NEWS RELEASE
June 15, 2000 Shares Outstanding: 21,415,231
Symbol: V.AVL:CDNX SEC 12g3-2(b): 82-4427
NEW PLATINUM PALLADIUM ZONES FOUND AT WOLF MOUNTAIN.
DRILLING TO RESUME NEXT WEEK ON DEEP TARGET
Avalon Ventures Ltd. ("Avalon"), East West Resource Corporation ("East West") and Canadian Golden Dragon Resources Ltd. ("Dragon") are pleased to report that analytical results received from the 606 metre vertical drill hole WM00-01, drilled to test a deep geophysical anomaly in the Proterozoic aged Seagull Lake mafic-ultramafic layered intrusion, have revealed the presence of significant platinum-palladium ("PGE") enrichment at depth in this intrusion. Several distinct layers ranging in thickness from 2 m to 8 m within the peridotite ? dunite (olivine rich unit) located in the lower 400 m of the hole returned values ranging from 0.25 to 1.66 grams per tonne PGE (Pt + Pd) in a ratio of 1.2:1 palladium to platinum. The best interval averaged 1.548 g/t PGE over 4.0 metres with 0.2% copper and 0.18% nickel, which occurred near the bottom of the hole at 578-582 m. Each of the PGE enriched horizons is coincident with anomalous concentrations of copper, and the lowermost horizon is associated with approximately 3-5% cumulate-textured sulphide minerals including pentlandite, sphalerite, cubanite (CuFe2S3), pyrrhotite and chalcopyrite.
The increasing enrichment in PGEs and sulphide mineralization toward the bottom of the hole provides evidence that an accumulation of massive copper-nickel-PGE sulphides may occur at the base of the intrusion. This possibility is supported by recent computer modelling of airborne and ground magnetic data which shows the intrusion to have a champagne-glass shape and indicates the presence of layers of high magnetic susceptibility at depths of 750-1000 m, near the interpreted base of the intrusion. This geological setting is similar to that of the famous Noril?sk Ni-Cu PGE deposits in Russia. Hole WM00-01 will be deepened to test this exciting target as a first priority when drilling resumes next week, to be followed by two step-out holes to the west. A minimum of 1500 metres of drilling is planned.
Mineralogical studies have determined that some of the silvery metallic minerals noted proximal to native copper mineralization, are cobalt arsenides such as safflorite. One silvery metallic veinlet, 2-3 mm in thickness, was found to be a highly unusual alloy of native iron with native bismuth, lead, silver and safflorite. This veinlet is interpreted as having a magmatic origin, indicating the possible presence of a large metal bearing reservoir at depth that formed from an immiscible metal oxide sulphide melt. The native metals were identified by two independent laboratories located in Ottawa and Thunder Bay, using scanning electron microscopy/energy dispersive X-Ray spectrometry (SEM-EDS). The platinum group element values were obtained using 30 gram samples with fire assay extraction and ICP finish (FA/ICP) at ALS Chemex Laboratories in Vancouver. Many samples were observed to contain small amounts of native copper mineralization and these are presently being checked by using a metallic sieve sample preparation technique.
East West and Dragon can jointly earn a 50% interest in the Wolf Mountain project by spending $300,000 on exploration work by June 4, 2001, issuing 50,000 shares of each company by June 4, 2000 (issued) and making additional cash payments totalling $20,000 before September 1, 2000. Expenditures to date total approximately $180,000. East West and Dragon can jointly earn an additional 10% interest by incurring a further $700,000 in exploration expenditures before June 4, 2004 and each issuing to Avalon an additional 50,000 treasury shares.
For further information contact Donald S. Bubar, at (416) 364-4938. Corporate Information may also be accessed on the internet at www.avalonventures.com
ON BEHALF OF THE BOARD
OF DIRECTORS
"Donald S. Bubar"
Donald S. Bubar, President |
