization and sericitization of wallrock as well as limonite limonite (līm`ənīt) or brown hematite (hĕm`ətīt, hē`–), yellowish to dark brown mineral, a hydrated oxide of iron, FeO(OH)·nH2 staining staining /stain·ing/ (stan´ing) 1. artificial coloration of a substance to facilitate examination of tissues, microorganisms, or other cells under the microscope. For various techniques, see under stain. 2. common in the quartz-carbonate veins. For the four better explored veins at YDG, the resource estimate result is listed in table 2."
Table 2. Resource estimate of Ag-Pb-Zn mineralization on the YDG
property by HPGGB
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Grade
-------------------------------
Resource Resource Ag Au Pb Zn
Type (Tonne) (g/t) (g/t) (%) (%)
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Indicated 11,713 209.24 10.06 0.50
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Inferred 2,375,001 234.00 1.95 2.03 1.46
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In Situ Metal Resource
---------------------------------------------
Resource Resource Ag Au Pb Zn
Type (Tonne) (ounce) (ounce) (tonne) (tonne)
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Indicated 11,713 78,796 3,788 59 -
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Inferred 2,375,001 17,868,035 148,600 48,185 34,700
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The in situ In place. When something is "in situ," it is in its original location. metals on the SGX Property are the equivalent of 15,194,024 Indicated ounces of silver and 114,577,968 Inferred ounces of silver, and on the YDG property are the equivalent of 337,330 Indicated ounces of silver and 37,174,850 Inferred ounces of silver, calculated using US$6.0/oz Ag, US$0.28/lb for Pb, and US$0.35/lb for Zn. Mr. Broili also made following comments on the HPGGB's resource estimate: "The HPGGB's resource estimate has been based on the assumption that the whole veins are uniformly mineralized. More realistically 30%-50% of veins, comprising high-grade mineralized pockets can be economically exploited. Therefore, the HPGGB's resource estimate diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. mineral resource grades by more than three times while increasing tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. ." "One example is the Y1 vein from the YDG area. In the HPGGB's resource estimate, Y1 Vein contains 289,504 tonnes of Inferred Resource grading at 502 g/t Ag, 4.99 g/t, Au, 2.12% Pb, and 1.84% Zn, and 170,424 tonnes of Indicated Resource grading 327 g/t Ag, 6.51 g/t Au, 2.05% Pb, and 2.03% Zn. At least three high grade pockets were identified. One of the high grade pockets was defined by tunnels on 10 different levels from 420 to 900 meter elevations at the south part of the 2,300 metre metre In poetry, the rhythmic pattern of a poetic line. Various principles have been devised to organize poetic lines into rhythmic units. Quantitative verse, the metre of Classical Greek and Latin poetry, measures the length of time required to pronounce syllables, long Y1 vein to have an area of 200m in length, 500m in down-dip extension, and 0.3 to 2.2 m in thickness. HPGGB's sampling program from these tunnels within the high grade pocket is summarized in the Table 3"
Table 3. Tunnel Assay Results for Some High Grade Pockets by HPGGB
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Thick-
Elevation Tunnel Length ness Ag Au Pb Zn
Vein (m) Type (m) (m) (g/t) (g/t) (%) (%)
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YDG area
612 Undercut 190.0 0.80 662.89 12.13 3.47 4.22
810 Undercut 162.0 0.49 1888.70 14.59 2.66 6.87
810 Crosscut - 0.65 9702.38 12.52 4.29 5.08
Y1 859 Crosscut - 0.55 4055.30 7.62 2.82 3.75
859 Undercut 169.0 0.61 1565.35 17.82 3.31 3.61
905 Undercut 17.5 0.64 358.86 6.86 3.65 0.16
Check Sample by Gao 0.50 2380.00 15.20 18.05 21.50
1.10 310.00 4.99 1.93 27.20
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Y4 Y4YM1 Undercut 47.0 0.80 659.06 0.54 9.24 8.94
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Z2PD1 Undercut 139.0 0.65 699.82 2.21 1.98 2.20
Z2 Check Sample by Broili 1.20 564.00 0.73 2.56 4.91
Check Sample by Gao 0.30 1585.00 3.19 4.22 0.43
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SGX area
534 Undercut 120.0 1.27 1633.88 24.60 2.09
554 Undercut 180.0 0.78 801.27 17.76 0.95
Check Sample by Gao 1.20 745.00 24.40 5.30
S14 Check Sample by Broili 0.40 1020.00 27.90 0.75
588 Undercut 30.0 1.85 564.00 14.72 3.06
600 Undercut 60.0 1.44 384.90 12.23 2.00
greater
than
Check Sample by Broili 0.70 945.00 30.0 1.40
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S16 Undercut 35.0 0.50 3183.00 8.84 19.52
Check Sample by Gao 1.50 2290.00 27.40 11.75
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S8 Undercut 90.0 1.56 965.00 1.87 4.72
Undercut 110.0 1.33 468.00 15.69
Undercut 33.0 1.50 756.00 11.88
S22 Undercut 25.0 0.83 3828.00 10.53 7.91
S3 Undercut 110.0 2.50 764.00 15.03 4.57
S2 Undercut 15.0 1.00 1517.00 6.88 1.10
