First Choice (FSD.V) is pleased to announce a letter of intent to form a strategic alliance with Crystallex International Corporation (KRY.T). The alliance will be structured to allow Crystallex to benefit from First Choice’s experience in Canadian mining exploration and for First Choice to benefit from Crystallex’s capability to take an exploration project and place it into production.
First Choice is active in large scale gold exploration projects wholly within Canada. Crystallex operates the Albino Mine in Venezuela, and has a number of other significant claim holdings and concessions in Venezuela and elsewhere in South America.
The first stages of the alliance, which are subject to approval by the VSE and TSE, are planned as follows:
- Crystallex will purchase from First Choice and privately a 30% interest in the Knob Hill gold project, located on northern Vancouver Island, approximately 35 km northwest of the Island Copper mine site.
- Crystallex will fund the current exploration programme on the Knob Hill property through a CDN$400,000 private placement of shares in First Choice.
- First Choice will offer to Crystallex a two year first right of refusal on future financing up to CDN$2 million.
- Marc Oppenheimer, President and CEO of Crystallex, will join the Board of Directors of First Choice. Dr. Luca Riccio, VP Exploration of Crystallex, will take up the position of External Geological Advisor to the Board of First Choice.
The focus of First Choice is on the creation of large tonnage gold targets from projects which are at "grassroots" to early exploration phases. Currently, two projects, one in northeast Quebec and the other on northern Vancouver Island, BC, have progressed to drill phase after developing targets with large tonnage potential.
At Knob Hill, on northern Vancouver Island, the Company’s progressive exploration on the 30 square km property defined a gold-arsenic-lead-zinc-copper anomaly 1200 metres long and over 700 metres wide, within a large rhyolite dome complex. This rhyolite complex is one of a series of mineralized centres along a belt of porphyry copper-gold deposits. Current mined or probable-possible gold reserves in this belt total over 4 million ounces Au.
The Company drill tested the main part of the lead-arsenic-gold anomaly in November, 1996 with a "prospector" drill. Each of the ten shallow holes showed extensive polymetallic sulphide vein and breccia mineralization, with low grade gold, consistent with the alteration halo of a major gold target. Ore grade mineralization was present in short sections in two holes which also showed more silicification. Of particular note was the very high gold-copper ratio of copper veinlets in the first hole (30.0 g Au/t, 0.19% Cu over 21 cm). A scattering of these copper veinlets over the lower 40 metres of the hole almost doubled the hole average grade of 0.23 g Au/t. The interval, 54.3 to 93.0 metres, averaged 0.35 g Au/t, including 14 metres (54.3 to 68.3 metres) which averaged 0.71 g Au/t.
Follow-up geophysical surveys have defined two very large targets within the area of the multi-element anomaly. One target, 500 metres long by 200 metres wide, shows very high sulphide content. The second, 500 metres in diameter, shows strong silicification as a core to the high sulphide target. This second area also has the highest copper and gold soil sample values for the area. A 3000 metre drill programme, planned for this summer will test both targets.
At Schefferville, Quebec, the Company’s project covers 200 square km with over 75 gold showings. A "Lupin"-style iron formation sequence hosts the mineralization. The two best defined targets had exploration work in 1995 and 1996. The Lac La Borde area has very high silt samples (27 g Au/t) and high soil samples (up to 405 ppb Au), overlying altered iron formation. Four diamond drill holes have recently been completed on this target, with results expected in the near future. The second target, at Lac Guillaume, has surface outcrop of silica-pyrite-arsenopyrite iron formation which assays up to 5 g Au/t. Soil sampling on both sides of the showing defined a 2 km long gold anomaly which is up to 350 metres wide. Ground geophysics, trenching, and mapping are planned for this summer. The target is less than 5 km from a good road, and is in open, rolling country.
The planned alliance between First Choice and Crystallex will provide benefits to the shareholders of both companies and permit faster development of First Choice’s current exploration projects in British Columbia and Quebec. Additional North American exploration projects will be reviewed for both companies, with an emphasis on exploration projects for First Choice and development projects for Crystallex.
ON BEHALF OF THE BOARD
"Peter Dasler"
Peter Dasler
President
NOTE: The Toronto Stock Exchange and the Vancouver Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of this news release.
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