Easier to read--NEWS
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NANECO MINERALS LTD.
ASE SYMBOL: NNE
JANUARY 21, 1999
Naneco Intersects Mineralization With Values Up to 299.21
G/Mt Silver, 13.29 Percent Zinc, 0.52 Percent Copper, and
12.07 Percent Lead Over Mineable Widths
CALGARY, ALBERTA--Drilling results at NANECO MINERALS LTD.'S
(Alberta Stock Exchange Symbol - NNE) Jiawula
silver-copper-lead-zinc Zone No. 2 deposit in Nei Mongolia, China,
have continued to confirm the presence of massive to semi-massive
sulfide mineralization in mineable grades and widths. Of
particular interest was Core Hole J-98-19 intersected a 3.35 meter
(11.0 ft) interval grading 299.21 g/mt Ag, 0.52 percent Cu, and
25.36 percent Pb-Zn. Additional assays from preliminary sampling
of intersects in J-98-16, J-98-17, J-98-18, J-98-19 and J-98-21,
are listed below.
Core Hole J-98-16 intersected a 2.64 meter (8.7 ft) interval
grading 224.49 g/mt Ag, 1.28 percent Cu, and 17.2 percent combined
Pb-Zn and a 1.72 meter (5.6 ft) interval grading 209.41 g/mt Ag,
1.03 percent Cu, and 14.34 percent combined Pb-Zn. The composite
of six assayed intervals in Zone 2, totaling 16.58 meters (54.4
ft), graded 82.99 g/mt Ag, 0.38 percent Cu, and 6.35 percent
combined Pb-Zn.
Core Hole J-98-17 intersected a 0.88 meter (2.89 ft) interval
grading 199.04 g/mt Ag, 0.42 percent Cu, and 12.43 percent
combined Pb-Zn.
Core Hole J-98-18 intersected a 2.3 meter (7.55 ft) interval
grading 124.17 g/mt Ag, 0.31 percent Cu, and 8.68 percent combined
Pb-Zn.
Core Hole J-98-19 intersected a 3.35 meter (11 ft) interval
grading 299.21 g/mt Ag, 0.52 percent Cu, and 25.36 percent Pb-Zn.
The composite of two assayed intervals totaling 3.83 meters (12.57
ft) graded 269.05 g/mt Ag, 0.47 percent Cu, and 25 percent
combined Pb-Zn.
Core Hole J-98-21 intersected a 2.5 meter (8.2 ft) interval
grading 112.4 g/mt Ag, 0.09 percent Cu, and 16.08 percent combined
Pb-Zn.
/T/
Silver Copper Lead Zinc
Dept of Values Values Values Values
Intercept grams in in in
Hole # in Meters per tonne Percent Percent Percent
--------------------------------------------------------------
-------------------------------------------------
J-98-16 253.72 - 254.88 248.0 2.01 0.45 9.27 Zone
254.88 - 255.39 225.2 0.43 2.1 6.69 2
255.39 - 256.36 196.0 0.86 0.6 29.98
2.64 224.49 1.28 0.82 16.38
-------------------------------------------------
257.80 - 259.30 29.5 0.06 0.68 3.50
-------------------------------------------------
262.60 - 263.94 242.2 1.01 0.86 11.73 Zone
263.94 - 264.32 93.8 1.09 0.03 20.45 2
1.72 209.41 1.03 0.68 13.66
-------------------------------------------------
329.45 - 331.69 13.6 0.05 0.11 1.26
331.69 - 332.01 84.1 0.24 1.34 5.75
332.66 - 333.70 3.8 0.03 0.03 0.74
333.70 - 335.88 32.3 0.08 0.18 0.65
335.88 - 336.57 106.7 0.22 0.31 7.54
336.57 - 337.48 38.0 0.06 0.23 0.94
337.48 - 338.16 102.8 0.27 0.38 4.46
338.16 - 339.60 4.9 0.005 0.13 0.18
351.65 - 352.87 50.8 0.17 0.52 8.27
Composite
Grades 16.58 m 82.99 g/mt 0.38 Cu 0.42 Pb 5.93 Zn
(percent) (percent)(percent)
J-98-17 311.27 - 312.15 199.4 0.42 3.11 9.32 Zone 2
