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VANCOUVER, Oct. 13 /CNW/ - Module Resources Incorporated (TSX - V: MLE) is pleased to announce that Vibracore drilling and sampling of tailings material at the Carolin Mine near Hope, in southeast British Columbia has been completed. The work was undertaken by Beard Technologies Inc. (www.beardtechnologies.com).
Module is also pleased to announce that an agreement has been signed with DryVac Services Canada, Ltd. (www.dryvacservicescanada.com). This agreement relates to treatment of tailings contained in the tailings impoundment for possible gold recovery. The tailings are the waste product from previous operation of the Carolin Mine from 1982 to 1984. DryVac is a company that has proprietary technology that may have the means to remove the gold from the tailings and leave a relatively clean material as waste. Previous work of Vibracore drilling, sampling, metallurgical examination and resource calculation by Athabaska Gold Resources Ltd. (Report to Shareholders, April 18, 2000) estimated a "defined diluted mineable reserve in all categories" of 660,000 tons grading 0.051 oz/ton gold contained within the tailings. Note that this is a historical estimate only and was not prepared in compliance with the CIM categories as referenced in NI 43-101 and as such cannot be relied on. It is, however, indicative of the potential gold contained in the tailings material.
The next stage of this tailings project will involve assaying and processing of sampled material using DryVac's laboratory facility at the University of British Columbia in Vancouver and should take approximately six to eight weeks to complete. If this testwork is successful, a study will be initiated to determine the economics of recovering gold from the tailings. Depending upon a positive study, Module could realize some potential cash flow from treatment of the tailings to recover contained gold.
About Module Resources
Module Resources' Ladner Gold Project includes the Ladner Mine (formerly called the Carolin Mine, a former underground gold producer from 1982 - 84), Emancipation Mine (intermittent gold producer from 1916 - 41), Pipestem Mine (intermittent gold producer from 1935 - 37), and numerous gold prospects situated along the under-explored Coquihalla Gold Belt. Based on historical exploration and development work in 1995 - 1996 and historical production records of the Carolin Mine, the Company believes that there is potential to reopen the mine at some time in the future if the exploration and development programs are successful and a positive feasibility study is obtained given a favorable gold price.
The technical information contained in this release has been prepared by Bruce Downing, a qualified person who is the President and CEO of the Company.
ON BEHALF OF THE BOARD OF DIRECTORS
"Bruce W. Downing"
Bruce W. Downing, M.Sc., PGeo.
President & Chief Executive Officer
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Caution concerning forward-looking information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Module in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Module's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Module disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
SOURCE MODULE RESOURCES INCORPORATED
For further information: For further information: Bruce W. Downing, M.Sc., PGeo., President & Chief Executive Officer, E-mail: firstname.lastname@example.org, Website www.moduleresources.com