***NEWS RELEASE***
Ladybug property to be acquired; updates from Currie-Bowman and
Sheraton-Timmins
Cross Lake Minerals Ltd CRN
Shares issued 31,877,109 Dec 10 close $0.49
Thu 10 Dec 98 News Release
Mr. Henry Ewanchuk reports
Ladybug Property
In a continuing attempt to enhance its portfolio with high potential,
low-cost mineral properties, the company has, subject to all necessary
approvals, acquired an option to earn a 100 per cent interest in the
zinc-silver Ladybug property in the Kamloops mining division, 5 kilometres
west of the Seymour Arm of Shuswap Lake and 50km northeast of Chase, B.C.
The company may earn its interest by making $90,000 in option payments and
incurring $375,000 in exploration expenditures over four years and by
granting the vendors a 2 per cent net smelter return which may be purchased
by the company at any time for $1,000,000 for each 1 per cent. The company
is required to make an initial payment of $5,000 upon receipt of all
necessary permits with an additional payment of $5,000 and exploration
expenditures of $30,000 to be made, at the company's option, one year
thereafter.
The showings on the Ladybug property consist of skarn mineralization with
sphalerite, galena, magnetite and chalcopyrite occurring as disseminated,
stringer and massive sulphides. The weighted average of the most exposed
outcrop channel samples assayed 1.90 per cent zinc, 78.2 grams per tonne
silver, 0.19 per cent copper and 1.12 per cent lead over a width of 9.0m
with the highest channel sample assaying 7.42 per cent zinc, 550.0 grams
per tonne silver, 0.92 per cent copper, 6.65 per cent lead over a width of
0.5. Smaller outcrops with similar mineralization and grade as represented
over the 9.0m interval occur 40m to the southwest and 30m to the northeast
with glacial cover in between the outcrops which will require testing. The
geology is favourable for strike continuity as there are several known
zinc-copper-silver showings approximately 700m to the northwest of the
sampled outcrop.
The company intends to carry out a program of IP surveys and soil sampling
in the spring.
Currie-Bowman Property
Falconbridge Limited has assigned its interest in the Currie-Bowman
property, 54km east of Timmins, Ontario, to Echo Bay Mines. Falconbridge
had earned a 50 per cent interest in the base and precious metal property
and was in the process of exercising its right to earn a further 10 per
cent interest therein, for a total of 60 per cent. With the assignment,
Echo Bay is to expend the remaining $50,000 required for Falconbridge to
earn the additional 10 per cent and will have the right to earn all of
Falconbridge's 60 per cent interest, subject to certain back-in and
exploration rights on base metals. In consideration of the company waiving
its first right of refusal under its agreement with Falconbridge, the
company will not be required to make joint venture contributions while Echo
Bay expends the additional $500,000 necessary to earn-in. This will allow
the company to maintain its 40 per cent interest in the property without
having to make any financial contributions for up to four years.
Echo Bay has advised that an IP survey has commenced on the property with
drilling proposed for the New Year. The Currie Bowman property is 8km
northeast of the company's 100 per cent-held Sheraton-Timmins property.
Sheraton-Timmins Property
The Sheraton-Timmins property continues to be the company's primary
exploration project. Further to the release in Stockwatch Dec. 2, 1998, two
geological holes, CLS 98-65 and 66 have been completed and were drilled
outside of the Cross Lake zone, 900m north and 600m northeast,
respectfully, of drill hole CLS 97-16. These two holes were drilled on IP
anomalies, parallel to the Cross Lake zone. Previously drilled hole CLS
98-59 was deepened another 169m to a final depth of 840m, in order to
extend the pulse EM survey to identify the direction of and distance to a
strong pulse EM off-hole anomaly.
Results of these two new holes and the deepened hole CLS 98-59 will be
released before Christmas. Currently, down hole Pulse EM and
mise-a-la-masse surveys are being completed on the holes in the Cross Lake
zone to plan the next phase of drilling.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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