STUART, Fla., May 19, 2004 (PRIMEZONE) -- Capital Hill Gold (OTCBB:CAGI) completes first diamond drill hole on its Mexican Hat property Cochise County, Arizona, and the drill rig has been moved for the second hole.
During the 1989 -- 1990 period, 137 exploration holes were drilled on the Mexican Hat property, Cochise County, Arizona, for a total of 62,120 feet of drilling. More than 2,100 surface channel samples were collected from trenches and outcrops. Based on this work and while exploring the property during this period, Placer Dome U.S. reported, "The total near surface geologic resource for the property is estimated at 300,000 ounces of gold. A combined minimum permissive target of 10.340 million tons grading 0.035 opt Au (381,894 ounces) is inferred for all six gold bearing zones. Greater than 9 million of these tons lie above 600 feet in depth."
Nineteen additional holes, 12,375 feet, were drilled on Mexican Hat hill in 1996, exploring extension targets, geological concepts and important targets were identified which offer the potential for expansion of reserves.
The top of the Mexican Hat hill above the 5,300 elevation has not been drilled, leaving a cone shaped block containing 2.0 to 3.0 million tons of rock, untested and carried as waste rock within the deposit. It is likely that this block is gold mineralized and with drilling could be moved from a waste rock to reserve category, thus increasing reserves and reducing the waste to ore ratio.
A southward extension of the gold mineralized Victoria fault and evidence suggesting gold mineralization beneath the fault makes section 9 an attractive area for the possible development of reserves.
Heavy-duty equipment has been moved to the site to begin the deep trench tests; core splitting and submission of samples for assays is under the supervision of Charles K. Ikona, P.Eng, a senior managing partner of Pamicon Developments Ltd.
Capital Hill Gold, Inc. is an exploration-stage mining company and intends to try to develop any mineral deposits it finds or enter into a joint venture with another mining company.
KENT CARASQUERO Secretary, CFO
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