U.S. REPORT LAC, Equinox hit new gold zone with first hole this

Partners LAC Minerals (TSE) and Equinox Resources (TSE) are reporting a new gold discovery on their joint venture Rosebud property in northwestern Nevada. The report is based on results from the first holes drilled in the 1991 program.

The first hole of the program, 168, returned a 40-ft. intersection grading a spectacular 1.15 oz. gold and 2.37 oz. silver per ton from 550-590 ft. on ground held 51% by LAC and 49% by Equinox.

Equinox President Ross Beaty said these and other results indicate the discovery of a new zone of high-grade gold mineralization some 1,000 ft. east of known mineralization in the Dozer Hill deposit.

Other holes drilled near hole 168 include hole 145 which intersected 45 ft. grading 0.2 oz. gold; hole 169 which intersected two 20-ft. intersections grading 0.1 oz. gold and 0.16 oz. gold respectively; and hole 170 which intersected 60 ft. of 0.1 oz. gold and 5.18 oz. silver from 595-655 ft.

The new zone is reported to occur below a low-angle fault, while mineralization in the Dozer Hill deposit occurs above this fault.

Other recent results include hole 171 which intersected 370 ft. grading 0.18 oz. gold and 0.55 oz. silver from 470-840 ft. It was drilled by reverse circulation near a core hole drilled in late 1990 which intersected 275 ft. grading 0.37 oz. gold in the Dozer Hill zone of mineralization.

Two drill rigs are currently active on the property, and more drill results are expected shortly.

At the end of last year’s program, preliminary reserves at Rosebud were reported as 5.2 million tons grading 0.12 oz. gold, with about 55% of this located in the joint venture ground. The remainder is on ground wholly owned by LAC.

Equinox has other claims near the Rosebud discoveries, including the Wild Rose and Kamma claims where X-Cal Resources (TSE) is earning a 50% interest. X-Cal plans to fund US$100,000 of work to these claims this year.