News Release
EAST WEST RESOURCE CORP ("EWR-V;ESWSF-L") AVALON
VENTURES LTD ("AVL-V;AVVTF-L") - Platinum - Palladium PGE
Exploration Program - Identifies Drill Targets - Nipigon Area,
Thunder Bay
A.K. Crossley, President of East West Resource Corporation
reports:
East West Resource Corp. ("East West") and Canadian Golden Dragon Resources ("Golden Dragon")
announce that a Phase I exploration program is set to begin on the Wolf Mountain, Disraeli Lake, and Hele
Township PGE properties, located 90 kilometres north of Thunder Bay, Ontario. The properties contain
mid Proterozoic aged ultramafic intrusions that are being explored for PGE deposits both as layers
associated with oxide minerals (magnetite chromite layers) and sulphide zones with associated
copper-nickel values. East West and Golden Dragon are jointly earning a 50% interest in the Wolf
Mountain and Disraeli Lake properties from Avalon Ventures Ltd. ("Avalon") by making $300,000 in
exploration expenditures and issuing 100,000 shares (completed) of each company by March 31st, 2001.
An additional 10% may be earned by expending an additional $700,000 over a further three years and
issuing an additional 50,000 shares of each company. Avalon will act as operator of the Wolf Mountain and
Disraeli Lake properties as per the terms of the Joint Venture agreement.
Evidence for giant, world class type ore deposits occurs in the region with mafic-ultramafic intrusions of
the same age. The Great Lakes Nickel deposit (45 million tonnes) southwest of Thunder Bay and deposits
in the Duluth Complex, which hosts deposits over 800 million tonnes (collectively over 4 billion tonnes),
are examples of such large deposits. All of these deposits and mafic intrusive host rocks are related to the
mid-continent rift system, which occurs in Lake Superior. Branch faults into the Lake Nipigon area control
the same type of intrusions, including the Seagull Pluton and Leckie Stock where values as high as 7.8
grams Pt+Pd in weathered peridotite were obtained by Avalon in 1997. The same ultramafic host rocks
have now also been identified on the Disraeli Lake and Hele Township properties.
A two month due diligence effort by East West and Golden Dragon consisting of geological assessment,
petrology, and analysis of existing magnetic and gravity data has located priority areas for Phase I
exploration. Drilling is planned for October as well as geological mapping, geophysical surveying, detailed
petrology and litho-geochemical analyses to test for repetition of PGE layers within the intrusions. Targets
include areas within mafic-ultramafic host rocks where magma feeder zones would occur.
The Wolf Mountain, Disraeli Lake, and Hele Township properties are located within a network of logging
roads, 50 km east of the Lac des Iles mine operated by North American Palladium. This mine is the only
primary producer of PGE metals in Canada, with 1998 production of 85,000 ounces of palladium, 5000
ounces of platinum and approximately 4 million pounds of nickel and 3 million pounds of copper
production.
East West and Golden Dragon hold a total of four PGE properties jointly, and three other PGE properties
separately in the Thunder Bay region. TEL: (604) 681-1909
A.K. Crossley, President FAX: (604) 689-5930
East West Resource Corporation |
