From: newsout@canada-stockwatch.com
Date: Thu, 30 Jul 1998 10:32:49 -0700
Subject: Stockwatch: Consolidated Magna Ventures Ltd - News Release
To: ajanko@erinet.com
Koala option payment; exploration progress
Consolidated Magna Ventures Ltd CMV
Shares issued 21,484,464 Jul 29 close $0.11
Thu 30 Jul 98 News Release
Mr. Bradley Aelicks reports
The company has made the final option payment on the Koala claim, thereby
vesting the company for a 70 per cent interest in the property. Located
100km south-southwest of the city of Chihuahua, Mexico, this 990-hectare
block forms the core of the Koala project which, in total, encompasses
12,760 hectares. The remainder of the property is owned 100 per cent by
Magna.
The central Koala claim was optioned by Magna from Minera Delta and
Xenolith Gold in 1996. Total payments of $75,000 and 75,000 Magna shares
have now been made to the companies and more than the required $200,000 has
been spent on exploration on the property. By virtue of a sub-option from
Magna, NovaGold Resources has acquired a 20 per cent interest in the
original Koala claim and has the right to earn a further 25.9 per cent in
that block, as well as a 51 per cent interest in the surrounding claims
owned by Magna, by spending $3,000,000 (U.S.) in exploration funds on the
entire package over four years. If the property proceeds to production,
Magna and NovaGold have the right to purchase the remaining 10 per cent in
the central Koala claim, according to their 51:49 per cent ownership ratio.
An integrated geological, geochemical and geophysical program, including
eight diamond drill holes, was recently completed at Koala, targeting a
buried replacement-type lead-zinc-copper-silver deposit similar to the
nearby Santa Eulalia and Naica deposits.
Although drill results did not return base metal grades of economic
significance, the program has given the partners a better understanding of
the geological setting and the controls on mineralization. A compilation of
all data obtained to date is under way in order to arrive at a proposal for
future work on the property.
The payment of the final instalment to Minera Delta and Xenolith Gold
emphasizes both the company's commitment to the Koala project and
management's belief that there is excellent potential for the existence of
a significant mineralizing system on the property.
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