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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 July, 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 REPORTS SIGNIFICANTLY HIGHER-GRADE RESULTS FROM EL PENON
All Currency in U.S. Dollars
RENO, NEVADA, JULY 14, 1998 - Meridian Gold Inc. today is pleased to report
further successful results from drilling on the Quebrada Colorada and Doncella
zones at El Penon. Reverse circulation drilling at Quebrada Colorada is
continuing to confirm and expand the mineralization reported in the press
release of July 6, 1998. There are now two drill rigs -- one RC, one diamond --
drilling 24 hours per day on the zone, and a third rig will be added this week.
A total of 24 holes have been drilled on the zone. Including this release, a
total of 15 holes have been reported.
QUEBRADA COLORADA RESULTS
Assay results from three new holes (PP223-PP225) have extended the
mineralization 60 meters to the north and 65 meters down-dip from previously
reported results. The deepest of the three new holes (PP224) continues to
confirm that the mineralization becomes wider and stronger with depth. The total
potential strike length of the mineralization is unknown at this time but
currently extends for a total of 210 meters based on assay results.
Meridian is awaiting assays for drill holes over an additional 270 meters of
strike length. All of the holes contain visual mineralization consisting of
quartz veins, stockworks, and breccias. Visible gold occurs in four of these
holes. These indications give a total current strike length to the zone of at
least 480 meters (from section 2350 to section 2830). The vertical range of the
mineralization (down-dip) is confirmed by assays for at least 65 meters and by
quartz veins with visible gold for an additional 135 meters. This gives a
minimum drilled vertical extent for the mineralization of more than 200 meters.
The zone is currently open along strike in both directions and down-dip
(vertical).
The new assay results for Quebrada Colorada are presented below:
QUEBRADA COLORADA -- HOLE PP223
<TABLE>
<CAPTION>
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Sample # Interval (m) Bondar-Clegg Geolab
From To Distance Au (g/t) Ag (g/t) Au (g/t)
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<S> <C> <C> <C> <C> <C> <C>
129 256 258 2 34.7 889.2 38.5
130 258 260 2 496.1 5,112.5 430.0
131 260 262 2 178.1 2,440.5 170.0
132 262 264 2 10.9 345.1 11.4
Tot/Avg 256 264 8 180.0 2,196.8 162.5
True width is approximately 4.5 meters
</TABLE>
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QUEBRADA COLORADA -- HOLE PP224
<TABLE>
<CAPTION>
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Sample # Interval (m) Bondar-Clegg Geolab
From To Distance Au (g/t) Ag (g/t) Au (g/t)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
133 264 266 2 10.7 189.6 11.3
134 266 268 2 42.0 359.8 40.8
135 268 270 2 3.0 178.8 3.9
136 270 272 2 3.9 254.0 4.2
137 272 274 2 133.4 1,108.5 131.0
138 274 276 2 71.4 1,087.6 61.8
139 276 278 2 20.7 999.5 19.1
140 278 280 2 32.2 1,408.7 16.5
Tot/Avg 264 280 16 39.7 698.3 36.1
True width is approximately 6.5 meters
</TABLE>
QUEBRADA COLORADA -- HOLE PP225
<TABLE>
<CAPTION>
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Sample # Interval (m) Bondar-Clegg Geolab
From To Distance Au (g/t) Ag (g/t) Au (g/t)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
115 228 230 2 0.5 225.0 0.3
116 230 232 2 0.5 790.0 0.5
117 232 234 2 1.7 2,232.0 1.9
118 234 236 2 28.5 668.7 38.6
119 236 238 2 1,075.9 2,494.0 1,210.0
120 238 240 2 488.1 1,587.7 556.0
121 240 242 2 340.1 1,855.5 362.0
122 242 244 2 125.8 1,044.5 141.0
123 244 246 2 14.2 431.3 13.6
124 246 248 2 4.6 27.8 3.9
Tot/Avg 234 248 14 296.7 1,158.5 332.2
True width is approximately 7.0 meters
</TABLE>
Because of the extremely high values being encountered, all samples have been
assayed several times. Also, additional check samples have been completed, with
more in progress, at a separate analytical lab. ITS Bondar-Clegg has completed
all of the results to date by standard fire assay methods with AA and
gravimetric finish at their lab in La Serena, Chile. The check samples have been
prepared and assayed using standard fire assay procedures and AA finish, with
gravimetric results to follow, by ALS Geolab S.A., at a separate facility in
Santiago, Chile.
For this release, given the magnitude of the results check values on the gold
are being reported. It is planned that future releases will not contain the
check sample results, as this results in a delay for reporting purposes.
The mineralization is above the water table and continues to consist of oxidized
quartz veins, breccias, and stockworks with local visible gold in a steeply west
dipping, north-south trending structure. This style and type of bonanza grade
mineralization being encountered is not atypical in strongly mineralized, low
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sulfidation vein systems throughout the world, and has historically contributed
to significant production from these types of deposits.
Presently, Meridian is planning to develop a separate production-size decline
into the Quebrada Colorada zone with the purpose of developing an underground
mine. Based on the information from the initial drilling, it appears the zone
would be amenable to the drift and fill mining methods to be used at Quebrada
Orito. The Company expects this zone to produce at a rate of 500-800 tonnes per
day by the first quarter of 2000.
Underground development costs at Quebrada Colorada are expected to be
approximately $5 million, and will be incremental to the initial capital
estimate in the feasibility study of $66.5 million to develop the Quebrada Orito
and Cerro Martillo deposits and to build the processing facilities. The impact
of this new zone may be significant in reducing cash costs at El Penon from the
earlier-announced $180 per ounce level and in dramatically increasing gold
production at El Penon from the 130,000 ounces per year outlined in the
feasibility study from Quebrada Orito and Cerro Martillo.
DONCELLA RESULTS
Recent follow-up drilling on the Doncella zone has intercepted a narrow,
high-grade structure. Hole PX074 encountered 56.4 g/tonne gold and 1,949.0
g/tonne silver over 2 meters at a depth of 272-274 meters. This is the highest
intercept to date on Doncella, and gold-silver ratios are similar to those being
seen at Quebrada Colorada. This new mineralization will be offset with
additional drilling.
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]
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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: July 23, 1998 MERIDIAN GOLD INC.
By: /s/ Brian J. Kennedy
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Brian J. Kennedy
President and Chief Executive Officer
