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Gold/Mining/Energy : Cross Lake Minerals CRN -- Ignore unavailable to you. Want to Upgrade?

To: Ed Pakstas who wrote (2931)	6/18/1998 12:14:00 AM
From: Famularo	Respond to of 3650

NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: CROSS LAKE MINERALS LTD. 12(g) No. 82-2636 VSE SYMBOL: CRN JUNE 17, 1998 Cross Lake Minerals: Closing of Private Placement, Sheraton-Timmins Project Update VANCOUVER, BRITISH COLUMBIA--CROSS LAKE MINERALS LTD. (the "Company") is pleased to advise that the private placement of 1,025,000 flow through common shares at a price of $0.90 per share has closed. These shares are subject to a four month hold period, expiring September 19, 1998. The proceeds will be used to fund additional work on the Sheraton-Timmins Property and on other properties in Ontario and Quebec. The Company also wishes to report results from the first four holes in the current phase of work on the 100 percent held Sheraton- Timmins Project, located near Timmins, Ontario. An extensive program of borehole and surface geophysics using Pulse EM and Mise-a-la-Masse surveys has been conducted to define sulphide zones and new vent areas along a 5 kilometre induced polarization (IP) anomaly trend, which encompasses the main Cross Lake Zone and its extensions to the southwest and northeast. Drilling, which commenced May 1, is being guided by the geophysical surveys and is aimed at testing new volcanic centres and hydrothermal vent areas along the trend. Two potential vent areas with associated intense sodium depletion zones, as well as copper- zinc-lead mineralization hosted by favourable felsic volcanic rocks, have been discovered 1.5 and 3.0 kilometres southwest of the original Cross Lake discovery. Several other anomalies remain to be tested along the trend. Hole CLS 98-53 was drilled to test the plunge of the copper-zinc mineralization below holes CLS 97-31 and 97-32 and intersected the edge of the conductive target identified by Pulse EM and Mise-a-la- Masse surveys. Of particular significance was the intersection of brecciated massive pyrite, which has not previously been observed and which is indicative of a volcanogenic massive sulphide (VMS) system. The hole confirmed the effectiveness of Pulse EM and Mise- a-la-Masse in tracing conductive mineralization. Significant intersections are as follows: /T/ Hole Intersection Length Copper Zinc Silver Number (metres) (metres) (percent) (percent) (grams/ tonne) CLS 98-53 428.0 - 429.5 1.5 1.47 - 7.4 440.0 - 446.0 6.0 - 1.91 5.5 incl. 443.0 - 446.0 3.0 - 2.72 6.8 /T/ Hole CLS 98-54, collared 2.9 kilometres southwest of Hole CLS 97-16, was completed to a depth of 485 metres on the Company's Sheraton-Timmins Property and continued to 737 metres on the Night Hawk Lake Joint Venture Property. The hole, drilled to test a large IP anomaly, intersected favourable sericite schist with abundant fuchsite (green mica), pyrite and rhyolitic felsic fragmentals (indicative of a possible new volcanic centre) with anomalous gold values up to 660 ppb and intense sodium depletion that is often found to occur in the footwall of large VMS deposits. Hole CLS 98-55, collared 1.6 kilometres southwest of Hole 97-16, was drilled to a depth of 374 metres. The hole tested the south edge of a magnetic anomaly caused by a chlorite, magnetite, garnet alteration zone contained within a larger IP anomaly on strike with the Cross Lake zone. It intersected over 105 metres (from 133 to 238 metres) of a felsic fragmental comprised of rhyolitic and cherty clasts with intense sericite alteration and disseminated and banded chalcopyrite. Significant intersections are as follows: /T/ Hole Intersection Length Copper Zinc Silver Number (metres) (metres) (percent) (percent) (grams/ tonne) CLS 98-55 152.0 - 158.0 6.0 1.03 - 2.5 251.0 - 255.5 4.5 - 1.06 12.8 266.3 - 269.3 3.0 - 1.14 1.7 /T/ Hole CLS 98-56 was drilled 100 metres northeast of Hole CLS 98-55 and intersected two zones of massive pyrite containing sphalerite (zinc) and chalcopyrite (copper) mineralization, as well as numerous narrow sphalerite patches adjacent to a chlorite alteration zone. It is interpreted that this zinc zone is the southwest continuation of zinc zones in Hole CLS 97-6 and may represent the flank of a new hydrothermal vent area. Significant intersections are as follows: /T/ Hole Intersection Length Copper Zinc Silver Number (metres) (metres) (percent) (percent) (grams/ tonne) CLS 98-56 267.5 - 270.5 3.0 - 1.13 6.5 276.5 - 284.0 7.5 - 1.98 5.1 /T/ The Company is continuing to drill new targets, as well as deeper holes in the Cross Lake Zone to trace the copper mineralization to depth. Additional surface and down-hole geophysics, including Pulse EM and Mise-a-la-Masse surveys, will be carried out in advance of future drilling. A plan showing the target areas and hole locations is available by fax upon request. Results from the Gerry Lake Property, near Red Lake, Ontario, have been received from the four hole diamond drill program, totalling 1,005 metres. The program was planned to follow up on known airborne and IP anomalies proximal to felsic fragmentals and VMS style alteration. Narrow anomalous zinc values were intercepted. Other targets on the property may be investigated on receipt of a final report. ON BEHALF OF THE BOARD OF DIRECTORS CROSS LAKE MINERALS LTD. Henry G. Ewanchuk, Chairman and C.E.O. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Cross Lake Minerals Ltd. Erik Andersen Vice President, Land or Michele Jones Corporate Secretary (604) 688-5448 (604) 688-5443 (FAX) Website: www.crosslakeminerals.com