Cross Lake Minerals Ltd.

Cross Lake Minerals Ltd.

August 25, 2005 09:01 ET

Cross Lake Minerals Ltd.: Second Deep Drill Hole Intersects Target Zone at Ruddock Creek; Plan of Arrangement Nearing Completion

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2005) - Cross Lake Minerals Ltd. (the "Company" or "Cross Lake") (TSX:CRN) is pleased to announce that further to the July 21, 2005 announcement, two deep diamond drill holes have now been completed on the Ruddock Creek Property, which is located 100 km north of Revelstoke in the Kamloops and Revelstoke Mining Divisions, British Columbia. This deep drilling program is designed to locate the faulted off western extension of the E Zone massive sulphide deposit, which is located within the nose of a fold along the "Ruddock Creek Sulphide Horizon". The E Zone has been traced by drilling from outcrop on the eastern end for an approximate length of 250 metres with a width of approximately 150 meters in plan view to where it is offset by the E Fault. This detailed drilling has defined the shape and dimensions of the E Zone up to where it is offset by the E fault.

The first two deep drill holes both successfully intersected the projected extension of the Ruddock Creek Sulphide Horizon. The first hole, RD-05-112 was drilled to a depth of 793.4 meters and intersected both limbs of the fold. The second hole, RD-05-113 was drilled to a depth of 772.2 meters and intersected one sulphide zone, which is believed to represent the nose of the fold, the primary target at a depth of 710 meters. The Company is pleased that the first two deep drill holes on the Ruddock Creek Property have both intersected the projected extension of the Ruddock Creek Sulphide Horizon. The intersections are approximately 240 meters west of the E fault, which is a similar length to the E-Zone as currently outlined. The Company now plans to continue the deep drilling program as surface condition permit. All drill core samples will be analyzed at ACME Analytical Laboratories Ltd. of Vancouver.

In addition to the deep drilling program, the recently completed airborne EM survey over the Ruddock Creek Property has now been processed and interpreted. As a result of this study, several targets have been defined over a distance of 5.5 kilometers along the Ruddock Creek Sulphide Horizon, some associated with known massive sulphide showings. Several of these showings and targets are at lower elevations, which will allow the Company to extend field operations well into the fall. Ground geophysics, geological mapping and surface sampling are now being planned to evaluate these targets. Drilling will be conducted on selected targets as the planned exploration program continues. Exploration work is being conducted under the supervision of the Company's Qualified Person and Vice President, Exploration Jim Miller-Tait, P.Geo.

As has been previously announced, upon completion of the Plan of Arrangement approved by the shareholders of Cross Lake on June 15, 2005, Cross Lake's base metals properties, including the Ruddock Creek Property and three other properties in the Revelstoke region of British Columbia, will be indirectly held by Selkirk Metals Corp. ("Selkirk"). Selkirk will hold an option to acquire up to a 70% interest in the Ruddock Creek Property pursuant to the option agreement with Doublestar Resources Ltd. ("Doublestar") (TSX VENTURE:DSR). Cross Lake will receive 2 million shares of Selkirk in connection with the $500,000 exploration program it is conducting on the Ruddock Creek Property.

The Arrangement will close on August 30, 2005. Under the Arrangement, persons who are registered as shareholders of Cross Lake on August 30th will receive one share and 1/4 warrant in Selkirk for every 10 shares of Cross Lake they own as of the effective date of the Arrangement. The Company is pleased to announce that the private placement financing of Selkirk is also expected to close on August 30, 2005 and that Selkirk is proceeding with its application for listing on the TSX Venture Exchange. This Arrangement will allow Cross Lake to focus on the pursuit of its precious metal properties while Selkirk can aggressively pursue the base metals properties with Cross Lake shareholders retaining a significant interest in Selkirk.

Contact Information

  • Cross Lake Minerals Ltd.
    Gordon A. Keevil
    (604) 687-2038
    (604) 687-3141 (FAX)
    Tangent Management Corp.
    Investor Relations
    (604) 642-0115