FAVOURABLE TECHNICAL REPORT ON YANG WEN CHONG
Pinnacle Mines Ltd. reports that it has completed and filed a technical report pursuant to National Instrument 43-101 on the Yang Wen Chong gold project in Southeast Yunnan province, China. The report was prepared by Jeffrey L. Wilson, P. Geol., following a property visit in early June, 2004. Mr. Wilson’s report is available for full review by the public under Pinnacle’s filings on SEDAR at www.sedar.com. In addition the report or a summary including maps can be viewed at the Company’s website at www.pinnaclemines.com.
Mr. Wilson collected and had 37 rock-chip samples from the property analyzed, mostly from the mineralized zones during his property visit. Rock-chip samples were collected by using a rock hammer and chipping a representative sample along a linear traverse (horizontal or vertical) delineated by a metric tape. Individual samples ranged from 1.2 to 5.0 m in length; most were 2.5 to 5.0 m. Some grab samples were also collected for analysis. Thirty-four rock-chip samples and three grab samples were collected for a total of 37 samples. He states that “assay results corroborate all gold zones that were sampled”. The best rock-chip sample traverses were:
- 6.0 m @ 2.03 grams per tonne (g/t) gold
- 40.0 m @ 1.86 grams per tonne (g/t) gold
- 20.0 m @ 1.80 grams per tonne (g/t) gold
- 30.0 m @ 1.22 grams per tonne (g/t) gold
- 3.0 m @ 4.42 grams per tonne (g/t) gold
It is the author’s opinion that the sampling, sample preparation, analytical procedures, and security of the 37 samples are acceptable and of professional quality. All verification samples were collected under the direct supervision of the author and assigned an individual sample number (YWC-1 thru YWC-37). Individual sample bags were then secured with a plastic blue security seal (coin bag bank seal used by Bank of America). The samples were then transported by vehicle in the author’s presence to Nanning, Guangxi Province where they were shipped via DHL directly to ALS Chemex in Vancouver, B.C., Canada. No security seals were compromised. The author’s verification samples were delivered to ALS Chemex Laboratories in Vancouver, B.C., Canada who is ISO 9002 and ISO 9001:2000 certified. The laboratory is currently working towards accreditation to ISO 17025 under CAN-P1579 “Guidelines for Accreditation of Mineral Analysis Testing Laboratories.” All sample preparation was conducted by ALS Chemex Laboratories. No aspect of sample preparation was conducted by an employee, officer, director or associate of the Issuer. Samples were logged in by the lab, assigned a bar code for tracking, dried, crushed, and pulverized for analysis. Samples were crushed to >70% -2 mm using a jaw and/or roll crusher and then split with a riffle splitter to provide up to a 250 g homogeneous sub-sample, fully representative of the original field sample. The split was then pulverized to >85% 75 microns (200 mesh) using a “flying disk” or “ring and puck” grind mill. Gold was assayed by conventional fire assay methods with a 30 g nominal sample weight and atomic absorption spectrometry finish (Lab code Au-AA23). Detection limits range from 5 ppb Au to 10 ppm Au. No samples contained greater than 10 ppm Au that would require a gravimetric finish. All gold assays are reported in this report. A complete summary of all sampling and analytical procedures is contained in the report.
Mr. Wilson interprets the mineralization at Yang Wen Chong as being part of a large, sedimentary-rock hosted gold system with potential for Carlin-type gold deposits of economic interest. This interpretation is supported by an abundance of professional geological and analytical data generated by previous workers. He states his site visit and verification sampling corroborates significant gold mineralization. The gold system extends for at least 4.5 km in a north-south direction along the eastern margin of the property and likely extends blindly for an equal or greater distance to the west. He indicates that existing targets warrant continued exploration and routine reconnaissance would likely identify new targets and that local infrastructure appears adequate for a future mine.
He suggests a Phase 1 Exploration Program (12-month) to advance early and intermediate-stage targets by continued trenching, core drilling, and metallurgical testing. Core drilling of 20 holes for 3100 m is recommended to increase the Issuer’s geologic knowledge and confidence in the gold for size and grade. A Phase I Exploration Program budget of CDN $2,250,000 is proposed. Subsequent exploration programs will be required to bring the property to a decision point. Mr. Wilson’s main conclusions regarding the Yang Wen Chong property are:
- Target-rich environment for Carlin-type gold deposits
- Jerritt Canyon, USA is a possible analogy (5 million ozs Au produced)
- Excellent potential to delineate significant gold zones of economic interest
- Immediate potential to advance early-stage targets to drilling
- Immediate potential to advance intermediate-stage targets by offset drilling
- Good potential to generate new targets by routine reconnaissance
- Metallurgical work is lacking
- Favorable infrastructure for possible mine development
Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company whose activities are international in scope. Its primary assets are located in both Canada and China. In Canada, Pinnacle holds several properties in Northwestern British Columbia, in proximity to numerous past and producing mines including Barrick Gold’s famed Eskay Creek Mine. In China, Pinnacle’s current focus is in Southeast Yunnan, an area being increasingly considered for its potential to host significant mineral resources including “Carlin” style gold deposits.
On behalf of the Board of Directors
“Andrew W. Bowering”
President and CEO
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for the adequacy or the accuracy of the content of this news release.