| ||November 01, 2004|
MBMI Signs MOU on Former Copper Producing Property
| ||MBMI Resources Inc. (TSXV: MBR) wishes to announce that it has signed a memorandum of understanding (MOU) with Goldspring Inc.(OTC.BB:GSPG) to acquire a 50% interest by way of joint venture in the 310 acre, former producing Big Mike Copper Project located 32 miles south of Winnemuca, Nevada . The transaction is subject to due diligence, and regulatory approval.|
The Joint Venture's objective is to commercially develop the Project utilizing a vat leaching process. MBMI is responsible for all costs associated with the development of the Project estimated to be in the amount of USD $1.25 to 1.50 million.
A sampling program carried out in the mid 1960's on the property, led to a shipment of copper oxide ore to ASARCO in Tacoma, Washington. This led to the discovery and delineation, by diamond drilling, of a small high grade copper sulfide orebody. This ore was mined by an open pit and directly shipped to the Tacoma smelter in 1970 by Ranchers Exploration and Development. A total of 25 million lbs of copper was produced from this high grade ore.
The same diamond drilling program outlined a resource of a further 25 million lbs of copper in oxidized and mixed oxide/sulfide material. Much of this material was mined as 'waste' during the exploitation of the sulfide ore. Some of the material was crushed and loaded onto a heap for a heap leaching operation. Ranchers continued with this leaching for a short time but low copper prices caused closure.
The historical reserves (which may currently be regarded as resources) estimated by Ranchers and confirmed by later workers can be summarized as follows:
||GRADE %Total Cu
||RESOURCES lbs '000s
Management considers these historical estimates to be reliable and relevant, although they were not estimated in compliance with National Policy 43-101. Metallurgical testwork within the past 5 years has shown that recoveries of 85% copper may be obtained with a vat leaching system.
The main sulfide deposit was a volcanogenic massive sulphide of the hot springs type. When discovered the deposit consisted of a secondarily enriched pod of nearly massive copper and iron sulphides enveloped by altered rock containing zones and disseminations of secondary copper mineralization. The mineralogy is complex as various secondary effects are apparent. The structure of the area is also complex. A shear zone runs through the Big Mike pit and extends approximately 1,000 feet in the south east and north west directions away from the pit. This is also the general strike of the area with dips 40 to 60 degrees to the north east. This shear zone may be an indicator of further deposits. Five target areas have been identified for additional exploration on and adjacent to the Big Mike property.
MBMI is a Canadian based mining exploration company focused on the exploration, and development of mineral properties. 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 Sudbury, Ontario, the Copper Prince nickel/copper 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
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: Tue Nov 9, 2004, Final McMillan Gold Mines Option Agreement Signed
You can view the Previous News Releases item: Thu Oct 7, 2004, MBMI Options Former Producing McMillan Gold Mine Property to Young--Shannon Gold Mines
You can return to the main News Releases page, or press the Back button on your browser.