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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of September, 1998 Commission File Number: 001-12003
MERIDIAN GOLD INC.
(Name of Registrant)
9670 Gateway Drive
Reno, Nevada 89511
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F /X/ Form 40-F / /
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the SEC
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes /X/ No / /
Meridian Gold Inc. [LOGO OF MERIDIAN GOLD INC. APPEARS HERE]
9670 Gateway Drive
Reno, Nevada 89511
Phone: 702-850-3777
Fax: 702-850-3733
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MERIDIAN GOLD INC.
9670 GATEWAY DRIVE
RENO, NEVADA 89511
PHONE: (702) 850-3777
FAX: (702) 850-3733
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MERIDIAN GOLD DOUBLES STRIKE LENGTH OF NEW HIGH-GRADE ZONE AT EL PENON
RENO, NEVADA, SEPTEMBER 8, 1998 - Meridian Gold Inc. today is pleased to release
the latest results of drilling on the Quebrada Colorada zone at the El Penon
project in northern Chile. Since the previous release, assay results for 41 new
holes have been received. These results confirm mineralization along the
Quebrada Colorada structure for at least 1.1 kilometers, and help to define
three distinct ore shoots. The most significant intercepts in the ore shoots are
shown below.
<TABLE>
<CAPTION>
HIGH-GRADE EXTENDED 180 METERS FURTHER SOUTH (holes from north to south):
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True Gold Silver
QUEBRADA Section From To Interval Width grade grade Elevation
COLORADA ------- ---- -- -------- ----- ----- ----- ---------
Hole Northing (m) (m) (m) (m) (g/tonne) (g/tonne) (m)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PP264 2409 180 186 6 2.2 44.4 868 1,735
PP268 2350 192 196 4 2.1 60.2 500 1,725
PP245 2290 170 174 4 2.8 64.5 487 1,725
PP249 2230 196 202 6 3.0 52.5 1,054 1,690
PP251 2170 204 210 6 3.5 20.7 362 1,675
PP253 2170 158 168 10 6.0 10.3 146 1,730
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</TABLE>
These holes extend the high-grade mineralization 180 meters to the south from
the previous drilling (hole PP235 at 2353N). This high-grade mineralization to
the south appears to have a vertical extent of about 100 meters and is still
open along strike. Additional drilling to the south of these latest results has
continued to intersect the structure, with assays pending.
<TABLE>
<CAPTION>
HIGH-GRADE EXTENDED 400 METERS FURTHER NORTH (holes from south to north):
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True Gold Silver
QUEBRADA Section From To Interval Width grade grade Elevation
COLORADA ------- ---- -- -------- ----- ----- ----- ---------
Hole Northing (m) (m) (m) (m) (g/tonne) (g/tonne) (m)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PP273 2829 208 211 3 2.0 19.1 305 1,775
PP243 2830 190 198 8 5.5 18.8 228 1,790
PP258 2950 224 230 6 3.8 44.3 1,472 1,710
PP260 2950 254 262 8 6.0 25.8 428 1,695
PP261 3009 210 222 12 6.0 29.6 651 1,700
PP267 3010 224 228 4 3.1 20.0 293 1,695
PP269 3070 216 220 4 3.1 19.5 617 1,695
PP274 3130 154 172 18 6.5 13.6 59 1,740
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</TABLE>
These holes extend the high-grade mineralization from hole PP233 (the
northernmost hole from previous drilling) to Discovery Wash, 400 meters further
north. The vertical extent of the high-grade mineralization in this area is
approximately 100 meters.
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Holes PP243 and PP273 were drilled 50 meters above the area where previous
results (holes PP231-PP233) had shown that faulting appeared to change the
geologic environment in the area. Both new holes intercepted the andesite
horizon at this higher elevation, with intercepts of 8 meters of 18.8 g/tonne
gold and 228 g/tonne silver, and 3 meters of 19.1 g/tonne gold and 305 g/tonne
silver, respectively.
<TABLE>
<CAPTION>
IN-FILL DRILLING CONFIRMED PREVIOUS DRILLING (holes from north to south):
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True Gold Silver
QUEBRADA Section From To Interval Width grade grade Elevation
COLORADA ------- ---- -- -------- ----- ----- ----- ---------
Hole Northing (m) (m) (m) (m) (g/tonne) (g/tonne) (m)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PP240 (core) 2713 221 229 8 4.0 84.2 1,347 1,760
PP250 2680 234 236 2 1.0 71.6 614 1,750
PP276 2621 220 224 4 2.5 102.9 1442 1,740
PP244 (core) 2591 180 189 9 4.5 51.4 650 1,760
PP254 2530 232 240 8 5.5 84.8 1,026 1,700
PP275 2500 159 161 2 1.2 30.1 10 1,770
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</TABLE>
Previous drilling had identified a zone of high-grade mineralization along a
strike length of about 500 meters. In-fill drilling within this original zone
includes two core holes, holes PP240 and PP244. The results of the core holes
confirm the grades and widths encountered in the reverse circulation (RC)
drilling. A detailed comparison of the core holes with nearby RC holes can be
found as Appendix I to the press release on www.meridiangold.com.
