by Nancy Gardiner
Northern News Services

NNSL (Oct 08/97) - San Andreas Resources Corporation has announced the issuance of 890,000 common shares on the Toronto Stock Exchange.

The company plans to take net proceeds of $445,000 from warrant subscriptions, together with the company's existing cash resources for working capital and exploration work on the company's Prairie Creek property in the NWT.

The zinc, lead and silver project is about 170 kilometres off a winter road from Nahanni Butte.

Company president Alan Taylor says "the underground sampling process was undertaken in August and September, and more metallurgical work needs to be done."

There is already $100 million in infrastructure at the site, originating from when the property was owned by Cadillac Explorations in 1982. There's a 1,000 tonne-per-day mill that's 95-per-cent complete, staff accommodations for 200, a maintenance shop, buildings and tailings pond on site, says Taylor.

The mine never produced and went bankrupt in 1982, he says. That was when the Hunt brothers from Texas failed in their bid to control the world's silver market, throwing prices into disarray.