Majestic holes dud at Ceske Brezovo

Vancouver Assay results from Majestic Gold’s (MJS-V) recently completed 4-hole drill program at its Ceske Brezovo prospect in Slovakia failed to return any significant gold mineralization.

Majestic was attempting expand on two significant near surface gold zones discovered by the Slovakian Government during a regional exploration program in 2000. This program culminated in a shallow drill program that returned intersections of 51.5 grams gold per tonne over 14 metres and 3.1 grams gold over 16 metres. Both of these holes were reported to be open at depth.

Majestic’s holes were all logged by their Qualified Person, and split under his supervision. Samples were stored in a locked warehouse and packaged and air-freighted, via UPS, to Acme Analytical Laboratories in Vancouver for analysis. The core was assayed using a standard 30 element ICP package and gold analysis was conducted by fire assay.

The company intends to check with Acme to confirm that no gold was missed in the assay procedures. It has subsequently suspended property payments and will seek an indefinite extension of its next payment date to allow time to explain the discrepancy in assays. Majestic stands to earn a 75% interest in the Ceske Brezovo gold project by paying $675,000 in cash, issuing 300,000 common shares and by spending $6 million on exploration over four years. Majestic currently has over $2 million in its coffers.

Majestic’s first two holes were drilled in an area interpreted to be a thrust contact zone between Paleozoic-aged gneiss and schists. Previous holes, drilled vertically, reported values over their entire length of 3.1 grams per tonne gold over 16 metres in thegneiss and 0.81 grams gold over 14 metres in the schist.

The junior’s first hole, VZ-01, was drilled near the inferred thrust fault contact zone between the gneiss and schist for a total length of 50.3 metres. It was drilled at minus 45 degrees and designed to cut across the lithologies and structures at near right angles. The second hole was drilled with the same orientation and collared 125 metres southeast of hole VZ-01.

The second set of holes was collared about 1.5 km to the northwest, near the top of Kecka Mountain. This area was mapped by Slovakian Government geologists as a highly siliceous and pyritized alteration zone. One previous hole (VCB-74), drilled vertically, cut 14 metres averaging 51.5 grams gold. Majestic’s third hole, VZ-03, was drilled vertically from this site for a total length of 102.1 metres. The fourth hole, VZ-04, was drilled 150 metres south of hole VZ-03, near the top of Kecka Mountain, in order to test the lithologies and structures near the centre of the large alteration zone.

In other news, Majestic has entered into a joint venture agreement with the Xinjiang Bureau of Geology and Mineral Resources ("XBGMR"). Under the terms of the agreement, Majestic has the right to earn a 90% interest in a joint venture company that will be established to hold the Sawayaerdun gold project in the Xinjiang province of China.

According to the deal, Majestic is required to contribute 100% of the exploration and development costs. Majestic must spend a total of US$2 million over a four year period with the at least US$300,000 this year, another US$400,000 by the end of year two, and another US$650,000 in each of year three and four. The XBGMR will contribute the property and all geological information collected to date in exchange for its interest.

The joint venture company will be owned 90% by Majestic and 10% by XBGMR and Majestic will continue to fund 100% of ongoing exploration and development.

The Sawayaerdun project covers approximately 240 sq. km in the Tian Shan gold belt which stretches from Inner Mongolia west to Uzbekistan. The gold belt hosts the Muruntau (+140 million ounces of gold) and Kumtor (+13 million ounces) deposits.

XBGMR report that the gold mineralization at Sawayaerdun is hosted by Silurian-aged carbonaceous phyllites. Zone IV has received the most exploration to date. Its surface expression can be traced for over 4 km.

Majestic took 33 continuous chip samples from 8 trenches along a 2 km strike length of Zone IV. All of the samples were 2 metres in length and continuous within each trench. Results are listed below;

• Trench 12 averaged 1.96 grams gold over 12 metres.
• Trench 23 averaged 2.62 grams gold over 10 metres.
• Trench 24 averaged 0.48 grams gold over 4 metres.
• Trench 31 averaged 1.87 grams gold over 10 metres.
• Trench 35 averaged 0.92 grams gold over 4 metres.
• Trench 39 averaged 1.79 grams gold over 10 metres.
• Trench 64 averaged 2.35 grams gold over 8 metres.
• Trench 68 averaged 3.47 grams gold over 8 metres and included a 2-metre interval that averaged 9.26 grams gold.

The check sampling program was designed to confirm previous results and will serve as a basis to design future drill programs to test the continuity of mineralization at depth. The IV zone has been tested by XBGMR at depth in 16 adits and 11 drill holes and demonstrates good continuity.

According to XBGMR total inferred resources at the project according to Chinese standards is 26 million tonnes averaging 1.75 grams gold, hosted within a 2 km section of the IV zone alone. Approximately 15 % of this is reportedly oxidized. The estimates were completed by Chinese professionals but not pursuant to National Instrument 43-101 or current CIM guidelines.

XBGMR also reports that three additional gold zones have been trenched on surface for a combined length of over 7.5 km. These zones have not been tested at depth and represent excellent additional targets. Majestic is compiling data from previous work performed on the property and is making plans to begin exploration at Sawayaerdun in the first quarter of 2004. The company is also actively evaluating several other projects in China.