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Gold/Mining/Energy : Major General--MGJ -- Ignore unavailable to you. Want to Upgrade?

To: Ron Waller who wrote (513)	7/21/1998 12:58:00 PM
From: Lilian Debray	Read Replies (1) \| Respond to of 1707

Tuesday, July 21, 1998 Gold Properties Acquired in Hemlo Belt, Ontario MAJOR GENERAL RESOURCES INC. ("MGJ-V;MGRLF-L") - Gold Properties Acquired in Hemlo Belt, Ontario Glenn G. Shevchenko, President of Major General Resources Ltd. (the "Company"), is pleased to announce that subject to the Board and Regulatory approval, the Company has optioned two properties located approximately 200 kilometres east-northeast of Thunder Bay in northwestern Ontario. The contiguous Prairie River (63 claims) and Steel River (18 claims) Options make up the Spider Property (3472 hectares) that covers a 12 kilometre trend of altered felsic volcanic rocks. These felsic rocks are part of the Schreiber-Hemlo Greentstone Belt, and are similar to the rocks that host the Hemlo gold deposit located 65 kilometres to the east. At the time of discovery, the contained reserves at Hemlo were in the order of 80 million tonnes grading 7.7 grams/tonne gold. The deposit produces about 1 million ounces of gold annually which is approximately 50% of Ontario's gold production. Gold mineralization is associated with a quartz-feldspar porphyry intrusive that is in contact with hydrothermally altered sedimentary rocks. The ore zones occur within lenses of Feldspar alteration that are distributed proximal to the contact of the intrusive. This Feldspar alteration produces an airborne radiometric anomaly that is characterized by a potassium high and a thorium potassium low measuring some 3 kilometres long by 1 kilometre wide. The Spider Property covers a prominent airborne radiometric anomaly (3km by 1.5km) that is identical to the radiometric signature found over the Hemlo deposit. This radiometric anomaly occurs over the thicker portion of the felsic volcanic pile where previous work has identified zones of feldspar alteration proximal to a quartz-feldspar porphyry intrusive. Exploration on the property has been sporadically conducted since 1896 with the discovery of the Fire Mountain sulphide zone that returned 4 ounces per ton gold. Since that time, base metal exploration has dominated in the area. In the Prairie River Option, the Company may earn 100% interest by spending $500,000(T), making cash payments of $30,000 and issuing 200,000 shares over a period of 5 years. The claims are subject to a 2.5% NSR of which 1.5% may be bought out for $1,500,000. In the Steel River Option, the Company may earn 100% interest by spending $1,000,000(T), making cash payments of $100,000 and issuing 200,000 shares over a period of 5 years. The claims are subject to a 2% NSR of which 0.5% may be bought out for $500,000. Major General has initiated a $150,000 exploration program on the Spider Property consisting of 85 kilometres of linecutting followed by magnetometer, geological mapping and prospecting surveys. TEL: (604) 685-5254 Investor Relations INET: majorgeneral.com