U.S. REPORT Rosebud returns more high grade for LAC, Equinox

Ongoing drilling by a unit of LAC Minerals (TSE) on the Rosebud property in Nevada is continuing to encounter high-grade gold mineralization in both the Dozer Hill zone and the East zone. The Rosebud property is owned 51% by LAC and 49% by Equinox Resources (TSE), with both companies owning 100% of other claims adjacent to or near the Rosebud property. The latest drilling at Rosebud includes eight holes from the East zone discovered earlier this year, and two holes from the known Dozer Hill zone. The highest-grade result was from hole 198C in the East zone which intersected 30 ft. grading 1.89 oz. gold per ton. This hole located 100 ft. southwest of a previously reported hole, 168, which intersected 40 ft. grading 1.2 oz. gold per ton in the same horizon immediately below the low-angle South Ridge fault. This new zone is about 1,000 ft. from the Dozer Hill zone which at the end of 1990 was reported to contain a preliminary reserve of 5.2 million tons grading 0.12 oz. gold. About 55% of this reserve is in the joint venture ground, with the remainder on ground wholly owned by LAC. Hole 191C drilled in the East zone also intersected high-grade mineralization in the new zone within a 135-ft. intersection grading 0.134 oz. gold. This hole was drilled about 150 ft. north of hole 168. Five holes drilled in the East zone are reported to have intersected thick intervals of lower-grade mineralization, but the potential for higher-grade mineralization around these holes is considered excellent. The East zone is open in all directions, except to the northwest. The encouraging results from recent drilling has prompted the partners to expand the 1991 program to 42,000 ft. from 17,000 ft. Two drills are expected to be at work on the property, with drilling continuing through to late September. This program will focus on stepout holes at the East zone, infill holes in the Dozer Hill zone and exploration holes on other targets east of the East zone. At the same time, metallurgical test work and permitting activities will be carried out. Equinox is also planning to carry out surface exploration programs this summer on 213 claims located one mile east of the Rosebud property. The company owns 100% of these claims, with funding provided by Equinox Resources (TSE) and Northair Mines (VSE) which hold options to earn a 50% interest in various of these claims. Equinox expects to use a portion of the $4.4 million in proceeds from a recently arranged financing to cover anticipated exploration costs at the Rosebud project. A portion will be used to eliminate the company’s existing debt.