Sierra Maestra Region
El Cobre - ``La Zona Barita pre-feasibility study near completion''
The pre-feasibility study commissioned on La Zona Barita gold deposit in August will be completed in December. As a result of the 1996 drilling, an indicated and inferred resource of 7.4 million tonnes averaging 1.24 g/t gold and 5.87 g/t silver has been calculated over a strike length of 350 m and to a depth of 200 m. The mineralization occurs in two stacked zones ranging from 6 to 59 m thick that remain open at depth and to the west. The Barita lies in a geological horizon that extends for 4 km and hosts two additional gold zones, the El Cobre Norte and Este. The El Cobre area continues to have the potential to host a combined resource of 1 million ounces of gold.
Infierno - ``Drilling intersects significant gold and silver values''
Four drill holes have been completed at Infierno indicating an important precious metal credit including 3.40 g/t gold and 63.03 g/t silver over 8.95 m in hole INF 96-03. In the 1980's the Cubans outlined a resource at Infierno of 28 million tons averaging 2.27 % zinc and .63% lead. Earlier this year surface sampling outlined areas enriched in gold and silver which were partially tested by the recent drilling. The drill results are tabulated below.
| HOLE | FROM | TO | LENGTH (m) | Gold (g/t) | Silver (g/t) | Zinc (%) | Lead (%) |
|---|---|---|---|---|---|---|---|
| INF 96-01 including INF 96-02 including INF 96-03 INF 96-04 |
4.65 21.70 60.30 84.30 53.90 54.60 |
90.00 24.00 112.80 93.25 92.15 70.53 |
85.35 2.30 52.50 8.95 38.25 15.93 |
.23 .54 .85 3.40 .47 1.14 |
4.85 10.19 16.67 63.03 12.09 8.90 |
.74 5.46 2.19 6.57 1.97 1.80 |
.05 .15 .30 .59 .61 .18 |
Camaguey Region
Vista - ``Trenching encounters high grade gold mineralization''
At the Vista property, located near Camaguey, trenching was completed in an area where previous work encountered gold values up to 108.6 g/t. This new work encountered a mineralized boulder containing spectacular visible gold. A sample from the boulder assayed 394.7 g/t or 11.5 ounces of gold per ton. The boulder lies in 1 m of overburden above a mineralized quartz vein system in bedrock. A grab sample from the bedrock assayed 41.59 g/t or 1.21 ounces of gold per ton. Other samples of mineralized boulders in the area assay 16.05 g/t, 1.7 g/t and .52 g/t. A 1995 drill hole located 275 m south of the new trench intersected anomalous gold values averaging .15 g/t over a thickness of 93.4 m. Geochemical and geophysical surveys are planned prior to testing the new trench area with drilling in 1997.
Santa Clara Region - ``Report on three drill programs''
At Arimao, trenching in 1996 outlined a gold zone extending for 200 m through the center of a 60 million tonne porphyry copper deposit which averages 0.31 % Cu. Sampling of the trenches returned assays of .32 g/t across 30 m and .41 g/t across 43.3 m. Three holes were completed beneath the trenches and intersected a 40 m zone of quartz stockwork containing pyrite and chalcopyrite. The holes have been sampled and are out for assay.
Four holes were completed at the Carlotta No.1 massive sulphide deposit. In 1995, surface grab samples returned up to 4.56 g/t gold in the overlying oxide zone and 0.56 g/t gold in the massive sulphides. Previously at Carlotta, the Cubans outlined a resource of 5 million tonnes averaging 1% combined copper and zinc. The new drilling, completed last week, intersected 32 meters of oxide mineralization and 23 meters of massive sulphide mineralization. The core is out for assay.
Drilling is also testing the Regidor gossan zone located in a favourable geological formation which hosts two massive sulphide deposits. This new discovery is traced for 300 m on surface and recent geophysics has extended the zone for an additional 300 m. Sampling of the gossan zone has returned significant Cu-Zn-Ag and Au values including one sample which assayed 1.5 % Cu, .30 % Zn, 150 g/t Ag and 5.78 g/t Au. Eight holes will be completed by mid-December.
Financing - ``$1.197 raised for 1997 exploration''
Subject to regulatory approvals the Company has entered into an agreement with an international management investment company to purchase 3,500,000 units of Joutel. Each unit comprises one Subordinate Voting Share and one-half Subordinate Voting Share purchase warrant. Each unit is priced at $ 0.342 (Cdn) for net proceeds of $ 1,197,000 (Cdn). Each whole warrant will entitle the purchaser one new Subordinate Voting Share at $ 0.45 (Cdn) for a period of 18 months from the date of closing. Proceeds from this offering will be directed towards our ongoing exploration programs in Cuba.
For further information: C. E. Page, President, (416) 364-0001; H. D. Harbinson, Chairman, (604) 689-7211