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Wednesday April 29, 7:14 pm Eastern Time
Company Press Release
Coleville Resources Announces Drilling Update
TORONTO--(BUSINESS WIRE)--April 29, 1998--Coleville (Alberta Stock Exchange: CLL. - news) Coleville Resources Limited (CLL:ASE) is pleased to announce that its operating majority partner (Antares Mining & Exploration ''ANZ-TSE'') on its 13.5 percent owned 31,644 hectare Ojolali property in Sumatra, Indonesia has reported that the preliminary gold equivalent geological resource defined so far has increased to 950,021 ounces. This resource is based on the partial drilling of only two of the 34 known mineralized zones. To date 13,986 metres of core drilling has been completed.
Antares also reports that drilling to date on the 2,900 m long Tambang zone has defined a preliminary geological resource of 29,402,630 ounces of silver and 140,269 ounces of gold represented by 8,390,000 tonnes of quartz sulphide mineralization grading 0.52 g/t gold and 109 g/t silver. Using a 47:1 silver/gold conversion ratio, this results in a preliminary gold equivalent geological resource of 765,857 ounces. The value of silver contained in the resource identified to date far exceeds the value of gold with silver accounting for 82 percent of the gross precious metal value of the resources versus 18 percent for gold.
The highest grade holes recorded since December included the following:
HOLE INTERVAL WIDTH Au Ag AuEq
m m g/t g/t g/t
RTH 032 42.0 - 78.0 36.0 0.35 74 1.92
RTH 039 6.0 - 18.0 12.0 1.03 6 1.16
RTH 041 22.0 - 33.0 11.0 0.38 89 2.27
RTH 042 117.0 - 166.0 49.0 0.31 108 2.61
An update on the Jambi Zone -- based on drilling completed to date on the Jambi zone, a preliminary geological resource of 156,911 ounces of gold and 1,280,905 ounces of silver has been defined represented by 2,490,000 tonnes of oxidized mineralization grading 1.96 g/t gold and 16 g/t silver resulting in a gold equivalent resource of 184,164 ounces.
The highest grade holes recorded since December included the following:
HOLE INTERVAL WIDTH Au Ag AuEq
m m g/t g/t g/t
JDH 022 53- 61 8 0.67 26.0 1.22
JDH 026 3 - 8 5 1.71 1.0 1.73
An update on the Wujun Zone -- The Wujun Zone is approximately 1,000 meters to the west and parallel to the Tambang zone. Two of the first three holes drilled on the Wujun zone yielded the following promising results indicating that elevated silver values may also exist on this zone:
HOLE INTERVAL WIDTH Au Ag AuEq
m m g/t g/t g/t
WUJ 001 31-46 15 0.43 53 1.56
WUJ 003 85-96 11 1.22 49 2.26
Based on the surface expression of the vein, Wujun presents an attractive target as it appears to have a strike length estimated at 2,500 m with 1,300 m reflecting a significant geochemical signature.
An update on the Kresna Zone...The Kresna zone has been interpreted to be in excess of 500 m long and 40 m wide with good depth potential. The Kresna zone is considered an exciting prospect because it has radiometric and magnetic signatures suggesting that this zone is adjacent to a large intrusive body.
All six holes drilled to date on this zone have encountered mineralization, the highest grades attaching to the following holes:
HOLE INTERVAL WIDTH Au Ag AuEq
m m g/t g/t g/t
KRS 003 74-78 4 2.35 5 2.46
KRS 006 80-83 3 2.91 241 8.04
Two drill rigs are currently operating on the Ojolali property. These rigs are at Tambang and Kresna. The mandate with respect to these drills is to concentrate on those areas of the property with the ihghest probability of adding shareholder value by increasing the resource base.
Update on the Venezuela property --
Bradley Wilson, President of Coleville is pleased to report that the Company has signed a Letter of Intent with RJK Explorations Ltd. (''RJK'') to earn up to a 70 percent interest in certain mineral oncessions near the Town of Santa Elena, Grand Sabana County, Bolivar State, Venezuela. Coleville will release the particulars of the Letter of Intent once both Companies have reached a formal Option Agreement. RJK has a wealth of experience in the mining industry and brings the management and expertise needed for this property.
As at December 22, 1997, Mr. Belanger and Silicon Capital Corporation ceased performing Investor Relations functions for Coleville.
A MESSAGE FROM THE PRESIDENT
As your President I am pleased to inform you of the company's current progress. When I accepted the Board's recommendation to become President of your company it was my mandate to familiarize myself with the company's past operations and determine what potential direction this company should focus on. Initially I felt that my tasks would not be difficult to accomplish in a timely manner. My opinion has changed. However, I am still confident that past decisions by others have not entirely compromised the value of your company. My initial perception for the future of the company is quite positive. Today I realize more than when I first accepted the Presidency of your company that the
positive future of this company can be achieved by developing and implementing a management plan whereby company assets are fully evaluated and their potential understood. In order to achieve the company's fullest potential, management needs to concentrate on servicing corporate financing to maximize its potential. As stated earlier, management is dedicating its time to achieve its objectives.
Part of management's mandate is to staff the company with qualified personnel as the opportunity presents itself so that shareholders have the best human resources available to direct and manage the company's affairs.
Dynamic opportunities occur in mining and exploration companies when the directors and management adapt human resources to meet its developing opportunities. Therefore part of my mandate is to recommend directors and management when appropriate.
Furthermore, Management recognizes the lack of information being put out to the public, and is working hard to correct this deficiency. We invite the shareholders to feel free to call us at our Toronto office (416-482-2577) or fax us (416-482-5064). Please bear in mind that it takes some time to get back to all of the shareholders and we are making our best efforts to do so.
Management has been informed by the Alberta Stock Exchange that the company will be re-instated for trading on Friday, May 1, 1998.
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No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contact:
Coleville Resources Limited
Bradley Wilson
416/482-2577
or
Coleville Resources Limited
Patti Cooke
416/ 482-2577
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