Archive for March, 2009

Stealth Minerals Corporate Update

Stealth Minerals was informed by BCGold Corp in accordance with Section 5.2 of the Stealth Minerals- BCGold Corp option agreement (as amended March 27th 2007) that BCGold is terminating its right to acquire up to a 75% interest in each of the FogMess and Louis properties. The properties are located in the Toodoggone region of north central British Columbia and are now owned 100% by Stealth Minerals.

The properties are in good standing for the required minimum period of 6 months from notice of termination.

BCGold Corp did not conduct any exploration on either property at any time during the 23-month period the properties were under option.

No Comments

GGL Diamond Corporate Update

GGL Diamond reports on the activities of the Company for the year ended November 30, 2008 and on events taking place subsequently up to March 23, 2009.



Gold deposits are among the most difficult of mineral deposits to find. Their geophysical signatures aresubdued and not directly related to gold, but instead are a reflection of the properties of the enclosing geology as opposed to most base metal deposits which are directly related to strong geophysical anomalies. While base metal deposits often have a strong surface color anomaly, which attracts the attention of the explorer, gold deposits are often much less conspicuous and require sampling to detect if gold is present and even then deposits can easily be missed due to the often erratic distribution of gold in rock.

The discovery of gold is always an exciting moment. The history of gold camps with subsequent producing gold mines start with a surface discovery – a good gold assay – and later exploration leads to the definition of deposits. A good gold assay does not guarantee a gold mine, but almost all gold mines are the result of exploration based on the geologic model determined by the initial gold discovery in the area.


The Company’s most advanced gold property is the McConnell Creek gold property in British Columbia, acquired in 1981 from the prospectors – Jack Gerlitzky and John Leontowich – who discovered the gold and named the property after themselves, Gerle Gold; a name still reflected in the stock symbol GGL.  They staked the first claims in 1947, and in that same year Dr. Bill White of the BC Department of Mines wrote a report on the gold showings and described a strong shear zone up to 50 feet in width. He took twelve channel samples which returned assays ranging from trace to 4.41 oz/ton gold. It was this report that first drew our attention to the property.

Canex, the exploration arm of Placer Development (later Placer Dome) optioned the property from the prospectors in 1953. They completed additional trenches and did some x-ray (a small diameter core) drilling that despite very poor core recovery returned some good gold values. The remoteness of the area at that time and the low price of gold discouraged further work.

Gerle Gold Ltd. (now GGL Diamond Corp.) began work in 1981 just as the price of gold was falling from its all time high of US $850 per ounce. This work traced the shear zone described by Dr. B. White for two kilometers by mapping, and for a total length of 12 kilometers and a width of up to 800 meters, by geophysics.

Lornex optioned the property from GGL in 1984 and drilled a number of holes with some encouraging results but the price of gold continued to fall, recovering only in 1987-88 when GGL continued a trenching and drilling program. This program was the first in which the gold bearing shear zone was adequately sampled by way of a series of trenches blasted into the rock face and from which three separate channel samples were collected. Subsequent sampling in 1988 involved chip sampling of 1 meter x 1 meter panels within the trenches.

A weighted average of gold values was calculated for a series of gold bearing trenches that returned gold values over widths ranging from 1 to 6 meters. Two zones of better gold grades were identified by this sampling. One zone, with a strike length of 145 meters (475 feet) and an average width of 1.8 meters (5.6 feet), averaged 6.79 grams/tonne (0.211 oz/ton) gold. The second zone, traced over a strike length of 30 meters (100 feet) and ending in overburden too thick to trench by hand, averaged 6.79 grams/tonne (0.198 oz/ton) gold over a width of 1 meter (3 feet). The last trench at the edge of deep overburden contained values of 8.0 grams/tonne (0.232 oz/ton) gold over a width of 1.8 meters (5.9 feet).

Various diamond drilling programs within the area of trenching traced the gold mineralization to depths of 250 meters.

