Drilling Starts in MyanmarPublished by MAC on 2004-03-23
In the past two years international opprobrium of Burma's military regime appeared first to increase, then falter. Taking advantage of this are two Canadian junior mining outfits
Canadian mining juniors, Leeward Capital and Jet Gold, are moving forward with test drilling on the gold mining concession that they inherited from East Asia Gold in northern Shan state. Pasted below is a release put out by Jet Gold on current activities on the site, followed by a note from Jet Gold's 2003 Financial Statement which details the deal signed last December with the military regime's Ministry of Mining. When East Asia had this concession they located it in a 1400 sq km section between 96° 30' and 97° 00' East and 23° 30' and 23° 45' North, a few miles to the northeast of Mabein town. The area has been worked by artesanal miners for about 15 years.
Drilling Starts in Myanmar
23rd March 2004
Jet Gold Corp., (the Company) and its partner, Leeward Capital Corp., (V.LWC), (Leeward) report that diamond drilling on the Set Ga Done concession in Myanmar started on Saturday the 13th of March. The drill program calls for 1000 meters in the first phase and it is anticipated that this will be done in 7 holes. The second phase is planned for 4000 meters of drilling along with extensive prospecting and sampling of the surrounding areas and is to begin once the first phase is finished.
Alex Burton, P.Eng., the Company's geological consultant, has returned from Myanmar with an update on the exploration activities. Mr. Burton reports that mapping and prospecting of the geological features has possibly extended the length of the Set Ga Done deposit to over 1500 meters from 700 meters. The Nga Mu Gyi zone has been extended in aerial size from 50 meters in length to an area of 300 by 500 meters and a large number of geochemical soil samples were taken to test for further extension of
this zone. Area prospecting has also turned up four additional parallel zones to the Set Ga Done and Nga Mu Gyi zones. A large number of rock, soil and stream silt samples were collected from all zones and are currently on their way to a lab for assay. Results are expected in early April.
Mr. Burton also reports that he was accompanied by 4 geologists from the Department of Geological Survey and Exploration of Myanmar in which they established a base camp, laid out base lines over Set Ga Done zone, established survey lines over the Nga Mu Gyi zone and collected samples from the various zones.
Mr. Jim Davis, P. Geo., President of Leeward has arrived at the camp in Myanmar to personally observe the drilling program. Drill cores will be split, bagged and secured for transfer to Yangon and then on to Calgary, Alberta for assay. Security precautions will be in place to ensure the core samples arrive safely in Calgary. The Company expects results by mid April 2004.
The Set Ga Done concession consists of 700 square kilometers (70,000 hectares) centered about a drill-ready gold zone. The concession is located in northern Shan State in the Union of Myanmar, about 200 kilometers north-northeast of the city of Mandalay and 90 kilometers from the boundary with Yunnan Province in China.
Set Ga Done Property, Union of Myanmar
On March 31, 2003, the Jet Gold entered into a memorandum of understanding ("MOU") with Leeward Capital Corp to participate in the acquisition, exploration and development of an exploration block consisting of 700 square km. located in Shan State, Union of Myanmar. Pursuant to the MOU, Jet Gold will expend an initial US$200,000 in acquisition and exploration costs and will advance US$50,000 as a refundable performance bank guarantee to the government of Myanmar. Subsequent expenditures will be shared equally with Leeward. Leeward has entered into an agreement with the government of Myanmar to earn a 75% interest in the property, subject to certain back-in provisions reserved by the government of Myanmar. The interest may be earned by expending approximately US$1,750,000 in exploration on the property over a three year period and an additional US$1,000,000 on a feasibility study. These expenditures will be shared equally between Jet Gold and Leeward. Once the interest has been earned, Jet Gold and Leeward will each have a 37.5% interest in the property, with the government of Myanmar holding a 25% carried interest. The agreement is subject to regulatory approval.
The Set Ga Done Concession agreement was approved on December 10, 2003 by the government of the Union of Myanmar and consists of 700 square kilometers (70,000 hectares)in northern Shan State. The concession is located 200 kilometers northeast of Mandalay and 90 kilometers from the border of Yunnan Province in China.