| | | October 07, 2004
MBMI Options Former Producing McMillan Gold Mine Property to Young--Shannon Gold Mines
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| | MBMI RESOURCES INC. (MBR-TSXV) "MBMI" is pleased to announce that it has optioned its McMillan Gold Mine property located 75 kilometers southwest of the City of Sudbury, Ontario in Mongowin and McKinnon Townships. The former producing McMillan gold mine, located within a 26 Claim Units group has been optioned to Young Shannon Gold Mines, Limited "Young-Shannon". Young-Shannon has the right to earn up to a 60% interest in the former gold producer. The terms of the option, subject to regulatory approval and signing of the formal option agreement, to earn a 50% interest are as follows:
Cash$ Shares Work Commitment ($)
Upon Signing 10,000 150,000 -
1st Anniversary 15,000 150,000 200,000
2nd Anniversary 20,000 150,000 300,000
3rd Anniversary 30,000 200,000 400,000
------- ------- --------
$75,000 650,000 $900,000
On the 3rd Anniversary, Young Shannon will have the option to increase its interest to 60% by spending an additional $400,000 on the McMillan property and issuing an additional 250,000 shares to MBMI Resources Inc.
Gold was first discovered on the McMillan claims in the early 1920s. By the late 1920s, a vertical shaft and underground exploration was carried out. A 125 ton per day mill was subsequently built and operated until 1937. The McMillan gold mine produced 60,000 tons of gold ore at a recovered grade of 0.18 ounces per ton for a total of approximately 10,800 recovered ounces of gold. It has a vertical shaft to a depth of approximately 875 feet and workings at several levels. Historical records indicate that the mineralization continued below the 900-foot level. The McMillan mine was dewatered and re-sampled underground in 1985-86. This underground sampling from different stopes and headings ranged from 0.07 to 0.48 ounces per ton gold. Based on these results, a work program was recommended consisting of underground diamond drilling in order to determine the continuity of the mineralized structures, but was never completed due to a lack of funds.
In the spring of 2004, MBMI completed a diamond drilling program on the McMillan claims consisting of 1,077 meters in seven holes. The best intersections are listed in the following table:
Summary of 2004 MBMI Resources Inc. Drilling
Hole Interval Intersection AU AU
Number (Meters) (Meters) (g/tonne) (oz/Ton)
MM-1-04 3.13 -- 3.33 0.2 15.46 0.45
9.15 -- 9.69 0.52 13.92 0.4
MM-1B-04 9.90 -- 14.55 4.65 11.21 0.33
MM-2-04 113.30 -- 118.30 5 9.89 0.28
137.20 -- 139.30 2.1 5.79 0.17
MM-3-04 182.75 -- 193.60 10.85 7.91 0.23
The 2004 drilling extended the known gold mineralization at the McMillan gold mine 120 meters to the east and 20 meters to the west of the previously mined area to define a 400 meter strike length. The gold mineralization remains open along strike in both directions and at depth below the old workings. Pending regulatory approvals, Young Shannon plans to begin a drill program to follow up and expand the 2004 drill program results this fall.
David Beilhartz, P. Geo. is MBMI's Qualified Person for the 2004 drilling as defined by National Instrument 43-101 and Young Shannon's Qualified Person is Kevin Bullock, P. Eng. Mr. Bullock is a Registered Professional Engineer in the province of Ontario. Swastika Laboratories Ltd. of Swastika, Ontario assayed the 2004 core samples using the fire assay method.
MBMI is a Canadian based mining exploration company focused on the acquisition, exploration, and development of mineral properties. MBMI has entered into a joint venture regarding three nickel laterite projects in the Philippines. MBMI 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
Tel: 604-683-1991
Email: mbr@mbmiresources.com
Website: www.mbmiresources.com
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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