In 1990 Placer Dome optioned the property from GGL and attempted trenching of the shear zones in the area of extensive overburden. Few of these trenches encountered bedrock but several widely spaced drill holes were completed and one of these returned 5.25 grams/tonne (0.153 oz/ton) gold over a hole length of 2.25 meters. This intercept, from a subsidiary shear zone west of the main zone hosting the previously described zones of better gold grades, suggests the possibility of enhanced gold grades not only along the known 12 kilometers strike of the main zone but also within the 800 meters width of the shear zone system. Gold values from soil samples collected over the entire shear zone system include many ranging from 200 to 2000 ppb (parts per billion where 1000 ppb = 1 gram), indicative of the significant potential of the system.

The McConnell Creek Gold property has many characteristics of a significant underground (or possibly an open pit) gold deposit but requires extensive additional exploration to define the economic potential of the property.

After 1992 the politics in British Columbia discouraged investment in mineral exploration for ten years.  Now, not only is the political climate better but the gold price is high and existing infrastructure includes all weather road access and a hydro electric power line within 11 kilometers of GGL’s wholly owned McConnell Property.

The shear zone at McConnell is developed in an amphibolite derived from mafic (basalt) volcanics. This geological unit is unique in that it is significantly older than most of the rocks in this part of British Columbia, being Pennsylvanian to Permian in age.  This is in contrast to the copper-bearing zones at the McConnell Property which are hosted by younger (Jurassic and Cretaceous) intrusive rocks and Takla volcanics of late Triassic age.


The 2008 exploration program completed upon the PGB Property of GGL comprised 8,221 line kilometers of airborne VTEM surveying between March 11 and April 26. The mapping and prospecting program consisted of a total of 810 man days between July and mid September. During this time Aurora and GGL personnel collected a total of 828 rock samples thus completing a major part of first pass exploration over the 120 kilometers length of the PGB Property. Many areas still need examination and areas that yielded positive results in 2008 require follow up work.

Overall, the exploration work completed to date has successfully identified a number of areas with potential for gold, base metals, silver and nickel mineralization.


The work completed is in the process of being compiled and documented for purposes of filing assessment work to maintain the PGB claims.

The 2008 exploration program was carried out by Aurora Geosciences Ltd. of Whitehorse. They erected a camp and cut 87.95 kilometers of lines and completed 67.3 kilometers of IP (Induced Polarization) ground geophysical surveys. Under their supervision, three diamond drill holes were completed for a total of 1,073 meters.

One drill hole was completed on the MC copper showing located in the southeast section of the property and averaged 0.384% Cu over 4.45 meters.  Two drill holes in the north central area of the property tested the south and north edge of an IP conductor.  Disseminated pyrite was encountered to explain the conductor accompanied by some geochemically anomalous copper and gold values. Government restrictions on our drill permit prevented the preparation of new drill sites to test the central part of the zone. The permit restrictions appear to be arbitrary and not based on ground inspection and we expect that this situation can be resolved for future work.

A new copper showing containing bornite was located by GGL’s geologist in the south central part of the property. A sample from the outcrop assayed 4.79% Cu, 0.695 grams/tonne Au, and 37 grams\tonne Ag.  This is a high priority area for future exploration.


Assessment work will be recorded for the Company’s wholly owned PGB and McConnell Properties and the Company’s core diamond assets at the Doyle and Fishback will also be maintained. The agreement with De Beers in the Doyle area remains in force.

The Company will immediately seek financing by way of a private placement and/or joint ventures to enable it to continue its business requirements and exploration.  The Company is free of debt and has reduced its expenses to core requirements.

We anticipate that we will be successful in this endeavor based on our excellent portfolio of mineral prospects.




Since our October 2008 report to you the worldwide financial crisis has deepened, particularly as it affects the metal markets. Mine closures for the base metals, nickel, copper, zinc and lead have continued to take place. Despite the large reduction in supply of these metals – as a consequence of the mine closures -prices have declined and only recently show signs of stabilization. The metal prices for the most part remain below the costs of production except for a few high grade and low cost producers that can satisfy the diminished demand.

