|June 02, 2004|
Crowflight Begins Drilling of Deep Geophysical Targets for Massive Sulphides at the AER Kidd Property and Revises Terms of the Mystery Offset Dyke Property Acquisition
|TORONTO, ONTARIO - CROWFLIGHT MINERALS INC. (TSX Venture Exchange: CML) announces that diamond drilling of a series of deep Magnetotellurics ("MT") geophysical anomalies was initiated on its 100% owned AER Kidd Property in the Sudbury Basin (refer to the Press Release dated May 13, 2004 for detailed information on the drill program). In addition, the Company and vendor, Thomas Poupore, have agreed to amend the terms of the agreement with respect to Crowflight's acquisition of the Mystery Offset Dyke Property (refer to the Press Release dated April 14, 2004 for information on the original terms and technical details on the Property). |
AER Kidd Property
The deep diamond drilling will comprise of 3 holes under Perch Lake (refer to the appended Figure 1 for the location of drill holes), within the eastern portion of the AER Kidd Property.
- WO-10 will be testing the deepest portion of Anomaly "H" to a vertical depth of 1.2 kilometre;
- WO-11 will be testing the shallowest portion of Anomaly "H" to a vertical depth of 1 kilometre, some 200 metres east of WO-10; and
- WO-12 will test the very large Anomaly "I" to a vertical depth of 1.5 kilometre. This anomaly has the strongest electromagnetic response on the property, estimated by the geophysical survey operator Phoenix Geophysics Limited of Toronto, Ontario, to be ten times stronger than anomaly "C", which yielded disseminated and stringer sulphides.
All of the geological and geophysical evidence for potential massive sulphide mineralization is pointing to vertical depths beyond 1,000 metres, which is consistent with the mineralization at Inco's neighbouring Totten Deposit located at depths between 900 and 1,500 metres. The disseminated and stringer sulphides intersected in the drilling to date at AER Kidd is suggestive of more marginal or halo style mineralization surrounding or capping potentially more massive sulphide mineralization at depth. The use of advanced geophysics (MT, in-hole TEM and UTEM), longitudinal drilling and 3-D geological modeling is enabling Crowflight to vector-in towards potential massive sulphide bodies.
Mystery Offset Dyke Property - Crowflight Acquistion
Pursuant to a press release issued on April 14, 2004, the Company announced that it had entered into an agreement to acquire 100% of the Mystery Offset Dyke Property from T. H. Poupore, subject to regulatory approval. The original agreement has been revised, subject to all required regulatory approvals, with respect to the acquisition of the initial 51% (the terms to acquire the remaining 49% remain unchanged from the original agreement, with the exception of the extension of the expenditure requirement to September 1, 2006). To earn the initial 51%, Crowflight will pay Mr. Poupore $50,000 on the signing of the revised agreement ($50,000 had been paid at the time of the signing of the original letter) which will extend the initial review period on title and technical data to September 1, 2004. If Crowflight elects to proceed with the acquisition on or before September 1, 2004, then Mr. Poupore is required to advise Crowflight of one of two options for the acquisition to proceed.
Under the first option, Crowflight would pay Poupore $50,000 on or before September 1, 2004, which will further extend the due diligence period to January 1, 2005. If at January 1, 2005, Crowflight elects to proceed with the acquisition, it will be required to make a payment of $250,000 on or before January 1, 2005 and issue 1,000,000 warrants. The 1,000,000 warrants would be comprised of two 500,000 tranches, entitling Mr. Poupore to acquire common shares of Crowflight for $0.75 and $1.25 respectively, with each warrant valid for a period of two years from the date of issue.
Under the second option, Crowflight would pay Poupore $100,000 on or before September 1, 2004 and issue 1,000,000 warrants. The 1,000,000 warrants would be comprised of two 500,000 tranches, entitling Mr. Poupore to acquire common shares of Crowflight for $0.75 and $1.25 respectively, with each warrant valid for a period of two years from the date of issue.
The Mystery Offset Dyke Property is believed to be the southern extension of the Worthington Offset that hosts Inco's Totten Deposit (10.1 million tonnes grading 1.5 % Ni, 2.0 % Cu and 4.8 g/t PGE's) and Crowflight's AER-Kidd Property. The Property, which consists of 1 patented claim covering 102 hectares, is located 8 km south of the Totten property. The Mystery Offset Dyke extends for a strike length of 800 metres across the MODP and hosts sulphide-rich, brecciated Quartz Diorite (QD) that is very similar to the QD that is the main host of Nickel, Copper and Platinum Group Metals (PGM's) mineralization within the Worthington Offset Dyke and in other important Offset dykes in the Sudbury Basin. Outcrop sampling and dimaond drilling by previous vendors indicate an excellent potential for discovering massive sulphide mineralization.
Crowflight Minerals is a Canadian junior mining exploration company listed on the TSX Venture Exchange focused on Nickel-Copper-PGM's exploration in the Sudbury Basin. The company currently has a land package of over 175 square kilometers containing six highly prospective properties located in the Basin - AER Kidd, Airport Property (joint venture with Millstream Mines Ltd.), Marble Mountain Option, Copenhagen Option, Mystery Offset Dyke and Peter's Roost. A $2.5 million drilling program is currently underway at AER-Kidd, while more early stage exploration is taking place on the other properties. The AER-Kidd property is located on the Worthington Offset between Inco's Totten Deposit (10.1 million tonnes grading 1.5 % Ni, 2.0 % Cu and 4.8 g/t PGE's) and prospective McIntyre Project.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
FOR FURTHER INFORMATION PLEASE CONTACT:
Crowflight Minerals Inc.
Jean Lafleur, P. Geo.
President and CEO
(416) 861-8165 (FAX)
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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