$$$$News Release $$$$
Warrants exercised
Major General Resources Ltd MGJ
Shares issued 33,186,119 May 8 close $0.45
Mon 11 May 98 News Release
Mr. Bernard Kahlert reports
The company has recently added $866,082.60 to treasury from the exercise of
1,924,628 warrants at 45 cents. The warrants were 75 per cent flow through
and the company is now well financed with a working capital position of
$2,349,367.94.
The company has started a very active exploration period and will be
involved in various drill programs that will continue over the next six
months. It is anticipated that over $3.7-million will be spent in exploring
the company's properties this year, with Major General responsible for
$1.3-million (35 per cent of the total). Some of the key projects to
monitor are as follows:
Sarah Lake property, Labrador (Ni-Cu): the South Voisey Bay area play is
set to begin in mid May with another drilling program by Donner/Teck that
will be in the realm of $14.7-million. The potential for Voisey's Bay style
Ni-Cu mineralization has prompted the joint venture partners to play a
$2.5-million exploration program on the company's property consisting of
geophysical surveys and a two phase diamond drill campaign totalling 8,000
metres.
Green Bay property, Newfoundland (Pb-Zn-Ag): Rio Algom is committed to a
$250,000 exploration program on this base metal property. Diamond drilling
is planned for August and a total expenditure of $400,000 is required to
renew the option.
Nepisiguit Brook property, New Brunswick (Pb-Zn-Ag): two drill holes spaced
1.4 kilometres apart have intersected a large system of Brunswick-style
Pb-Zn-Ag mineralization. A $250,000 follow up drill campaign will start in
mid July.
Despinassy property, Quebec (Au): Cameco Gold has completed a $150,000
program consisting of an IP survey and 1,390 metres of drilling. Cameco is
evaluating the data in order to plan future drill programs.
Dorothy Lake property, Quebec (Au): Pamlico Gold has renewed its option and
intends to spend $250,000 on this gold property with a diamond drill
program starting in mid summer.
Victoria Island property, NWT (diamonds): diamondiferous kimberlite pipes
have been discovered north of this diamond property and the company is
earning back to a 50 per cent interest. Monopros is committed to a $200,000
exploration program with a possible drill program to start by the end of
May.
Hammerdown deposit, Newfoundland (Au): the deposit hosts a resource of
464,000 tonnes grading 17.48 grams per tonne gold (245,000 troy ounces)
with production costs targeted at $150 (U.S.) per ounce. In 1997, a
detailed channel sampling program over the main showing improved the
continuity of mineralization by defining a zone (60 metres long by up to 2
metres wide) grading from 3.02 to 118.88 grams per tonne and averaging
26.70 grams per tonne gold. The company's objective is to form a joint
venture to advance the property to production.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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