When the world’s economies begin their rise out of this deep recession, the demand for metals will temporarily be satisfied by the return to production of the now closed mines. Despite the long-term requirement to find more economic mineral deposits to supply the demands of an ever-increasing world population, little financing for exploration for base metals is available at this time. Japan and China have taken a longer view to obtaining the commodities required to sustain their economies.

The worldwide financial crisis is spawning a lack of trust in paper currencies and combined with the inflation of money by means of the printing press, has resulted in a demand for precious metals. The gold and silver markets are robust. Gold exploration is in favor and some financing and joint ventures are taking place.

We were correct in evaluating the Providence Greenstone Belt as a source for diamonds, nickel and VMS base metal deposits. That potential remains and is very much enhanced. The reality is that under thepresent economic situation it is gold that commands attention.

Our gold properties and new gold discoveries should take precedence while we maintain our base metal and diamond prospects.

No Comments

Tad Capital Signs Property Purchase Agreement

Tad Capital Corp. has signed a property purchase agreement dated March 16, 2009, with Golden Sabre Resources Ltd., a private Canadian corporation, further to its news release in Stockwatch of Feb. 20, 2009. Under the terms of the agreement, Tad has agreed to purchase, subject to a 1.5-per-cent net smelter return, 94 per cent of all right, title and interest in the 28 mineral claims lying within the Omineca mining district as described below and all assets related to the claims from Golden Sabre in consideration for Tad issuing 5,202,000 common shares to Golden Sabre. The transaction is intended to represent Tad’s qualifying transaction that is to be conducted in accordance with TSX Venture Exchange Policy 2.4 concerning capital pool companies. The acquisition has been negotiated and carried out by the parties dealing at arm’s length to one another and therefore is not a non-arm’s-length qualifying transaction, as such term is defined under the rules and policies of the TSX Venture Exchange. As a result, the acquisition will not require shareholder approval from the shareholders of Tad. Immediately following the closing of the acquisition, Golden Sabre intends to wind up its corporate existence and distribute all of the Tad shares to its shareholders on a pro-rata basis. The shares issuable to Golden Sabre on closing will be subject to a hold period as required by applicable securities laws.

Conditions of closing

The parties have agreed to close the transaction on or before April 15, 2009, or such other date as the parties may agree to in writing. Completion of the proposed acquisition will be subject to certain conditions including:


  • (a) Completion of Tad’s satisfactory due diligence review with respect to the assets;
  • (b) Golden Sabre providing financial information from which to prepare financial statements as required by applicable securities laws and a technical report on the claims in accordance with National Instrument 43-101;
  • (c) The TSX Venture Exchange waiving the requirement to appoint a sponsor;
  • (d) Approval of the transaction by the shareholders of Golden Sabre;
  • (e) The appointment of a qualified person, as that term is defined in National Instrument 43-101, to the board of directors of Tad on the closing of the transaction;
  • (f) Golden Sabre providing a title opinion on the claims;
  • (g) Tad having cash and cash equivalents of $200,000 prior to closing and completion of a private placement as described below;
  • (h) Receipt of conditional approval from the TSX Venture Exchange of the proposed transaction.



The closing of the transaction is conditional upon Tad completing a non-brokered unit financing of at least $300,000 at five cents per unit, each unit consisting of one common share and one share purchase warrant. Of the six million common shares issued in the unit financing, TAD anticipates that 5,000,000 common shares will be issued on a flow-through basis and one million common shares will be issued on a non-flow-through basis, although the ratio of flow-through to non-flow-through will be determined in the sole discretion of Tad at the time of the offering. Each warrant will allow the holder to purchase an additional common share at the exercise price of 10 cents for a period of five years from the closing date. Tad intends to use the proceeds from the private placement and cash on hand to carry out the phase two recommended work program on Golden Sabre’s American Boy claims.


Pursuant to the terms of the letter agreement, Tad has loaned Golden Sabre $15,000 on the condition that Golden Sabre use the proceeds solely to renew certain claims. Additionally, Golden Sabre has agreed that the loan will be repaid in full in the event the transaction does not close for any reason. Upon the closing of the transaction, and pursuant to the terms of the loan, Tad will credit Golden Sabre with the costs related to renewing the claims against the outstanding amount of the loan on a per diem basis.


