Newmac Resources Inc. (TSX-V: NER) has received results from its soil sampling, ground magnetometer and VLF-EM surveys recently completed on the Company’s Ready Mix property located approximately 35 km northeast of Clearwater, British Columbia.
A 2.2 square kilometre area was surveyed over a prospective area for intrusion related gold mineralization on the Ready Mix property. A 300 by 600 meter soil anomaly was defined covering an area of possibly north-south structures intersecting a northwest trending fine grained granite dyke. The soil anomaly consists of gold, arsenic and silver anomalous samples in an area of low relief at the head of Martin Creek. The fine grained granite dyke intrudes Shuswap Metamorphic Complex quartzites in the vicinity of the soil anomaly. The granite dyke is possibly of Cretaceous age and the quartzites may correlate with the Cambrian Eagle Bay Formation to the south. The highest gold sample was 948.9 ppb Au and it occurred on the southern edge of the soil anomaly.
The Company plans to follow up the soil anomaly and several structures identified with the ground magnetometer and VLF-EM surveys with a trenching program in the next month.
A stream sediment of 87 ppb gold was obtained from Martin Creek by the property vendor during his initial prospecting of the property. He also in 1999, uncovered a highly oxidized bounder of intrusive breccias which assayed 29.3 g/tonne gold and 202 g/tonne silver.
The Company views the Ready Mix project as an excellent target for intrusion related gold mineralization because of several tungsten skarns in the area, anomalous gold, tungsten, molybdenum, arsenic in stream sediments, and Shuswap metamorphic terrain intruded by Cretaceous granites which have been recognized as causing the mineralization.
The Company has the right to earn a 100% interest in the Ready Mix claims by making an initial payment of $5,000 and issuing 150,000 common shares. Within two years the company will need to pay an additional $25,000 and issue 500,000 common shares, in two stages. The property will also be subject to a 2% Net Smelter royalty, where the full 2% may be purchased by the for $1 million at anytime.
Technical content of this news has been reviewed by David J. Bridge, P.Geo, a qualified person within the definitions of National Instrument 43-101.
ON BEHALF OF THE BOARD
Telephone (604) 688-3113
This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Newmac Resources Inc.’s results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof.
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