VSE SYMBOL: ARB
JULY 30, 1997
Aranlee Resources Reports Geophysics Details Drill
Targets at Pancho Arias Copper Porphyry, Argentina
SCOTTSDALE, ARIZONA--Aranlee Resources Ltd. ("Aranlee") is pleased
to announce the completion of its recent pre-drilling evaluation
of the 100 percent-held Pancho Arias property in Salta Province,
northern Argentina (see attached map). This classic
copper-molybdenum porphyry target is one of the Company's several
key properties in a new precious and base metal belt in Argentina
extending for 300 km from the Bolivian border in the north, along
the Chilean border to Barrick's Diablillos discovery in the south.
This detailed evaluation included geological mapping, surface
sampling, a review and integration of previous work and a ground
geophysical Induced Polarization (IP) survey. The conclusions of
this evaluation are:
--Pancho Arias contains the key features of a classic copper-
molybdenum porphyry deposit.
--Previous drilling by the Argentinean Government in the early
1970's focused on what appears to be the central barren core of
the system and missed the primary target identified by Aranlee.
--The target has a large tonnage potential which requires drill
testing.
The property consists of a Tertiary, copper-molybdenum porphyry
system associated with a cluster of four intrusive stocks hosted
by Precambrian sediments. The large (2 km by 1 km) highly altered
system exhibits classic porphyry copper alteration zoning with a
barren potassic center which is partly surrounded by a mineralized
phyllic zone with strongly leached sulfides contained within an
envelope of argillic alteration.
The recently completed IP geophysical survey identified a typical
horseshoe-shaped body of high chargeability/low resistivity
indicating an increase in sulfide mineralization below surface.
This body is spatially associated with the surface phyllic
alteration zone delineated by mapping; a typical high resistivity,
low chargeability zone is associated with the barren core. The
geophysical survey suggests that the top of the zone of sulfide
mineralization indicated by the high chargeability is relatively
close to the surface (50 meters), is open and increases in size
with depth.
The attached map shows the size and location of the high
chargeability zones, the surface phyllic alteration areas, surface
copper and molybdenum showings and the location of previous
drilled holes by the Argentinean Government. As can be seen, all
of the drill holes appear to have missed the target and were
drilled into the barren core of the system. Only one drill hole,
located on the southwest edge of the barren core, encountered
any mineralization of interest (32 meters of 0.3 percent copper
was intercepted 50 meters below surface) indicating that the
system has the potential to be well mineralized with grades
increasing outward from the drilled barren core. The depth to the
start of the mineralized intercept corresponds with that predicted
by Aranlee's geophysical survey.
Aranlee is planning an initial 3 to 5 drill holes to test the
grade and extent of the mineralization in order to evaluate the
potential of this highly attractive target and to design a
detailed delineation drilling program in the future. The drill
program will be funded either by Aranlee or through a strategic
joint venture.
In addition to Pancho Arias, Aranlee has 7 other properties in
northern Argentina in various stages of exploration: 3 properties
are held under option agreements and 4 are held outright by the
Company with no underlying agreements. The Centenario property is
a gold porphyry system with very encouraging results from recent
work: the property is scheduled for drilling later this fall. At
El Acay and Pairique, the results from the current field season
are being evaluated in preparation for follow-up work in
September. Reconnaissance work continues on the remaining four
100 percent-owned Aranlee properties and elsewhere in the belt as
part of the Company's search for large scale, bulk mineable
gold/copper porphyry targets.
ON BEHALF OF THE BOARD
Stephen J. Kay, Vice President and CFO
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