TAD will be seeking an exemption from the sponsorship requirements in accordance with TSX Venture Exchange Policy 2.2.

Golden Sabre’s mineral claims

Golden Sabre is a private Canadian company, established in 2006. Its controlling shareholders consist of three individuals, each resident of British Columbia. The claims comprise 28 mineral claims covering an area of approximately 8,792 hectares, lying within the Omineca mining district of British Columbia. The claims are located immediately northeast of Hazelton, B.C., at the southern extent of the Skeena Mountains, lying to the east of the Skeena River. Golden Sabre owns a 94-per-cent interest in the claims, with Cadre Capital Inc. of Vancouver, B.C., owning the remaining 6-per-cent interest and a 1.5-per-cent net smelter return. The claims consist of three main claim blocks, known as:


  • (i) The American Boy/Mohawk claims;
  • (ii) The Sunrise/Silver Cup claims;
  • (iii) The Sidina claims.


The American Boy/Mohawk claim block is contiguous to the Sunrise/Silver Cup claim group. The Sidina claims are located approximately five kilometres north of the Sunrise/Silver Cup claims. A technical report has been prepared on the American Boy, Sunrise-Silver Cup, Sidina-Silverton and Mohawk claim groups in accordance with National Instrument 43-101. Upon the closing of the qualifying transaction, Tad intends to use the proceeds from the financing and cash on hand to carry out the phase two recommended work program on the American Boy claims.


Subject to TSX Venture Exchange approval, Tad intends to issue 500,000 common shares to two finders (250,000 common shares to each) upon the closing of the qualifying transaction in consideration for services provided by the finders with respect to the transaction. Each finder is not a non-arm’s-length party and such shares will be issued pursuant to an exemption under applicable securities laws.

Board of directors

Upon completion of the proposed acquisition, Tad anticipates that its current board of directors and management team will remain the same with the exception of the appointment of a qualified person under National Instrument 43-101 to its board of directors. The identity of the qualified person is not known as of the date of this release.

No Comments

British Columbia Government Approves Mt. Milligan

Robert Pease, President and CEO of Terrane Metals Corp. is pleased to announce that the Company has received from the province of British Columbia an Environmental Assessment (“EA”) Certificate for its Mt. Milligan copper-gold Project 150 km northwest of Prince George. Receipt of the EA Certificate followed a comprehensive 180-day review led by the province’s Environmental Assessment Office.

President and CEO Robert Pease stated: “We are very pleased with the timely approval of our EA Certificate. This milestone approval is a testament to our environmentally responsible mine design. We look forward to successfully completing the federal EA process and building British Columbia’s next major metal mine.”

Mt. Milligan will be a conventional truck-shovel open pit mine with a 60,000 tpd copper flotation process plant. During the 30 month construction period an average of 370 jobs will be created; in commercial production there will be approximately 400 full time jobs. Average annual production of 265,100 oz gold and 97 million lb copper is forecast for the first six years of an initial 15-year mine life. Pending receipt of the balance of Project approvals and subject to financing, construction could commence in Q2 2010 with commercial production in Q4 2012.

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No Comments

Cascadero Options Toodoggone Property to Gold Fields

Cascadero Copper Corporation has signed an Option and Joint Venture Exploration Agreement with Gold Fields Toodoggone Exploration Corporation, a wholly owned subsidiary of Gold Fields Netherlands Services BV and a member of the Gold Fields Limited group of companies.

The Option Agreement grants Gold Fields an option to acquire a 51% interest in Cascadero’s Toodoggone property to be satisfied by incurring expenditures of at least C$5 million over a three year period. If Gold Fields acquires the 51% interest, it has the option to acquire an additional 24% interest in the property which is to be satisfied by spending an additional $15 million or funding the completion of a feasibility study. Once Gold Fields has ceased its sole funding, Cascadero and Gold Fields will form a joint venture for the continued exploration and possible development of the property.

