Monday August 21, 10:26 am Eastern Time
Press Release
SOURCE: Celtic Minerals Ltd.
Celtic Minerals Joint Ventures Victoria River and Hungry Hill Project With Inmet Mining Corporation
Trading Symbol: CME.CDNX Shares Outstanding: 19,717,685
CALGARY, Aug. 21 /CNW/ - Celtic Minerals Ltd. (CME.CDNX) is pleased to announce that it has signed an earn-in and joint venture (JV) agreement with Inmet Mining Corporation (IMN.TSE), a Canadian based international mining company with a growth strategy focused on finding and developing quality base and precious metal reserves. The JV covers the Victoria River area of central Newfoundland including the Victoria Mine, Sutherlands Pond, Hungry Hill, and Hungry Hill East properties. Under the terms of the agreement Inmet will earn a 55% interest over a five-year period by incurring $2,500,000 in exploration expenditures and making $120,000 in cash payments. Inmet has committed to minimum exploration expenditures of $100,000 during the first year of the agreement with Celtic as the operator.
In addition to advancing several targets to drill-ready status, the exploration programs will involve the drilling of existing targets. The Hungry Hill project consists of 282 claims (7,050 hectares) and is presently held 50-50 by Celtic and Jilbey Enterprises Ltd. Located 15 km SE of the Buchans mine and exhibiting exceptionally strong geological similarities to the deposit, the property has the potential to host a high grade, large tonnage VMS deposit. Highlights of results previously obtained at Hungry Hill include 10.84 metres of 3.06 % zinc, 0.16 % Cu, 20.90 g/t silver, and 0.81 g/t gold including 4.0m of 5.0 % Zn from drill hole number 16. Further confirmation for Celtic's VMS model was the discovery of a 5.6-meter thick section of bedded, exhalative pyrite and high-grade base metal clasts. Celtic's geological interpretation was confirmed by Dr. J.G Thurlow's independent assessment in 1997. Dr. Thurlow, a recognized expert on VMS mineralization, has prioritized Celtic's exploration activity at Hungry Hill based upon his geological interpretation and the fact that the geology is highly consistent with features expected on the immediate periphery of a significant VMS ore deposit.
After consolidating its land position with the acquisition of Noranda's Victoria Mine in December 1999, Celtic's 100% owned claim holdings in this region have increased to 2053 hectares. This property has several drill-ready targets delineated for Inmet. Targets defined in the early 1900s are complemented by the 1988 discovery of a high grade massive sulphide zone 250 m east and along strike with the original Victoria prospect, known as the Jig Zone. Diamond drilling on the Jig Zone in 1989 intersected 11.0 m of 2.9 % Cu and 5.7 % Zn. Recent re-logging of core from the Jig Zone has shown that an important carbonate unit, which commonly occurs immediately above the high grade massive sulphides, is present in the final few meters of the most easterly hole on the prospect. This hole will be re-entered and deepened to test for mineralization. To the west, limited drilling intersected a copper bearing zone that remains open in all directions and requires testing. Finally, an important Cu-Zn-Pb VMS system known as the Sutherland Prospect exists at Victoria River. Inco's work on the Sutherland Prospect identified an alteration zone that, to date, has been outlined over a 1.3 km strike length and is up to 300m wide. In this region, six untested geophysical TDEM anomalies remain in areas of bedrock alteration that contain base metals.
Kevin Flaherty, president of Celtic Minerals stated, "We are truly pleased to team with Inmet on these prospective territories. Inmet's experience and record on the international stage for exploration, development and mining are an excellent fit for our company. Given the various stages of exploration that the JV properties are at, we expect the upcoming year to be quite active from an exploration standpoint. Past exploration programs and the compilation of the historical information delineated several priority target areas and geological models. Celtic and Inmet will plan and implement an exploration and drilling programs to test the potential of these targets".
The exceptional mineral potential of central Newfoundland has been recognized by several industry leaders and this has resulted in several strategic investments in this region. To date, Billiton Exploration Canada Ltd. has already spent in excess of $4.0 million exploring its portfolio of joint ventures with Celtic and other junior mining firms. Phelps Dodge, through its joint venture with Noranda, has continued to expand its exploration activities in the region with an emphasis on the unconfirmed discovery at the Mary March property adjacent to the Celtic/Billiton JV at Buchans. Anglo American has also recently demonstrated its interest in the prospects of central Newfoundland by signing a JV agreement through its affiliate, the Hudson Bay Exploration and Development Company Ltd.
Highly prospective properties within the central Newfoundland region are characterized by volcanics similar to the Buchans volcanic rock sequences that hosted the rich Buchans base metal deposits. Between 1929 and 1984, the Buchans mines of Asarco Ltd. each produced between 0.5 and 6.0 million tonnes of ore. In total, 16.2 million tonnes, estimated to exceed a value of $4.0 billion, were produced. One of the most profitable and highest grade operations in the world, Buchans deposits, on average, graded 14.5 % Zn, 7.5 % Pb, 1.33 % Cu, 126 g/ t silver and 1.37 g/t gold.
Celtic's mission is to provide long-term shareholder value through the continued acquisition and development of a balanced portfolio of quality precious and base metal projects. Having established itself as one of the largest mineral property holders with contiguous claims in the Buchans area of central Newfoundland, Celtic is strategically positioned in a highly prospective core area. Focussing primarily on its Newfoundland properties, Celtic has actively collaborated with industry leaders to ensure its ability to advance multiple projects simultaneously and in an effective manner.
The Canadian Venture Exchange Neither Approves Nor Disapproves of the Information Contained Herein.
For further information
Kevin Flaherty, President, Celtic Minerals Ltd., Phone: (403) 261-2890, Fax: (403) 264-0793, Email: celtic@nucleus.com, Internet: www.celticm.com
D. Scott Koyich, Investor Relations, DSK Consulting Ltd., Phone: (403) 215-5979, Fax: (403) 244-1238, Toll Free: 1-877-434-3388, Email: investor.info@home.com, Internet: www.members.home.net/dsk.consulting
Email this story - View most popular stories emailed
--------------------------------------------------------------------------------
More Quotes and News: Celtic Minerals Ltd (Vancouver:CME.V - news)
Related News Categories: mining/metals
--------------------------------------------------------------------------------
Help
--------------------------------------------------------------------------------
Copyright © 2000 Yahoo! All Rights Reserved. Privacy Policy - Terms of Service
Copyright 2000 Canada NewsWire. All rights reserved. All the news releases provided by Canada NewsWire are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving ina public database, redistributing via a computer network or in a printed form.
Questions or Comments? |
