Published: July 29, 2004
West Africa Gold Inc. Acquires Further Arizona Gold Mining Interests
Company Purchases Its Second North American Gold Mining Property Making the Company Now Predominantly Focused in North America
West Africa Gold Inc. announced
today that it has now acquired Western Gold Limited. Western Gold Limited
has the rights to extremely promising Gold Mining properties, these
properties being situated in Arizona, USA. The entire cost of the
acquisition of these Gold Mining Properties is being settled through the
issue of Restricted Shares of West Africa Gold Inc Common Stock.
Western Gold Limited holds rights to the Bouse property in Arizona, USA
comprising of 12 placer claims spread over 1,300 acres in La Paz County.
Located just North of the Plomosa Fault and it includes the Little Butte,
Flat Fault and Arrastre projects.
Richard Axtell, the President of West Africa Gold, said today that he was
delighted with the Company's rapid expansion into North America and with
the quality of the Gold assets being acquired. This acquisition will
considerably increase the company's presence in North America with North
America now being the most important part of the Company's Mining
Exploration activities.
The Bouse Property, a Mid-Tertiary system of epithermal mineralization was
introduced into a stacked sequence of lithotectonic units that are located
on the northern side of the Plomosa Detachment Fault. Complex epithermal
gold, barite and fluorite mineralization is superimposed on earlier
copper-specularite mineralization. Gold occurs in laterally extensive
breccias and in steeply dipping amethystine-quartz veins. Past district
production (over 2/3 of which was from the Little Butte Mine) averaged over
0.4 oz/T gold. Strong likelihood of a major detachment fault associated
gold / copper deposit, similar to the proven and mined Copperstone and
Mesquite deposits. Past drilling by Tenneco, US Borax and Homestake found
gold bearing intervals in both the breccias and high angle structures.
Previous summary sampling have been inferred at 5,000,000 tons with Gold
grades of up to 0.3 opt Au at the Little Butte alone with additional
resources of silver and copper.
The Bouse Project involves an important type of Arizona gold deposit,
called a "detachment fault" deposit. Detachment fault deposits were first
recognized as a separate form of gold deposit in the 1980's. The best
example of an Arizona detachment gold deposit is Copperstone, which is
about 20 miles from Bouse. It was the biggest gold discovery in Arizona in
at least 50 years. Cyprus Gold profitably mined the 500,000 oz open pit
resource during the 1980's. Unlike Copperstone, Bouse is an historic gold
producer. 5,000 ounces were previously produced from high grade ore. It
was also worked as an underground copper mine. Most of this production was
from the Little Butte Mine, which is the centerpiece of the land position.
Starting in the 1980's there has been a lot of exploration work at Bouse.
Per Arizona Department of Mines and Mineral Resources records, prior to
1983 a 16 hole drill program blocked out 5,000,000 tons of material
ranging from .05 to .30 ounces gold per ton. These drill-holes were in the
immediate vicinity of the Little Butte underground mine and the Little
Butte open pit. The core deposit may be visualized as an inverted "V" with
the Little Butte underground near the apex, the Little Butte surface, Flat
Fault project and Blue Slate along the left leg, and the Airfield project
at the bottom of the right leg. If, as is believed, the entire area of
the inverted "V" turns out to be an economic resource this would be a far
larger gold deposit than the 1,000,000 +/- oz Copperstone, and may be
significantly closer to the size of the Mesquite mine, which is another
detachment fault deposit in California.
Previous owners estimated the resource more conservatively, at 2,000,000
tons of .07 ounce per ton rock. They drilled exactly one 290 foot hole
near the Little Butte underground workings and encountered 7 gold bearing
intervals. Tenneco later took over the project. They drilled 17 holes and
found gold bearing intervals in 10 . Not only did they find gold at the
Little Butte they also found gold at the Arrastre, the Blue Slate and the
Flat Fault project all of which are included in our project.
Starting in 1987, Homestake Mining leased the central part of the district
(called the Brindle claims - these are the core of our present land
position) and acquired an option to purchase a smaller patented group to
the west called the Paradise Mine, which is not included in our project.
Homestake drilled over 50 holes over a 4 year period. They found
significant gold mineralization everywhere that Tenneco did at the Little
Butte, Blue Slate and the Flat Fault projects. They also put down seven
drill holes in the vicinity of the detachment fault.
About West Africa Gold Inc:
West Africa Gold www.westafricagold.com)"> is an aggressive gold exploration
company that has acquired certain rights to mine for minerals, primarily
gold, in North America and with lesser interests in the Republic of Mali.
Statements contained in this press release, which are not historical facts,
are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
are based largely on the Company's expectations and are subject to a number
of risks and uncertainties beyond the Company's control, including but not
limited to economic, competitive and other factors affecting the Company's
operations, management team effectiveness, expansion strategies, available
financing, market prices and recovery costs, government regulations
involving the Company, facts and events not known at the time of this
release, and other factors discussed in the Company's filings with the
Securities and Exchange Commission.
These statements are not guarantees of future performance and readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this release. The Company undertakes no
obligation to update publicly any forward-looking statements.
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