The Option Agreement also provides that Gold Fields, or one of its affiliates, will subscribe for 500,000 units of Cascadero at a price of $0.10 per unit, with each unit consisting of one share and one share purchase warrant. If Gold Fields continues with the Option Agreement it will invest a further $100,000 in Cascadero units on each of the first three anniversaries of the Option Agreement.

Cascadero will pay a finder’s fee of $7,500 to an arm’s length party. The Option Agreement is subject to TSX Venture approval.

The Cascadero Copper property consists of 72 converted new tenures, which aggregate approximately 30,000 hectares in the Toodoggone River region of north central British Columbia. This large contiguous claim group is about 15 kilometres north of the Kemess copper gold deposit operated by Northgate Minerals. Geological field work conducted intermittently in the area since the 1970s has identified numerous copper-gold prospects, including the Pine porphyry copper-gold deposit. This large area remains highly prospective for large copper-gold mineralization and the Company believes that continued exploration will result in the discovery and development of an economic deposit.

Cascadero is a junior exploration company focused on assembling and developing mineral prospects with large-scale potential. In addition to the Companys’ Toodoggone land position, it owns a 50% interest in Salta Exploraciones SA, which company holds a 100% interest in 46 properties (approx. 102,000 hectares) in northwestern Argentina. The suite of mineralization identified to date includes IOCG, epithermal base metals, sediment hosted gold, high-sulphidation, silver, lithium and several properties with alkali metal potential, especially cesium.

Gold Fields limited is one of the world’s largest unhedged producers of gold with annual attributable production of approximately four million ounces of from nine operating mines in Peru, Ghana, Australia and South Africa. The company has attributable ore reserves of approximately 83 million ounces and mineral resources of approximately 251 million ounces. In addition the company has an extensive exploration portfolio with highly prospective projects in all of the major gold provinces of the world.

No Comments

Northgate Minerals Q4 Earnings

Northgate Minerals Corp. had net earnings of $18,668,000, or seven cents per diluted common share, and cash flow from operations of $5,858,000, or two cents per diluted common share, for the fourth quarter of 2008 (all figures in United States dollars, except where noted). For the full year, net earnings were $10,742,000, or four cents per diluted common share, and cash flow from operations was $64,987,000, or 25 cents per diluted common share. Northgate also achieved record gold production in 2008 of 354,800 ounces at a net cash cost of $447 per ounce of gold.

Fourth-quarter highlights:


  • Achieved record quarterly gold production of 118,265 ounces at an average net cash cost of $413 per ounce of gold, bringing full-year production to a record 354,800 ounces at an average net cash cost of $447 per ounce of gold;
  • Posted record production of 26,398 ounces of gold at a net cash cost of $500 per ounce at the Fosterville mine, as the operational turnaround progressed with excellent results;
  • Significantly increased total gold resources at Young-Davidson, where measured and indicated resources underground doubled to over 3.0 million ounces, and inferred resources increased by over 300,000 ounces to 748,000 ounces of gold;
  • Announced the first resource estimate for the recently expanded Harrier underground zone at Fosterville, which added indicated resources of 159,000 ounces at an average grade of 4.01 grams per tonne gold, and inferred resources of 221,000 ounces at an average grade of 5.38 g/t gold;
  • Posted revenue of $137-million for the fourth quarter of 2008, a 43-per-cent increase over the same period last year — For the full year of 2008, Northgate recorded revenue of $461-million, representing a 37-per-cent increase over the full year of 2007.


Ken Stowe, president and chief executive officer, stated: “Two thousand eight was a record year for Northgate, as we produced over 354,000 ounces of gold, from our three operating mines, at an average net cash cost of under $450 per ounce. At our Fosterville and Stawell mines, we made dramatic operational improvements during our 11 months of ownership, as we retooled these assets for long-term success. We also invested considerable exploration dollars at both mines, and were rewarded during the year with one of the single-largest reserve additions in Stawell’s history and an increase of 380,000 ounces of resource in the Harrier zone at Fosterville. Looking into 2009, the heated leach circuit at Fosterville is scheduled for commissioning in March, which will significantly improve gold recovery in the mill. We will also continue to spend heavily on near-mine exploration at both of our Australian mines with the goal of significantly increasing reserves by the end of the year. At Young-Davidson, we are looking forward to completing a prefeasibility study in the second quarter of the year, which will be followed by a full feasibility study by year-end. The prefeasibility economics should improve significantly with the application of lower-cost, bulk-mining methods to the dramatically larger gold resource base that we announced in December. In 2008, we laid the groundwork for a very successful year ahead, and are well positioned in the current gold price environment to generate strong free cash flow at all of our operations.”

