General Minerals cuts mineralization

General Minerals (GNM-T) has encountered significant mineralization while drilling at the Escalones copper-gold project, 100 km southeast of Santiago in central Chile.

The company hit 125.9 metres grading 0.77% and 0.15 gram gold per tonne in the seventh hole drilled on the porphyry target.

Mineralization started 11 metres below the surface and included a 59.6-metre interval grading 1% copper and 0.19 gram gold.

General drilled hole 7 to a depth of 861 metres, and encountered strong mineralization to a depth of 514 metres, representing the basal contact of altered limestone. The company collared the hole 54 metres east of hole 1, which encountered 76.5 metres from the surface grading 1.32% copper.

In hole 6, General Minerals intersected weaker mineralization hosted in biotite hornfels. The hole was collared 464 metres northwest of hole 7, at the far end of the Escalones Alto zone, and, at its best, cut an 11-metre interval grading 0.98% copper and 0.23 gram gold.

The company started constructing drill roads on the steep mountainside southeast of hole 7, which previously had been inaccessible. Here, drill crews will test for extensions of magnetite skarn-bearing mineralization.

The program is expected to finish some time in May, before the onset of winter in the Southern Hemisphere. Escalones is 3,900 metres above sea level.

Meanwhile, General Minerals has begun a 10-hole program of

reverse-circulation drilling at the Productura copper-gold prospect, near Vallenar in north-central Chile. The company also will carry out geologic and geophysical fieldwork with its joint-venture partner, Teck (tek-t), which can earn a 60% interest in Productura by spending US$5 million over five years, including US$750,000 by June 1999.

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