Full Feasibility Study Under Way for Sulphurets Project

According to Donald McLeod, president of Newhawk, the study should be completed by mid- March and will provide the basis for consideration of a production decision for the West zone, and for permitting and financing requirements. Reported reserves for the West Zone (all categories) are 854,072 tons grading 0.354 oz gold and 22.94 oz silver per ton. A Stage 1 feasibility report, which is required for the permitting process, is complete and is to be presented to provincial authorities within the next several days.

Meanwhile, work has resumed at Sulphurets following the Christmas break with the joint venture now mid-way through its winter exploration program. The ramp providing access to the West zone down to the 1300 m level is being extended to the 1250 m level, to be followed by underground diamond drilling of the UTC zone situated adjacent to the West zone.

A minimum of 3,400 ft of underground diamond drilling in four holes is planned to test this zone which was discovered by surface diamond drilling in late 1988. It has since returned high gold grades over significant widths, including 0.412 oz gold and 9.78 oz silver over 36 ft and 11.937 oz gold and 45.94 oz silver over 30 ft.

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