August 10, 1998
New High Grade Gold Assays Extend Fe-skarn Zone
"Tierra De Oro" Project, Chile

The Company is pleased to announce that new high-grade gold assays from ongoing prospecting and sampling has extended the Fe-skarn Zone to 3,000 metres along strike.

The Fe-skarn zone is a 200 to 300-metre wide northeasterly trending structural zone that slices up the northwesterly dipping contact between the Sierra Chanchero intrusive complex and the overlying skarned Chanercillo sediments and volcanics.

The eastern boundary of the Fe-skarn is a particularly strong fault zone. It is consistently 10 to 25 metres wide with clusters of 1 to 6 metres wide workings grading from 1.8 gpt to 13.45 gpt gold. Of particular note are the results from the northernmost 200 metres of the zone before it enters pediment cover. Chip samples from workings on the main structure averaged 6.98 gpt gold over 5.9 metres and 100 metres to the north, a 25-metre composite grab sample reported 27.0 gpt gold across the structure and adjacent magnetite-hematite-garnet-jasper skarn.

The bulk of the exploration prior to 1998 investigated a 600-metre stretch in the southwestern half of the zone where high soil gold-copper values and induced polarization chargeability anomalies encompass numerous old surface and underground vein and placer workings. Trenching of a small part of this zone cut a 42 metre section grading 0.73 gpt gold. This section includes 14 metres of 1.33 gpt gold where the trench crosses the strongly brecciated eastern margin of the zone. Drilling in 1997, 200 metres along strike from this trench, intersected 13 metres of 1.73gpt gold at 85 metres vertical depth below surface values of 2.76 gpt gold over 16 metres width in the same boundary structure.

The above and previous results from the area of trenching and drilling suggest potential for 140,000 ounces of gold, however, the new results suggest the upside gold potential of the structural parts of the zone is much higher. In addition, the mineralized skarn sections adjacent to the boundary structures suggest these faults may have acted as feeder zones to stratabound manto style mineralization. These mineralized skarn beds are extensive west of the boundary structure and of sufficient scale to contain a major gold deposit.

On behalf of the Board of Directors of

"Terence Walker, M.Sc, P. Geo."

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this Release.
This is not an offer to buy or sell, nor a solicitation of an offer to buy or sell these securities.


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