Olympus tables Phuoc Son resource estimate

Vancouver — Olympus Pacific Minerals (OYM-V) has tabled an independent resource estimate of its Phuoc Son gold project, situated about 90 km southwest of Da Nang, in central Vietnam.

Watts, Griffis and McOuat (WGM) recently completed an independent technical review of the gold project. Two zones of mineralization, Bai Dat and Bai Go were evaluated. The prospects lie about one km apart in the Dak Sa sector of the project license. WGM used a cutoff grade of 4.5 grams gold per tonne for its calculations.

Measured and indicated resources at the Bai Dat deposit tallied to 165,000 tonnes averaging 19.38 grams gold, or 103,000 contained ounces. At Bai Go, measured and indicated resources weighed in at 153,000 tonnes averaging 8.87 grams gold, or 44,000 contained ounces. Together, the total measured and indicated resource works out to 318,000 tonnes averaging 14.32 grams gold, or 147,000 contained ounces.

Additional inferred resources at Bai Dat weigh in at 115,000 tonnes, averaging 15.30 grams gold, or 57,000 contained ounces. At Bai Go, the inferred resource is pegged at 73,000 tonnes averaging 7.10 grams gold, or 17,000 contained ounces. The total inferred resource works out to 188,000 tonnes averaging 12.12 grams gold, or 74,000 contained ounces.

In its technical report, WGM stated, “Olympus began working on the Phuoc Son property in 1998 and in a remarkably short period and with a relatively small amount of diamond drilling has succeeded in outlining two significant gold deposits and at least 23 important gold showings.” The report also stated that the project “is one of merit and should be the subject of continued exploration both on the known deposits and showings and for the discovery of new mineralization.”

Encouraged by the high-grade nature of the Bai Dat mineral resource, Olympus Pacific plans to continue to drill outside of the resource block in order to define more mineralization. About 180 metres south of the Bai Dat resource block, hole 106 intersected a mineralized zone averaging 3.81 grams gold over 4.35 metres. This included a higher grade interval averaging 12.93 grams gold over 1.23 metres. This hole confirmed the strike continuity of the Bai Dat stratigraphy and mineralized system. The junior has plans for a follow-up drill program in this prospective area.

Olympus has set aside $2.2 million for exploration at Phuoc Son in 2004. The first phase of this program will involve a 6,000-metre diamond drill campaign, scheduled to commence shortly.

The company will also continue to drill test the Dak Sa Sector as well as the Khe Rin, Khe Do, Tra Long and Nui Vang gold showings. The Khe Rin and Khe Do prospects, situated about seven km northwest of Bai Dat, represent an open-ended gold-in-soil anomaly that measures 500 metres wide and 3.0 km long. This anomaly is broadly coincident with skarn alteration. Earlier drilling included a 9.9 metre interval that averaged 4.35 grams gold and a 9.45-metre section that averaged 7.92 grams gold.

Surface exploration programs that will consist of ground geophysical and geochemical surveys, geologic mapping, test pitting and trenching will identify future drill targets around three additional gold showings within the 70-sq.-km Phuoc Son property.

Engineering, metallurgical and environmental studies to determine the feasibility of underground development with pilot scale production at Bai Dat and Bai Go are currently underway. In June of 2003, Olympus Pacific filed a mining license application with respect to the Bai Dat and Bai Go deposits. The application is now under review by the Vietnamese authorities.