May 7, 1998 Press Release
Shareholders attending the Annual General Meeting of PAMLICO RESOURCES LTD. (the "Company") held on April 30, 1998, elected new Canadian and Russian directors and were informed of an important strategic alliance with a state-owned Russian company, and the appointment of a new Russian President of the Company.
In addition, Company Chairman, Michael Hordo, confirmed that the
acquisition of The Northern Mining Company is proceeding and is expected to be completed in four to six weeks coincident with completion of the Company's private placement of units at $2.00 per unit.
Mr. Hordo provided the Annual Meeting with a progress report on diamond exploration on the Belozerskaya license area. Work on the property continues, including the completion of the airborne magnetic survey of the complete property area. Of the approximately 300 anomalies that have been identified, 77 have been designated by The Northern Mining Company as key drilling targets. Of these 77, based on limited drill samples, 35 have been confirmed as kimberlitic and 4 as diamondiferous. Present progress calls for commencement of extensive drilling of the C10/1 pipe and a drilling program for the other identified targets.
DIAMONDS FOUND
The Company has received a Summary Petrographic and Mineralogical Report on a 15.2 kg sample of 4.9m drill core (145.7 - 150.4m) from drill hole C10 on the Northern Mining Company's Belozerskaya license. Three microdiamonds were recovered from selected drill core samples totalling only 8.6 kg by the Arkhangelsk geoldobycha laboratory. The Report was prepared by the Russian Research Institute of Mineral Resources (RRIMR) who conducted the analysis of the Lomonosova diamond discovery.
Drill hole C10 bottomed at -150.4 metres in a medium - fine fragmental
picrite tuffobreccia, the crater facies, of a kimberlite pipe.
Microscopic analysis of the concentrates identified the presence of many chrome diopside and chrome spinel grains with lesser pyrope grains. These are indicator minerals identifying areas possibly containing diamondiferous kimberlites. Optical examination of the pyropes suggests compositions characteristic of peridotites contained in kimberlite pipes.
Analysis of the spinellides including chromite, chrompicotite,
chromspinellides were completed. High chrome chromites reported
compositions of 58.6 - 61.5% Cr203; 8.44A% - 10.4% AL203 and 0.15% Ti02. The compositions compare favorably with chromites of kimberlite pipes and are considered highly prospective for diamonds. The RRIMR note that the drill hole C10 samples contain fused granules of first-generation olivines. Fused olivines likely represents granular megacryst olivines commonly occurring as mantle "nodules" in kimberlite pipes.
Mr. Hordo was advised by RRIMR that their experience is that the lower
levels of titanium will likely correspond in an increase in the quality of diamonds found.
Based upon their analyses, observations and experience in the Arkhangelsk area, the RRIMR consider the C10 pipe to be highly prospective for diamonds and that sampling to depth, beneath the crater facies, should detect diamonds.
These encouraging results on the 15.2 kg sample are being followed up by testing of a 36 kg sample being processed at Lakefield Research. The report from Lakefield is expected shortly.
NEW PRESIDENT AND OFFICERS
Mr. Hordo also announced that Dr. Larion Lebedev has been appointed
President of the Company. Mr. Terence Steel, the former President, was appointed Executive Vice-President of the Company, along with Mr.
Pellegrino Capone, Corporate Secretary. Messrs. Hordo, Steel, Pelech and Price were re-elected as directors of the Company. In addition, a number of new directors were elected as follows:
NEWLY ELECTED DIRECTORS
Dr. Larion Lebedev, President - Dr. Lebedev is Chairman of The Northern Mining Company. He holds a Doctoral Degree in Physics from Moscow Nuclear Physics Institute and was responsible for the emergency response and remediation efforts related to the 1987 Chernobyl nuclear disaster, for which he received Russia's second highest award, the new Russian Cross for Valor. Dr. Lebedev is also Chairman of Enofit, a Russian scientific association, where over 200 scientists in the areas of physics, computers and other technologies, report to him through seven deputies. Enofit is responsible for the commercialization of several proprietary Russian Sate
technologies.
