Bitech expands reserves, plans new work programs

The new results have led the company to increase its geological reserve estimate for the Nugget Pond deposit to 395,000 tonnes grading 12.5 g (0.36oz) per tonne, up from 227,000 tonnes averaging 13.7 g (0.40 oz) reported earlier.

Highlights from the recent drill results are as follows:

Width Uncut Grade Hole (ft) (oz/t) 21 27.8 0.15 22 0.9 0.68 23 3.2 0.56 25 22.6 0.10 26 40.3 0.34 30 3.2 0.14 31 51.5 0.17

All of these holes were drilled on an azimuth of 315 degrees (grid north) and tested a total strike length of about 492 ft. The company also reported a number of “sub-economic” intervals along with the above results, indicating variations in the width and continuity of the gold zones tested to date.

Two drills are currently at work on the property with a third to be added shortly. The company says a recently completed geophysical survey has located target areas with similar geophysical response to the Nugget Pond discovery.

Bitech and partner Equity Silver Mines (TSE) recently finalized their formal joint venture agreement regarding exploration and development at Nugget Pond.

Under the recently concluded agreement, Equity will have the right to earn a 50% interest in the property from Bitech by making option payments and expenditures totalling $24.5 million and arranging for production financing estimated at $50 million.

Bitech, the operator of the joint venture, reports it has received initial option payments of $1.05 million. Equity will be responsible for exploration expenditures in the current 20,000-m drill program to a maximum of $2.2 million.

On the adjoining Betts Cove Minerals property, recently acquired 100% by Bitech, the company will conduct a $350,000- surface program to explore the southwest extension of the Nugget Pond horizon. The program, scheduled to begin in May, will include linecutting, geophysics, geochemical work, mapping, trenching and sampling.

A similar $150,000-program is planned for the Tilt Cove property to the north. This work will explore the northeasterly extension of the Nugget Pond horizon.

Funding for the Tilt and Betts Cove projects will come from a $700,000 flow-through share placement with NIM and Company, Limited Partnership — 1989.

The Tilt Cove property is owned by Tashogan Minerals, a private company which Bitech is in the process of taking over. Bitech recently extended the expiry date of its offer to purchase all shares of Tashogan to Apr 12. The extension was granted to allow certain Tashogan shareholders time to locate their misplaced share certificates, said James Wade, president of Bitech. The takeover offer is conditional on Bitech being able to acquire 51% of Tashogan’s 4.2 million outstanding shares.

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