News Release: Eastmain options Abitibi extension to Quaterra
Eastmain Resources Inc ER
Shares issued 16,326,187 May 3 close $0.23
Tue 4 May 99 News Release
Also Quaterra Resources Inc (QTA)
Mr. Donald Robinson reports
Eastmain Resources and Quaterra Resources have signed an option agreement
whereby Quaterra can earn a 50 per cent interest in Eastmain's Abitibi
extension project in exchange for $1.53-million in financing over four
years and 300,000 shares of Quaterra, or the cash equivalent at 15 cents
per share. The first year work commitment by Quaterra is $300,000 (not
including an initial cash payment of $30,000), with Eastmain as the project
operator. The project covers the unexplored western extension of the famous
Abitibi greenstone belt, which has accounted for past production in excess
of 170 million ounces of gold, 625 million ounces of silver, nine million
tonnes of copper and 19 million tonnes of zinc, at an estimated value of
$85-billion.
In 1995, BHP Minerals commenced a regional exploration program based on
airborne magnetic survey data and concluded that the metal-endowed Abitibi
greenstone belt extended beneath the thick glacial clay deposits of
Northern Ontario. BHP concluded that this western extension of the Abitibi
is highly prospective for world-class massive sulphide, nickel, copper-zinc
and gold deposits. BHP also concluded that improved technology using new
multicoil airborne electromagnetic geophysical systems could see through
the thick clay cover and detect bedrock conductors for the first time. BHP
flew 25,000 line kilometres of airborne magnetic surveys and 3,775 line
kilometres of airborne electromagnetic surveys, which identified greater
than 50 high-priority conductors within a favourable geological setting.
Eastmain acquired the project and data from BHP in 1997 in exchange for a 2
per cent net smelter return with a 50 per cent buyout at any time for
$1.0-million.
Eastmain and Quaterra have commenced a $450,000 surface exploration program
consisting of line cutting and ground geophysical surveys to confirm the
location, conductive strength and orientation of bedrock electromagnetic
targets. This program is scheduled to commence immediately and will be
followed by a phase 1, 3,000-metre diamond drill program to test an initial
10-15 targets in this high metal potential district.
Quaterra also reported today that the $300,000 unit private placement
reported in Stockwatch April 14, 1999, will be partially brokered as to
$125,000 by Haywood Securities Inc., which will receive a 7 per cent cash
commission on the brokered portion plus two-year warrants to purchase
125,000 common shares of Quaterra at 15 cents in the first year and 18
cents in the second year. Quaterra will pay a cash finder's fees of 7 per
cent on an additional 533,333 units.
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