Executive overview

Financial performance

Northgate Minerals recorded consolidated revenue of $136,748,000 and $460,988,000, in the fourth quarter and full year of 2008, respectively, compared with $95,599,000 and $337,546,000 in the corresponding periods of 2007. Net earnings were $18,668,000, or seven cents per diluted share, in the fourth quarter of 2008, which includes a mark-to-market hedging gain of $48,253,000 on the corporation’s copper forward contracts and a charge of $3,398,000 to recognize an other-than-temporary decline in the value of the corporation’s auction-rate securities (ARS) investments. Net earnings during the corresponding quarter of 2007 were $33,309,000, or 13 cents per diluted share. For the full year 2008, net earnings were $10,742,000, or four cents per diluted share, compared with $39,425,000, or 15 cents per diluted share, in 2007. Cash flow from operations, after changes in working capital and other items, was $5,858,000, or two cents per diluted share, in the fourth quarter of 2008, compared with $32,914,000, or 13 cents per diluted share, during the same quarter last year. For the full year 2008, cash flow from operations, after changes in working capital and other items, was $64,987,000, or 25 cents per diluted share, compared with $125,285,000, or 49 cents per diluted share, in 2007. Per-share data is based on the weighted-average diluted number of shares outstanding of 255,601,069 and 255,453,093, in the fourth quarter and full year of 2008, respectively. The weighted-average diluted number of shares outstanding in the corresponding periods of 2007 was 255,065,987 and 255,257,756, respectively. As of March 3, 2009, the corporation had 255,787,748 issued and outstanding common shares and 7,320,150 outstanding stock options.

Health, safety and environment

Northgate continues to promote a strong culture of safety and is striving to ensure that the highest standards for health and safety are maintained at its mine sites. During the fourth quarter, Fosterville recorded one lost time injury (LTI), while Stawell recorded two LTIs. For the full year 2008, Fosterville and Stawell each recorded three LTIs. This is a dramatic improvement from 2007, when Fosterville and Stawell recorded 12 and three LTIs, respectively. Northgate has actively implemented the recommendations from safety management audits, which took place earlier in the year, to ensure health and safety standards improve and are maintained at both Australian mine sites. In Canada, Young-Davidson had no LTIs during the fourth quarter, and is pleased to report that there have been no LTIs recorded on the property over the past two years. Kemess recorded one LTI during the fourth quarter for a total of 10 LTIs in 2008.

Human resources

Northgate commenced collective agreement meetings with its work force at Fosterville to replace the existing Australian work force agreements and a temporary Greenfield agreement. The Greenfield agreement was put into place in April, 2008, for one year, when Northgate completed its conversion to owner mining from contractor mining. The new collective agreement is expected to be ratified in the second quarter of 2009.


                              SUMMARIZED CONSOLIDATED RESULTS
                (thousands of United States dollars, except where noted)               

                                           Q4 2008     Q4 2007    2008 (1)        2007

Operating data
Production (ounces)                        118,265      41,467     354,800 (2) 245,631
Sales (ounces) (3)                         101,075      48,937     311,580     259,182
Realized gold price ($/ounce)                  814         561         873         594
Production (thousands pounds)               14,391      16,766      51,906      68,129
Sales (thousands pounds)                    11,550      16,750      49,639      69,698
Realized copper price ($/pound)               0.46        3.30        2.78        3.11
Net cash cost ($/ounce)                        413          18         447         (22)
                                            ------      ------      ------      ------
Financial data
Revenue                                   $136,748     $95,599    $460,988    $337,546
                                            ======      ======      ======      ======
Net earnings                               $18,668     $33,309     $10,742     $39,425
                                            ======      ======      ======      ======
Earnings per share
Basic                                        $0.07       $0.13       $0.04       $0.16
Diluted                                      $0.07       $0.13       $0.04       $0.15
Cash flow from operations                    5,858      32,914      64,987     125,285
Cash and cash equivalents                   62,419     266,045      62,419     266,045
Total assets                              $590,884    $634,589    $590,884    $634,589

