| | | January 05, 2005
Drill Program Commences On McMillan Gold Mine Property
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| | MBMI RESOURCES INC. (MBR-TSXV) "MBMI" wishes to report that a 1,525-metre (6,500-foot) diamond drill program has commenced on its McMillan gold mine property located in Espanola, Ontario, Canada. The drilling program will consist of at least 12 diamond drill holes targeted to test, at depth, a new area of gold mineralization discovered during an April, 2004, drilling campaign by MBMI, as well as to continue defining the strike and dip extensions to gold mineralization previously mined in the mid-1930s. The property was recently optioned to Young-Shannon Gold Mines Ltd.
MBMI completed seven surface diamond drill holes for a total of 1,077 meters at the McMillan property in 2004, 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.
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.
The property option agreement allows Young-Shannon to earn a 50% interest in MBMI's McMillan Gold Mine Property over a three year period by making 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.
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
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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