NEWS UPDATE
Date: Thu, 15 May 1997 05:33:20 -0700
From: newsout@canada-stockwatch.com
Subject: Stockwatch: Aranlee Resources Ltd - News Release
Drilling planned in Argentina; new director
Aranlee Resources Ltd ARB
Shares issued 16,400,000 May 14 close $0.42
Thu 15 May 97 News Release
Mr Stephen Kay reports
The following is an update on the company's exploration activities within
the emerging new precious/base metal belt in northwest Argentina. Four
existing properties (Centenario, El Acay, Pancho Arias and Pairique)
continue to show strong potential to host large gold/copper porphyry
systems. At Centenario North, initial shallow drilling (to vertical depths
of less than 100 metres) completed earlier this year reported anomalous
gold values with individual two metre intercepts up to 0.85 g/t and
indicated potential for favourable mineralized zones to the east of the
drilled area, below alluvial cover. At Centenario South, about 2km along
strike and believed to be part of the overall large porphyry system
identified at Centenario North, surface rock chip panel samples report gold
values up to 0.64 g/t. In addition, a recently completed geophysical survey
on this target has defined a strong induced polarization (IP) anomaly
which, combined with the presence of anomalous gold as a possible leakage
effect, may indicate a major mineralized porphyry system at depth. A total
of three to five deep drill holes are planned to be drilled this summer on
these two areas.
On the El Acay and Pancho Arias properties, extensive mapping and
geochemical sampling completed to date show promising results. At El Acay,
which covers more than 140 sq km, large areas of intense alteration contain
and surround a 2km long, arcuate zone containing multiple gold and copper
rock/soil geochemical anomalies reporting values of up to 0.5 g/t gold and
1,400 ppm copper. Field work continues in order to define specific targets
for follow-up trenching and/or drilling later this summer. A classic
copper-molybdenum porphyry system covering an area 1.2km by 0.9km has been
identified on the Pancho Arias property, northeast of El Acay. Induced
polarization (IP) and magnetic geophysical surveys are in progress in order
to better define the sub-surface geometry of this extensively altered
system and to identify specific drill targets.
At the Pairique property, gold panned from stream sediments occurs within
large areas of intense alteration covering several square kilometres.
Surface exploration, including geological mapping and geochemical sampling,
will commence shortly as pending title issues on the property are expected
to be resolved by the owner in the near future. As part of Aranlee's
continuing regional exploration program in northern Argentina, the company
has claimed, on a 100% basis, two additional properties: the Escondida gold
property covering 4.5 sq km, adjacent to the Chilean border in Catamarca
Province and the Elizabeth massive sulphide property covering 2.4 sq km, in
Salta Province. Three previously optioned properties (Casa Colorada,
Archibarca and Yungara) have recently been returned to the owner as they
appear to have insufficient potential to host a major ore deposit.
New Director
Mr Tony Williams of London, England has been appointed to the board of
directors, having served as a corporate consultant to the company for the
past year. Mr Williams, a geologist with over 26 years experience in the
mining industry, was head of international operations at Yorkton Securities
from 1987 to 1995. He is currently chairman of the Dragon group of
companies, chairman and director of KazMinCo and Arian Resources and also a
director of Bolivar Goldfields. Mr Williams, in his role as a director of
Aranlee, will continue to provide corporate and strategic planning advice
to the company.
Financial Agent and Marketing Adviser
Dragon Capital Corporation has been appointed as the company's financial
adviser and marketing agent for one year, ending February 25 1998. As
adviser and agent, Dragon will provide financial and marketing advice
regarding corporate development and new equity financing. Dragon is a
highly successful UK based company currently providing similar services to
a number of publicly traded and private exploration and mining companies.
Dragon will receive an annual retainer fee of US$100,000, paid quarterly,
for its financial advisory services plus a negotiated fee for its marketing
services with a minimum 1% of any funds raised by the company.
Loan Agreement
The company has entered into an agreement with its management company,
Dragon Management International Services U.S.A. Inc, whereby Dragon USA is
providing a total sum of up to US$500,000 to Aranlee to meet working
capital requirements and operating costs related to its exploration
programs. Funds advanced to the company under this agreement are required
to be re-paid to Dragon USA by September 30 1997 at an annual interest rate
based on the prevailing US prime rate plus 3%.
In addition to the properties in Argentina, the company is also active in
Canada and Kazakstan. In the Staghorn Lake area of Voisey's Bay, Canada,
Aranlee, through its joint venture partner and operator NDT Ventures, plans
to commence deep drilling in June on the Eastern Deeps style
nickel-copper-cobalt target. Fuel and drilling supplies have already been
transported to the area by fixed wing aircraft with the drill rig scheduled
to be on-site shortly. In Kazakstan, geological mapping and sampling have
now begun in order to confirm and evaluate the high priority targets
identified from the mineral database compiled from work by previous state
exploration expeditions carried out within the 9,700 sq km Agadyr licence
area over the past 50 years.
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