News Release - June 8 1998: NEW GOLD PROSPECT
AML 1998-06-08 (provided courtesy of ISDN Wire Service)
ATAPA MINERALS DISCOVERS NEW GOLD PROSPECT
ETOBICOKE, ONTARIO--
Atapa Minerals Limited ("Atapa") is pleased to announce the discovery of a
new gold and silver bearing shear zone known as the Muara Tiga Prospect.
The Muara Tiga Prospect is located within the 101,400 hectare Cikotok Super
KP property in southwest Java, Indonesia. Muara Tiga is a northeast trending
structure that is parallel to, and approximately 2 kilometres west of, the
Cikidang epithermal gold-silver deposit. The shear zone hosts a quartz vein
which is texturally similar to the Cikidang deposit. Mineralization within
the sheared and alteration zone has a minimum width of 6 metres. This shear
zone has been traced for over 1 kilometre along a north-northeast (10degrees
- 30degrees) trend and dips steeply (80degrees - 85degrees) to the west.
The Muara Tiga quartz vein has a maximum width of 1.5 metres and is mainly
massive, vuggy quartz with local minor colloform banded structure. The Shear
Zone is characterized by strong clay-manganese-iron oxides with chalcedonic
quartz vein fragments. Channel samples collected from the Muara Tiga prospect
include:
Channel B01 North: 4.18 m @ 1.12 g/t Au and 1.43 g/t Ag, incl. 1.10 m @
4.60 g/t Au
Channel B01 South: 2.90 m @ 1.14 g/t Au and 1.97 g/t Ag, incl. 0.60 m @
5.29 g/t Au
Channel B02 North: 6.10 m @ 2.43 g/t Au and 8.02 g/t Ag, incl. 1.00 m @
13.70 g/t Au
Channel B02 South: 4.95 m @ 2.99 g/t Au and 4.86 g/t Ag, incl. 2.30 m @
5.69 g/t Au
Channel B03: 1.50 m @ 30.75 g/t Au and 21 g/t Ag
Channel B06: 0.35 m @ 1.33 g/t Au
Channel B07: 1.45 m @ 0.50 g/t Au
Channel B08: 0.90 m @ 2.71 g/t Au
Sample preparation and assay results were performed by Bondar-Clegg Intertek
Testing Services of Jakarta, an independent commercial laboratory. Results
were determined using standard 50 gram charge fire assay methods.
Atapa is currently undertaking a trenching program to follow up on these
promising results. The new trenches will trace the continuation of the Muara
Tiga prospect and will recover samples which are deeper and more
representative of the Shear Zone. For example, from Atapa's experience in the
area, surface channel sampling results are generally much lower than the
diamond drill hole grades due to the difficulties in hand sampling.
In addition to prospecting in the Cikotok Super KP, Atapa has engaged outside
consultants to complete a pre-feasibility study of the Cikidang project. This
study will include an independent resource estimate and estimates of capital
costs and operating costs.
Atapa also announces that, subject to approval by the Montreal Exchange, it
has granted incentive stock options to its directors, officers and certain
consultants to purchase up to 400,000 common shares of the Company,
exercisable at a price of $0.65 for a period of five years ending May 29,
2003. These options will vest over a two year period.
Atapa currently has approximately 10,373,900 common shares issued and
outstanding. On a fully diluted basis, Atapa has 12,016,900 common shares
issued and outstanding. Atapa shares were listed and posted for trading on
the Montreal Exchange (ME) under the new trading symbol "AML" effective March
31, 1998.
Atapa and PT Oceanic Union Marine ("Oceanic") participate (on a 90% Atapa,
10% Oceanic basis) in the Cikotok Joint Venture with PT Aneka Tambang
("Antam"), an Indonesian public company in which the Government of Indonesia
is the majority shareholder.
Pursuant to the Cikotok Joint Venture and Shareholders' Agreement dated May
9, 1997, Atapa and Oceanic have been granted the exclusive right to earn a
75% interest in the Cikotok Property provided Atapa funds 100% of the cost of
a prescribed exploration program. Antam retains a 25% carried interest in the
Cikotok property and, at the feasibility stage, has the option to acquire an
additional 15% participating interest by reimbursing Atapa for 15% of costs
incurred by Atapa on the property to the date of exercise of the option.
Atapa has the exclusive right to earn a 70% interest in the Cikidang
property, including the existing producing mine on the property by funding
100% of the cost of an exploration program which establishes existence of
additional reserves on the Cikidang property or by paying an "Entry Price".
Antam has the right to terminate the Cikidang joint venture agreement if
within two years from May 9, 1997, an economic deposit has not been
identified or the Entry Price has not been paid or if, within three years
from the delivery of a bankable feasibility study, production has not
commenced. These periods may be extended by events of "force majeure". Antam
retains a 30% interest in the Cikidang property and has the option at the
feasibility stage of acquiring an additional 10% participating interest by
reimbursing Atapa for 10% of costs incurred by Atapa on the property to the
date of exercising the option.
Pursuant to an agreement dated June 3, 1997 between Antam and PT Antam
Resourcindo ("PTAR"), a wholly owned subsidiary of Antam Resources
International Ltd., Antam assigned and transferred to PTAR all of its right,
title and interests in, among other things, the Cikotok and Cikidang
properties and the joint ventures.
For further information, please contact Janet Kosowan at Atapa:
Canada: Toll Free: 1-800-392-8430 (Canada and the USA)
Indonesia: Telephone: 62-21-780-3291 Facsimile: 62-21-780-1058
Suite 508 - 2275 Lakeshore Boulevard West Tel: (416) 503-2360
Etobicoke, ON M8V 3Y3 Fax: (416) 503-2361
URL: www.atapa.com E-mail: gold@atapa.com
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