B20 outcrops yield encouraging grades

Sampling of outcrops about 2 km east of the main B20 mineralized zone by Appalaches Resources (APP-V) and Marum Resources (MMU-V) has returned up to 1.8 grams platinum per tonne, 3% copper, 0.9% nickel and 0.27% cobalt.

Nearby, previous surface outcrops returned platinum and palladium values up to 1.5 grams per tonne. The partners say that the latest results indicate a persistent platinum-enriched copper-nickel massive sulphide zone stretching along a strike length of more than 4 km.

Immediately to the northwest of the of the mineralized surface zone, a deep-penetration electromagnetic survey has identified a strong anomaly stringing for some 300 metres at a depth of between 100 metres and 260 metres.

Drilling to test the anomaly is slated to begin in January.

Marum can earn a 2-year option to acquire a half interest in the B20 property by subscribing to a private placement of 750,000 Appalaches units at 20 apiece. One unit comprises one share plus one purchase warrant exercisable at 23 per share for six months after closing, and 26 per share during the subsequent 12 years. Marum must also transfer to Appalaches a half-stake in the Group West and Group East properties.

To earn its 50% interest in B20, Marum must cover half of the expenditures racked up by Appalaches at B20 before May 31, 2002. Marum must also spend the same amount during the second year of the option. Appalaches expects to spend about $630,000 by May 31; the company has already spent $280,000.

The B20 property is subject to a 1% net smelter return royalty payable to a prospector. Half of the royalty can be purchased for $500,000.

Surface sampling and drilling elsewhere on B20 has outlined a large nickel and copper-bearing massive sulphide system and newly discovered zones with high platinum values. Surface sampling and trenching has returned between 0.2 and 2.2 grams platinum, 0.2 to 2% nickel, 0.5 to 4.9% copper and persistent cobalt values.

Earlier this year 12 of 15 short orientation holes aimed at geophysical conductors near surface mineralization returned more than 0.75% nickel and 0.5% copper. Hole 6 cut 30 metres running 0.33% nickel and 53 metres grading 0.22% nickel.