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Gold/Mining/Energy : Anzex -- Ignore unavailable to you. Want to Upgrade?

To: R.A.K. who wrote (224)	12/16/1998 7:33:00 AM
From: Buckey	Read Replies (1) \| Respond to of 253

Anzex Resources Ltd - Longwoods project progress Anzex Resources Ltd AZXShares issued 7,265,0771998-12-15 close $0.33Wednesday Dec 16 1998Mr. James Kermeen reports The board of directors has received the findings of James S. Kermeen, president, and Dr. A.J. Naldrett, geological consultant, during their six day visit to the company's Longwoods platinum/palladium (Pt/Pd) exploration project in New Zealand. The project was thoroughly reviewed with project geologist Phil Ford, who remains in charge of the field work and Dr. David Tucker, geophysical consultant. As well, Dr. Naldrett made detailed logs of the core from diamond drill holes (DDH) 3 and 4. DDH3 had returned highly anomalous Pt/Pd values as detailed in the news release in Stockwatch Nov. 4, 1998. DDH4 was drilled parallel to DDH3, 125m south along the layering from DDH3. DDH4 intersected rocks similar to those hosting Pt/Pd values in DDH3 and then was stopped at a depth 484m in hybrid rocks believed to represent the contact of unfavourable granitic rocks which intrude the favourable layered mafic rocks in this area. Assay results from DDH4 will be reported when available in about two weeks time. Some generalizations about the program to date can be made. DHH 1 and 2 were targeted on the basis of a structural model adopted by previous management prior to Dr. Naldrett's involvement which assumed a sequence of the favourable layered mafic rocks dipping gently to the west. If such a model were valid, steeply-dipping holes like DDH 1 and 2 almost anywhere in the sequence would have effectively tested it. In fact DDH 1 and 2 did not cross cut the layering but rather remained within a single layer of unfavourable rocks and predictably did not contain significant Pt/Pd values. They did, however, provide useful geological information which contributed to the development of a new structural model with steeply dipping layers. DDH3 and 4 were targeted to test the favourable steeply-dipping layered mafic sequence in the vicinity of anomalous Pt/Pd values in soil and boulder chip samples. The anomalous Pt/Pd encountered in DDH3 correlate well with Pt/Pd anomalies in the overlying soil thus indicating soil sampling is an effective means of establishing targets for future drilling. Many square kilometres of favourable layered sequence, well away from the unfavourable intruding granite mentioned above, remain to be tested by diamond drilling. However, it is essential that further drilling be deferred for approximately two months until sufficient soil and rock chip sampling to establish optimum drill targets can be completed. Management notes that if the strong recommendations for this work made by the company's geological consultant as early as Feb. 1998 had not been delayed five months by the previous management, this interruption of drilling may not have been necessary. Secondary to Pt/Pd exploration, the company has started an investigation of the potential for significant gold mineralization on the Longwoods property. Gravels in many of the streams flowing both east and west from the Longwoods range have been mined for gold in the past. There is also ample evidence of prior investigation of gold in the bedrock in the form of pits, shafts and small stamp mills used to crush bedrock samples. The zone of chief interest is the Arethusa zone lying along the east flank of the Longwoods range. Evidence of bedrock gold mineralization includes gold-silver bearing boulders, quartz veins and numerous old workings designed to test bedrock. These indications lie within a belt of Takituma Group volcanogenic sediments which coincide with a linear magnetic high which can be traced for several kilometres along strike. Sigma Resources reported analyses up to 103 grams Au per tonne from gossanous boulders and 8.9 grams Au per tonne from vein quartz based on work carried out in 1988. The best of 23 grab samples collected recently by Anzex assayed 2 grams per tonne gold, 6 grams per tonne silver and 2200 ppm copper in a weathered quartz boulder. Anzex has collected soil samples along six 400m lines spaced at 100m intervals along a 500m long section of this zone. Pending receipt of analyses on these samples further work will be carried out. Merrivale is a second area of interest for gold near the north end of the Longwoods layered mafic sequence. Previous work in this area suggests a potential for significant gold mineralization in quartz veins hosted by altered Takituma Group sediments and an intruding dioritic rock. Further investigations are planned in this area. The board remains enthusiastic about the potential for significant Pt/Pd deposits in the Longwoods project and assures shareholders that exploration will continue in the most effective way possible.