Outside consultant to oversee Spirit Lake exploration work

In addition, Glenn R. Clark & Associates will prepare a report on Spirit Lake’s exploration program by May 1 and approve all press releases regarding such exploration activity.

Spirit Lake resumed trading recently on the Montreal Exchange after a lengthy period of suspension; the exchange halted trading in the stock early last December.

The company says it will spend the next three months compiling and examining all of the available data and will then disclose the results of the examination prior to resuming drilling and other exploration work on the property.

About $2 million has been spent to date on the property located 30 miles northeast of Wawa, Ont., immediately east of the producing Kremzar mine, the company reports. Work began in the fall of 1987. Between December, 1987, and February, 1988, 38 holes representing 18,456 ft were drilled; 34 of those holes were drilled in the vicinity of the old Edwards mine.

A stripping program was undertaken in the fall of 1988 and further drilling performed; during September and October, 21 holes representing 11,000 ft were completed.

The company has identified two targets, the Spirit and Edwards zones, and two potential targets, the Shaynee zone and the Cline extension.

After a brief interval, drilling resumed. During November and December, 39 holes representing 22,911 ft were drilled.

Spirit Lake says a published (N.M., Dec 19/88) drill-indicated reserve figure (190,288 tons grading 0.35 oz gold per ton), released by a director, “was premature and inappropriate.”

The property’s Spirit zone lies 500 ft south-to-southwest of the Edwards shaft. Current data, the company says, indicates it is a zone of associated auriferous quartz veins striking about 120 degrees , and dipping 55-to-60 degrees to the north.

The longest vein has been tested over a distance of 300 ft while others have been found to be continuous over a strike length of 120 ft. Two of the shorter veins are estimated to be 50 ft long.

The Spirit zone remains open on strike, both east and west, and at depth.

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