| ||November 09, 2004|
Final McMillan Gold Mines Option Agreement Signed
| ||MBMI Resources Inc. (MBR:TSXV) wishes to announce that it has completed and signed the definitive option agreement with Young-Shannon Gold Mines, Limited (GYS:TSXV)on the McMillan Gold Mine claims, located 75 kilometers southwest of the Greater City of Sudbury, northern Ontario. The option agreement provides for Young-Shannon to earn a 50% interest in MBMI's McMillan Gold Mine 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 (See News Release dated October 7, 2004). 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.|
The McMillan gold mine property consists of 26 unpatented mining claim units located in Mongowin and McKinnon townships. The claims host the McMillan mine, a former gold producer. Gold was first discovered on the McMillan claims in the early 1920's and by late in that decade a vertical shaft and underground exploration had been completed. Shortly thereafter, a 125 ton per day mill was erected on site and operated until 1937. The McMillan shaft was de-watered and re-sampled between 1985-89 but, in spite of a recommendation for further underground drilling, minimal exploration work was done until 2004.
In 2004, MBMI completed seven surface diamond drill holes for a total of 1,077 meters at the McMillan property focused on extending the known gold mineralization to the east and west of the previously mined area. Some of the best gold intersections include hole MM-1B-04 (4.65 meters grading 11.21 grams per tonne), hole MM-2-04 (5.00 meters grading 9.89 grams per tonne) and hole MM-3-04 (10.85 meters grading 7.91 grams per tonne). The known gold zones remain open along strike and down dip.
Young--Shannon plans to carry out a diamond drill program before the end of this year designed to further extend the identified gold mineralization along strike and to depth. The program will also target some additional untested structures elsewhere on the property. Approximately 1,500 meters of drilling is planned in 10 surface boreholes.
David Beilhartz, P. Geo. was MBMI's Qualified Person for the 2004 drilling as defined by National Instrument 43-101 and Young Shannon's Qualified Person is Kevin Bullock, P. Eng. Mr. Bullock is a Registered Professional Engineer in the province of Ontario. Swastika Laboratories Ltd. of Swastika, Ontario assayed the 2004 core samples using the fire assay method.
MBMI maintains a major interest in three nickel laterite properties in the Philippines, and also holds the rights to three Canadian projects; the McMillan gold mine property in Espanola, Ontario, the Copper Prince nickel/copper/platinum group metals property in Sudbury, Ontario, and the Squall Lake, Manitoba gold project.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
For further information, contact:
David G. Tafel - VP Corporate Development
Tel: 604-683-1991; Fax: 604-683-8544
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.
You can view the Next News Releases item: Wed Nov 24, 2004, Drill Program To Commence On Copper Prince Property
You can view the Previous News Releases item: Mon Nov 1, 2004, MBMI Signs MOU on Former Copper Producing Property
You can return to the main News Releases page, or press the Back button on your browser.