News from Stockwatch:
Date: Wed, 13 Aug 1997
Subject: Stockwatch: Leader Mining
Leader Mining International Inc - News Release
Five large scale massive sulphide zones discovered in Knife Lake vicinity
Leader Mining International Inc LMN
Shares issued 12,700,000 Aug 12 close $6.15
Tue 12 Aug 97 News Release
Mr Jasi Nikhanj reports,
A systematic ground reconnaissance program, to examine the highest priority
targets of the 20,000 bedrock related electromagnetic conductors as defined
by the company's (1997) 13,000km airborne geophysical survey, is 50%
completed. These EM conductors define possible massive sulphide targets
within the Amisk Volcanics. These volcanic rocks host major base metal; VMS
deposits in the Flin Flon mining camp, 130km south/southeast of Knife Lake.
Leader Mining controls a 100% interest among 250,000 acres (97,000
hectares) over these favourable conductors.
Since 1930, limited exploration efforts have been launched by Hudson Bay
Mining and Smelting, Noranda Exploration, Cominco Ltd and Strauss
Exploration Ltd. Leader's knowledge of the Knife Lake deposit as well as
the results of a modern airborne geophysical survey (2,000 sq km), provides
the company with an excellent advantage for the discovery of numerous base
metal deposits along the Knife Lake belt.
Leader's field crews have currently discovered five large scale massive
sulphide zones containing significant Cu, Zn, Ni values. These zones
exhibit typical VMS alteration.
Preliminary results compiled in the field by Leader show the following:
Linda McCallum Lake Prospect (35km northwest of Knife Lake)
Previous work by HBM & S (1953) and Noranda (1993) identified a 1.5km
conductor which yielded the following results:
Grab (Trench):
8.9% Cu, 3.9% Zn, 0.11 oz/t Au
Chip Samples (Trench):
10m at 0.98% Cu, 2.1% Zn, 0.25 g/t Au
Drill Hole Intercepts:
68m at 1.1% Cu, 0.11 oz/t Ag
0.85m at 1.32% Cu, 2.52% Zn and 9 g/t Ag
Leader's airborne geophysical survey extended the main conductor for over a
5km strike length. Four new copper showings have been found. Leader's
trenching exposed a massive sulphide zone with pyrrhotite, chalcopyrite
(Cu) and sphalerite (Zn) mineralization. Garnet, biotite, corderite and
anthophyllite occur adjacent to copper mineralization, suggesting VMS-style
hydrothermal alteration.
This prospect displays typical VMS alteration and is within a geological
setting considered highly favourable for a VMS deposit. Further geological
mapping, soil sampling and trenching are being carried out to define drill
targets.
Red Hill Zone (20km west of Knife Lake)
The Red Hill zone appears to be the strongest and largest airborne EM
conductor with the survey area. Ground prospecting has confirmed the
presence of an extensive gossan 400m west of the main EM conductor.
Trenching in the gossan revealed a massive sulphide zone that assayed 400
ppm Cu, 200 ppm Ni and 60 ppm Co. Ultramafic rocks have been identified in
the Red Hill area, suggesting a strong possibility for a Cu-Ni-Co deposit.
A baseline has been cut over the Red Hill zone for geological mapping, soil
sampling and trenching, in order to define drill targets.
Kathy - Becky Zone (20km northwest of Knife Lake)
A strong EM conductor follows a regional fold with a strike length of over
10km. Two gossan zones have been located 300m west of the conductor horizon
and have been sampled, yielding values of 800 ppm Cu, 160 ppm Zn and 200
ppm Ni. The sulphide horizon is hosted in what appears to be felsic
volcanics and contains banded siliceous pyrrhotite, chalcopyrite and
bornite.
Two baselines have been cut to facilitate systematic geological mapping,
soil sampling and rock geochemistry to identify potential drill targets.
Pistol Lake - Blob Lake Zone (10km northwest of Knife Lake)
Leader's airborne geophysical survey identified weak to moderate EM
conductors that correspond with the copper-zinc-gold mineralization hosted
within felsic volcanic sequence. The conductors appear within two parallel
fold noses that are 4km apart.
Geological mapping and trenching confirms the presence of intense
corderite-anthophyllite alteration. Grab samples assayed up to 0.60% Cu and
400 ppb Au, which confirms results previously reported by Strauss
Exploration (1970) and Consolidated Pine Channel (1995).
A baseline has been cut to facilitate the tie of all previous work and
Leader's current mapping and sampling program in order to pinpoint the
drill targets.
Achakoos - Butterfly Lake Area (8km north of Knife Lake)
In 1989, Cominco identified copper prospects as well as soil geochemical
anomalies in this area. Leader's airborne geophysical survey has identified
moderate to strong EM conductors near the earlier reported copper
mineralization, offering excellent drill targets.
Achakoos - Butterfly Lake area is a northward extension of the stratigraphy
which hosts the Knife Lake Cu-Au-Co-Ag deposit.
A baseline has been cut along this conductor to facilitate systematic
geological mapping, soil sampling and rock geochemistry in order to
identify potential drill targets.
Leader has contracted Allen Spector & Associates to perform a regional
gravity survey of the Knife Lake belt. This work will be completed by
September 20 1997 and is designed to locate mafic and felsic volcanic
centres. On a global basis, the VMS deposits are associated within the
transition zone between the two rock types. Results of the gravity survey
will further facilitate prioritization of the airborne EM conductors.
Followup drill programs will be planned on a priority basis upon
compilation of all the field results.
Leader has budgeted $6 million towards the 1997 exploration of the Knife
Lake belt.
For further information contact Jasi Nikhanj at:
Telephone: (403) 234-7501
Fax: (403) 234-7504
E-mail: gen-info@leadermining.com
Website: www.leadermining.com
Or Bruce Whitehed, W.S. Adamson and Associates at:
Telephone: (801) 532-5322
Fax: (801) 532-5324
Toll free: 1-888-330-5322
E-mail: investing@leadermining.com
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