Bolivar hits yellow metal at Tomi project

Exploration of the NE Tomi concession in Venezuela’s El Callao district continues to generate gold values for Bolivar Goldfields (VSE).

A second phase of drilling is confirming the easterly extension and southeastern plunge of the Mckenzie zone, with grades of up to 38.4 grams gold per tonne over 14 metres in hole 46 and widths of up to 30 metres grading 12 grams in hole 39.

The zone is at the eastern end of a string of three quartz-veined shear zones separated by faults in an area measuring about 2 by 1 km. Deeper drilling has also returned gold values in a highly carbonaceous mafic unit below the quartz veining.

“We’re very encouraged with the results,” says Bolivar President Ian Gray, adding that “there will be more of the same in the near future.” The Mckenzie, together with the adjacent Charlie Richards zone to the west, is now estimated to contain 1 million tonnes grading 8.7 grams gold. Bolivar describes the zones as readily accessible, potentially minable by open-pit methods, and open to at least 150 metres downdip. In addition, southerly extensions to the Mckenzie zone recently have been exposed at surface. A further resource of 1.5 million tonnes grading 1.5-2 grams has been outlined to a depth of about 100 metres on the Miligrito, the third zone, situated west of the Charlie Richards.

A third phase of drilling, to total 10,000 metres, will further test the three zones, as well as other targets, including the newly identified Fosforito and Esperanza. The drilling will also extend on to the company’s Dividival concession, in an effort to test the easterly strike extent of the Mckenzie zone as well as its down-plunge extent. Visible gold and soil-geochemical anomalies extend 800 metres eastward from the Mckenzie. In addition, four other untested soil-geochemical gold anomalies extend for distances of up to 1.3 km on the concession.

The company is acquiring the Tomi property by spending US$3 million by Aug. 11, 1995, and paying the vendor 3.5% of the value of the estimated gold reserve plus 3.5% of any additional exploited reserves. A further 1% net smelter return is payable to the underlying land owner.

Vengold (TSE) can back-in for a half interest (upon completion of a feasibility study) by reimbursing all of Bolivar’s property expenditures and arranging project financing. Vengold’s back-in right does not include the Dividival concession.

Bolivar has 30 million shares outstanding and US$18 million in working capital.

Assay results from recent holes are as follows:

Hole Interval Width Gold

(m) (m) (gm/t)

94-39 0- 30 30 12.0

94-41 0- 14 14 3.8

94-42 0- 16 16 9.1

94-43 22- 31 9 37.3

94-44 15- 25 10 2.2

94-45 23- 29 6 5.3

94-46* 12- 26 14 38.4

* Hole 94-46 contained values of up to 204 grams over 1 metre.