Sudbury Contact Mines Limited - Exploration update from 2001 drill program

Stock Symbol: SUD (TSE)



Mar 02, 2001, 00:00 ET from Sudbury Contact Mines Limited

    TORONTO, March 2 /PRNewswire/ - Sudbury Contact Mines Limited (Sudbury)
 is pleased to report on its current phase of exploration drill programs.
 
     Tonkin Springs, Nevada: This current phase has seen almost 15,000 feet of
 reverse circulation drilling completed at its 60% owned Tonkin Springs project
 (U.S. Gold Corporation - OTC - BB: USGL - 40%). In the mine corridor this
 recent drilling has proven successful in expanding several areas of known gold
 mineralization. Thirteen holes were drilled along the mine corridor in the 0-
 15 area with nine of these returning significant gold mineralization. The
 better intercepts are as follows:
 
     -------------------------------------------------------------------------
     Hole Number  Interval   Thickness                Grade
     -------------------------------------------------------------------------
       101009     200'-270'     70'                0.166 optAu
                                         (including 20' of 0.481 opt Au)
     -------------------------------------------------------------------------
       101010     100'-140'     40'                0.072 opt Au
                                      (including 10' of 0.116 opt Au and 10'
                                                 of 0.126 opt Au)
     -------------------------------------------------------------------------
       101015     180'-340'    160'                0.056 opt Au
                                          (including 50 of 0.141 opt Au)
     -------------------------------------------------------------------------
       101016     170'-250'     80'                0.148 opt Au
     -------------------------------------------------------------------------
       101017     230'-270'     40'                0.089 opt Au
     -------------------------------------------------------------------------
       101018     220'-320'    100'                0.098 opt Au
                                          (including 50' of 0.182 opt Au)
     -------------------------------------------------------------------------
 
     The results from the 0-15 zone show continuity in a southwest direction.
 Follow up drilling this summer will focus on expanding this zone further.
     An area known a TSP-5, also within the mine corridor, encountered
 significant gold mineralization in 3 of 4 holes drilled. The best hole showed:
 
     -------------------------------------------------------------------------
     Hole Number  Interval   Thickness                Grade
     -------------------------------------------------------------------------
       100022     230'-320'     90'                0.103 opt Au
                                          (including 70' of 0.128 opt Au)
     -------------------------------------------------------------------------
                  420'-470'     50'                0.081 opt Au
                                          (including 30' of 0.111 opt Au)
     -------------------------------------------------------------------------
 
     The drill results from the TSP-5 zone indicate further continuity to the
 east. The reverse circulation drill program slated for early this summer will
 further test this trend to the east.
     Upon completion of the upcoming summer drill program an updated economic
 evaluation of a pit design that would incorporate the 0-15 zone and TSP-5 will
 be completed. This evaluation will include an updated resource calculation on
 the Tonkin Springs Project. Previously announced the gold resource was
 calculated at 1.37 million ounces.
     An additional area within the mine corridor, Rooster NE, had 5 of 9 holes
 drilled showing significant gold mineralization with strongly anomalous gold
 values from top to bottom of most holes. The best hole showed:
 
     -------------------------------------------------------------------------
     Hole Number  Interval   Thickness                Grade
     -------------------------------------------------------------------------
       401008     160'-210'     50'                0.051 opt Au
                                          (including 10' of 0.119 opt Au)
     -------------------------------------------------------------------------
                  270'-400'     130'               0.055 opt Au
                                          (including 60' of 0.093 opt Au)
     -------------------------------------------------------------------------
 
     Several exploration targets outside the mine corridor continue to be
 tested including the newly discovered mineralized area reported late last
 year, Twin Peaks. The mineralization in the Twin Peaks area consists of thick,
 highly anomalous gold zones in the same host rock as other gold resources on
 the property, but in an unexposed and previously unexplored area some seven
 miles north of any previous drilling on the property. Nine holes have been
 completed in the discovery area, 4 of which have reported low ore grade values
 in zones up to 245 feet thick. Drilling will continue this summer in this
 highly prospective area.
 