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"At the SGX Property, many high grade pockets are also defined for the S6, S14, 16 and S8 veins by underground workings and a drill hole. The high-grade pockets are up to 200 meters in length and 150 meters in down-dip extension, and range from 0.3 to 1.0 meters in thickness. As shown in Table 3 for Vein S14 and S16, all these high grade pockets have significantly higher grades than those averaged in the HPGGB's resource estimate. Also noted in the table are Broili's (Table 4) and, Myles Gao's (SKN's President - see March 8, 2004 News release) check results that further confirm HPGGB's data and the existence of the high-grade pockets. Future exploration should focus on defining the high- grade pockets to reflect actual characteristics of mineralization and upgrade the mineable reserves". "Metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. test program completed on the project indicated that ores from both the SGX and YDG properties can be easily processed using a conventional flotation flotation or froth flotation Most widely used process for extracting many minerals from their ores. The method separates and concentrates ores by altering their surfaces so that they are either repelled or attracted by water. flowsheet." In the "Recommendation" section of the Report, Mr. Broili states: "The work carried out by HPGGB has identified two properties of significant Pb, Zn, Ag and Au mineralization. To advance the project, it is considered that there is reasonable understanding of the distribution of the mineralization and the controls so that the first phase program will be middle staged. To this effect, seven main work programs are recommended to advance the Ying Project with a budget of US$1,160,000." Mr. Broili recommended "...to develop 4,710 meters of exploration tunnels to further define the deeper mineralization on selected veins: 2,710 meters at the SGX property and 2,000 meters at the YDG property, in combination with 3,000 meters of diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral on 50 to 100 m intervals on high grade pocket sections." During his site visit, Mr. Broili carried out data verification and sample assays, the results are listed as follows:
Table 4. Check Sampling by Broili
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Prop- Vein Sam- Interval Ag Au Pb Zn Cu
erty # ple (m) (g/t) (g/t) (%) (%) (%) Remarks
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SGX S 4 L-08 0.20 54.6 0.04 1.78 2.72 0.06 pillar
S 4 L-10 0.20 164.0 0.11 9.07 1.93 0.02 tunnel
back
S 6 L-04 0.40 931.0 0.10 16.10 4.06 0.48 tunnel
back
S 8 L-01 0.55 1060.0 0.18 14.65 8.54 1.74 stope
S 8 L-02 1.40 257.0 0.07 1.44 0.76 2.20 tunnel
back
S 8 L-09 0.20 779.0 0.09 14.30 11.85 0.05 stope
S 8 L-13 L-01 dupl. 679.0 0.17 13.80 9.15 1.71 L-01 dupl.
greater
than
S 14 L-03 0.70 945.0 0.07 30.00 1.40 0.00 pillar
S 14 L-05 0.40 1020.0 0.04 27.90 0.75 0.00 stope
S 14 L-11 1.30 114.0 0.05 3.13 1.02 0.16 pillar
S 22 L-06 0.20 18.2 0.02 0.32 2.69 0.06 surface
outcrop
S 22 L-07 0.20 66.4 0.02 0.27 15.35 0.16 tunnel
back
greater
than
S 29 L-12 0.23 424.0 0.07 30.00 2.68 0.01 tunnel
back
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YDG T 1 N-09 0.40 240.0 6.86 0.32 0.05 0.03 surface
outcrop
T 2 N-11 0.40 91.8 7.75 1.60 3.14 0.02 tunnel
back
T 6 N-10 0.23 12.8 1.84 0.10 0.04 0.01 pillar
Y 2 N-02 1.10 35.0 1.90 0.11 0.08 0.01 tunnel
back
Y 2 N-03 0.40 204.0 12.20 1.99 0.53 0.17 tunnel
back
Y 3 N-01 2.10 124.0 4.84 2.24 0.44 0.04 tunnel
back
Y 3 N-04 - 1155.0 2.76 8.68 17.10 0.44 mined ore
Y 3 N-05 - 895.0 4.21 7.81 12.60 0.26 mined ore
Z 1 N-08 1.20 111.0 2.11 0.15 0.26 0.09 tunnel
back
Z 2 N-06 1.20 564.0 0.73 2.56 4.91 0.19 tunnel
back
Z 2 N-07 - 231.0 2.07 0.45 1.66 0.07 mined ore
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Mr. Broili also recommended conducting mineral processing mineral processing or ore dressing Mechanical treatment of crude ores to separate the valuable minerals. Mineral processing was at first applied only to ores of precious metals but later came to be used to recover other metals and nonmetallic minerals. and metallurgical testing on bulk samples from both the SGX and YDG properties and implementing a scoping study to determine the feasibility of constructing mills on each of the two properties. Myles Gao, P.Geo, President of SKN, is the Qualified Person on the project. Cooperative Joint Venture Contract Under the terms of the Joint Venture Contract with the Chinese partner, SKN holds the right to acquire 70% of the Ying Project by funding exploration and development of the Project and making cash payments over a period of four years with a first year minimum contribution of US$750,000. After SKN has earned its 70% interest, contributions to fund the exploration and development of the Project will be made pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. . The interest of the Chinese property owner can be diluted to not less than 10% if it elects not to make cash contributions. The acquisition of the Ying Project remains subject to regulatory approvals, including Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
SKN Resources Ltd. is actively exploring for precious metal opportunities in China and is currently drilling at its Tuobuka Gold Project, Yunnan, China. Statements in this press release other than purely historical information, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future plans and objectives or expected results, constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements. SKN RESOURCES LTD. Rui Feng, Ph.D., Chairman & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy or accuracy or this release. |
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