(1) Full year 2008 financial data and gold sales (ounces) include the results of 
Northgate's Australian operations from Feb. 19 to Dec. 31, 2008. Other figures are for 
the full year ended Dec. 31, 2008.
(2) Full year 2008 production for Fosterville excludes the change in gold-in-circuit 
inventory previously recorded in production for the first quarter.
(3) Prior-period comparatives reflect gold sales (ounces) for Kemess only.


2008 annual audited financial results

Financial figures for the fourth quarter and full year 2008 are unaudited estimates, and are subject to revision. Northgate will file its complete 2008 audited annual financial statements, including the notes to the consolidated financial statements, with both the Canadian and United States securities regulatory authorities on SEDAR and EDGAR by March 31, 2009.


No Comments

TTM Resources Updated Resource Estimate and Drill Results

TTM Resources Inc. has received an updated resource estimate from GH Giroux, PEng, MASc, of Giroux Consultants Inc., of Vancouver, B.C., for its 100-per-cent-owned Chu molybdenum project 75 kilometres southwest of Vanderhoof, B.C. The resource estimates will be included in a revised National Instrument 43-101 report to be filed within 45 days.

At a cut-off grade of 0.04 per cent Mo there are an estimated 139.9 million tonnes grading 0.061 per cent Mo (188.2 million pounds Mo), 173.3 million tonnes grading 0.06 per cent Mo (229.3 million pounds Mo) and 84.4 million tonnes grading 0.058 per cent (107.9 million pounds Mo) in the measured, indicated and inferred categories respectively.


                            MEASURED RESOURCE
           Tonnes greater
Mo cut-off   than cut-off   Grade greater than cut-off
                              Mo     Cu
(%)               (tonnes)     %     (%)   Million lb Mo   Million lb Cu

0.02          237,200,000  0.048  0.034            251.1           177.8
0.04          139,920,000  0.061  0.036            188.2           111.1
0.05           90,240,000  0.070  0.036            139.3            71.6
0.08           19,710,000  0.100  0.039             43.5            16.9
0.09           12,160,000  0.110  0.042             29.5            11.3

                            INDICATED RESOURCE
           Tonnes greater
Mo cut-off   than cut-off   Grade greater than cut-off
                              Mo     Cu
(%)               (tonnes)     %     (%)   Million lb Mo   Million lb Cu

0.02          410,160,000  0.042  0.034            379.8           307.5
0.04          173,340,000  0.060  0.037            229.3           141.4
0.05          102,710,000  0.070  0.037            158.5            83.8
0.08           26,130,000  0.097  0.039             55.9            22.5
0.09           14,840,000  0.106  0.041             34.7            13.4

                             INFERRED RESOURCE
           Tonnes greater
Mo cut-off   than cut-off   Grade greater than cut-off
                              Mo     Cu
(%)               (tonnes)     %     (%)   Million lb Mo  Million lb Cu

0.02          220,200,000  0.040  0.036            194.2           174.8
0.04           84,400,000  0.058  0.043            107.9            80.0
0.05           50,040,000  0.068  0.046             75.0            50.8
0.08           12,420,000  0.093  0.051             25.5            14.0
0.09            4,580,000  0.103  0.051             10.4             5.2


           Tonnes greater
Mo cut-off   than cut-off   Grade greater than cut-off
                              Mo     Cu
(%)               (tonnes)     %     (%)   Million lb Mo  Million lb Cu

0.02          647,330,000  0.044  0.034            628.0           485.3
0.04          313,250,000  0.060  0.037            414.4           255.6
0.05          192,950,000  0.070  0.036            297.8           153.2
0.08           45,840,000  0.098  0.039             99.1            39.4
0.09           26,990,000  0.108  0.041             64.3            24.4


