GMD reports significant new gold shear zone found on discovery gold mine project hosts possible multi-million ounce gold deposits

Business Wire, Jan 18, 1996

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 18, 1996-- GMD Resource Corp. (VSE:GMD) reports assay results received from the Lux Lake Shear Zone underground sampling program on its 100% owned (unencumbered) Discovery Gold Mine project, N.W.T., indicating a significant new gold shear zone has been found.

The assay results from the last 40 feet of a 290 foot long decline averages 0.153 oz. gold/ton, is open to the North, and includes 20 feet grading 0.257 oz. gold/ton. The sampling of the 11 x 13 foot decline has returned evidence of disseminated gold mineralization over an extensive area, as well as quartz vein-hosted mineralization with assays averaging 1 oz. gold/ton.

The Lux Lake Shear Zone, which includes the Ormsby Zone, is an area approximately 8,000 feet long by nearly 800 feet wide. The assay results in conjunction with all other data provided by the previous owner's archival information and earlier core sampling support the Company's belief that the Discovery Gold Mine project hosts possible multi-million ounce gold deposits of Yellowknife-type shear zones.

Dr. David Webb, professional geologist and a director of GMD, stated "the assay results indicate the presence of a large gold-bearing shear zone similar to those found at Mirimar's Con Mine and Royal Oak's Giant Mine." These mines, still in production, have produced over thirteen million ounces of gold.

Dr. David Webb has spent more than 14 years working on the Yellowknife Greenstone Belt and is considered by many to be an expert on this area. After analyzing the data, Dr. Webb stated that the gold deposits were found as the decline entered a biotite, actinolite altered, sulfide-bearing, well foliated mafic volcanic rock identified as a shear zone at 100 feet, and continues in this rock-type to the end of the decline at 290 feet.

The last 190 feet of the decline contain numerous gold-bearing quartz veins and the last 50 feet of the decline contains disseminated gold values as well as vein-hosted gold mineralization, as shown on the accompanying table from the assay report. -0-

                          ASSAY RESULTS