NEWS RELEASE - Jan 20, 1998 - OPTION AGREEMENT ON NEW DISCOVERY
Management has negotiated an option agreement whereby Ascot Resources Ltd. may earn a 50% interest in Eastfields' newest acquisition in north-central B. C. Subject to regulatory approval, Ascot will earn its interest by making a series of cash payments and share issuances to Eastfield, and incurring exploration expenditures of $1.5 million over a five year period. Ascot is committed to a $200,000 exploration program this year.
The property was acquired by Eastfield in late December, 1998, and covers a large area of mineralization that indicates the possible presence of a large copper-molybdenum porphyry system. As described in an Eastfield news release earlier this month, initial sampling indicates an area of 400 by 700 meters of anomalous soil and rock geochemistry that is open ended. This property is a new discovery, found by prospecting a new logging road and it appears that no previous work has been carried out in the vicinity of the new showings.
Eastfield and Ascot will be joint operators, with Eastfield managing the exploration programs. The first phase program, with an anticipated start-up in late April or early May, will involve geophysical surveying to delineate the extent of the sulphide system, as well as geologic mapping, geochemical sampling and trenching. The targets defined by this program will be drill tested.
Web site: direct.ca
G. L. Garratt, P. Geo.
Eastfield Resources Ltd.
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