Oliver drilling at Fairview

Diamond drilling has outlined a high-grade gold resource at the Fairview property in the southern Okanangan Valley of British Columbia.

The 28-hole program, which totalled 12,707 ft., was carried out in the Silver Crown adit area.

Oliver Gold (VSE) reports that high-grade oreshoots, separated by 65 to 80 ft. of waste rock, exist within two parallel quartz veins called the Hangingwall and Main vein. These occur over widths exceeding 5 ft. Based on a total of 35 drill holes, geological reserves near the adit (uncut and undiluted) are estimated at 47,260 tons grading 0.66 oz. gold and 1.31 oz. silver per ton. Based on a dilution of 20%, reserves are projected at 56,710 tons grading 0.55 oz. gold and 1.1 oz. silver.

A system of three subparallel quartz veins is hosted by northwesterly trending metasediments over a strike length of 2.5 to 3 miles. Historic mining since the 1890s has yielded more than 500,000 tons grading 0.12 oz. gold and 1.27 oz. silver.

Since acquiring it in 1986, Oliver has spent more than $2.3 million on the property. Initial widespread drilling was aimed at delineating a low-grade, bulk-tonnage deposit amenable to underground mining. Drilling indicated a geologic reserve of 1.9 million tons grading 0.11 oz. gold and 1.11 oz. silver. As a result of a continuing slide in the gold price, the company shifted its emphasis to delineating smaller, but higher-grade, oreshoots. A 1990 drill program identified a mineralized area below level 6 at the Fairview mine. The zone was found to contain an indicated reserve of 90,776 tons grading 0.17 oz. gold and 2.2 oz. silver within a larger indicated and inferred reserve of 292,600 tons averaging 0.11 oz. gold and 1.4 oz. silver. Oliver believes the resource outlined in the Silver Crown adit area can be extracted by small-scale underground methods.

The company is also participating in several gold exploration projects in Zimbabwe and Mali. Through its 50%-owned Zimbabwe partner, Maple Leaf Mining, exploration is continuing on the 65,734-acre EPO 753 prospecting permit which encompasses the C and Camp mining operations. A dozen exploration targets will be drilled as part of a planned US$300,000 work program. Drilling will also test possible extensions of the C mine identified by surface mapping and soil sampling.

In Mali, a 16,400-ft. drill program on the Segala concession is expected to begin by mid-May. Oliver has purchased its own drill rig as a result of difficulties and delays in obtaining a contract diamond drill. The program is designed to test the extensions and grade of an open-ended, gold-mineralized shear zone. Oliver holds an option to acquire a half interest in Segala and several other concessions from Consolidated Mining of South Africa.