Montello Resources...
Thu Feb 25, 1999
Montello/Absolut Enter Into Property Joint Venture In Alberta
Absolut Resources Corp. (ALR-ASE) ("Absolut") is pleased to announce that an option agreement has been entered into with Montello Resources Ltd. (MEO-ASE) ("Montello") whereby Montello has the right to acquire up to a 51% undivided interest in the 92,160 acre Jackpine Creek Property in the Buffalo Hills area of northwestern Alberta. The claims lie within the central part of the Buffalo Head Craton, 60 km west of the Ashton Minerals diamond bearing kimberlites. The terms of the agreement state that Montello can earn a 25% interest on or before December 1, 1999 by paying to Absolut a total cash consideration of $100,000, the issuance of 150,000 shares of Montello and entering into a work program consisting of ground geophysics, on a minimum of four targets, and the drilling and evaluation of a minimum of four targets. Montello will also grant Absolut a 2% NSR which may be bought out in whole or in part for $1,000,000 per point. Upon vesting of its 25% interest, Montello may earn an additional 26% (cumulative 51%) in increments, by committing to additional work commitments totalling $4,000,000, additional cash payments of $450,000 and the issuance of an additional 400,000 shares by December 1, 2003.
Montello has completed re-processing and interpretation of the existing, detailed aeromagnetics/electromagnetics over the property in order to identify possible kimberlite intrusions. A ground follow-up geophysics crew will be mobilised next week (Tuesday, March2, 1999) in order to confirm these targets for drilling. A review of indicator mineralogy is also ongoing by Montelloís consultants, with initial results considered encouraging. The first phase of drilling will be completed before spring break-up, as permits have already been applied for.
ON BEHALF OF THE BOARD OF DIRECTORS
MONTELLO RESOURCES LTD.
Per: PATRICK POWER, President
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