Drill results add sparkle to Joya del Sol

Results from the first round of drilling are adding sparkle to the Joya del Sol (Jewel of the Sun) gold-silver project in southern Argentina.

Sunshine Mining & Refining (SSC-N) has completed 41 shallow core holes on the 1,000-ha property, situated in Chubut province. The program tested four of 16 mapped veins.

Highlights are as follows:

* The company drilled a 22-ft. interval through the Natasha vein grading 0.29 oz. gold and 1.7 oz. silver per ton in the first hole. Eight holes penetrated the vein, all but one of which yielded significant results.

* Sunshine completed 14 holes into the Sirena vein. The third hole intercepted 23.3 ft. of 0.45 oz. gold and 0.85 oz. silver; the sixth hit 45 ft. grading 0.51 oz. gold and 2.4 oz. silver; whereas the fifth hit 18.4 ft.

of 0.48 oz. gold and 1.6 oz. silver.

* Four holes were drilled on the Anastasia vein, the second of which hit 51.7 ft. grading 0.19 oz. gold and 0.76 oz. silver. The fourth hole drilled into this vein hit 17.1 ft. of 0.36 oz. gold and 0.78 oz. silver per ton.

* Fifteen holes were drilled on the Ivana vein, the third of which hit 10.5 ft. of 0.23 oz. gold and 0.93 oz. silver. The tenth hole hit 10 ft. grading 0.37 oz. gold and 0.82 oz. silver.

Mineralization is contained in quartz veins hosted in volcanic rocks. The veins, with the exception of the Sirena, are steeply dipping, and the reported widths are close to their true widths.

Sunshine plans to drill an additional 6,000 ft. through to May, at which point it must decide whether to proceed further with property payments.

The company acquired the Joya del Sol in May 1997, agreeing to make property payments totalling US$4 million over five years. The vendors retain a 3% net smelter royalty on any production.

Meanwhile, Sunshine continues metallurgical testing at its Pirquitas silver project in northern Argentina. Drilling will attempt to increase proven and probable reserves.