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Suite 1610 - 200 Burrard Street, Waterfront Center, Vancouver, B.C. V6C 3L6 Telephone: (604)662-8383 - Facsimile: (604)684-1329 |
August 21, 1996 | Trading Symbol: AMEX, TSE - DAY |
A highlight of the current drill program is the discovery of a high grade contact breccia zone which intersected 468 feet grading 0.135 ounces of gold per ton down the dip of a contact between a diorite intrusive and dacite volcanics. Drilling to establish the width and length of the high grade zone indicates that the zone is approximately 100 feet wide, and is presently open along strike.
Dayton has allocated $5.2 million to its exploration effort in 1996. Approximately 40,000 feet of rotary and core drilling was completed at Andacollo during the first half of 1996 with ore grade mineralization encountered in virtually every hole. A further 30,000 feet of rotary and core drilling are planned at Andacollo prior to the end of the year at which time an updated mineable reserve will be completed.
Two of the three new property acquisitions are located near the Andacollo mine, and are believed to have excellent potential to add additional reserves in the near term. The third, the Lolita property, is located 100 miles north of Copiapo and was previously mined as an underground gold mine. After evaluating several hundred rock samples and nearly 22,000 feet of core drilling completed by the previous operator, Dayton believes the property has the potential for a bulk tonnage mining operation. Drilling will commence immediately on these three properties.
Wayne McClay, Dayton's President and CFO, stated that ``the first half of 1996 has yielded exciting exploration results and continues to support our confidence in the outstanding exploration potential of the Andacollo Gold Mine. As we continue to develop our geological understanding of the property, we are optimistic that reserves will more than double. With a cash position in excess of $30 million and strong cash flow from Andacollo, Dayton is also well positioned to acquire other promising projects to assist in Dayton's corporate growth.'' Dayton Mining Corporation holds a 100% interest in the Andacollo Gold Mine located in central Chile. The company trades on both the American Stock exchange (AMEX) and Toronto Stock Exchange (TSE) under the trading symbol DAY.
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