|April 4, 1997||Trading Symbol: SJD - VSE|
VANCOUVER, BRITISH COLUMBIA--The company is pleased to announce that our field office in Ghana has reported further encouraging results on trenches and pits in the Seikrom and Adoikrom targets.
On March 5, 1997, St. Jude announced the results of a N-S trench (ST4-2) in the Seikrom area which averaged 6.76 g/t AU over 115 meters. Assays have now been received on three E-W cross trenches (ST4-1, ST4-3 and ST4-4) which are roughly 50 meters apart.
Eight of the many deep native pits within this anomaly were also sampled and these results were also encouraging. These pits were sampled vertically from top to bottom and accordingly, the results from these deeper pits are considered to be significant since they show that high grade mineralization is not limited to areas of shallow surface enrichment. The results from these pits averaged from 0.96 g/t AU over a true depth of 5 meters, up to 3.7 g/t AU over a true depth of 4 meters. Details on the trenches and pits are set out in the following tables:
Seikrom Trenches Trench Length Above 1.0 g/t AU Average Grade (Meters) (g/t AU) ST4-1 115 6.76 ST4-2 68 1.13 ST4-3 65 1.60 ST4-4 66 4.57 314 Meters at 4.01 g/t AU Seikrom Pits Pit Depth (Meters) Average Grade (g/t AU) SP1 4 1.86 SP2 3 0.77 SP3 5 1.13 SP4 5 2.69 SP5 5 2.88 SP6 5 2.93 SP7 4 3.70 SP8 5 0.96
To date, the Seikrom anomaly is defined by 314 meters of trenching averaging 4.01 g/t AU. The anomaly appears to be open to the east and possibly to the south as well.
Several of the trenches which have previously been described in earlier News Releases have been extended and/or deepened. The table below sets out the results of our trenching:
Adoikrom Trenches Trench Length Above 1.0 g/t AU Average Grade (Meters) (g/t AU) AT1 17 1.03 (x) AT1 Deepened 32 2.25 AT2 86 2.07 AT3 19 0.91 AT4 91 3.58 AT5 61 3.83 AT6 - - AT7 86 2.20 AT8 71 4.16 AT9 51 4.85 (x) AT9 Deepened 56 5.40 AT10 52 1.08 539 Meters at 3.09 g/t AU
The company was extremely encouraged to find that when trenches AT1 and AT9 were deepened, both the width and the grade improved. Trench AT-1 which originally averaged 1.03 g/t AU across 17 meters was deepened to greater than 3 meters and now averages approximately 2.25 g/t AU over 32 meters. Trench AT-9 which originally averaged 4.85 g/t AU over 51 meters, was also deepened and now averages better than 5.40 g/t AU over 56 meters. The trenching to date has outlined a mineralized zone with a strike length of approximately 300 meters and the company is presently completing additional new trenches which will hopefully extend the strike length of this mineralized zone even further to both the north and the south.
Most importantly, the company has completed the sampling of four deep pits within the anomalous zone at the Adoikrom Target. These pits were sampled in order to determine whether the high grades which have been encountered in the trenches would continue below a depth of 4 meters. The results are considered extremely encouraging and lead us to believe that the Adoikrom target will prove to be a significant deposit. Pit AP1 was vertically channel sampled to a true depth of 8 meters and averaged 6.51 g/t AU. Pit AP2 was vertically channel sampled to a true depth of 7 meters and it averaged 4.20 g/t AU. Pit AP3 averaged 2.85 g/t AU over 9 meters however, it should be noted that the grades in the first two meters were much higher than in the rest of the pit. A fourth pit, AP4 which appeared to have been excavated by native miners some years ago, was cleaned out and vertically channel sampled for 25 consecutive meters (approximately 80 feet). This pit averaged 10.658 g/t AU from top to bottom. The detailed channel sample results are set out below:
Sample # Vertical (g/t) AU Channel Sample Interval (m) AP4-1 1 6.613 AP4-2 1 7.958 AP4-3 1 12.313 AP4-4 1 8.823 AP4-5 1 4.483 AP4-6 1 11.521 AP4-7 1 10.182 AP4-8 1 16.347 AP4-9 1 5.672 AP4-10 1 8.147 AP4-11 1 19.79 AP4-12 1 14.634 AP4-13 1 10.695 AP4-14 1 33.893 AP4-15 1 18.424 AP4-16 1 18.267 AP4-17 1 11.086 AP4-18 1 5.481 AP4-19 1 12.777 AP4-20 1 2.358 AP4-21 1 2.2717 AP4-22 1 6.259 AP4-23 1 8.51 AP4-24 1 4.044 AP4-25 1 5.455 Summary of Adoikrom Pits Pit Depth (Meters) Average Grade (g/t AU) AP1 8 6.51 AP2 7 4.20 AP3 9 2.85 AP4 25 10.658
The company also wishes to confirm that notwithstanding the uncertainty which recently surrounded the mining sector, our financing was completed on March 27, 1997. Contrary to earlier news releases, the financing was closed due to the sole efforts of Griffiths McBurney & Partners. The financing was placed with:
Dynamic Precious Metals Fund Dynamic Global Precious Metals Fund BGR Precious Metals Inc. Altamira Management Ltd. BPI Canadian Small Companies Fund The Robertson Stephens Orphans Fund The Robertson Stephens Global Natural Resources Fund The Robertson Stephens Orphan Fund Offshore L.P. Sceptre Equity Growth Fund American Farms Investments Corp. 20/20 Canadian Resources Fund Ltd. Peter Munk Charitable Foundation (Plus 3 other non-institutional investors)
DRILLING ON ADOIKROM TARGET
A diamond drill has been moved on to the Adoikrom target and results from this program are expected within the month.
ST. JUDE RESOURCES LTD.
Michael A. Terrell, President