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VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Dec. 22, 1998--Viceroy Resource Corporation (``Viceroy'')(TSE:VOY - news) is pleased to report further results from our Gualcamayo Project drill program in San Juan Province, Argentina. Of particular note is a 22-metre interval in hole QD-12 that assayed 4.01 gpt gold. Hole QD-12, 500 metres east of the Quebrada del Diablo Zone, is situated within a mineralized outcrop area with identified mineralization continuing along strike and up-slope.
A summary of significant intercepts is shown in Table 1. Details
of drill hole locations for holes QD-8 to 14 are shown in Table 2 and
actual locations are shown on attached map. Hole QD-11 was lost in
mineralization. Assay results from hole QD-14 are pending.
Table 1. Summary of Significant Intercepts
Drill Hole No. From (m) To (m) Interval (m) Grade (gpt)
QD-8 0 143.0 143.0 0.634
incl. 62.0 68.0 6.0 1.643
incl. 124.0 134.0 10.0 1.369
QD-9 260.0 282.0 22.0 1.081
QD-10 0.3 47.5 47.2 1.317
QD-11 272.0 274.0 2.0 2.40
QD-12 4.0 60.0 56.0 2.185
incl. 4.0 26.0 22.0 4.007
Table 2. Drill Hole Locations and Orientation
Drill Depth(m) Azimuth Inclin- Location Core
Hole ation Size
X Y Z (elev)
QD-8 143.25 268.0 -30.0 2,535,624 6,713,140 2117 HQ
QD-9 307.13 30.5 -63.5 2,535,343 6,713,127 2259 NQ
QD-10 47.53 36.0 -45.0 2,535,640 6,713,163 2124 ATW
QD-11 275.00 340.0 -60.0 2,535,341 6,713,126 2259 NQ
QD-12 277.60 0.0 -60.0 2,536,176 6,713,229 2305 NQ
QD-14 286.11 315.0 -60.0 2,535,848 6,713,091 2405 NQ
Sufficient detailed sampling has now been completed on previously split and assayed drill core and road cut bedrock sample sites to clearly demonstrate that any loss of the soft matrix material within the breccias will reduce the grade of the interval sampled. Quantifying this problem will require the twinning of the holes with a reverse circulation drilling rig. Bulk sampling may also be initiated in selected areas.
A number of steps have been taken to begin to address the concern that gold is being lost in the fines through washing of drill core. Results from initial test work substantiate the Company's concerns but additional test work is required. To date, twenty-one previously assayed intervals from holes QD-5, 6, and 7 were re-sampled by collecting the fines from drill core. The average grade of the original assays reported was 1.50 gpt gold, while the average grade of the fines sampled was 3.26 gpt gold. Only one sample returned a lower value in the fines.
Similarly, assays of sludge samples collected over an interval from 3.05 to 17.6 metres in hole QD-12 returned a weighted average of 5.567 gpt gold, compared to a weighted average of 3.76 gpt gold in core samples over the same general interval (3.25 to 18.0 metres), providing additional evidence to suggest that gold may be lost in the fines by washing of core during drilling.
In addition, 13 sample sites on the access road to the canyon were re-sampled, carefully collecting matrix and clasts separately. The average grade in the clasts was 0.549 gpt gold while the average grade of the matrix was 2.672 gpt gold. One sample returned substantially higher gold values in both the clasts and matrix with 2.771 gpt gold in the clasts and 4.2 gpt gold in the matrix.
A D-8 Cat and blasting equipment are currently on site improving the road access into the Quebrada or canyon to expedite mobilization of a reverse circulation drilling rig. With completion of hole QD-14, diamond drilling has been shut down for the holidays. A total of 2,600 metres were drilled during the phase one program.
An aggressive diamond drill program is being planned for 1999 with the mobilization of a second helicopter mobile rig and the installation of a suitable water supply system underway. The phase two diamond drill program is planned to commence in early February 1999. In the interim, reverse circulation drilling will begin in early January 1999.
In other news, Viceroy has implemented a shareholder rights protection plan designed to encourage the fair treatment of its shareholders in connection with any takeover offer. The rights plan will provide shareholders with more time to fully consider any unsolicited takeover bid and will allow the board of directors to pursue other alternatives, if appropriate, to maximize shareholder value. The rights plan is subject to regulatory approval and shareholder approval will be sought at the next annual general meeting of the Company. The plan will be effective for a three-year period and is similar to plans approved by shareholders of other Canadian companies.
Viceroy Resource Corporation is a mid-tier gold producer headquartered in Vancouver, B.C. In addition to the 100 percent- owned Brewery Creek Mine and 75 percent-owned Castle Mountain Mine, the Company has aggressive exploration and acquisition programs underway in the Americas.
Statements contained in this news release that are not historical facts are forward-looking statements that involve various risks and uncertainties which are detailed under the heading ``Risk Factors'' in Viceroy's Annual Information Form filed with the securities commissions of Ontario, British Columbia, Alberta, Quebec and other regulatory authorities. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. All subsequent written and oral forward-looking statements attributable to Viceroy or persons acting on its behalf are expressly qualified in their entirety by this notice.
NOTE: Location map available from the Company at the phone number listed below.
Viceroy Resource Corporation
Linda E. Thorstad, 604/688-9780
Website: www.viceroyresource.com
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