| ||March 08, 2005|
High Grade Gold Zone Extended On McMillan Gold Mine Property
| ||22.2 g/t (0.65 oz.) gold over 1.85 metres|
MBMI RESOURCES INC. (MBR-TSXV) "MBMI" and Young-Shannon Gold Mines, Limited (GYS-TSX.V) are pleased to report assay results from a diamond drilling program completed on MBMI's McMillan Gold Mine ("McMillan") property located in Espanola, Ontario, Canada. Five drill holes, totalling 1,485 metres have been completed to date.
Assay results showed that the gold zone continued both east and west along strike from drill holes MM-2-04 and MM-3-04. The western strike extension, in particular, showed that the lower part of the zone found in drill hole MM-03-04 was extended to drill hole MM-05-04 with continued high grades and widths. One intersection averaged 5.52 g/t (0.16 oz.) gold over 4.05 metres and a second intersection 8.4 metres lower in the hole averaged 11.16 g/t (0.32 oz.) gold over 4.65 metres, including one section of 22.2 g/t (0.65 oz.) gold over 1.85 metres.
The fifth drill hole from this current campaign was designed to continue defining the strike, plunge, and rake extensions to gold mineralization previously mined on the property in the mid-1930's. Hole MM-05-05 intersected a high grade zone located approximately 310 ft. (94.5 metres) below the lowest mine workings and at least 75 ft. (23 metres) along strike, which assayed 8.72 g/t (0.25 oz.) gold over 1.3 metres, including one section of 27.22 g/t (0.79 oz.) over 0.3 metres.
The first four drill holes were collared from two setups and designed to bracket the new gold zone discovered on the property during an April, 2004 drilling campaign by MBMI. Drill hole MM-3-04 reported 7.91 g/t (0.23 oz.) gold over 10.85 metres; drill hole MM-2-04 (collared from the same location as MM-03-04 with a shallower inclination) intersected the up-dip extension of the gold zone in MM-03-04 (see MBMI's Press Release of May, 12, 2004).
Drill holes MM-05-01 and MM-05-02, from the current campaign, were collared from the same location with inclinations of -50° and -65° respectively, designed to test a 50 ft. eastward strike extension of the new gold zone. Drill holes MM-05-03 and MM-05-04 likewise were collared from the same location with inclinations of -50° and 65° respectively and were designed to test a 50 ft. westward strike extension of the new gold zone.
Drilling is expected to recommence on the McMillan property in April with the objective of expanding the new gold zone as well as extending the gold mineralization from the previous mine workings.
Results of the first five drill holes are tabled below:
Assays by Swastika Laboratories Ltd., Swastika, Ontario
Gold was first discovered on the McMillan property in the early 1920's. Shaft sinking and underground exploration were carried out in the late 1920's, with the shaft reaching 900 feet in depth. A 125 ton per day mill was subsequently built and operated until 1937. The mine produced 60,000 tons of ore at a recovered grade of 0.18 ounces per ton. Historical records indicate that mineralization continued below the 900 foot level, but a grade of 0.20 ounces per ton was considered uneconomic at that time. In 1985/86 the mine was dewatered and sampled underground. Sampling from different underground stopes ranged from 0.07 ounces per ton to 0.48 ounces per ton. Based on these results, a work program consisting of underground diamond drilling to determine vein continuity, and to locate areas of undeveloped gold bearing zones was recommended at that time, however, due to lack of funding, the program was not carried out. The April 2004 program of diamond drilling was based on results of the 1985/86 sampling program, and on testing geophysical targets from a 1997 survey that may indicate extensions to the mine area.
The McMillan claims comprise 34 unpatented mining claim units in Mongowin and McKinnon townships, located approximately 14 kilometres south of the town of Espanola, Ontario on the north shore of House Lake.
Young-Shannon's option agreement with MBMI was entered into in November, 2004 and enables Young-Shannon to earn a 50% interest in the McMillan property over a three year period for staged payments of $75,000 in cash and 650,000 common shares plus a three year work commitment of $900,000. Young-Shannon has the option to increase its interest to 60% by issuing an additional 250,000 common shares and spending $400,000 more on the property.
Greg Lipton, P. Geo. is the qualified person for the Company as required under National Instrument 43-101. He is a member of the Association of Professional Geoscientists of Ontario (APGO).
MBMI maintains a major interest in three nickel properties in the Philippines, and also holds the rights to three Canadian projects; the McMillan gold mine property in Espanola, Ontario, the Copper Prince Cu-Ni-Au/PGM property in Sudbury, Ontario, and the Squall Lake, Manitoba gold project.
For further information:
David G. Tafel - VP Corporate Development
Tel: 604-683-1991; Fax: 604-683-8544; Toll free: 1-877-399-1991
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
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