NEWS - Garrison Announces Final Drill Hole Results for Tovshiir Project, Update on Studies and Reports and Final Exchange Acceptance of Acquisition of 75% Interest in Project
posted on
Feb 06, 2008 11:45AM
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
TORONTO, ONTARIO--(Feb. 6, 2008) - Garrison International Ltd. ("Garrison") (TSX VENTURE:GAU) is pleased to announce full drill results from the drilling program recently completed at its Tovshiir project site in Suhkbaatar District, Mongolia ("Tovshiir"). A Chinese-Mongolian joint venture previously operated a mine at this site for 2 1/2 years until Asia Intercept Mongolia LLC, a joint venture partner of Garrison, purchased the license in September 2006. In addition, this site has been mined by local, small-scale operators and by Mongolia Zheng Yuan Company Ltd.
In summary, a total of 1612m of diamond drilling in 73 diamond drill holes has been completed over three mineralized areas at the Tovshiir project site. Results of the final 16 holes have been received and are reported in the summary table (holes 52-56 and 58-68) included in this press release. Highlights of the final hole results include 12 holes that intersected more than 0.5 g/t of gold over widths from 0.6 meters to 4.0 meters, all of which are described below.
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(1) The above intervals represent close to true widths of the ore body as it has been demonstrated to be a flat lying quartz sheet deposit.
In addition, a total of 296 rock chip channel samples have been collected. To date, Garrison has received results for the first 63 samples. These results are identified in the final table included in this press release. Sampling was completed between August and November, 2007. Sampling was conducted to obtain an initial evaluation of the pre-existing mining operations. The diamond drilling program had an average hole depth of 22.1 m and was specifically designed to target the potential of the flat lying sheeted quartz veins that are localized in three key zones that are identified in the Summary Table as: 1) Quartz Blow; 2) Ninja Zone; and 3) the Chinese pit. Included in the Quartz Blow areas were the Twin Zone and Back Hill Zones. It is anticipated that there will be root feeder zones to these flat zones and this assumption will be verified in a later phase of drilling. Garrison's view is that these shallow bodies, which were previously mined by the previous license holder and currently are being mined by local operators, will provide Garrison with an opportunity to generate income from mining operations.
Each of these zones have outcropping quartz veins that, currently, are being actively dug using hand tools by local operators who have historically operated small scale mining in the area. The average recovered grade recorded by these operators from hand selected quartz extracted from these three zones is between 8 g/t and 9 g/t of gold. Chilean Mills are used to crush the rock and mercury to recover the gold as an amalgam.
A bulk sample from 300kg of quartz material collected at the old mine site from the stockpiles of ore extracted from the small Chinese pit zone recorded a value of 14.5 g/t of gold. Gold recovery using bottle roll cyanidation of this sample showed that 13.5 g/t of gold was extracted and the tails recorded 0.86 g/t of gold in residue. Further metallurgical work will be conducted on samples collected from drill core and deep costeans at the site.
Since Tovshiir has locally recorded significant coarse gold in prior sampling, the protocol followed by Garrison requires all samples with preliminary results above 0.1 g/t of gold to be re-assayed using the fire screen analytical technique. Actlabs Asia LLC, which is based in Ulaanbaatar and is part of the Activation Laboratories Ltd. group of companies, maintain an accredited independent laboratory facility in Mongolia that was used to conduct the sampling assay work. Actlabs operate laboratories in Asia and Canada, among other locations.
All samples were collected and assayed using a strict sample protocol and supervised by geologist Tony Bainbridge, a "qualified person" under National Instrument 43-101, who has also reviewed and approved all scientific and technical disclosure contained in this press release.
To date results have not been received for a total of 233 of the vertical channel samples obtained at the Tovshiir site, and Garrison is awaiting results to complete its assessment as to the next steps to be taken on this project.
Garrison is optimistic that the Tovshiir project and surrounding zones of mineralization will hold sufficient gold in the near surface environment to be extracted by small scale mining methods using open cut techniques. Garrison plans to continue with the previously successful mining operation conducted at this project, but to upgrade both plant and other physical operations as well as management activities and oversight so as to achieve greater production levels and efficiencies.
Update on Studies and Reports on Tovshiir Project
In Garrison's most recent press release regarding the Tovshiir project (issued on October 24, 2007), management stated that Garrison planned to commence a feasibility study and calculate a resource estimate. That press release also indicated that the consulting firm of Balchuluu Co. Ltd had been appointed to manage the feasibility study for the project. At that time, management also expected that, to the extent these reports were required to be prepared in accordance with National Instrument 43-101 ("NI 43-101"), they would be so prepared.
The Mongolian government requires reports submitted to it for permit applications to conform to that country's internal resource review committee requirements, but not to NI 43-101. Since October 24, 2007, management has concluded that since the Mongolian authorities do not require NI 43-101 compliant reports in connection with applications for the permits required by Garrison and considering the higher cost and greater time involved in preparing those reports, Garrison should abandon the preparation of the feasibility study and resource estimate, with the result that no NI 43-101 compliant reports would be completed for the Tovshiir project. By doing so, Garrison will be able to preserve its current capital. In the future, Garrison's management may determine that having NI 43-101 compliant reports would facilitate financings and otherwise assist with the development of the Tovshiir project, in which case it may then re-commence such reports.
Garrison is in the process of applying for the land use and environmental operation permits required from the Mongolian government for its planned mining operations at Tovshiir. As Garrison already holds three mining licenses for the Tovshiir project, these land use and environmental operation permits are the only additional permits required by Garrison to commence mining on this property. In connection with the application for these permits, several reports must be prepared and are in progress, including an economic study report and an environmental impact assessment report (which will include social impact studies).
The economic study report is being prepared by Garrison's staff. This economic study consists of a description of the mining parameters, infrastructure and projected outputs of the Tovshiir project. As the study will not be prepared in accordance with NI 43-101, it may not be disclosed in press releases or to actual or prospective investors, and will be used only in the context of Garrison's permit applications to the Mongolian government.
Garrison has engaged Erchim Environmental Group to prepare an environmental impact statement report for submission to the Mongolian government. The social impact studies that will form part of the environmental impact statement report are also being prepared by Erchim Environmental Group.
Garrison currently anticipates that the economic study report and environmental impact assessment report (including social impact studies) will be submitted to the Mongolian government during the second quarter of 2008.
Final Acceptance by TSX Venture Exchange
Garrison is also pleased to announce that the TSX Venture Exchange has granted Exchange Acceptance for Garrison's acquisition of a 75% interest in the Tovshiir project. For full details regarding the terms governing Garrison's acquisition of that interest, please see Garrison's press release of July 5, 2007.
About the Company
Garrison is a junior mineral exploration company focused on acquiring and developing advanced stage gold properties in Mongolia. For complete details on Garrison International Ltd. and its partners, management encourages investors and interested parties to view its public documents filed on SEDAR at www.sedar.com.
For all Garrison International Ltd. investor relations needs, investors are asked to visit the Garrison International Ltd. IR Hub at http://www.agoracom.com/ir/garrison where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to gau@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
CAUTIONARY STATEMENT
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. 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 International Ltd. 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 International Ltd. assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
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Shares Outstanding - 65,738,057
FOR FURTHER INFORMATION PLEASE CONTACT:
Garrison International Ltd.
Blair Krueger
President & CEO
(416) 524-8150
Website: www.garrison-intl.comThe
TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.