ENHANCEMENT OF THE EL PENON PROJECT
With 65 holes drilled into the Quebrada Colorada structure indicating at least a
1.1 kilometer strike length, Meridian Gold expects El Penon's already positive
economics to significantly improve based on a 2000 tonne-per-day (tpd) milling
rate and a 400-600 tpd mining rate from Quebrada Colorada. Meridian now expects
production from El Penon to approximately double from the 130,000 gold ounces
per year projected in the feasibility study. Cash costs will be significantly
lower than the feasibility forecast of $180 per gold ounce.
Underground development has begun at El Penon, with the first blast occurring on
August 14th. The Chilean underground mining contractor, Gardilcic, will also
soon initiate the one kilometer extension from the existing Quebrada Orito
decline to intercept Quebrada Colorada. By early next year the drift will have
been completed, after which development drilling and underground development at
Quebrada Colorada will commence.
Fluor-Signet, of Perth, Australia, has been selected as the engineering and
construction contractor for the processing facilities, based on a fixed price
contract. Construction should be complete by the fourth quarter of 1999, with
commercial production in the first quarter of 2000.
An updated drill hole map (Appendix II), an updated long-section for Quebrada
Colorada (Appendix III), and an updated exploration map of the El Penon core
area (Appendix IV) are included with this press release on the Company's website
at www.meridiangold.com.
Meridian Gold Inc. is a proven, exploration-oriented gold producer, led by a
strong management team committed to growth and possessing a healthy balance
sheet. The common shares of Meridian are traded on The Toronto Stock Exchange
(MNG) and the New York Stock Exchange (MDG).
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Safe Harbor Statement under the United States Private Securities Litigation
Reform Act of 1995:
Statements in this release that are forward-looking statements are subject to
various risks and uncertainties concerning the specific factors identified above
and in the corporation's periodic filings with the Ontario Securities Commission
and the U.S. Securities and Exchange Commission. Such information contained
herein represents management's best judgment as of the date hereof based on
information currently available. The corporation does not intend to update this
information and disclaims any legal liability to the contrary.
For further information, please visit our website at www.meridiangold.com, or
contact:
Wayne M. Hubert Tel (702) 850-3730
Investor Relations Fax: (702) 850-3733
Meridian Gold Inc. E-mail: [email protected]
Appendix I
CORE VERSUS REVERSE CIRCULATION DRILLING
To date, assay results have been received for three core holes - PP236, PP240,
and PP244. Summaries and comparisons to RC holes are found below.
PP236 - This hole is within 30-40 meters of two RC drill holes, holes PP230 and
PP228. All three holes are within a narrow zone of low grade mineralization
between the main ore shoot and the ore shoot to the south.
PP240 - This hole was drilled within 25 meters of three mineralized RC holes -
PP250, PP225, and PP272. A comparison of results is shown below.
<TABLE>
<CAPTION>
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True Gold Silver
QUEBRADA Section From To Interval Width grade grade Elevation
COLORADA ------- ---- -- -------- ----- ----- ----- ---------
Hole Northing (m) (m) (m) (m) (g/tonne) (g/tonne) (m)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
RC PP272 2714 198 202 4 2.5 3.3 50.9 1,784
Core PP240 2713 180 189 9 4.5 51.4 650 1,760
RC PP250 2680 234 236 2 1.0 71.6 614 1,750
RC PP225 2710 232 248 16 6.8 263.0 1,320 1,730
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</TABLE>
Mineralization is decreasing above hole PP225. The core intercept is thinner
than PP225 but wider than PP272, and is strongly mineralized.
PP244 - This hole was drilled between mineralized RC holes PP211 and PP217 in
the main ore shoot, and is within 20 meters of each of these holes. A comparison
of results is shown below.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
True Gold Silver
QUEBRADA Section From To Interval Width grade grade Elevation
COLORADA ------- ---- -- -------- ----- ----- ----- ---------
Hole Northing (m) (m) (m) (m) (g/tonne) (g/tonne) (m)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
RC PP211 2591 158 170 18 6.2 34.0 194 1,780
Core PP244 2591 221 229 8 4.0 84.2 1,347 1,760
RC PP217 2591 202 206 4 2.5 33.8 274 1,740
210 216 6 3.0 36.7 318
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</TABLE>
The core hole is vertically between PP211 and PP217, and has higher Au and Ag
values. All three holes are within the high-grade core zone and are strongly
mineralized.
The above results and comparisons show good correlation between the results of
the RC drilling and core drilling received to date.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: September 14, 1998 MERIDIAN GOLD INC.
By: /s/ Brian J. Kennedy
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Brian J. Kennedy
President and Chief Executive Officer
