Firesteel Options Two Properties
In Lac Rocher Area
Firesteel Resources Inc. announces that the Company has entered into
an option agreement with Cominco Ltd. for the exploration of two large
properties in the Lac Rocher area of northwestern Quebec where Nuinsco
Resources recently made a significant nickel-copper discovery. The
Corbevan (166 claims totaling 2556 ha) property is situated 30
kilometers northwest of the Nuinsco discovery while the Kenevan (179
claims totaling 2,864 ha) property is located 20 kilometers north.
Numerous high priority, coincident, EM and magnetic anomalies have
been delineated on the properties. Several of these are large and ovoid
in shape. The most significant ovoid magnetic anomaly is 700 meters
long, 300 meters wide and exhibits two very strong EM conductors. It is
associated with a gabbroic intrusion mapped by the Quebec Dept. of
Natural Resources. Several gabbroic bodies have been mapped on the
Kenevan Property and exhibit anomalous geophysical responses. Cominco
Ltd. acquired these properties in 1995 on the basis of airborne
geophysics and favorable geological setting.
The option allows Firesteel to earn a 100% interest in the properties
over a four-year period, through total exploration expenditures of
$1,500,000 and issuing several tranches of common shares to Cominco. The
first year work commitment is $200.000. Cominco will retain the right to
earn back a 60% interest in the properties by spending 1,75 times
Firesteel's expenditures over a subsequent five-year period.
An initial drilling program will test to test the most prospective
geophysical and geological targets.
ON BEHALF OF THE BOARD OF DIRECTORS OF
FIRESTEEL RESOURCES INC.
David G. Dupré, President