U.S. REPORT — Drilling ongoing at Sterling mine

No economically significant gold-bearing intercepts were reported by Cathedral Gold (TSE) from the first eight holes (3,500 ft.) of a 10,000-ft. drilling program at the Sterling gold mine near Beatty, Nev.

The ongoing drill program is targeted outside the known deposit, and is aimed at discovering new zones and expanding overall reserves of 765,000 tons grading 0.17 oz. gold per ton.

Cathedral operates and owns 52% of the heap leach operation which turns out about 12,000 oz. gold annually. Current reserves are believed sufficient for four years at current production rates.

Cathedral is also exploring its Trendline gold property in Nevada’s Battle Mountain Trend and along trend of Placer Dome’s recent Pipeline gold discovery. The program is aimed at defining targets for drilling. Viceroy, Channel strike

option deal with Miramar

VANCOUVER — A recently signed agreement-in-principle gives Viceroy Resource (TSE) and its affiliated company, Channel Resources (VSE), the right to earn a 50% interest in the Bruner gold project held by Miramar Mining (VSE). To earn the interest in the Nevada project, the companies must spend a total of US$1 million over a period of two years. On signing a definitive agreement, Miramar will receive 20,000 common shares of Viceroy and 250,000 shares of Channel.

The two companies can earn an additional 10% interest in the Bruner project by spending a further US$1 million in the third year.

Previous exploration on the property by Newmont Mining and others outlined an estimated preliminary resource in the Duluth zone of about 15 million tons grading 0.026 oz. gold per ton.

Preliminary metallurgical studies, based on an 11-ton bulk sample collected from over 200 ft. of workings, put recoveries at greater than 78% using a minus-1-inch crush.

Miramar now is awaiting results from a recently completed 20-hole drilling program designed to upgrade reserves.