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

To: L M who wrote (11254)	1/7/1999 9:05:00 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 26850

Canada NewsWire Give us your message. We'll give you the world. Canadian Quotes from Telenium WSP. (VSE) Attention Business Editors: Winspear Resources Ltd. announces Camsell Lake Joint Venture has approved a 1999 exploration program of up to $12 million VANCOUVER, Jan. 7 /CNW/ - Winspear Resources Ltd. Trading Symbol: WSP-V Winspear Resources Ltd. (WSP-V) is pleased to announce that the Camsell Lake Joint Venture has approved a 1999 exploration program of up to $12 million. Winspear has a 68.7% interest in, and is Operator of this property situated approximately 220 km northeast of Yellowknife, NWT and about 30 km south of the Yellowknife-Lupin ice road. The 1999 program expenditures will mainly be focused in the vicinity of Snap Lake where the diamond-bearing, NW dyke is being explored. BACKGROUND: The NW dyke at Snap Lake was discovered in 1997 when it was intersected by 13 drill holes. Because of very encouraging results obtained from caustic fusion analyses for microdiamonds in these drill core intersections, two 100-tonne samples were extracted from the dyke in the Spring of 1998 and processed in the Kennecott plant located in Yellowknife. Cleaned diamonds recovered from the plant weigh 226.72 carats and were valued by three independent diamantaires in Antwerp at a value of US$301/carat. With a recovered grade of 1.14 carats per dry tonne, the indicated value of the sampled kimberlite is US$343 / tonne (approximately Can$520 / tonne). A drill program of 71 holes (5,410 metres) was initiated in the summer of 1998 to test the NW Dyke. Upon completion, evaluation of the drill results by MRDI Canada, a division of H.A. Simons Ltd. established the following: - Approximately 1,375,000 tonnes of kimberlite is indicated as underlying the NW peninsula of Snap Lake. Of this amount, approximately 694,000 tonnes could be mined by open-pit methods. - True thickness of the NW dyke over the area tested averages approximately 2.5 metres. The dyke dips gently to the east at about 15 degrees. - No apparent structural discontinuities have been recognized that could significantly impact either open-pit or underground mining operations. MRDI also undertook a preliminary scoping study that examined various possible mining alternatives. These included production based on open-pit mining on the peninsula for two years and on open-pit mining plus underground mining of hypothetical resources projected down dip which would be sufficient to support a mining rate of 1000 tonnes per day, for ten years. Assuming an in-situ value of kimberlite of CDN $400/tonne (approximately 75% of the value attributed to the bulk sample by the diamantaires), both alternatives indicate a pay-back period of less than one year. Further drilling conducted by Winspear during the summer program extended the strike length of the NW dyke to more than 1350 metres by intersecting it in three drill holes on the north shore of Snap Lake. Drill intersections also demonstrated that the dyke extends at least 2200 metres east and down-dip from its subcrop on the NW peninsula. The dyke remains open in both directions along strike and down-dip. In addition to the NW dyke, three other kimberlite dykes were outlined in the east and southeast part of Snap Lake that all dip between 11 and 23 degrees to the northwest and are similar to the NW kimberlite dyke in appearance. All four dykes dip towards a common centre and are mainly comprised of hypabyssal kimberlite material. Winspear believes that the dykes may originate from a common vertical feeder system which present evidence implies may occur near the north side of Snap Lake. Available data supports the concept that the kimberlite occurrences in Snap Lake form a cone sheet developed around a vertically oriented feeder system. While this hypothesis is consistent with available data, more evidence is required to confirm this form of occurrence. 1999 EXPLORATION PROGRAM: The 1999 program is designed to provide the necessary data that could lead to the initiation of a full feasibility study before year-end. Information to be obtained during this program includes the following: Bulk Sampling: Approximately 6000 tonnes of kimberlite is expected to be taken from three sample sites. Two of these sites will be on the NW peninsula and a third will be sought on the north shore. Approximately equal amounts of kimberlite will be obtained from each site. Equipment to support bulk sampling and drilling activities will be mobilized to the property on the ice road when it opens approximately the last week of January. Diamond Drilling: A drill program comprising a minimum of 15,000 metres is designed to identify between 3.5 and 5 million tonnes of kimberlite for a feasibility study and to outline an additional 3-5 million tonnes. This program is anticipated to require 3 diamond drills from early February to early April. Work will initially concentrate on the north shore to test for additional tonnage and to test the possibility of obtaining a bulk sample in this area. Simultaneously, holes will be drilled from the ice on Snap Lake east of the NW peninsula to test the continuity of the NW dyke and to prove up additional tonnage in this area. In addition, approximately 2500 metres will test various targets that may represent the vertical feeder system. All kimberlite intersected in this program will be submitted for caustic fusion analyses of its microdiamond content. Other: Microdiamond data from the 1998 programs is currently being evaluated and will be released in the near future. Baseline work will be increased to provide data for an Environment Impact Assessment report that is required should the project continue to production. Preliminary engineering studies will also be initiated in the second quarter. Winspear has recently completed a $10.6 million financing. With approximately $13.0 million on hand, the Company is amply financed to carry out the 1999 program on the property. Encouraging results obtained from earlier programs have defined the direction of the 1999 program. The Company remains optimistic that the forthcoming program will prove to be equally encouraging. Winspear Resources Ltd. Randy C. Turner, P. Geo President and Director The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. -30- For further information: Randy C. Turner, President and Director, (604) 687-6644, fax: (604) 687-1405, toll free: 1-800-686-7744, web site: www.winspear.com, e-mail: candgrp@helix.net