TORONTO, April 21 /CNW Telbec/ - Xmet Inc. (TSXV: XME) is pleased to report that a drill has been mobilized to the Buchans
Junction property, located in central Newfoundland. An 800 metre drill
program will target gold and silver rich polymetallic volcanogenic
massive sulphides (VMS) 20 kilometres east of the historic world-class
Buchans Mine. The Buchans mine was the richest VMS deposit in all of
eastern North America. The mine operated for 57 years and closed in
1984, after producing over 16M tonnes of polymetallic ore with an
average mill-head grade of 14.51% Zn, 7.56% Pb, 1.33 %Cu, 126 g/t Ag and 1.37 g/t Au.
The most significant Buchans-style VMS mineralization discovered outside
of the Buchans Mine area was made by Phelps Dodge at the Mary March
discovery, near Buchans Junction. The Mary March and Nancy April
discoveries are located 2 kilometres southwest from Xmet's property
boundary along the same favourable volcanic horizon. In 1999, Phelps
Dodge drilled a 9.33 metre wide zone of massive sulphide mineralization
that averaged 10.33% Zn, 1.67% Pb, 0.66% Cu, 118.10 g/t Ag and 4.11 g/t Au in drill
hole MM-2924-7. A large 2 km x 400 meter wide polymetallic soil geochemistry anomaly
(Cu-Zn-Pb-Ba) defined by Phelps Dodge over the Mary March - Nancy April
discovery area trends directly to the border of Xmet's claims. Xmet's
drill program will test an airborne electromagnetic (EM) conductor
located under Lapland Pond that is interpreted to be on strike with the
Mary March horizon and coincident with the large soil anomaly as well
as anomalous basal till Cu-Zn-Pb values overlying the EM conductor.
"Xmet has a compelling drill target, including favourable geology
combined with a coincident AEM conductor defined over 1.2 kilometres,
with surface soil and basal till geochemical anomalies overlying this
conductor. The location of the target is stratigraphically along strike
from the Mary March and Nancy April VMS discoveries and is considered
highly prospective for a discovery", commented Bill Yeomans, the V.P.
Xmet can earn a 50% interest in the property from Canstar Resources Inc.
through exploration expenditures totalling C$850,000. and cash payments
totalling C$1,000,000 over a three year period. First year work
commitments require C$100,000 in exploration expenditures as well as a
first year anniversary payment of C$50,000. Drilling is anticipated to
commence during the last week of April.
Further information about the property can be located on Xmet's website
at www.xmet.ca where maps, geological reports and figures for the Buchans Junction
project are available.
Xmet is also pleased to announce that Mr. Stephen Stewart, V.P.
Corporate Development, has been granted, pursuant to Xmet's stock
option plan (the "Plan"), options to purchase up to 250,000 common
shares in the capital of Xmet. The options are priced at $0.20 per
share and expire 5 years from the date of grant. Such options are
subject to the terms and conditions of the Plan, certain vesting
provisions and the policies of the Exchange.
Quality Assurance and Quality Control
Mr. Bill Yeomans, P. Geo., is a qualified person under National
Instrument 43-101 and was responsible for this news release. Material
samples for analysis and assay from drill core from this program will
be split in half using a manual core splitter. Half of the core will be
sent to Eastern Analytical Limited laboratory in Springdale, NL for
analysis and the remaining half preserved for future reference. A
strict QA/QC program will be followed including the use of certified
pulp standards, blanks and verification analyses in a second
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE XMET INC.
For further information:
Charles Beaudry, President and COO
Phone (416) 644-6588
Tim Gallagher, Director
Phone: (416) 925-0090
Renmark Financial Communications Inc.
Maurice Dagenais: firstname.lastname@example.org
Matthew Planche: email@example.com
Tel.: (514) 939-3989 or (416) 644-2020