| | | March 27, 2006
Garson Resources Ltd., (MBMI subsidiary) Enters Into A Letter Of Intent With Piper Capital Inc.
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| | Joint Venture Agreement on Copper Prince (Gold-Copper) Project, Ontario
MBMI RESOURCES INC. (MBR-TSXV) "MBMI" is pleased to report that Garson Resources Ltd., a subsidiary of MBMI Resources Inc., (MBR: TSX-V) has signed a Letter of Intent ("LOI") with Piper Capital Inc., which sets out the terms and conditions for an Option Agreement in respect of the Copper Prince Property located in Sudbury Ontario.
Under the terms of the Letter of Intent, Piper can earn up to a 60% interest in the Copper Prince Property in two stages -- 50% by making total payments of $75,000, issuing 650,000 shares, and incurring $700,000 in exploration expenditures over three years, and an additional 10% by issuing 250,000 shares and incurring $500,000 in exploration expenditures in the fourth year. The property is currently subject to a 2% Net Smelter Royalty. This transaction is subject to completion of definitive agreements and regulatory approval.
The Copper Prince property is a Gold-Copper project comprised of a contiguous block of 16 patented mining claims, encompassing approximately 260 hectares located in Falconbridge Township within the greater city of Sudbury, Ontario. The project lies in the Huronian Gold Belt -- a zone of past gold producers that extends from NE of the Sudbury Basin to the SW, south of the town of Espanola, a distance of approximately 120 kilometers (km).
The claims immediately to the north and west of Copper Prince are owned by FNX Mining-Falconbridge Ltd. and are being explored by FNX Mining Company Inc. for footwall type Ni-Cu-PGM deposits. Falconbridge is exploring their Nickel Rim deposit further to the north with plans to go into production in the near future. The Falconbridge smelter is located approximately two km to the north of the Copper Prince boundary. To the immediate east of the Copper Prince property lies the Falcon Gold Property which is owned by Kinross Gold Corp. The Manchester Offset Dyke (a Ni-Cu-PGM deposit) that belongs to Inco Ltd. is about a half a kilometer south of the Copper Prince southern boundary.
Previous Exploration
From 1950 to 1973 Copper Prince Mines conducted various exploration programs over the property. During 1988-1989, Rainbow Exploration Corp. purchased the property from Copper Prince Mines, and optioned it to INCO Gold Co. INCO Gold constructed a new grid (for 29.6 km) and completed magnetic, electromagnetic (VLF and some IP surveys), remapped the geology at a scale of 1:1,000, collected 594 surface samples and drilled 4 holes for 421 m to test mineralization beneath the original "main" prospecting pit, and in 2 other areas.
In the period 1995 to 1997, Rainbow Petroleum Corp. tested the South Range Breccia Belt cutting the property with 27 diamond drill holes for 6,319 m testing zones with narrow gold copper values at surface. Estimated expenditures by INCO Gold and the Rainbow group of companies to that time were approximately $750,000.
In 2004, MBMI Resources Inc. drilled 10 shallow diamond drill holes for a total of 775 m. The assay data received confirms Copper-Gold mineralization within quartz veins which range up to several meters in size concentrations. Two zones containing numerous quartz veins containing Chalcopyrite, Pyrite, and Pyrrhotite mineralization were encountered. One trend is 15 m wide by 50 m long, and open on strike and at depth. The other trend extends 80 m in length, and up to 0.5 m in width and is also open on strike and to depth.
Mr. David Beilhartz, P.Geo., is the qualified person as defined in NI 43-101, and has reviewed the contents of this news release.
This Letter of Intent is subject to shareholder approval of Piper's Disposition Agreement with Hidefield Gold PLC with respect to Piper's Golden Zone assets which will be voted upon at its Annual General Meeting, to be held March 31, 2006.
MBMI jointly controls four nickel laterite projects in Palawan, Philippines and four nickel projects in Samar, Philippines covering an area of 22,000 hectares. The Company's objective is to become a major supplier of high-grade nickel products to the primary nickel consumers in Asia.
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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