EXPLORATION 1998 — Thunderwood, Cons. Abitibi drill for copper-gold in Manitoba

Partners Thunderwood Resources (THS-T) and Consolidated Abitibi Resources (CAQ-M) have intersected high-grade copper and gold mineralization in two separate zones while drilling at the Lew volcanogenic copper-zinc-gold property, 20 km east of Flin Flon, Man.

Hole 16 intersected 38.5 grams gold and 49.8 grams silver per tonne over 3.1 metres (from 11.4 metres) and 5.4% copper over 3.1 metres (from 453.8 metres).

The gold mineralization is associated with minor amounts of pyrite and chalcopyrite in quartz-carbonate veins that occur in a sericitic quartz porphyry. No visible gold was noted.

Other highlights include:

* 1.2 metres (from 28.4 metres) of 1.9% copper and 0.7 metre (from 156.9 metres) of 4.8% copper in hole 12;

* 1.5 metres (from 368.5 metres) of 2.6% copper in hole 14; and * 0.8 metre (from 379 metres) of 2.3% copper plus 11.6 metres (from 387.7 metres) of 1.2% copper, including a 1.8-metre section grading 2.6% copper, in hole 16.

Hole 12 confirmed that the copper mineralization seen in three prior holes at a vertical depth of between 15.3 and 61 metres extends to a depth of 122 metres and is still open at depth and along strike.

Holes 14 and 16 were targeted at the 305-metre level to follow up an off-hole pulse electromagnetic (EM) anomaly identified last year.

Hole 17 has been collared to evaluate the depth potential of the gold and copper mineralization intersected in hole 16, and one deep and several shallow holes are scheduled to be drilled before the winter break-up.

All the copper mineralization intersected during the current program (with the exception of a narrow interval of massive sulphides in hole 12) occurs as stringers, with or without pyrite, within moderately to intensely altered felsic volcanics.

The partners say this style of copper mineralization suggests that an extensive hydrothermal-alteration zone exists on the Lew property.

The ongoing drilling program has three aims:

* to test the depth-extent of copper-gold mineralization known to occur south of Leo Lake;

* to evaluate the new gold mineralization discovered on the property in the autumn of 1997; and

* to test various induced-polarization and EM geophysical conductors, as well as zones of hydrothermal alteration, defined

in 1997.

Thunderwood and Abitibi are each earning a 30% interest in the Lew and 45 other related properties from owner Aur Resources (AUT-T) by spending $5 million by Feb. 28, 1999.

In other news, drilling has begun at the partners’ Mystic Lake base metal project in Saskatchewan, where two previously untested airborne-EM anomalies are being drilled before lake ice conditions deteriorate. These two anomalies occur 3 km northeast of, and along trend from, the past-producing Coronation copper-zinc-gold mine.

At the Bruce Morgan and Reed Lake base metal properties, situated 18 km southwest of Snow Lake, Man., the partners have begun a $350,000 program consisting of 2,000 metres of drilling in seven holes, as well as litho-geochemical sampling and downhole pulse-EM surveys.

The Bruce Morgan property hosts the Morgan Lake massive sulphide deposit, which contains 200,000 tonnes grading 8.0% zinc. Two holes will test hydrothermal-alteration zones that occur along the Bruce Morgan horizon, while another two holes will test undrilled airborne-EM anomalies that occur in geology favorable for massive sulphides.

Three holes are planned for Reed Lake. Previous drilling in 14 holes defined a hydrothermal-alteration zone containing abundant

garnet-chlorite-biotite-staurolite with minor copper-zinc sulphides up to 18.9 metres thick over a strike length of 305 metres and to a depth of 183 metres.