Fairmile Gold Corp - Company UpdateFAIRMILE GOLD CORPORATION
"Building Quality Gold Assets"
Fairmile Gold Corporation is a Canadian mineral exploration company focusing on gold prospects in Nevada.
Mineral Properties:
Buffalo Valley Project, Battle Mountain Gold Trend, Nevada
Highland Gold Project, Walker Lane Gold Trend, Nevada
Symbol:
FLA - Alberta Stock Exchange
U.S. 12g Exemption No. 82-3717
52 Week Price Range:
$2.10 - $0.12
Average Daily Volume :
60,000 on ASE
Shares Outstanding:
approx. 18.9 million issued and outstanding
approx. 22 million fully diluted
approx. 6 million held by funds (Societe Generale, Midas Fund, etc)
approx. 5% held by insiders
Directors:
Thomas R. Kelly, President
Joseph A. Kizis Jr., Vice President Exploration
Anthony R. Field
J. Michael Mackey, Chairman
Projects:
Buffalo Valley Project
Fairmile has been focusing its efforts on its wholly-owned Buffalo Valley Gold Project located on the Battle Mountain/Eureka Trend in north-central Nevada. In 1997, the Company formed a strategic alliance with Echo Bay Mines Ltd who funded exploration, including confirmation drilling, through a private placement in Fairmile. In January 1998, Echo Bay gave notice of their inability to continue in the alliance. Resultantly, the Company is now in discussions with major mining companies who have expressed very strong interest in the project, and expects to be able announce a new partner in the near future.
The Buffalo Valley Gold Project presently has a resource of over 600,000 ounces gold (within the A/B/O complex). Planned work programs, including further infill drilling, are aimed at upgrading and expanding this resource. Exploration work elsewhere on the property continues to yield excellent results with the strong potential to substantially increase the gold resource.
Highland Gold Project
The property consists of approx. 3,200 acres of unpatented lode claims located 100 miles east of Reno in the Walker Lane Gold Trend, containing areas of volcanics hosting both high-grade gold and disseminated gold. Old prospect pits and trenches on the property expose a number of closely spaced quartz veins cutting highly altered volcanics. Fairmile’s grab sampling returned up to 0.267 oz/ton (9.15 g/t) Au and 3.4 oz/ton (117 g/t) Ag. A 15 ft (4.6 m) channel sample across a vein set exposed in one trench yielded 0.165 oz/ton (5.65 g/t) Au and 0.5 oz/ton (17.4 g/t) Ag. Initial evaluation has identified four priority targets scheduled for follow-up, and has indicated that the geologic setting at Highland is similar to other low-sulfidation, volcanic dome-related gold systems such as Sleeper and Midas, also in Nevada. Highland has the potential to host high-grade, bonanza-type gold/silver veins and disseminated, fracture-controlled precious metals deposits. The property has documented historic production in the 1930’s, with references to spectacular values of multiple ounces of gold and silver per ton.