EXPLORATION 1997 — Santa Cruz confirms resource

Junior Santa Cruz Gold (SCG-T) has completed a first-phase, 20-hole drill program at its Quitovac gold property in Sonora state, Mexico.

The program verified results achieved in the 1980s by a private Mexican company. That program outlined reserves of 3.3 million tonnes grading 1.4 grams gold per tonne within a resource of 7.5 million tonnes grading 1.4 grams gold.

Santa Cruz will attempt to upgrage these to the proven and probable category in a second phase of drilling.

To date, the company has drilled 300 metres of the deposit’s east-west strike-length and down to a depth of 100-120 metres. Gold mineralization occurs in a zone of oxidation and is associated with both silicification and quartz-veining. Mineralization is open both along strike and downdip.

Recent drill results include 35 metres of 6.5 grams gold (from 58 to 93 metres) in hole 14, and 27 metres of 5.1 grams gold (from 43 to 70 metres) in hole 13. Both holes were drilled on the most easterly section of the deposit.

The company plans to test for extensions along both strike and dip.

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