Oil and Gas?
EXALL CORPORATE UPDATE
• Jayar Property Update
• Niocan / Project Terrane Update
• Gold Eagle Geophysical Program Update
Toronto, Ontario, June 12, 2003:
Jayar Property Update
Exall Resources Limited ("Exall"–TSX:EXL) is pleased to announce that Drilcorp recently announced that they expect to complete a $600,000 well workover and stimulation program at Jayar in June, focused on adding 150 boe/d of new production. A $650,000 follow-up development drilling program is expected to commence in July. This key well is planned to confirm infill well potential, add new reserves and demonstrate the overall economics of infield drilling at Jayar. If successful, a second, step-out development well will be drilled (both wells are located on the main Dunvegan producing trend) as well as offset wells, which forecast a minimum of 600 mcf and 70 barrels of oil and NGL (170 boe/d) of new production to the Jayar facility. The result of this program could boost Exall’s production to approximately 100 boe/d and identify many more potential drill locations at Jayar.
Sale of Project Terrane Interest to NIOCAN Inc.
Exall reached an agreement with NIOCAN Inc. for the sale and purchase of its 9% interest in a niobium property along with Barrick Gold Corporation and James Bay Columbium Ltd. for their respective interests.
The property located in the James Bay lowland of northeastern Ontario was initially discovered in the 1960s, and plans for its exploitation as an open pit were developed as part of a feasibility study carried out by BECHTEL. Exploratory and detailed drilling, totaling 47,625 feet in 85 holes were completed in outlining the deposit to a depth of 900 feet. Large mineralized reserves were defined, including a high-grade section containing 10,000 tons per vertical foot grading 0.82% Nb2O5. The deposit is still open at depth and the 6,388 acres property has not been fully explored.
The agreement between the parties will result in the transfer to NIOCAN of 100% of the property.
In return, NIOCAN will issue, subject to a six-month review, to:
a) Exall; 300,000 common shares plus 100,000 warrants priced at $1.00 per share exercisable for a period of 36 months for its ownership of 9% of the property.
b) Barrick Gold Corporation; 2,000,000 common shares plus 600,000 warrants priced at $1.00 per share exercisable for a period of 36 months for its 60% ownership of the property.
Press Release
EXALL RESOURCES LIMITED 8 King Street East, Suite 1700, Toronto, Ontario, Canada M5C 1B5 Telephone: (416) 368-3949 Facsimile: (416) 368-5146 Website: www.exall.com
c) James Bay Columbium Ltd.; 1,033,333 common shares plus 344,444 warrants priced at $1.00 per share exercisable for a period of 36 months for its 31% ownership. In addition, a total of 250,000 warrants priced at $1.00 per share for 36 months are granted for the Operating Management Rights.
NIOCAN’s share price was $0.60 at the close of business on June 11, 2003 on the Toronto Stock Exchange.
An escrow period of twelve months applies to all shares issued. In addition to the issuance of shares, NIOCAN committed to spend $1.5 million over a four-year period to enhance the development of the property.
Gold Eagle Geophysical Program Update
Exall reports that Southern Star Resources Inc. announced that during the first quarter of 2003 they completed over 60 kilometers of geophysics over the entire 35 claims of the Gold Eagle Mine Property, Red Lake, Ontario. After review of the geophysical data Southern Star concluded that further work was warranted. Prospecting will continue this summer with mapping, geochemical sampling, MMI and possibly trenching.
The Gold Eagle Mine Property consists of 35 patented claims totaling 726.1 hectares (1,793.5 acres) in the heart of the Red Lake Camp. The Gold Eagle Mine produced approximately 40,000 ounces of gold from the Gold Eagle vein system using a shaft and winze on eight levels to a depth of 305 meters. The mine operated from 1937 to 1941. Since operations ceased, no significant exploration program has been undertaken on the property until now. With large formerly producing mines on two sides of the property near the northern boundary, the property is exceptionally well located. For example, the McKenzie Red Lake Mine on Gold Eagle's northern boundary produced 651,156 ounces and the Cochenour Willans Mine on the eastern boundary produced 1.24 million ounces at a grade of 18.5 g Au/t. There are no royalties on the subject property.
Exall is a Toronto Stock Exchange listed company that trades under the symbol EXL (S.E.C. registration #82-3535). Exall is active in its business of mining exploration and development, and is currently in the process of rationalizing its activities, selling non-core assets and focusing its future development in the Western Canadian Sedimentary Basin where it has recently acquired an interest in the producing Jayar oil and gas property.
There are currently 44.5 million common shares issued and outstanding.
FOR FURTHER INFORMATION CONTACT:
Stephen G. Roman, Chairman, President and CEO
Tel: (416) 368-3949 |
