EXPLORATION 1997 — Altavista to option Wild Mick property

Montreal-based junior Altavista Mines (AIA-M) can acquire a half interest in Toronto-based Inmet Mining’s (IMN-T) Wild Mick gold prospect in Zimbabwe.

Comprising 22 sq. km, the property lies 22 km southeast of Gweru and is next door to the Wanderer gold mine, which is hosted within an iron formation.

Gold mineralization occurs mostly in quartz veins hosted by chlorite-ankerite schists or iron formations. The most promising block, Ultimus, is crossed by a regional fault which controls most of the mineralization in the Kwekwe gold belt, including the Tebekwe and Lulu mines.

Since it optioned Wild Mick in January 1996, Inmet has completed geological mapping as well as geochemical and geophysical surveys. Sampling of outcrops over the Ultimus block returned 16 rock samples grading above 5 grams gold per tonne, with five samples grading more than 20 grams.

Artisanal alluvial gold mining is being carried out in river beds within, and adjacent to, the property. Numerous abandoned exploration workings and at least 19 production shafts are found in the Ultimus block.

Twenty holes will be drilled in the 1997 program, which is budgeted at $800,000 and scheduled to begin in April.

The 4,000-metre program will target large auriferous pyritic shear zones with subordinate gold-bearing quartz veins. A 1996 induced-polarization survey has identified many zones interpreted as being pyrite-rich. Secondary targets include porphyritic and iron formation-hosted mineralization.

To earn its 50% interest, Altavista must spend $1.6 million on exploration before Dec. 31, 1998, including $800,000 before Dec. 31, 1997. Inmet will be the operator during the earn-in period.

If Inmet elects to discontinue exploration of the property, Altavista may acquire a full interest by spending an additional $1.5 million on exploration and development before Dec. 31, 2001, and granting Inmet an option to buy up to 1 million shares of Altavista at $2 per share before that date.

If Altavista acquires a full interest, Inmet will retain the right to earn back a half interest and become operator either by funding $3 million worth of work or by funding all expenditures required to bring the project to production.