Da Capo drills Capa Circa

Gold values are reported from a drilling effort on the Capa Circa project in Bolivia.

Da Capo Resources (VSE) holds an option (expiring in early 1996) to acquire the property for US$4.8 million.

Capa Circa is a small 10-20-tonne-per-day underground mine that has been worked, on and off, for antimony and gold since the time of Spanish rule. Gold is hosted in a swarm of quartz veins and veinlets in a

100-150-metre-wide shear-fracture zone.

Underground channel sampling over 500 metres of strike indicates a grade of 1.7 grams gold per tonne over an average width of 53.3 metres. Recent drilling includes both surface and underground holes targeted above and below the underground workings.

The following results are for four of nine holes drilled to date: Hole Interval Width Gold Gold *

(m) (m) (g/t) (g/t)

CC1 23.8- 26.9 3.1 1.64 1.64

60.1- 62.7 2.6 1.70 1.70

121.0- 132.5 11.5 1.06 1.06

CC2** no significant results

CC3 2.6- 161.4 158.8 1.10 1.10

incl. 2.6- 13.2 10.6 1.68 1.68

incl. 55.5- 92.5 37.0 1.74 1.74

CC4 6.7- 10.5 3.8 4.30 4.30

45.1- 101.6 56.5 1.03 1.03

113.4- 120.2 6.8 2.22 2.22

CC5 64.5- 90.2 15.7 11.6 3.90

incl. 74.5- 82.8 8.3 20.73 6.20

* High gold values cut to 20 grams

** Hole 2 is a stepout on strike from the area of the workings.

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