*******Montello's news*******
Montello Resources Ltd -
Montello and Redwood JV Legend property
Montello Resources Ltd
MEO
Shares issued 38,674,936
2000-01-26 close $0.25
Thursday Jan 27 2000
Also Redwood Resources Ltd (RDW)
Mr. Patrick Power reports
Montello Resources and Redwood Resources have received written
notice from Kennecott Canada Exploration stating that it will not be
proceeding with its option on the Legend property situated in Northern
Alberta.
The companies wish to thank all the employees at Kennecott for all the
hard work that went into the Legend property and the companies look
forward to working together on the joint venture in Manitoba. The
exploration program with Kennecott was a technical success, producing
numerous kimberlite targets, and after having drilled several of these
targets, produced eight kimberlites. The numerous remaining targets
still needing to be drill tested have allowed the companies the
opportunity to attract another joint venture partner.
The companies have entered into a new option agreement with New
Blue Ribbon Resources wherein New Blue has been given the sole and
exclusive right and option to acquire a 60-per-cent undivided interest in
certain mining claims located in Alberta for and in consideration of New
Blue's expenditure of not less than $1-million on the property, $300,000
of which must be incurred within one year of the date of the agreement,
and the remaining $700,000 must be incurred within two years of the
agreement. As further consideration, New Blue is to issue to the
companies a total of 300,000 shares out of its treasury.
The agreement is subject to regulatory approval and as additional
consideration, New Blue Ribbon Resources will be issuing a finder's fee
to Grizzly Gold Inc. to the maximum amount allowable, payable as to
100,000 common shares upon receipt of regulatory approval, with the
balance to be released upon certain expenditures being made on the
property and milestones being achieved.
The Legend property encompasses more than one million acres within
the Birch Mountains area of north-central to northeastern Alberta. Past
work by Montello, Redwood and Kennecott Canada Exploration Inc.
was successful in identifying eight kimberlite pipes, which are
considered part of the diamondiferous Legend kimberlite field. A
high-resolution aeromagnetic survey identified numerous anomalies,
possibly indicative of kimberlitic intrusives. Detailed follow-up work at
some of these targets, which included both heliborne and ground-based
geophysical surveys, produced discrete geophysical responses similar
to those for known kimberlites.
The Legend kimberlite field is located proximal to the eastern margin of
the Buffalo Head terrain and Proterozoic Taltson arc. Granitic rocks
from the Taltson arc have produced dates of approximately 2.0 Ga,
while Sm-Nd isotopic signatures (2.5 to 2.7 Ga) reflect early Proterozoic
recycling of material with a prolonged crustal history.
New Blue Ribbon is currently evaluating pertinent geologic and
geophysical information for the region. In addition, follow-up ground
work has commenced at the company's Little Legend property. Ground
work will include detailed geophysical surveys at several high-priority
targets. Based upon favourable results, New Blue Ribbon Resources
will commence drilling at both the Legend and Little Legend properties.
(c) Copyright 2000 Canjex Publishing Ltd.
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