Birch Mountain Resources Ltd.
CALGARY, April 1 /CNW/ - Birch Mountain Resources Ltd. (ASE:BMD)
announces that it has completed preliminary interpretation of an airborne
magnetometer survey of its Birch Mountain permit block. This block comprises
nine contiguous exploration permits on the northern flank of the Birch
Mountains covering a total area of 82,944 hectares (approximately 205,000
acres) adjacent and to the north of the Kennecott/Montello/Redwood joint
venture property which hosts at least one diamondiferous kimberlite.
Preliminary examination of the airborne magnetometer data shows a number
of anomalies that have magnetic signatures similar to those exhibited by
kimberlites discovered by the Ashton/AEC/Pure Gold joint venture in the
Buffalo Head Hills. The nine targets identified to date are clustered along
northeasterly trending lineaments and are located within subcrop areas of
Upper Cretaceous Smoky Group marine shales. Glacial till thickness across the
property is estimated to be less than 50 metres and underlying shales of the
Shaftsbury Formation outcrop in the northern part of the permit block. Birch
Mountain plans limited follow-up work and is actively seeking a partner to
develop the diamond potential of its Birch Mountain block to allow Birch
Mountain to pursue its primary objective of precious metals hosted in Devonian
limestone.
Birch Mountain continues its ongoing research and development of
analytical protocols for accurate and reproducible analysis of metals in rocks
from Prairie Gold targets in Athabasca. Although the company is encouraged by
progress to date, no material developments in this work have occurred. Assays
for existing core and bulk samples will be released once precious metal assay
protocols now under development have been verified by testing in an
independent laboratory. Birch Mountain is in discussions with third party
consultants to provide independent verification of any protocols that may be
developed.
Birch Mountain announces that it expects to close a non-brokered private
placement which was applied for on February 4, 1999 and conditionally approved
by the Alberta Stock Exchange on March 1, 1999. If fully subscribed as it
appears it will be, this private placement of flow-through and
non-flow-through units will generate approximately $1 million to the
corporation.
There are no other material developments at this time.
The Alberta Stock Exchange has neither approved nor disapproved the
information contained herein.
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For further information: Doug Rowe, President and CEO or Jane Quinn,
Shareholder Services, Birch Mountain Resources Ltd., (403) 262.1838, Fax:
(403) 263-9888, Email: rowed@birchmountain.com,
jquinn@birchmountain.com, Home page: birchmountain.com |
