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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 DISCOVERS NEW HIGH-GRADE ZONE AT EL PENON
RENO, NEVADA, JULY 6, 1998 - Meridian Gold Inc. today is pleased to report the
discovery of a new high-grade zone, Quebrada Colorada, at its 100% controlled El
Penon project in Northern Chile. 1998 exploration drilling started at El Penon
in mid-March, and led to the discovery of the new zone in May. Targeting of this
new area was the result of additional detailed mapping in the core area of the
property, along with a review of the mineralization at the nearby Discovery Wash
resource. The initial drill results are presented below:
<TABLE>
<CAPTION>
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Gold Silver
QUEBRADA Section Inclination From To Interval grade grade
COLORADA ------- ----------- ---- -- -------- ----- ------
Hole (m) (m) (m) (g/tonne) (g/tonne)
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<S> <C> <C> <C> <C> <C> <C> <C>
PP211 2590N -65 158 170 12 34.0 153
PP212 2410N -60 174 176 2 4.5 109
PP213 2590N -50 Drill hole above the mineralized zone
PP214 2620N -65 180 186 6 70.1 470
PP215 2620N -55 120 124 4 12.8 37
PP216 2650N -63 186 190 4 30.0 280
PP217 2590N -65 202 206 4 33.8 274
210 216 6 36.7 318
PP218 2560N -65 134 138 4 7.7 28
PP219 2560N -55 Drill hole above the mineralized zone
PP220 2530N -65 182 186 4 57.2 275
PP221 2530N -55 Drill hole above the mineralized zone
PP222 2500N -65 186 192 6 3.2 292
196 202 6 64.8 739
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</TABLE>
The Quebrada Colorada zone has a north-south orientation and a steeply dipping
nature similar to the nearby Quebrada Orito ore reserve (less than 1 km away).
Drilling on Quebrada Colorada continues to define a continuous zone of
mineralization varying from 2.5 to 7.0 meters of true width with values up to 70
g/tonne (2.0 ounces per ton) gold and 470 g/tonne (13.7 ounces per ton) silver,
along a strike length of at least 150 meters. To the north, the structure has
the potential to continue for at least another 400 meters until it intersects
the Discovery Wash structure, which hosts a resource of 100,000 ounces of gold
and 3.3 million ounces of silver.
To date, nine of twelve drill holes have encountered high-grade mineralization
that starts at a depth of approximately 100 to 150 meters below the surface. The
mineralization appears to narrow near the surface and to become stronger at
depth. Where multiple holes have been drilled on the same sections (drill holes
PP220 and PP221 on section 2530N; PP218 and PP219 on section 2560N; PP217,
PP211, and PP213 on section 2590N; and PP214 and PP215 on section 2620N), the
deepest hole is generally the widest and most strongly mineralized intercept.
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The mineralization is open at depth and in both directions along strike. The
total potential strike length of the zone is unknown, but the zone parallels the
strongly mineralized Quebrada Orito deposit which contains most of the 894,000
ounces of gold and 14.4 million ounces of silver reserves on the property.
The new mineralization at Quebrada Colorada is oxidized and is expected to
exhibit similar metallurgical characteristics to the existing reserves. Quebrada
Colorada is currently the focus of additional drilling and will be a high
priority for the remainder of the year. Once this zone has been better defined,
Meridian will determine its impact on the development plan for El Penon. A drill
hole map for Quebrada Colorada is available 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]
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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
