Back to the future!
1550 - 409 Granville Street Date: June 24, 1997
Vancouver, B.C. V6C 1T2 Vancouver Stock Exchange: MGJ
Tel. (604) 685-5254 Shares Issued: 29,937,119
Fax: (604) 685-2814
News Release
#18 -97
Major General Resources Ltd. has negotiated a brokered private placement of up to 4,500,000 flow-through common shares at a price of $0.45 per share and up to 1,000,000 non flow-through common shares at a price of $0.40 per share. From total gross proceeds of $2,425,000, the Company intends to use $400,000 as working capital and $2,025,000 as flow-through funds to be used primarily for exploration work in New Brunswick and the Yukon. A maximum cash fee of 8% will be payable to Yorkton Securities Inc. as agent, together with warrants entitling the agent to purchase up to 550,000 non flow-through common shares at a price of $0.45 per share for a period of one year from the date of closing. At the discretion of the Agent and with the consent of the Company, a portion of the fee to the Agent may be paid in shares of the Company. At May 31, 1997 the Company?s working capital position was approximately $1,027,972.
This private placement is subject to regulatory approval.
Contact: Don Willoughby
Investor Relations
Major General Resources Ltd.
(604) 685-5254
www.majorgeneral.com
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
1550 - 409 Granville Street Date: August 12, 1997
Vancouver, B.C. V6C 1T2 Vancouver Stock Exchange: MGJ
Tel. (604) 685-5254 Shares Issued: 31,181,119
Fax: (604) 685-2814
News Release
#22-97
Drill program HAS commenced on olympic dam style target
Major General Resources reports that a 10,000 foot diamond drill program (6 to 8 holes) has commenced on the 100% owned Olympic Property located north of Dawson City in the Yukon Territory.
The drill program will test a series of chargeability zones that are hosted in an iron-rich breccia complex which is coincident with a strong magnetic anomaly. The mineral potential for the area overlying this magnetic source is considered to be extremely favorable, as in the case of the Australian Olympic Dam Deposit where the ore zones are hosted in the iron-rich breccias that occur directly above a similar magnetic anomaly. Olympic Dam has a 2 billion tonne inferred resource grading 1.6% copper, 3.5 g/t silver and 0.6 g/t gold.
The consulting firm of Etheridge Henley Williams (EHW), which has first-hand experience with Olympic Dam-type deposits, was contracted to model the Olympic Property mineralization and have confirmed the following similarities:
The mineralization clearly belongs to the broad class of Proterozoic iron-rich, breccia-hosted, copper ñ gold ñ cobalt ñ uranium ñ silver deposits.
A high intensity magnetic source is located beneath the area of iron-rich breccias.
Brecciation is structurally controlled at the intersection of regional structures.
Grade increases with the intensity of brecciation and mineralization.
Breccias have a genetic association with a particular intrusive suite.
The Olympic Property covers a graben structure which is defined by the Pyramid Creek valley. Centred in the valley is a prominent magnetic anomaly (1 by 2.5 kilometres) that underlies an iron-rich breccia complex. The magnetic anomaly has a source modeled at 500 metres depth and appears to be the result of a dioritic intrusion, as evidenced by the copper ñ magnetite bearing diorite outcrops.
The recently completed induced polarization surveys have defined a series of chargeability anomalies ranging up to 1,500 metres long with widths of 100 to 400 metres. The chargeability anomalies are coincident with the magnetic anomaly and the northeasterly trending breccia complex.
Sampling of the mineralized breccias on surface have yielded copper values of 7.0% over 4 metres, 5.0% over 1.5 metres and 0.54% over 5 metres. In addition, mineralized dioritic rocks returned 1.97% copper over a 4 metre chip sample and 21.4% copper from a grab sample. For comparison, the first drill hole at Olympic Dam intersected 30 metres of 1% copper. To quote EHW, ?there is no shortage of evidence for widespread economic to near-economic grade mineralization throughout the breccias in the Olympic Claims?.
On behalf of the Board of Directors:
Glenn G. Shevchenko, P.Geo.
President
Contact: Don Willoughby
Investor Relations
Major General Resources Ltd.
(604) 685-5254
www.majorgeneral.com
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
The Olympic Property consists of 236 claim units and is located 100 kilometres north of Dawson City in the Yukon Territory. The project area covers a northeast trending graben structure that hosts an extensive zone of copper-bearing, hematitic to chloritic altered breccias that are coincident with a strong regional magnetic anomaly. These mineralized breccias are considered analogous to those hosting the world class Olympic Dam deposit in South Australia that has a 2 billion tonne inferred resource grading 1.6% copper, 3.5 g/t silver and 0.6 g/t gold. The Company completed a 2,672 metre diamond drill program designed to test the IP chargeability/resistivity zones associated with the breccia complex that are proximal to the magnetic anomaly. The drilling program tested 6 targets and confirmed that several magnetite bearing breccias and diorite dykes/sills exist at depth in the vicinity of the large magnetic high. The IP responses described appear to be due to a combination of strong hematite alteration (specularite), pyrite and occurrences of breccia hosted copper mineralization. Evidence of increased copper mineralization was observed in holes 97-1, 97-8 and 97-5b which returned 9.0 metres of 0.27% Cu, 6.0 metres of 0.20% Cu and 2.8 metres of 0.12% Cu, respectively. The mineralization in these holes is considered important as all three intersections are located proximal to the main graben structure. The geological interpretation suggests that most of the drilling tested the upper portions of an Olympic Dam-type setting which contains elevated copper values. Approximately 5 square kilometres of prospective breccia remains untested and therefore it is the opinion of the management that the Olympic property continues to have excellent potential for Olympic Dam-style copper mineralization. Once the data compilation is completed the Company intends to option the property to a major company with expertise in the Olympic Dam-type deposits. |