0.88 m 199.4 0.42 Cu 3.11 Pb 9.32 Zn
g/mt Ag (percent)(percent)(percent)
J-98-18 305.00 - 305.56 115.4 0.31 0.32 1.61 Zone 2
305.56 - 306.03 145.0 0.43 0.3 0.10
306.03 - 306.49 53.6 0.13 0.19 1.45
306.49 - 307.30 158.2 0.33 0.35 21.81
2.30 m 124.16 0.31 Cu 0.30 Pb 8.38 Zn
g/mt Ag (percent)(percent)(percent)
----------------------------------------------
J-98-19 207.87 - 208.35 58.6 0.13 1.78 20.74 Zone 2
0.48 58.6 0.13 1.78 20.74
----------------------------------------------
----------------------------------------------
214.75 - 216.50 453.5 0.83 17.31 20.63 Zone 2
216.50 - 217.04 88.5 0.23 4.29 2.60
217.04 - 217.52 162.6 0.2 10.17 10.76
217.52 - 218.10 142.9 0.12 5.07 3.18
3.35 299.21 0.52 12.07 13.29
-----------------------------------------------
Composite
Grades 3.83 m 269.05 0.47 Cu 10.78 Pb 14.22 Zn
g/mt Ag (percent)(percent)(percent)
J-98-21 227.45 - 228.40 0.4 0.005 0.03 0.05
---------------------------------------------
228.40 - 229.10 185.4 0.11 13.07 13.61 Zone 2
229.10 - 229.90 39.9 0.05 1.95 1.74
229.90 - 230.90 119.3 0.12 13.06 5.51
2.50 112.40 0.09 9.51 6.57
----------------------------------------------
3.45 81.55 0.07 6.90 4.78
/T/
Results from Naneco's earlier drilling (combined mineralized
intervals) include the following:
/T/
g/mt Ag (percent) (percent)
------- ------- --------------------
J-98-1 17.10 m(56.1 ft) 171.60 0.21 Cu 11.05 combined Pb-Zn
J-98-2 2.50 m( 8.2 ft) 313.04 0.50 Cu 27.10 combined Pb-Zn
J-98-3 3.00 m( 9.8 ft) 191.87 0.34 Cu 22.77 combined Pb-Zn
J-98-4 22.00 m(72.2 ft) 147.67 0.55 Cu 11.98 combined Pb-Zn
J-98-5 12.00 m(39.4 ft) 113.80 0.35 Cu 13.26 combined Pb-Zn
J-98-6 17.10 m(56.0 ft) 111.22 0.39 Cu 11.89 combined Pb-Zn
J-98-7 6.00 m(19.7 ft) 112.60 0.24 Cu 10.84 combined Pb-Zn
J-98-8 12.80 m(42.0 ft) 97.45 0.24 Cu 12.68 combined Pb-Zn
J-98-9 23.40 m(76.78 ft) 67.62 0.29 Cu 12.06 combined Pb-Zn
J-98-10 3.65 m(11.98 ft)286.70 0.62 Cu 12.26 combined Pb-Zn
J-98-11 10.50 m(34.45 ft)220.74 1.36 Cu 16.48 combined Pb-Zn
J-98-12 3.80 m(12.50 ft)409.94 0.97 Cu 20.89 combined Pb-Zn
J-98-13 3.95 m(12.9 ft) 136.80 0.23 Cu 19.46 combined Pb-Zn
J-98-14 16.98 m(55.0 ft) 72.68 0.26 Cu 6.49 combined Pb-Zn
J-98-15 7.35 m(24.1 ft) 163.49 0.55 Cu 10.12 combined Pb-Zn
/T/
Exploration of the Jiawula district will continue in conjunction
with the development of the Zone No. 2 ore body with a goal of
increasing production rates and reserves. Immediate plans call
for the completion of a pre-feasibility study, additional
metallurgical studies and mining and processing design to
culminate in mine production in 1999.
The Jiawula project is a joint venture between Naneco and
Hulunbeir Nonferrous Metals Company, a Chinese mining corporation.
Naneco holds a 75 percent interest prior to payout and a 70
percent interest after payout from its investment in the project.
This investment will facilitate upgrading of current mill
capabilities from 200 tonnes per day to 1,000 tonnes per day,
additional mine development and infrastructure improvements as
well as an intensive exploration program.
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