| | | December 19, 2005
Drilling Program Testing Geophysical Targets on High Grade Gold Zone Commences at McMillan Gold Mine Property
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| | MBMI RESOURCES INC. (MBR-TSXV) "MBMI" wishes to report that a drill is currently being mobilized to the Company's McMillan Gold Mine ("McMillan") property located near the town of Espanola, Ontario, Canada. (The property is held within MBMI's subsidiary, Garson Resources Ltd.)
The drilling program will consist of a minimum of two diamond drill holes totaling 2,300 ft. (701 metres) that will test geophysical targets generated from the down hole induced polarization survey completed this past summer. Two separate areas on the property will be tested. The first diamond drill hole will test the new, wide, and highly conductive geophysical target which is related to the recently drilled high grade gold mineralization. The drill hole will intersect the geophysical target approximately 1,000 ft. (300 metres) from surface and westward along strike from the known gold zone. The second diamond drill hole will test a strong down hole geophysical response located immediately west of diamond drill hole MM-05-08, completed during this past winter's drilling campaign, which contained two intersections of gold mineralization; one of 2.53 gm/t over 0.3 metres and a second of 1.73 gm/t over 0.6 metres. This hole will be collared approximately 430 ft. (131 metres) west along strike from the historic mine shaft at the McMillan Mine and approximately 120 ft. (37 metres) west of the historic underground workings in this area. It will intersect the geophysical target approximately 200 ft. (61 metres) deeper than the old underground workings in the vicinity.
A campaign of diamond drilling by MBMI Resources Inc. in April, 2004 resulted in the discovery of a new zone of gold mineralization located approximately 850 ft. (260 metres) east along strike from the historic McMillan Mine shaft.
Young-Shannon Gold Mines, Limited entered into an option agreement with MBMI in November, 2004 and completed 10 diamond drill holes across the property, totaling 8,272 ft. (2,522 metres), during the winter months of 2005. This campaign resulted in increasing the strike and downdip/plunge extent of the new zone of high grade gold mineralization, which currently remains open. The option agreement enables Young Shannon 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. Young-Shannon has subsequently renewed their option agreement for a second year. 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.
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).
MBMI has an interest in four Philippine nickel properties in the province of Palawan and is finalizing the acquisition of four additional nickel projects in Samar province, Philippines. The Company's objective is to become a major supplier of high-grade nickel products to the primary nickel consumers in Asia. Through subsidiary, Garson Resources Ltd., MBMI 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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