Attention Business/Financial Editors:
ADDITIONAL DRILL RESULTS ON AMBREX'S ARIPUANA PROPERTY, NORANDA DROPS OPTION TO PROCEED TO NEXT PHASE
MONTREAL, April 17 /CNW/ - Ambrex Mining Corporation (''Ambrex'')
announces additional drill results received from the diamond drilling by
Noranda Mining and Exploration Inc. (''Noranda'') on the Aripuana base metal
prospect in Mato Grosso State, Brazil. As of April 1, 1998, Noranda curtailed
drilling on this project and is awaiting outstanding assays; however, on April
15th Noranda elected to drop its option to earn 70% interest in the project.
Twenty-five holes were completed on the property during the Noranda campaign
which started in August of 1997 totalling 8,851.5 meters. Results of 18 holes
have been received and are tabulated below; seven holes have results
outstanding. Of these 25 holes, 11 tested the potential of the Valley Deposit.
The remaining holes tested three other anomalies along the 4 kilometre strike
length of the favourable geochemical and geophysically inferred structure.
-------------------------------------------------------------------------
Zone Target Hole no. from to int Ph%
(m) (m) (m)
-------------------------------------------------------------------------
Valley central Sect.0050SE AR97-20 26.7 37.0 10.3 3.47
incl. 30.1 35.5 5.4 3.96
Valley central Sect.0050SE AR97-20A 30.1 36.8 6.7 5.78
Valley SE Sect.0200SE AR97-21 299.4 306.3 6.9 0.59
also 316.4 322.6 6.2 0.85
also 350.8 357.2 6.4 1.67
also 411.7 421.6 10.1 1.53
Babacu Goss AR97-22 64.3 72.5 8.3 0.02
Babacu Goss AR97-23 94.3 96.4 2.2 0.02
Valley central Sect.0050NW AR97-24 347.7 487.5 139.8 0.97
incl. 431.6 443.1 11.5 4.03
Valley central Sect.0150NW AR97-25 146.1 211.9 65.8 2.50
incl. 199.5 211.9 12.4 8.69
Valley central Sect.0150NW AR97-27 513.3 523.3 10.0 2.39
Babacu Goss Sect.2100SE AR97-28 no significant mineralization
Valley central Sect.0150NW AR97-29 628.4 640.7 12.3 0.31
also 657.8 662.5 4.7 1.15
Valley NW Sect.0300NW AR98-30 no significant mineralization
Babacu Goss Sect.2100SE AR98-31 no significant mineralization
Massaranduba Sect.1250SE AR98-32 122.0 126.8 4.8 0.01
Baoacu Goss Sect.2100SE AR98-33 116.5 119.6 3.1 0.56
Valley central Sect.0050NW AR98-34 594.4 597.3 2.9 0.01
also 657.0 660.0 3.0 0.01
Valley SE Sect.0550SE AR98-35 no significant mineralization
sterilization Sect.0550SE AR98-36 165.6 167.7 2.1 0.10
Valley NW Sect.236NW AR98-40 327.7 338.1 10.4 1.39
incl. 327.7 332.4 4.7 1.96
-------------------------------------------------------------------------
Zone Target Hole no. Zn% Cu% Ag Au
(g/t) (g/t)
-------------------------------------------------------------------------
Valley central Sect.0050SE AR97-20 16.17 0.02 149.32 0.331
incl. 18.37 0.02 136.21 0.395
Valley central Sect.0050SE AR97-20A 12.68 0.01 252.50 0.222
Valley SE Sect.0200SE AR97-21 1.72 0.03 5.41 0.021
also 4.42 0.03 16.04 0.041
also 6.22 0.03 21.44 0.103
also 5.72 0.02 18.79 0.327
Babacu Goss AR97-22 0.45 1.26 7.33 0.250
Babacu Goss AR97-23 0.33 0.61 4.53 0.090
Valley central Sect.0050NW AR97-24 3.10 0.04 18.81 0.145
incl. 10.25 0.11 57.75 0.398
Valley central Sect.0150NW AR97-25 3.93 0.02 92.67 0.080
incl. 8.08 0.03 340.60 0.210
Valley central Sect.0150NW AR97-27 7.75 0.04 100.94 0.130
Babacu Goss Sect.2100SE AR97-28 no significant mineralization
Valley central Sect.0150NW AR97-29 2.01 0.20 12.42 0.350
also 1.97 0.02 17.98 0.170
Valley NW Sect.0300NW AR98-30 no significant mineralization
Babacu Goss Sect.2100SE AR98-31 no significant mineralization
Massaranduba Sect.1250SE AR98-32 0.05 0.88 10.17 0.350
Baoacu Goss Sect.2100SE AR98-33 7.63 0.02 42.42 0.050
