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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NANECO MINERALS LTD.
ASE SYMBOL: NNE
FEBRUARY 18, 1999
Naneco Intersects Very Significant Mineralization at its
Jiawula Project, China
CALGARY, ALBERTA--Recently received drill results from NANECO
MINERALS LTD.'S Jiawula silver-copper-lead-zinc Zone No. 2 deposit
in Nei Mongolia, China, continue to confirm mineable grades and
thickness of massive to semi-massive sulfide mineralization. Of
particular note was Core Hole J-98-22 intersected 4.75 meters
(15.6 ft) which graded 400.74 g/mt Ag, 0.19 percent Cu and 16.63
percent combined Pb-Zn and contained a 1.98 meter (6.5 ft)
interval grading 926.14 g/mt Ag, 0.41 percent Cu, and 36.06
percent Pb-Zn.
In addition, Core Hole J-98-24 intersected a 10.75 meter (35.3 ft)
interval grading 281.9 g/mt Ag, 0.37 percent Cu, and 22.86 percent
combined Pb-Zn which contained a 8.40 meter (27.56 ft) interval
grading 308.15 g/mt Ag, 0.41 percent Cu, and 21.48 percent
combined Pb-Zn. Additional assays from intersects in J-98-22 and
J-98-24 are listed below.
/T/
Silver Copper Lead Zinc
Depth of Values Values Values Values
Intercept grams in in in
Hole # in Meters per tonne Percent Percent Percent
--------------------------------------------------------------
J-98-22 140.60-141.95 22.2 0.03 1.28 1.83
141.95-142.40 5.4 0.02 0.51 0.71
142.40-143.37 38.5 0.04 1.35 1.59
------------------------------------------------------
143.37-144.30 1062.8 0.21 23.20 8.26
144.30-145.35 805.1 0.59 27.19 12.93
1.98 meters 926.14 g/mt 0.41 25.32 10.74
percent percent percent
------------------------------------------------------
4.75 meters 400.74 g/mt 0.19 Cu 11.24 Pb 5.39 Zn
Ag percent percent percent
-----------------------------------------------------
J-98-24 220.20-220.70 282.3 0.25 20.5 9.36
220.70-221.95 160.7 0.3 16.97 11.08
1.75 meters 195.44 g/mt 0.29 17.98 10.59
percent percent percent
------------------------------------------------------
245.65-246.25 166.0 0.17 13.06 12.48
------------------------------------------------------
268.05-268.60 91.5 0.05 2.29 5.31
268.60-269.55 640.6 0.32 31.87 11.09
269.55-270.33 277.7 0.24 11.28 21.25
270.33-271.40 208.7 0.17 12.6 4.68
271.40-272.40 541.9 0.56 23.48 4.20
272.40-273.40 170.1 0.2 8.96 10.40
273.40-274.40 460.3 0.39 12.94 9.01
274.40-275.40 297.7 1.51 8.39 12.00
275.40-276.45 18.7 0.05 1.01 1.15
8.40 meters 308.15 g/mt 0.41 12.93 8.55
percent percent percent
-----------------------------------------------------
Composite
Width/Grade 10.75 281.9 g/mt Ag 0.37 Cu 13.76 Pb 9.10 Zn
meters percent percent percent
/T/
Results from Naneco's earlier drilling (combined mineralized
intervals) include the following:
/T/
(percent)(percent)
J-98-1
17.10 m(56.10 ft) 171.60 g/mt Ag 0.21 Cu 11.05 combined Pb-Zn
J-98-2
2.50 m (8.20 ft) 313.04 g/mt Ag 0.50 Cu 27.10 combined Pb-Zn
J-98-3
3.00 m (9.80 ft) 191.87 g/mt Ag 0.34 Cu 22.77 combined Pb-Zn
J-98-4
22.00 m(72.20 ft) 147.67 g/mt Ag 0.55 Cu 11.98 combined Pb-Zn
J-98-5
12.00 m(39.40 ft) 113.80 g/mt Ag 0.35 Cu 13.26 combined Pb-Zn
J-98-6
17.10 m(56.00 ft) 111.22 g/mt Ag 0.39 Cu 11.89 combined Pb-Zn
J-98-7
6.00 m (19.70 ft) 112.60 g/mt Ag 0.24 Cu 10.84 combined Pb-Zn
J-98-8
12.80 m(42.00 ft) 97.45 g/mt Ag 0.24 Cu 12.68 combined Pb-Zn
J-98-9
23.40 m(76.78 ft) 67.62 g/mt Ag 0.29 Cu 12.06 combined Pb-Zn
J-98-10
3.65 m (11.98 ft) 286.70 g/mt Ag 0.62 Cu 12.26 combined Pb-Zn
J-98-11
10.50 m(34.45 ft) 220.74 g/mt Ag 1.36 Cu 16.48 combined Pb-Zn
J-98-12
3.80 m (12.50 ft) 409.94 g/mt Ag 0.97 Cu 20.89 combined Pb-Zn
J-98-13
3.95 m (12.90 ft) 136.80 g/mt Ag 0.23 Cu 19.46 combined Pb-Zn
J-98-14
16.98 m(55.00 ft) 72.68 g/mt Ag 0.26 Cu 6.49 combined Pb-Zn
J-98-15
7.35 m (24.10 ft) 163.49 g/mt Ag 0.55 Cu 10.12 combined Pb-Zn
J-98-16
2.64 m (8.70 ft) 224.49 g/mt Ag 1.28 Cu 17.20 combined Pb-Zn
J-98-17
0.88 m (2.89 ft) 199.04 g/mt Ag 0.42 Cu 12.43 combined Pb-Zn
J-98-18
2.30 m (7.55 ft) 124.17 g/mt Ag 0.31 Cu 8.68 combined Pb-Zn
J-98-19
3.35 m (11.00 ft) 299.21 g/mt Ag 0.52 Cu 25.36 combined Pb-Zn
J-98-21
2.50 m (8.20 ft) 112.40 g/mt Ag 0.09 Cu 16.08 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, 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.
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