20/05/2002 15:01:34 Drilling commences at the Ocampo Gold-Silver Project
BOLNISI GOLD NL 2002-05-20 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++ The Company advises that infill and metallurgical drilling has commenced at the Ocampo Gold-Silver Project in Mexico.
The first hole, ODH-239, was completed over the weekend, and was the first of a 33 hole, 4,900 metre Stage One program, which is designed to infill the drill pattern and therefore enable thecompletion of a block model, thus allowing the calculation of measured and indicated resources for the Plaza de Gallos and Refugio deposits. This will facilitate the completion of a definitive feasibility study. The entire campaign is expected to total about 13,000 metres.
The Directors are also pleased to advise that Mr John Skeet has agreed to re-join the Company, as Development Manager. John will be responsible for metallurgy, as well as design and construction of the Ocampo Project. He will also manage the metallurgical, design and construction activities on the Roseby Copper Project in Queensland. Previously, John was responsible for the design, construction and commissioning of the Quartzite heap leach project, which he brought on stream on time and under budget.
In separate news, the Company's 40% partner on the Ocampo Project, Gammon Lake Resources Inc ('Gammon Lake'), reported on the weekend that it had approved a private placement toraise CDN$6 million. Gammon Lake have announced that the majority of the capital raising will be used to fund a significant drilling and development program on tenements adjacent to the Ocampo Project, which are held 100% by Gammon Lake and over which the Company has certain rights of first refusal. This issue sees Gammon capitalised by the Canadian market at approximately A$70 million.
For further information, contact Norman Seckold or Peter Nightingale on (61-2) 92475300
P J Nightingale COMPANY SECRETARY
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