*****NEWS RELEASE*****
Additional Copper Hill claim units acquired; private placement; PR firm
hired
KRL Resources Corp KRL
Shares issued 17,150,625 Sep 18 close $0.10
Mon 21 Sept 98 News Release
Mr. Seamus Young reports
KRL Resources has acquired 100 per cent ownership of an additional 108
claim units in MacMurchy Township in the Shining Tree area about 85km south
of Timmins, Ontario. These claims were purchased from prospectors and are
subject to net smelter royalties returns of 2 per cent with provisions for
a 1 per cent buy back and a right of first refusal on the remaining 1 per
cent.
The claims were acquired to strengthen KRL's land position of the Copper
Hill VMS property, which now totals 305 claim units. This is in addition to
207 claim units already owned by KRL to the north and east in MacMurchy,
Natal, Knight and Tyrell Townships. This land package gives KRL the
dominant land position in the Shining Tree area.
The newly acquired property covers the Red Dome rhyolite complex hosted
within a bimodal volcanic sequence containing copper mineralization
reminiscent of the remobilized chalcopyrite-rich veins seen in the central
Noranda mining camp. Throughout the rhyolite, well developed chlorite
stockwork alteration is superimposed on wide spread sericite alteration and
all with a high copper background. Chemical sediments (exhalites) flank the
rhyolite dome and some are trace element enriched. Airborne EM anomalies
are also present. The belt is basically unexplored for volcanogenic massive
sulphide deposits.
KRL is planning to implement a $300,000 work program on its Copper Hill
property. KRL is actively discussing financing options with a number of
major base metal producing companies.
The company has arranged a private placement of 1,000,000 units (600,000
shares and 400,000 flow through shares) at 15 cents. Each unit will consist
of one share and a warrant. The warrants will be exercisable for one year
at 15 cents per share.
The private placement will be placed with directors, officers and
associates of the company. Proceeds of the private placement will be used
for working capital and to start exploration on the Copper Hill property in
the Shining Tree area of northeastern Ontario.
Alliance Corporate Services has been hired to assist with all aspects of
investor relations and corporate communications. Alliance is a Victoria,
B.C. based firm, specializing in investor relations for small public
companies.
This appointment was made to assist KRL with developing this major new
project.
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