Cross Lake secures QR mine ownership (April 26, 2004)

Vancouver — Cross Lake Minerals () has acquired a 100% interest in the QR mine property from Kinross Gold. The company has accepted the transfer of the QR mining lease and related documentation from the Government of British Columbia, which has been in the works for a few years.

Cross Lake had inked a deal with Kinross in July of 2002 to acquire 100% of QR, located about 60 kilometers southeast of Quesnel, British Columbia. In a revised deal inked in late 2003, Cross Lake agreed to pay $50,000 in cash and arrange to release the mine’s $750,000 reclamation bond back to Kinross and indemnify Kinross against future liability. Kinross loaned Cross Lake $300,000 in order to replace a portion of the bond.

Last October, Cross Lake acquired Gold Giant Ventures, a junior that held an option to earn a 50% interest in QR by virtue of a farm-out deal Cross Lake made after optioning the property.

Kinross operated the QR mine from 1995 until 1998 when it was placed on care-and-maintenance due to low gold prices. The QR mill, rated at 800 tonnes per day, and all related facilities were well maintained and are fully equipped. The permits for operation of the mill and tailings facility are also in place; given the green light, they could return to production fairly quickly and at little cost.

A diamond drill program is currently under way on the property to expand the resource which now stands at 903,510 tonnes averaging 3.1 grams gold per tonne. The drilling is focusing on the Midwest and North zones. The Midwest zone had been developed for underground mining by Kinross. The large North zone contains a partially developed open pittable resource and may be expanded to add to the life of the mine. Drilling last fall should add to the resource as well.