TODAYS NEWSNEWS RELEASE
New PGE-Nickel-Copper Sulphide Zone Discovered on Wolf Mountain Project
(Seagull Claims) Thunder Bay, Ontario
Avalon Ventures Ltd. ("Avalon"), East West Resource Corporation ("East West") and Canadian Golden Dragon Resources Ltd. ("Dragon"), (collectively "the Companies") are pleased to announce initial assay results from a four-hole diamond drilling program completed on the Seagull claims of the Wolf Mountain platinum-palladium-copper-nickel project, located approximately 80 km north of Thunder Bay, Ontario.
Highlights
*A 16 m (52.5 foot) intersection at the bottom of hole WM98-05 Extension containing Palladium (Pd), Platinum (Pt), Copper (Cu) and Nickel (Ni) with an average grade of 1.04 g/t PGE, 0.143 %Cu and 0.157 %Ni, including a 4 metre (13.1 ft.) section grading 1.81 g/t PGE (platinum+palladium+gold), 0.202%Cu and 0.199%Ni, hosted in an extensive basal unit to the Seagull Pluton.
*This is the first cumulate PGE-Ni-Cu sulphide zone to the Companies’ knowledge to be identified in the Proterozoic ultramafic rocks of the Nipigon Plate and confirms that these intrusions have undergone an evolutionary process capable of generating large PGE-copper-nickel deposits.
*A follow-up work program is planned to begin by September, 2000, consisting of additional surface and downhole geophysical surveys and diamond drilling to identify potential economic-grade massive sulphide zones within the basal PGE-Cu-Ni-enriched unit of the Seagull Pluton.
Details
Four drill holes totalling 1390 metres, have now been completed on the 25,520 acre Seagull property and assays for the first three holes have been received. The highlight to date was from the bottom of WM98-05 (extension) which yielded 16 metres (52.5 feet) of Pt+Pd+Ni+Cu with an average grade of 1.04 g/t PGE, 0.143 %Cu and 0.157 %Ni at the 569-585 m vertical elevation from surface including a 4m (13.1 ft.) section grading 1.81 g/t PGE, 0.202%Cu and 0.199%Ni.
Hole locations and significant assays including details for hole WM-98-05 (ext.), are summarized as follows:
Hole No.
Location
Dip
Length
(m)
Interval
(m)
PGE
g/tonne
Cu
%
Ni
%
WM00-01 ext.
2700E/4550N
-90o
213.0
672.0-674.0
0.25
0.005
0.14
WM98-05 ext.
2000E/4737N
-90o
481.0
incl.
569.0-585.0
571.0-575.0
1.04
1.81
0.14
0.20
0.16
0.20
WM00-02
2950E/4600N
-90o
445.0
348.0-350.0
0.66
0.007
0.12
WM98-02 ext.
2000E/5025N
-90o
251.0
Assays
Pending
Total metres drilled: 1390.0
Hole WM98-05 Extension – Detailed Assay Summary
Note: The platinum group metal values were determined using 30 gram samples by fire assay extraction and ICP finish (FA/ICP) and copper-nickel assays were determined by using ICP-AES at ALS Chemex Laboratories in Vancouver. To calculate the contained metal values one could use metal prices (values in $ US) for these elements. Gold (Au) $279.70 per troy oz., Palladium (Pd) $756 per troy oz., Platinum (Pt) $588 per troy oz., Copper (Cu) $0.86 per lb., and Nickel (Ni) $3.71 per lb. A US/CDN exchange rate of 1.471 could be used. These numbers come from the closing bids on Friday July 21,2000. Please note that these values may vary from time to time as metal markets and exchange rates change. 1000 ppb = 1 gram, 31.25 grams = 1 troy ounce, and 0.1% = 2.2 lbs. per tonne or 2.016 lbs. per ton.
The four hole program was an expansion of the original two hole program that was announced on June 27, 2000 because the extension of WM00-01 from 606 m intersected a new lower phase of the Seagull Pluton consisting of gabbro – pyroxenite (cumulate phase) which is in contact with Quetico Sediments at 719m. Fine disseminated pyrrhotite with minor chalcopyrite occurs in the lower 15 m of this gabbro – pyroxenite phase and continues for a further 10m into the Quetico sediments. Only low-grade PGE values were encountered in this sulphide intersection.
Hole WM98-05 located 700 m west of WM00-01 was then chosen for extension because the lower contact could be seen clearly on the magnetic susceptibility model. This hole intersected a 40 m gabbro-pyroxenite layer between 548 and 588 m where the lower contact with the Quetico sediments occurs, and the hole ended at 620 m in sediments. Disseminated pyrrhotite, chalcopyrite – cubanite and minor pentlandite occurred throughout the 40m gabbro zone and a 16 m interval section was intersected yielding the assays detailed above. Sulphide droplets that were zoned between pyrrhotite and chalcopyrite occur. This texture is significant in that the droplets are evidence for sulphides sinking in the lower part of the intrusion when it was solidifying and have gathered PGE values.
The third hole WM00-02 was then drilled 250 m east of WM00-01 through the ultramafic unit and encountered the Quetico Sediments with pegmatite at 359 m ending at 445 m. The gabbro – pyroxenite phase was 35 m thick with disseminated sulphides increasing towards the bottom of this phase, and containing anomalous PGE as documented above.
Hole WM98-02 located 300 m north of hole WM98-05 was then extended from 300 m to 553 m with the lower contact of the gabbro – pyroxenite cumulate phase occurring at 549 m and starting at 491 m (58 m). Again disseminated pyrrhotite occurred at random throughout this phase along with 2 narrow veins of pyrrhotite and pyrite that hosted native copper. Assay results for this hole are pending.
The susceptibility model suggests the lower cumulate gabbro phase extends up dip at 100 from WM98-05 to the west edge of the intrusion for a distance of over 1200 m, and may come to surface in this area. The eastern continuation of the mineralized layer toward hole WM00-01, is open to the south toward the centre of the Seagull Pluton.
The significance of the Seagull PGE-Ni-Cu zone is that it shows that the Proterozoic ultramafic intrusions in this part of the Nipigon Plate have undergone an evolutionary process capable of generating large PGE-copper-nickel sulphide deposits. East West holds interests ranging from 30 – 100 % in 9 other similar intrusions in the immediate area while Dragon holds interests ranging from 30 – 50% in three properties in the same area.
East West and Dragon have jointly expended in excess of $300,000 on the Wolf Mountain project to date and upon payment of a final $20,000 option payment due September 1, 2000, will have earned a combined 50% interest in this large 638 + 287 = 925 (37,000 acres) Claim unit property and will become the operator. East West and Dragon intend to increase their combined interest to 60% by expending a further $700,000 before June 4, 2004, and each issuing a further 50,000 treasury shares to Avalon.
Further geophysical surveys east and west of the present grid and downhole EM are contemplated to trace possible massive sulphide phases within the basal unit that often occur in this type of magmatic sulphide setting. Several stepout holes are required to follow the zone up dip and downdip from hole WM98-05. It is expected that a follow-up program will begin by September, 2000.
For further information please contact Donald Bubar on behalf of Avalon at 416 364-4938 or Robert Middleton on behalf of East West and Dragon at 604 681-3154
ON BEHALF OF THE BOARD ON BEHALF OF THE BOARD ON BEHALF OF THE BOARD
OF DIRECTORS OF AVALON OF DIRECTORS OF EAST WEST OF DIRECTORS OF DRAGON
"Donald S. Bubar" "A.K. Crossley" "E. Strashin"
Donald S. Bubar, President A.K. Crossley, President E. Strashin, President
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