| | | August 15, 2005
New, Large Geophysical Target Defined on McMillan Gold Mine Property
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| | MBMI RESOURCES INC. (TSXV:MBR) "MBMI" reports that Young-Shannon Gold Mines, Limited (GYS-TSX.V) has received the analysis of data from its recent Down Hole IP geophysical survey covering a portion of the Company's McMillan Gold Mine ("McMillan") optioned claims in Espanola, Ontario, Canada. The survey was very successful and a new, wide, and highly conductive geophysical target, related to recently drilled gold mineralization, has been defined at least 300 metres below surface. This target occurs east of the historic underground mine workings and at least 50 metres deeper than the deepest workings.
Spectral IP surveys were completed in eight of the boreholes from diamond drilling completed by Young-Shannon in 2005 and MBMI in 2004. The data obtained have been used to construct a 3D spatial model of the mineralization. A strong off-hole chargeability response from diamond drill hole MM-05-05, peaks from 310--350 metres depth. Analysis shows a broadening of this chargeability/conductivity zone to the west with the anomaly extending from 290 -- 390 metres below surface. The new geophysical target also extends to the east, where the measured chargeability increases by a factor of two within a zone that is at least 30 metres wide. The geometry shows the target plunging steeply to the east and is open at depth.
The 3D modelling of the data shows that the zones of silica (quartz) flooding that host the new high grade gold zone, recently defined by the diamond drilling campaigns from this past winter and spring, are concentrated in distinct zones within a broad envelope which may be related to this newly-recognized conductive zone. This new geophysical target will be a high priority focus for diamond drill testing follow-up expected to commence later this year.
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.
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.
The option agreement with MBMI enables Young Shannon an ability 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. Young-Shannon has exceeded their first year work commitments on the McMillan Mine Property, having spent approximately $230,000 to date.
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).
For further information:
David G. Tafel - VP Corporate Development
Tel: 604-683-1991; Fax: 604-683-8544; Toll free: 1-877-399-1991
Email: mbr@mbmiresources.com
Website: www.mbmiresources.com
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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