     Fenton Property, Guerchville Township, Quebec: This property was optioned
 from TGW Corp. Inc. (formerly Boreale Exploration) in 2000. A 10,000 feet
 diamond drill program has been underway since January of this year.
     The first priority of this program was to test a composite mineral
 inventory of 469,642 short tons @0.14 ounces of gold per ton calculated
 over an area 1,640 feet long by 660 feet wide, and tested to a depth of 660
 feet. Drill holes from this area include assays ranging from 0.06 ounces of
 gold per ton to 0.19 ounces of gold per ton over widths ranging from 2.8 feet
 to 31.0 feet. Although the deformation in the main zone could be followed no
 significant gold values were returned. The results from this main zone will be
 reinterpreted again as the drilling has determined mineralization in the main
 zone to be more complex than originally thought. However the diamond drilling
 in this main zone did provide some further encouragement that the zone may
 extend to the north of the known mineralization. Hole 110-01-02 returned a
 value of 0.29 ounces of gold per ton over a length of 9.5 feet. This
 intersection is north of the main zone and in an area not previously thought
 to host mineralization. This new area will have a follow up drill program
 later this year.
     Four holes have also been drilled below stripped outcrops that were
 mapped and channel sampled this past summer. Gold values from these holes
 averaged 0.23 ounces per ton, but over lengths of one to two feet. The results
 do demonstrate however the high-grade nature of the system on the Fenton
 property.
     Diamond drilling is also being done on a series of strong IP anomalies
 that were discovered last summer from the geophysical survey carried out at
 that time. Five holes are currently being drilled with results pending.
     The map that detail the drill results presented in this report can be
 viewed and/or downloaded from Agnico-Eagle Mines Limited website:
 
     www.agnico-eagle.com
     http://files.newswire.ca/3/pressrelease1.pdf
 
     Other Activities: Sudbury Contact is pleased to announce that it has
 recently signed a letter of intent with Inmet Mining Corporation to acquire
 the Snowbank Project, consisting of 87 "SC" lode claims located in White Pine
 County, Nevada. The program for the current year will consist of mapping, soil
 sampling, and geophysics. A diamond drill program could be carried out later
 this year.
     Sudbury Contact is an exploration and development company with gold and
 diamond properties in Nevada, Northeastern Ontario and Northwestern Quebec.
 Sudbury Contact is the principal exploration subsidiary of Agnico-Eagle Mines
 Limited (NYSE:   AEM, TSE: AGE). The common shares of Sudbury Contact are listed
 on the Toronto Stock Exchange (SUD).
 
 

SOURCE Sudbury Contact Mines Limited
    TORONTO, March 2 /PRNewswire/ - Sudbury Contact Mines Limited (Sudbury)
 is pleased to report on its current phase of exploration drill programs.
 
     Tonkin Springs, Nevada: This current phase has seen almost 15,000 feet of
 reverse circulation drilling completed at its 60% owned Tonkin Springs project
 (U.S. Gold Corporation - OTC - BB: USGL - 40%). In the mine corridor this
 recent drilling has proven successful in expanding several areas of known gold
 mineralization. Thirteen holes were drilled along the mine corridor in the 0-
 15 area with nine of these returning significant gold mineralization. The
 better intercepts are as follows:
 
     -------------------------------------------------------------------------
     Hole Number  Interval   Thickness                Grade
     -------------------------------------------------------------------------
       101009     200'-270'     70'                0.166 optAu
                                         (including 20' of 0.481 opt Au)
     -------------------------------------------------------------------------
       101010     100'-140'     40'                0.072 opt Au
                                      (including 10' of 0.116 opt Au and 10'
                                                 of 0.126 opt Au)
     -------------------------------------------------------------------------
       101015     180'-340'    160'                0.056 opt Au
                                          (including 50 of 0.141 opt Au)
     -------------------------------------------------------------------------
       101016     170'-250'     80'                0.148 opt Au
     -------------------------------------------------------------------------
       101017     230'-270'     40'                0.089 opt Au
     -------------------------------------------------------------------------
       101018     220'-320'    100'                0.098 opt Au
                                          (including 50' of 0.182 opt Au)
     -------------------------------------------------------------------------
 
     The results from the 0-15 zone show continuity in a southwest direction.
 Follow up drilling this summer will focus on expanding this zone further.
     An area known a TSP-5, also within the mine corridor, encountered
 significant gold mineralization in 3 of 4 holes drilled. The best hole showed:
 
     -------------------------------------------------------------------------
     Hole Number  Interval   Thickness                Grade
     -------------------------------------------------------------------------
       100022     230'-320'     90'                0.103 opt Au
                                          (including 70' of 0.128 opt Au)
     -------------------------------------------------------------------------
                  420'-470'     50'                0.081 opt Au
                                          (including 30' of 0.111 opt Au)
     -------------------------------------------------------------------------
 