Dr. Vjacheslav Krotkov - Dr. Krotkov is President of the Russian State Corporation, Atomredmetzoloto ("ARZ"), and Chairman of Lomonosova and Sukhoi Log. ARZ is a group of mining and processing enterprises and related research institutes. It is the largest mining concern in Russia and a major producer of diamonds, emeralds and other semi-precious stones - and the major Russian producer of uranium, gold, silver and rare metals.
Lomonosova is the largest undeveloped diamond deposit in the world, while Sukhoi Log is the world's largest undeveloped gold deposit.
Pellegrino Capone, Secretary - After obtaining his law degree from the University of Windsor, Mr. Capone entered practice in 1978. He has served on the boards of a number of private and public companies and is formerly chairman of the Toronto Humane Society.
Mr. Jack Kurin, Chief Financial Officer - A chartered accountant and
senior partner in his own firm, Kurin and Partners since 1981, Jack Kurin brings years of invaluable experience to the Company. He was one of the founding principals in a hotel chain in which he served as vice president of finance. Since 1992, he has been vice president of Greenstone Management Inc. which offers a wide range of consulting services to the lodging industry.
Peter Kraus - Highly experienced in the field of international finance, Mr. Kraus is President of Midi Phi Holdings Ltd. and a partner in Revitrag Revisions und Treuhand of Zug, Switzerland.
J. Gregory Davidson - Mr. Davidson obtained degrees in geology from
Dalhousie University and Brock University graduating with a Masters Degree in geology specializing in physical volcanology. He is he principal of Rainbow Research Associates and Senior Geological Associates with Southamption Associates Inc. and has over 19 years of international experience in mineral exploration, extractive metallurgy, process mineralogy and diamond exploration services. As senior mineralogist and project manager for diamond programs at Lakefield Research, Mr. Davidson directed all aspects of sample processing technology and presented several articles on methodology for diamond and indicator minerals.
STRATEGIC PARTNER FOUND
For some time now, the Company has been seeking strategic institutional and industry partners to assist the Company in its undertakings, and today announces the first such relationship with ARZ. Owned by the Russian State, ARZ is a group of mining and processing enterprises and related research institutes, the largest mining concern in Russia and a major producer of diamonds, emeralds and other semi-precious stones as well as uranium, gold, silver and rare metals. Discussions continue with other potential strategic institutional and industry partners.
In addition to Dr. Krotkov providing ARZ board representation to the
Company, the Company has entered into a consortium agreement with a number of parties led by ARZ who has identified a number of gold, platinum and emerald tailing deposits in he Bodaibinsky region of Irkutsh area. Two of the locations are at Oktyabrskaya Bench and at B. Malakar. The tailings are to be processed using Russian leaching technology. The Company will enjoy a 5% interest in the undertaking and the ability to earn a greater interest in the future.
The Company is not required to make any payment for the interest and will determine its participation in each project as they are developed.
It is ARZ's expectations that the annual gold recovery from these two
locations to be at least 2 metric tons per year at a cost of $4 US per gram.
It is ARZ's intention to commence production within 60 days. Analysis is presently underway by ARZ to determine both the volumes and costs
associated with the recovery of platinum and emerald from the tailing
deposits.
The Company is also exploring ways that ARZ can provide local assistance with regard to the Belozerskaya exploration program, including immediate access to drilling equipment.
Pamlico Resources Ltd is a diversified international resource company and dedicated to pursuing exploration and development of diamonds and precious metals - and related industrial opportunities - primarily in the Russian Federation.
Working closely with it Russian partners, Pamlico's immediate focus through its acquisition of The Northern Mining Company is on the development of diamond production based on rights to diamond and other mineral resources on the highly prospective 1630 square kilometre Belozerskaya license area in the Arkhangelsk Region of Northern Russia.
Pamlico is also an active participant in gold exploration on the promising Dorothy Lake property in Northern Ontario.
PAMLICO RESOURCES LTD.
"Michael J. Hordo"
Michael J. Hordo
Chairman and Director
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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