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The Canadian Mining Newsletter
Oct 24 1997
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* NOT FOR REPUBLICATION OR POSTING *
Cross Lake Minerals Ltd.
CRN/VSE
"Sheraton-Timmins Hole CLS97-17 assay results; private placement to Golden
Knight closed:
Shares OUT 25,000,000 +
Hank Ewanchuk reports:
Assays were received from 231.0 to 341.0 metres, with the significant
values set out below:
Length Copper Silver Zinc
Interval (m) (%) (g/t) (%)
248.0-260.5 12.5 1.77 18.15 0.41
including
251.0-255.0 4.0 3.24 35.47 0.05
258.0-324.0 66.0 0.19 15.86 1.12
including
275.0-279.5 4.5 0.03 87.31 2.51
including
304.5-311.0 6.5 0.12 11.52 4.18
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CMN: The Zinc and the copper zones separate as is common in many deposits.
We are two holes into the thing so it is hard to tell what will happen.
They hit their copper zone and copper is about what I predicted. Gold
assays would help here a bit, but the copper average is running with typical
VMS deposits and 12.5 metres is eminently minable if they can find enough
tons. The true width of the copper section, if the drill stayed at 60
degrees would be 20.5 feet. By 800 feet deep 5 degrees of flattening could
be assumed. There is a further 36 feet of 18 some feet true width in two
separate sections that together average 3.5 % zinc and 1.24 ounces silver.
Hole 17 at first sounds a bit weak but it establishes two important things.
There is a probably mine grade copper zone with elevated precious metal
values where they thought it should be and the plunging VMS zone continues
that was probably missed in the earlier shallow western holes. It is very
early to start speculating what remains to be found. All kinds of things
could happen and have in many a base metal drill off. In actual fact this
deposit is starting to sound more interesting all the time. Note that
the gold and lead assays which may contribute here were not reported.
When the follow up drilling will start I am not really sure. If a hole 18
existed and when 19 will be drilled I cannot say. I can say that holes 19
through 40 will probably be drilled and the results may surprise. Richer
portions of the deposit especially in copper nearer the vent(s?) will soon
be reached if the body is typical and the clues are telling us the truth.
I believe this is either a multi vent system with much more to be found at
depth or possibly the GKR ground is the distal portion of a larger deposit
that has not yet been found. The vertical dimenions is as important here
as the lateral. Kidd creek goes to 8000 feet in depth, and has 4 distinct
zones of mineralization of very different character, grade and metal
groupings. So trying to guess character of the total deposit is difficult
if we only guess from the surface features.
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Hole CLS 97-17 was drilled at a -65 degree dip in a northwesterly
direction 66.0m southwest and parallel to hole CLS 97-16 but in the
opposite direction to hole CLS 97-16. Core angles are 45 degrees
indicating that the mineral zones dip steeply, near vertical, southward
at -80 degrees.
Hole CLS 97-17 was drilled to test the westward extension of the
zinc-lead-silver-copper mineralization intersected in CLS 97-16 and to
determine if a copper bearing phase to the mineralized zone occurred. This
fact has now been established indicating that further drilling is justified
to trace the extent of both a copper and zinc-silver bearing system. An IP
anomaly indicated that this zone of mineralization extends on strike for
greater than 600m. Further results from this and the remaining holes will
be released when they are completed.
The company has now closed its recently announced private placement of
1,000,000 common shares at $4115 to Golden Knight Resources.
The board of directors has renegotiated 150,000 incentive stock options
previously granted to James Tutton, the president of the company, which are
exerciseable on or before October 30 1997. The option has been adjusted so
that Mr Tutton has an option to purchase 75,000 shares until March 31 1998,
and an additional 75,000 shares until October 30 1998. All other terms and
considerations remain the same. Given the tax implications of the October
30 1997 expiry date, the board of directors is of the opinion that the new
expiry dates will allow a more orderly exercise of the option and
disposition of the shares.
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* NOT FOR REPUBLICATION OR POSTING *
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