Guyana gold find reported by S.A. Goldfields, Denison

Joint venture partners South American Goldfields (TSE) and Denison Mines (TSE) have reported a new high-grade gold discovery near a former gold mine on their Aurora property in Guyana. The partners recently completed a 14-hole drill program on the discovery and have outlined the new zone over strike length of 350 metres and to a depth of about 100 metres. The zone is parallel to the old Aleck Hill mine which had past production of some 200,000 tonnes of ore grading 17 grams gold per tonne.

Highlights from the discovery holes, spaced at 50-100 metre intervals, are as follows: Hole Width Gold Grade No. (m) (gram/tonne) 4 3.5 28.9 8.2 8.8 2.9 7.9 1.0 21.3 6 1.0 25.4 1.0 70.2 3.5 8.7 7 2.4 27.6 8 2.0 27.6 9 4.3 33.1

Denison is operator of the exploration program which began in July with the objective of testing multiple soil and geophysical anomalies over a 2-sq-km area. A second rig has been added to the definition drilling program.

Elsewhere in Guyana, on the Quartz Hill joint venture, Denison is currently drilling a number of coincident soil and geophysical anomalies. Results to date include 10 metres grading 2.5 grams gold per tonne in saprolite at depth of 34 metres. Further drilling is planned in 1991 to test other targets on the property.

Denison has earned a 30% working interest in both Aurora and Quartz Hill and can increase its stake to 60% by spending a total of $1.5 million on each property.

Meanwhile, a private placement has been arranged by South American Goldfields for one million of its shares priced at 80 cents per share including a stock or cash commission of 6.25% (5 cents per share). The net proceeds of $750,000 will be used for general corporate purposes.

The company recently expanded its board of directors to nine members, seven of whom are nominees of Ivanhoe Capital Corp. Each of the new directors was granted options for 50,000 shares exercisable at 75 cents per share over a five year period.