Background from Press release ofPublished by MAC on 2004-01-07
Background from Press release of Celtic Minerals Ltd.
Celtic Acquires Option on Crater Mountain Gold Project
January 7 2004
CALGARY Celtic Minerals Ltd., (CME:TSX-VEN) has concluded an Option Agreement with New Guinea Gold Corporation (NGG.TSX-VEN) whereby Celtic can acquire a 75% interest in the 44 square kilometer Crater Mountain Project in the Eastern Highlands of Papua New Guinea.
Terms of Acquisition
Under the terms of the agreement, Celtic will earn a 51% interest in the concession by completing work programs totaling CDN $2.0 million within a three year period ending March, 2007 and the right to acquire an additional 24% interest in the concession by incurring further expenditures of CND $2.0 million within a five year period ending March, 2009. This time schedule can be accelerated. Should all terms of the agreement be executed Celtic would own a 75% interest in the concession at the end of term.
Historical Drilling and Exploration
BHP Minerals completed three drill holes exploring primarily for porphyry style copper mineralization. One drill intercept hit a very encouraging 115m at 1.83 g/t gold with the hole terminated at a depth of 340m while still in gold mineralization.
Macmin Silver completed four drill holes including the best result of 24m at 6.55 g/t gold also ending while still in gold mineralization.
All drill holes showed intense silica, argilic or carbonate alteration. Holes 4, 6 and 7 intersected numerous narrow and potentially structurally controlled intersections of mineralization. Celtic is very encouraged by these results as they appear to indicate that most holes intersected the envelope or upper parts of a major gold bearing hydrothermal system. All historical drilling was contained within a small portion of a 12 km2 mineralized area. The majority of the mineralized area has not been explored.