News

ASC Industries Begins Drilling Pinaya Gold Project, Trench Results

November 4, 2004

ASC Industries Ltd. has received the appropriate environmental permits and drilling has commenced on the Pinaya gold project located in southern Peru. This drill program will comprise up to 10 drill holes totalling about 1,500 metres. The primary target of this phase of drilling is the coincident induced polarization geophysical and geochemical anomalies associated with the open pit. It is anticipated that five fences of drill holes, each spaced at 50-metre intervals will be completed to the east of the pit.

Also, the company is now in receipt of complete assay results as announced in Stockwatch dated Sept. 21, 2004. At the main gold zone, six lines spaced 25 metres apart were channel sampled across the open pit. A total of 144 samples were collected, with each of the 1.5-metre chip samples representative of the surrounding rock. The samples averaged 1.34 grams per tonne gold, with a low value of 0.04 gram per tonne gold and a high value of 10.52 grams per tonne gold. This average does not include 27 prior grab and chip samples collected from the pit during the latter part of 2003, which averaged 1.47 grams per tonne gold. Complete results within the line grid, from north to south, are as follows:

Line Length Gold Copper
trench (m) (g/t) (%)

I-J 18 0.96 0.04

G-H 30 2.22 0.19

E-F 57 1.02 0.40(*)
including 33 1.59 0.66(*)

C-D 63 0.91 0.09
including 48 1.10 0.12

A-B 31.5 1.32 0.42(*)
including 19.5 2.00 0.65(*)

South
trench (**) 30 0.95 0.13
including 17.5 1.54 0.20

(*) not previously reported

(**) The south trench is located approximately 225 metres farther to the south.

In addition, several pits between 1.5 to three metres deep were sampled beneath the floor of the main open pit. Eleven channel samples, collected from these pits, averaged 2.88 grams per tonne gold and 0.61 per cent copper.

The 2004 exploration program at Pinaya is being conducted and managed by Dahrouge Geological Consulting Ltd. under the direction of Jeff Reeder, PGeo, a qualified person under National Instrument 43-101.

WARNING: The company relies upon litigation protection for "forward-looking" statements.