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Gold/Mining/Energy : Abacus Minerals Corporation (V.AMC) -- Ignore unavailable to you. Want to Upgrade?

To: Neil Irwin who wrote (261)	11/27/1998 12:15:00 PM
From: Neil Irwin	Read Replies (2) \| Respond to of 397

NEWS: Abacus Minerals Signs Letter of Intent with Redstar Resources NOVEMBER 27, 1998 Newswire: CCN VANCOUVER, BRITISH COLUMBIA--Abacus Minerals Corporation announces it has signed a Letter of Intent with Redstar Resources Corp. whereby Redstar can earn a 50 percent interest in three contiguous mineral claims known collectively as the Sarita Properties (the "Properties") located in Santa Cruz, Argentina. To earn 50 percent interest in the La Sarita, Sarita Sur and Sarita Norte properties, Redstar will carry out US $2,000,000 in exploration expenditures. In addition, the Company will make cash payments totaling CDN $275,000 and issue 200,000 common shares to Abacus over the next four years. All exploration expenditures, cash payments, and share issuances must be completed by September 15, 2002. Redstar's first year commitments are to conduct US $175,000 in exploration expenditures, issue 50,000 of its common shares, and make CDN $25,000 in cash payments. The La Sarita and Sarita Sur properties are a part of an option agreement between Abacus Minerals Corporation and Barrick Gold Corporation whereby Abacus is earning a 100 percent interest in six exploration properties from Barrick. Abacus is in the first year of its four year agreement with Barrick and has spent over US $900,000 of the US $2,750,000 it must spend in exploration. Once Abacus has vested, Barrick retains a 50 percent "back-in" right by spending US $3,750,000 in ongoing exploration. If Barrick elects not to "back-in", they will automatically convert over to a 3 percent Net Smelter Royalty. Redstar will retain a 25 percent interest in the Sarita and Sarita Sur properties if Barrick elects to "back-in" and 50 percent interest if it does not. The Sarita properties, comprise 9,890 hectares and cover an area of favorable volcanic stratigraphy which is bisected by northeast and northwest trending regional structures. Within the property area, hydrothermal alteration is apparent on satellite images. Limited sampling on the property during the 1997 exploration program returned values of up to 4.58 g/t gold and high grade silver values of up to 1,137.9 g/t. The samples also returned anomalous base metal and trace elements typically associated with epithermal mineralization. This sampling has identified three parallel mineralized vein trends. The southwest and northeast zones have each been traced in sampling for over one kilometre and the central zone for over 3 kilometres along strike. Several companies are active in this area including Anglo American/Perez Compac's Cerro Vanguardia Mine, Silver Standard's Manetial Espejo project, Yamana's Bacon and Lejano projects, Abacus' La Manchuria project, MIM/Newcrest's Cerro Negro property and Minera Andes' El Pluma/ Cerro Saavedra project. Yamana's Bacon property is located immediately to the southeast of Sarita Sur. Reverse circulation drill holes on this property have returned very high grade silver intersections including 6.0 metres grading 2,579 g/t silver with 2.62 g/t gold (hole 16). The Manetial Espejo project, which is located approximately 15 kilometres to the southeast of Sarita Sur, hosts a proven, probable and inferred resource totaling 7.9 million tonnes grading 191 grams of silver and 2.87 grams of gold per tonne (approximately 89,000,000 ounces silver equivalent). This news release is subject to regulatory acceptance of the Vancouver Stock Exchange and Barrick Gold Corporation. ABACUS MINERALS CORPORATION Steve L. Todoruk, P.Geo., President