Two drills testing Mexican Hat property

One of the rigs is a diamond drill, the other a reverse circulation unit which drills a bigger hole and provides a larger sample. Placer has completed check assays on 135 samples from the first sixteen holes and Oneida confirms there is “excellent correlation with values reported previously by our lab.”

Drilling has located a bulk tonnage target beneath the Mexican Hat peak which Oneida believes could host a reserve of eight million tons at “a grade to be determined by in-fill drilling.” This fracture-filled zone is oxidized to at least 500 ft and could represent a source of feed for a heap leach operation, Oneida contends. A high grade target exists in the Victoria fault where one intercept returned 35 ft averaging 0.47 oz gold per ton.

Placer Dome can earn a 60% interest in the property by completing a 2-stage exploration program funded by the purchase of Oneida shares. These share purchases are valued at approximately $2.1 million, $1.6 million of which will be spent on exploration. The remaining $400,000 will be used as working capital by Oneida.

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