Update on Gold Exploration in Finland

Posted on Tuesday January 11, 2005

Belvedere announces results from its drilling programmes at Kopsa, Säynäjävaara and Kouvervaara gold properties

Highlights of the programme include:

  • Confirmation of the geological model at Kopsa with two drill holes BELKOP 15 & 16 targeted in the eastern extensions to the main zone, intersecting broad thicknesses of gold mineralization including 60 m 1.32 g/t Au, 0.1% Cu and 39.3m 1 g/t Au, 0.07% Cu
  • Extension of high grade gold to the west at surface in the Saynajavaara main
    zone with an intersection of 4.36 m 13.47 g/t Au, including 1.02 m 35.7 g/t Au
  • Better definition of the geological model at Kouvervaara including infilling of gaps in the cobalt resource and confirmation of depth extensions to the northern gold zone

Ostrobothnian Area: Orogenic gold properties, Central Finland

Kopsa: In October, Belvedere completed 500 metes of diamond drilling at Kopsa. The purpose of the drilling was to extend the main zone mineralization 150 metres to the east and to evaluate regional geochemical and geophysical target areas. A summary of the results are as follows:

The weighted average of Intervals above 1 g/t Au over 1 metre and with grade gaps > 4m are listed below

The position of these drill holes at Kopsa can be viewed here

Evaluation of the panhandle zone at Kopsa, which is west of the main zone, was restricted to one hole BELKOP 12 due to heavily faulted ground. No significant mineralization was intersected. A further planned hole BELKOP 13 did not reach the target, due to severe faulting. Hole 14 was aimed at an IP anomaly on the southern margin of the intrusion. It intersected chalcopyrite pyrrhotite mineralization, but no significant gold. Holes 15 and 16 successfully intersected and extended the main zone of mineralization 150m further east. Hole17 a further 200m east of hole15 was aimed at the up dip extension of the main sheet. It intersected low grade gold mineralization (0.5 g/t Au, 0.2% Cu) over the entire hole with the main zone sheet apparently eroded away. Drill holes 18 and 19 were aimed at a strong IP anomaly with large areas of +1 g/t Au mineralization intersected in vertical surface percussion holes on the northern margin of the intrusion. Results of the surface drilling did not support the percussion data. However, examination of the vein orientations in the drill core suggest the gold bearing veins, in contrast to the main zone, are principally oriented east/west, sub-parallel to the drill direction. Further drilling at a more suitable orientation is required. Hole 20 investigated the surface expression of mineralization intersected in the “nose” zone by previous workers. The drilling programme at Kopsa has successfully proved the robustness of Belvedere’s geological model. Further definition drilling of the main zone is planned in 2005. Independent reports on the structural controls and modes of occurrences of the gold mineralization are due to be completed by the end of January in preparation for a scoping
study.

Kuusamo Area: Iron oxide copper gold properties, Northern Finland

In November, Belvedere completed 1,205 metes of diamond drilling in Kuusamo. Six holes totaling 421 metres were drilled at Säynäjävaara and nine holes totaling 784 metres were drilled at Kouvervaara. The objectives of the drilling were to define better the geometries and margins of the ore bodies, as well as to test potential new zones.

Säynäjävaara: Drilling at Säynäjävaara successfully delineated extensions and defined controls on the mineralization.

*Gold equivalence calculated at $390/oz Gold, $10/lb Cobalt and $2340/t Copper (a substantial discount on current prices).

The most significant intersection at Säynäjävaara was in hole SAY012. One sample ran 35.7g/t over 1.02 m. This extended the western end of the mineralized zone to shallower levels, as well as showing the zone still has considerable thickness. The other intersection of significance was SAY008 in the eastern extension of the mineralized zone. This confirms that the gold rich zone intersected in SAY003 in Spring 2004 (6.52 m @ 9.51 g/t Au) does extend down dip. Säynäjävaara is now in a position for detailed modelling to be completed prior to the calculation of a resource estimate.

Kouvervaara: The drilling at Kouvervaara has confirmed large thicknesses of cobalt copper gold mineralization defined by previous workers. Gaps in the drilling were in-filled and the geological model refined.

*Gold equivalence calculated at $390/oz Gold, $10/lb Cobalt and $2340/t Copper (a substantial discount on current prices).

KV012 extended the northern gold zone some 30 metres to the west (and still open). KV013 has indicated that the cobalt and copper rich zone intersected in KV006 extends some 170m to the northeast. Analysis of the results confirms earlier suppositions of two phases of mineralization with the gold rich phase occurring in vertical pipes which overlap the cobalt rich zones. Further exploration will be focussed on delineating and in-filling both ore types. Geological modelling and resource definition is planned later in 2005.

Rantasalmi Area: Orogenic gold properties, Southeast Finland

Belvedere has retained AMC Consultants of Perth, Australia to provide a resource estimate for Belvedere’s Rantasalmi’s gold properties at Osikonmäki and Pirilä. This report is expected before the end of January.

BELVEDERE RESOURCES LTD.

Andrew Aylwin, President
For further information, please contact:
Andrew Aylwin: 011-44-7779-128125
Steve Cuthill: 1-604-408-0550

The drilling produced core 57.5 mm diameter. Sampling intervals were selected by a qualified person for the purposes of NI 43-101 and and the core was cut by a diamond saw, with half the core being sent for assay and half being retained for reference. The samples were sent to ALS Chemex (accredited laboratory) for sample preparation and assay. In addition to the quality controls employed by ALS Chemex, Belvedere has carried out it’s own quality control on the assay process using standards and blanks. Due to nuggety gold at Saynajavaara, gold fire assays have been checked using a 90min cyanide leach on a 500 g sample.

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