Garrison Buys New Gold Project With Open Cut Potential in Sukhbaatar Province, Mongolia and Samples up to 125 g/t Au
posted on
Jul 05, 2007 05:15AM
Channel Sample Results Returning Up to 146.19 g/t Au. (Average 22.75 g/t Au) and Drill Results Up to 19.64 g/t Au
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LICENSE NO. TYPE AREA GRANTED
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5689X EXPLORATION 998 Ha 28.04.2003
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6928X EXPLORATION 493 Ha 28/04.2003
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5690X EXPLORATION 1689 Ha 28/04/2003
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3282A MINING 118 Ha 20.04.2001
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6703A MINING 32 Ha 24.12.2003
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10664A MINING 47 Ha 18.10.2005
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The project has extensive quartz veins outcropping along a thrust contact between a granite batholith and lenticular stocks of diorite and forms a broad mineralised zone with dimensions in excess of 1.5km in length and up to 220m in width. A small Mongolian company has previously conducted gold mining (2002-05) in two areas along this zone running a 100 t per day plant and reported a head grade to the ore averaging 10-12 g/t Au. A small 1500t stockpile of the ore remains at the gravity plant and due diligence sampling was conducted. Results from 4 bulk samples collected in a systematic way returned an average of 14.5 g/t and displayed a gold recovery of 93% from cyanide bottle leach roll test work.
Many sub-parallel shallow dipping quartz veins up to 5m in width occur as discrete veins along the shear contact with extensions of stock working into the hanging wall zone. A small open cut excavated to 20 meters depth displays good continuity to the veining and allows a clear understanding of the thrust system with drill targeting being planned to examine the down dip extensions of the mineralisation. Results of 13 grab samples taken while conducting due diligence of the project returned samples as high as 125 g/t Au with an average uncut value of 28 g/t Au. With an upper cut applied of 70 g/t Au the 13 samples averaged a returned value of 22 g/t Au. Visible gold is common along the shear zone.
A larger lower grade resource is potentially present and was highlighted in sampling undertaken by Dr. Yanshao Chen with the average of a further 25 samples taken returning 1.8 g/t Au with more than half this batch of samples grading from 3-6 g/t Au. Previous explorers completed a 2500m trenching program over a second zone collecting 700 trench channel samples that revealed a consistent mineralised zone 400 x 120m in surface area grading above the 1 g/t Au mark. The shallow dipping shear hosted mineralisation appears to an orogenic quartz gold system with mineralisation style similar to the Boroo gold signature. Mr. Tony Bainbridge, AIG, AUSIMM, a Qualified Person, the Chief Operating Officer and a Director of Garrison supervised and executed the geological work program to date on the property. Dr. Yanshao Chen, the Chief Geologist of Garrison is also a Director of the Company.
Garrison International Ltd has purchased 100% of the rights for title transfer of the property from Asia Intercept Mongolia LLC to its wholly owned Mongolian subsidiary, Garrison Asia LLC, and holds an outright 75% of the equity in the project. The purchase price includes a cash consideration of US$300,000 and an issuance of 2 million common equity shares from treasury. In addition to the purchase considerations, Garrison Asia LLC has committed to spend a total of US$1.8m within 5 years on exploration of the property and /or production facilities. Closing will occur upon Exchange approval of the transaction.
A 4000m shallow drill program is planned to commence immediately to define the resource potential of the shear system and define the extent of the higher grade vein mineralisation located in the recent sampling. Further bulk samples of the ore will be collected from the surface outcrops /shallow open cut to commence metallurgical work on the ore to assist in scoping out the project.
Garrison Asia LLC has completed ground works on its new plant site at the TSR gold project and camp construction is nearing completion. Shaft collar works has commenced with the 6m collar section of the 3.2m diameter shaft underway. A dispute regarding ownership percentage and expenditure is currently being re-negotiated with the Mongolian Party to the JV. If the negotiations are not successful, the matter will proceed to arbitration or will be handled by the Mongolian courts under the laws of Mongolia. An audit of expenses is currently being conducted and will be submitted to the arbitrators or to the courts for review under the terms of the JV Agreement. During this period, work is being focused on Garrison's 100% wholly owned license that forms part of the TSR gold system.
Forward-Looking Statements
All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Garrison. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Garrison assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
Shares Outstanding - 63,438,057
FOR FURTHER INFORMATION PLEASE CONTACT:
Garrison International Ltd.
Blair Krueger
President & CEO
(416) 524-8150
Website: www.garrison-intl.com