Hello,
New release off of the La Teko site (http://www.lateko.com)
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Corporate Bulletin
La Teko Resources Ltd. (LAORF-NASDAQ, LAO-VSE) is pleased to provide a progress report on its True North Joint Venture with Newmont Exploration Limited, located 18 miles northeast of Fairbanks,
Alaska.
Newmont has successfully acquired an additional 3,200 acres of land from the Alaska Mental Health Trust, which will become part of the True North Joint Venture (see attached map). The True North project has expanded in area by more than seven times, from 2,300 acres in 1993 when La Teko initially acquired the project, to 17,500 acres, or 27 square miles today. This substantial expansion results directly from exploration success enjoyed initially by La Teko and followed by Newmont when it acquired its interest in 1995 and became project operator.
This additional property, combined with the acquisition of 4,200 acres announced February 10, 1998, significantly expands the prospective
area for new gold discoveries, as it lies along strike from the main True North deposit and it covers favorable Chatanika Terrane rocks. A
portion of this year's US$1.5 million Phase I exploration program includes a power auger geochemical sampling program. The key focus will be to discover new oxidized gold deposits which would be amenable to heap leaching. La Teko will contribute its 35% of the initial acquisition cost.
Pre-feasibility metallurgical test work is progressing well using bulk sample material extracted from the Hindenburg and Shepard zones in the fall of 1997. The Hindenburg sample, which had an average grade of 0.10 oz gold/ton, yielded bottle roll extractions between 93% and 95%, and the Shepard sample, which had an average grade of 0.12 oz gold/ton, gave extractions in the 83% to 86% range. Column leach tests (eight inch diameter), with material crushed to less than 1.5 inches, are in progress with favorable early responses. Initial results indicate low cyanide consumption. Two foot diameter column leach tests have begun.
Gerald Carlson, President of La Teko, summarizing recent developments, stated: "Despite a period of retrenchment in the gold industry,
Newmont is proceeding with a solid US$3.6 million program which is advancing at the True North project on two important fronts; the first to discover additional oxide, heap leachable mineralization and the second to establish economic and engineering parameters which I hope will lead to a full feasibility study on the property."
On another news, the Company is pleased to announce the completion, effective as of May 1st, 1998, of its private placement financing with
Kinross Gold Corporation ("Kinross") as described in a news release dated April 8, 1998. The financing consisted of 2,000,000 units issued at a price of US$0.85 per unit for gross proceeds of US$1,700,000. Each unit consists of one common share and one share purchase warrant
entitling Kinross to purchase one common share of the Company at a price of US$1.05 for a period of twelve months following closing and
thereafter until twenty four months from closing at a price of US$1.25 per share.
On behalf of the Board of Directors
"Gerald G. Carlson"
Gerald G. Carlson, Ph.D.,P.Eng.
President & CEO
The Vancouver Stock Exchange neither approves nor disapproves of the information contained herein
For a copy of the map, please call the Company at our toll free No. 888-278-2288 or 688-0833. |