     The drill results from the TSP-5 zone indicate further continuity to the
 east. The reverse circulation drill program slated for early this summer will
 further test this trend to the east.
     Upon completion of the upcoming summer drill program an updated economic
 evaluation of a pit design that would incorporate the 0-15 zone and TSP-5 will
 be completed. This evaluation will include an updated resource calculation on
 the Tonkin Springs Project. Previously announced the gold resource was
 calculated at 1.37 million ounces.
     An additional area within the mine corridor, Rooster NE, had 5 of 9 holes
 drilled showing significant gold mineralization with strongly anomalous gold
 values from top to bottom of most holes. The best hole showed:
 
     -------------------------------------------------------------------------
     Hole Number  Interval   Thickness                Grade
     -------------------------------------------------------------------------
       401008     160'-210'     50'                0.051 opt Au
                                          (including 10' of 0.119 opt Au)
     -------------------------------------------------------------------------
                  270'-400'     130'               0.055 opt Au
                                          (including 60' of 0.093 opt Au)
     -------------------------------------------------------------------------
 
     Several exploration targets outside the mine corridor continue to be
 tested including the newly discovered mineralized area reported late last
 year, Twin Peaks. The mineralization in the Twin Peaks area consists of thick,
 highly anomalous gold zones in the same host rock as other gold resources on
 the property, but in an unexposed and previously unexplored area some seven
 miles north of any previous drilling on the property. Nine holes have been
 completed in the discovery area, 4 of which have reported low ore grade values
 in zones up to 245 feet thick. Drilling will continue this summer in this
 highly prospective area.
 
     Fenton Property, Guerchville Township, Quebec: This property was optioned
 from TGW Corp. Inc. (formerly Boreale Exploration) in 2000. A 10,000 feet
 diamond drill program has been underway since January of this year.
     The first priority of this program was to test a composite mineral
 inventory of 469,642 short tons @0.14 ounces of gold per ton calculated
 over an area 1,640 feet long by 660 feet wide, and tested to a depth of 660
 feet. Drill holes from this area include assays ranging from 0.06 ounces of
 gold per ton to 0.19 ounces of gold per ton over widths ranging from 2.8 feet
 to 31.0 feet. Although the deformation in the main zone could be followed no
 significant gold values were returned. The results from this main zone will be
 reinterpreted again as the drilling has determined mineralization in the main
 zone to be more complex than originally thought. However the diamond drilling
 in this main zone did provide some further encouragement that the zone may
 extend to the north of the known mineralization. Hole 110-01-02 returned a
 value of 0.29 ounces of gold per ton over a length of 9.5 feet. This
 intersection is north of the main zone and in an area not previously thought
 to host mineralization. This new area will have a follow up drill program
 later this year.
     Four holes have also been drilled below stripped outcrops that were
 mapped and channel sampled this past summer. Gold values from these holes
 averaged 0.23 ounces per ton, but over lengths of one to two feet. The results
 do demonstrate however the high-grade nature of the system on the Fenton
 property.
     Diamond drilling is also being done on a series of strong IP anomalies
 that were discovered last summer from the geophysical survey carried out at
 that time. Five holes are currently being drilled with results pending.
     The map that detail the drill results presented in this report can be
 viewed and/or downloaded from Agnico-Eagle Mines Limited website:
 
     www.agnico-eagle.com
     http://files.newswire.ca/3/pressrelease1.pdf
 
     Other Activities: Sudbury Contact is pleased to announce that it has
 recently signed a letter of intent with Inmet Mining Corporation to acquire
 the Snowbank Project, consisting of 87 "SC" lode claims located in White Pine
 County, Nevada. The program for the current year will consist of mapping, soil
 sampling, and geophysics. A diamond drill program could be carried out later
 this year.
     Sudbury Contact is an exploration and development company with gold and
 diamond properties in Nevada, Northeastern Ontario and Northwestern Quebec.
 Sudbury Contact is the principal exploration subsidiary of Agnico-Eagle Mines
 Limited (NYSE:   AEM, TSE: AGE). The common shares of Sudbury Contact are listed
 on the Toronto Stock Exchange (SUD).
 
 SOURCE Sudbury Contact Mines Limited