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FOR FURTHER INFORMATION PLEASE CONTACT: Teck Corporation Norman B. Keevil President and CEO (604) 687-1117 or Teck Corporation Michael P. Lipkewich Sr. V.P. Mining (604) 687-1117 or Teck Corporation Moira Smith Senior Geologist (250) 372-0032 Website: teck.com -------------------------------------------------------------------------------- NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: TECK CORPORATION TSE, VSE, ME SYMBOL: TEK.A TSE, VSE, ME SYMBOL: TEK.B OCTOBER 27, 1998 Teck and Sumitomo Group Announce Results of 1998 Drill Program at Pogo VANCOUVER, BRITISH COLUMBIA--Teck Corporation, Sumitomo Metal Mining and Sumitomo Corporation today announced an updated geological resource on their joint venture Pogo project in Alaska. Teck is the operator of the Pogo project and can earn a 40 percent interest by expending (U.S) $28 million to produce a feasibility study by December 31, 2000 and contributing the first (U.S.) $33 million of development and construction costs. /T/ The 1998 and 1997 resource calculations using a 0.1 oz/T cutoff grade are given below: 1998 ----------------------------------------------------------------- Short Tons Assay Contained (millions) oz/T. Au oz. Au (millions) ----------------------------------------------------------------- Main Liese 7.25 0.53 3.84 Lower Liese 2.73 0.50 1.37 ----------------------------------------------------------------- Total 9.98 0.52 5.21 1997 ----------------------------------------------------------------- Short Tons Assay Contained (millions) oz/T. Au oz. Au (millions) ----------------------------------------------------------------- Main Liese 8.84 0.40 3.52 Lower Liese 2.13 0.41 0.97 ----------------------------------------------------------------- Total 10.97 0.41 4.49 /T/ The increased drill density in the core of the deposit confirmed the continuity of the two flat-lying lenses, and step out drilling extended the veins, particularly to the southeast. The updated resource calculation is a result of the 1998 exploration drill program which consisted of 97 diamond drill holes totaling over 91,000 feet, the majority of which was infill drilling. In addition, the current more detailed and selective geological model of the Main Liese vein dropped some minor veins and stockwork mineralization from the earlier resource calculation, resulting in a lower tonnage but a higher average grade. The net effect including the 1998 drill results is an increase in the geological resource to 5.2 million ounces, and average grade to 0.52 ounces per ton (using the kriging method). The deposit is still open to the southeast and the northwest. In addition, two deep drill holes have indicated a possible third zone 400 feet below the Lower Liese. Hole 98-124, which was 200 feet southeast of 97-71 (42.7 feet at 0.58 oz/T), intersected 19.2 feet at 0.75 oz/T. In addition to further infill and step out drilling, the planned 1999 exploration program calls for an underground adit to obtain geotechnical data, test the continuity of the veins for mining, and obtain a bulk sample for metallurgical testing. Engineering and environmental studies to support a feasibility study will also be conducted. Dr. Moira Smith, Teck's Exploration Manager for the project, said: "It is encouraging that we were able to increase the total number of ounces of gold contained in the resource by approximately 16 percent, even though the majority of the 1998 program was devoted to infill drilling. However, the 27 percent increase in the average grade should prove to be even more important, since it will have a direct impact on operating costs". -30- | ||||||||||||||
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