Birch Mountain Resources Ltd -
Birch Mountain has no explanation for market activity
Birch Mountain Resources Ltd BMD
Shares issued 24,487,073 1999-03-11 close $0.85
Friday Mar 12 1999
Mr. Doug Rowe reports
At the request of the Alberta Stock Exchange, Birch Mountain Resources states that, other than the normal corporate activities, there has been no corporate development which would account for the current market trading activity in the company's stock. Birch Mountain's Athabasca exploration permits cover a large area in Northeastern Alberta, including areas prospective for diamonds (the Alberta diamond play) and reported shale-hosted precious metals deposits (Tintina Mines news release in Stockwatch March 2, 1999).
At this time Birch Mountain offers an update on the results of its recent exploration activities. In early January, Birch Mountain completed a five hole, 560 metre drill program in the Athabasca region and collected a series of four bulk samples from outcrop exposures and trenches of altered limestone on its Athabasca property. Three offsets and a twin of drill hole Syncrude Canada Ltd. 11-7-AE-96-10W4 were drilled to test a previously identified zone of sediment-hosted platinum and gold enrichment (news in Stockwatch April 4, 1997). Three-inch core was recovered from offset drill holes BM98-1, -2 and -3 which were drilled vertically to depths of between 129 and 139 metres from locations 100 metres to the north, east and southwest of drill hole Syncrude 11-7-AE-96-10W4. Six-inch core was recovered from hole BM98-4, which was drilled vertically to a depth of 88.5 metres from a location within three metres of Syncrude's original drill hole. Three-inch core was recovered from drill hole BM98-5 which was drilled vertically to a depth of 79.3 metres on Tintina Mines Ltd.'s Ft. McKay lease; Birch Mountain holds an option to acquire up to 51 per cent working interest in this property. Core logging and geochemical analyses confirm that the targeted alteration zone was intersected in all drill holes and bulk samples. Results will be released when work now under way to confirm assay procedures and assess metal values in the cores and bulk samples has been completed.
On March 10, 1999, Birch Mountain received the first data from the 1999 airborne magnetometer survey of its Birch Mountain permits. Birch Mountain holds nine exploration permits totalling 82,944 hectares (approximately 205,000 acres) adjacent and to the north of the Kennecott/Montello/Redwood joint venture property which hosts at least one announced diamondiferous kimberlite intrusion.
Birch Mountain has completed an agreement to acquire all interests of Focal Resources Ltd. in three exploration permits and two precious metal leases in the Ft. McKay region of Athabasca for consideration of 37,500 shares and a 2 per cent net smelter return. In the Yukon, Birch Mountain has elected not to continue its option to acquire a 100 per cent interest in First Yukon Silver Ltd.'s Swift River property. Some additional claims staked by Birch Mountain in 1997 in the Swift River area have been allowed to expire while others have had sufficient assessment expenditures filed to maintain them in good standing until April 10, 2001.
Birch Mountain has advised the government of Indonesia that it intends to relinquish its contract of work on the Sintang prospect in West Kalimantan. Although exploration activity led to the discovery of two new epithermal gold targets, results were not judged to be of enough significance to justify further expenditures on this property.
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