Valley central Sect.0050NW AR98-34 0.01 1.09 6.90 3.450
also 0.01 1.40 14.73 6.440
Valley SE Sect.0550SE AR98-35 no significant mineralization
sterilization Sect.0550SE AR98-36 5.60 0.05 11.57 0.050
Valley NW Sect.236NW AR98-40 4.35 0.041 97.28 0.050
incl. 6.53 0.072 140.70 0.720
-------------------------------------------------------------------------
The Valley Deposit has been drill intersected along a strike length of
436 meters, extending from surface to a maximum vertical drilled depth of 450
metres. It is apparent that the width of the sulphide zone within the deposit
is quite variable, dependent on the cut-off grade being used. A high grade
zone (greater than 10% Zn or Zn equivalent) is evident in most of the holes in
the Valley Deposit. An inferred mineral resource calculation of all drill
results (Ambrex plus Noranda) to determine an optimum cut-off grade (based on
economics) is required prior to planning the next phase of exploration
drilling.
Noranda officially informed Ambrex and partners on March 13, 1998 that
the April 16th date to make a payment to the Underlying (land)Owners would not
be met, and they opted to exercise an option which provides for a 60 day
extension period to make such payment which expires June 16, 1998. The
landowners have been informed of this extension notice. Noranda under the
terms of the agreement had until June 6, 1998 to advise Ambrex of its decision
to either make the Underlying Owners payment or terminate their Option. On
April 15th, Noranda informed Ambrex of their decision to terminate the Option
and not to proceed with completing the first phase of the option, which
involved a private placement of $Cdn 650,000 to Ambrex; followed by an
exploration commitment of $Cdn 2,000,000 on the property, followed by a second
private placement of $Cdn 150,000 to Ambrex followed by a $R 800,000 (-$Cdn
975,000) payment to Underlying Owners. Phase 2 of the option would have
required an additional $Cdn 10,000,000 in exploration expenditures to be
completed prior to the end of 1999.
Noranda, under the terms of an option agreement through its wholly owned
Brazilian subsidiary was entitled to acquire up to 70% of the shares of a new
Brazilian company, Mineracao Rio Aripuana S.A. (''MRA''), incorporated to hold
the 2,000 hectare Aripuana property, by spending CDN$28.9 million over five
years. If Noranda fully exercised this option, Ambrex would be left with 14.7%
of the shares of MRA, and the remaining 15.3% of the shares would be shared by
SGV Merchant Banking-Intragroup Ltd. (6.3%), a wholly owned subsidiary of St.
Genevieve Resources Ltd., and Madison do Brasil Mineracao a Participacoes S.A.
(9%), a wholly owned subsidiary of Ourominas Minerals Inc. With Noranda
terminating the option, the shares of MRA will be controlled 49% by Ambrex;
30% by Madison do Brasil (Ourominas) and 21% by SGV Merchant (St, Genevieve).
Maintenance of the underlying agreements is now subject to Ambrex making a $R
96,000 ($Cdn 120,000) payment to Madison do Brasil prior to the end of April
1998 and MRA making the above-mentioned $R 800,000 payment (plus 10% per month
penalty) to the Underlying Owners prior to the 16th of June 1998.
Ambrex Mining Corporation is a mining exploration company active in
precious and base metal exploration in Brazil. The Company trades on the
Canadian Dealing Network and has 45,911,255 issued and outstanding shares.
NO REGULATORY AUTHORITY HAS APPROVED NOR DISAPPROVED
THE CONTENT OF THIS PRESS RELEASE
-0- 04/17/98
For further information: Mary Peschka, Investor Relations, (416) 941-8709 |
