Dakota reports drill results at Stibnite

Results from drilling carried out in autumn, 1995, at the Stibnite gold mine in Idaho are sufficiently encouraging that follow-up drilling is planned.

Dakota Mining (TSE) drilled 24 reverse-circulation holes in the Cinnamid area (see table, below), and much of the mineralization encountered was oxide material.

Dakota plans to spend US$400,000 exploring the property in the summer. The work will include infill drilling on the main deposit and stepout drilling around the property. Alan Bell, president of Dakota, hopes to establish a 5-year reserve base as a result of the program.

The seasonal operation is expected to produce 42,000 oz. gold in 1996. Currently, the deposit consists of 930,000 tons (proven and probable) grading 0.046 oz. gold per ton. An inferred oxide resource is estimated at 3.9 million tons grading 0.043 oz., equivalent to 212,000 contained ounces.

In corporate news, Dakota has entered into an agreement with several underwriters, which involves a private placement of 8.7 million special warrants. At $2.30 per warrant, the company expects to raise $20 million. The funds will be used for exploration and development, as well as property acquisition.

HoleInterval(ft.)Thickness(ft.)Gold(oz./t)

R95-63155-190350.060

R95-6465-100350.056

310-350400.079

R95-6510-65550.068

235-270350.069

330-390600.057

R95-6615-60450.122

75-85100.075

280-345650.054

R95-6845-70250.086

250-300500.079

335-430950.041

R95-6915-90750.075

R95-70110-185750.089

R95-7110-30200.085

95-105100.055

R95-72130-170400.145

R95-7415-40250.023

70-100300.103

R95-7615-35200.109

195-220250.064

R95-77140-185450.105

R95-7855-105500.057