Mark V finds high grade gold in Bagdad mine’s South vein

With underground exploration still in progress at Mark V Petroleums and Mines (VSE) Bagdad gold mine near Philipsburg, Mont., the company says it is still encountering high grade mineralization on the south vein.

Back in January, 1987, Mark V acquired an option to buy a 100% interest in the property which is located at an elevation of 5,000 ft in the Stoney Mountain district.

Scheduled to go into production almost immediately, the property is expected to produce about 50,000 oz gold and 184,000 oz silver over the next 12 months from a mineable reserve inventory of about 278,841 tons (grading 0.6 oz gold per ton).

In a bid to establish the vertical continuity and grade of an ore shoot which on the 5,450 ft elevation averaged 0.756 oz gold and 4.149 oz silver over a vein lenth of 70 ft., the company is driving a raise up to a point 200 ft above the main haulage level.

The raise averages 13 ft in length and 8 ft in width, Mark V said. Assays taken from 10 samples which were pulled from the raise beween 37 ft and 74 ft are as follows:

Gold Silver Copper Lead Zinc Sample oz/ oz/ %/ %/ %/

No. ton ton ton ton ton 1186 3.450 20.11 0.94 3.35 1.71 1185 0.019 0.04 0.01 0.02 0.01 1184 0.218 1.42 0.01 0.20 0.01 1188 0.246 1.243 0.03 0.23 0.03 1187 1.435 9.10 0.27 2.91 1183 0.862 4.82 0.25 1.90 1182 0.135 0.62 1181 2.995 15.47 0.31 8.60 1180 0.586 2.90 1179 3.107 17.75

According to project geologist Wayne Peterson, assays are based on bulk samples of about 35 lb which were collected from broken ore as it is loaded up for stockpiling.

He said the initial 37 ft of raising averaged 5.417 oz gold and 29.72 oz silver. From 37 ft to 74 ft, it averaged 1.918 oz gold and 10.73 oz silver.

After calculating a total average of 4.134 oz gold and 22.76 oz silver from 966 tons of raise material, Mark V is planning to drive two additional raises on the South vein where drifting will continue.

Mark V will also conduct additional exploration by drifting along the parallel North vein.