Resource criteria

The mineral resources mentioned above are defined in terms of the National Instrument 43-101 regulations and their estimation was carried out using industry standard practices using ordinary kriging of blocks 20 by 20 by 10 metres high. The mineral resources are undiluted and a total of 10 assays were capped at 0.54 per cent Mo. Measured mineral resources were produced using a search ellipse with dimensions equal to one-fourth the semi-variogram range, indicated mineral resource estimates were produced using a search ellipse with dimensions equal to one-half the semi-variogram range. A specific gravity based on 328 measurements of 2.69 was used for tonnage calculations. Assay results from 121 diamond drill holes totalling 64,610 metres were used. A total of 22,170 Mo assay and 20,917 Cu assay intersections made up the resource database.

The company is very pleased with the result of these independent estimates, and subject to the conclusions and recommendations in the upcoming National Instrument 43-101 report, it will use these resource estimates as a guide for the 2009 drill program and to enhance future economic development studies.

Warren Robb states: “Our current drilling will now focus on defining our highest-grade molybdenum areas. This drilling will help us properly identify and define the best areas for starter pits, and enhance our overall resource model. Our dedicated geological staff remains motivated and focused on outlining British Columbia’s second-largest primary molybdenum deposit.”

Drill results

The company is also pleased to release the results from CHE-08-38 to CHE-08-52 and CHW-08-20 to CHW-08-23, completed in 2008.

Analyses of samples from the current program are completed at Stewart Group in Kamloops, B.C. The company has in place a comprehensive quality-assurance/quality-control program including standards, blanks and duplicate samples that form part of the sampling protocol. In addition the laboratory has its own quality-assurance program.



Hole No.    Azimuth   Dip       (m)       From       To  Length    Mo (%)

E038                                    389.21   419.00   29.79    0.098
                                        507.12   517.22   10.10    0.130
E040                                    306.92   323.27   16.35    0.100
E042            210   -69     742.76     32.61    55.01   22.40    0.103
                                        151.49   175.86   24.37    0.122

E044            210   -50     833.42    428.83   456.26   27.43    0.101
                                        495.89   514.17   18.28    0.107
E046            208   -49     481.26    339.84   356.80   16.96    0.188
E047            210   -69     980.49    419.69   444.07   24.38    0.129
                                        569.03   714.23  145.20    0.100
E050            210   -69     932.03    561.95   858.88  296.93    0.088
including                               561.95   709.54  147.59    0.104
and including                           601.20   694.30   93.10    0.127
and including                           676.01   694.30   18.29    0.215
W021                                    346.54   400.49   53.95    0.100
W022                                     32.61    66.14   33.53    0.110
                                        120.00   192.00   72.00    0.100
                                        581.00   599.51   18.51    0.210
W023                                    159.36   182.00   22.64    0.106
                                        210.18   242.91   32.73    0.115
                                        663.47   706.19   42.72    0.120


Mr. Clarke says: “Our goal throughout the 2008 drill program was to improve the resource classification by establishing a measured resource and to move most of the inferred resource into the indicated resource category. The preliminary economic assessment report (PEA) written by Moose Mountain guided these efforts. We are excited with our success. We continue to see areas of high-grade Mo throughout the potential mining area and are pleased to note that our exploration efforts have identified resources below the 650-metre pit bottom identified in Moose Mountains’ PEA report. Our resource continues to grow stronger at depth. This bodes well for a long profitable mining scenario for the company, the city of Vanderhoof and its surrounding communities. Our 2009 program, with the guidance of Moose Mountain and Giroux Consultants, will be to establish suitable near-surface, high-grade zones that will allow the company to maximize early returns in a future mining scenario. We will concentrate in the west pit area, where indications are good for the early recovery of high-grade Mo. We will keep our shareholders informed.”

Normal-course issuer bid

The company has completed the purchase of 2.5 million shares (5 per cent of its issued and outstanding) currently leaving 48,136,489 shares issued and outstanding. The company has applied for a continuation of this bid and has asked for approval to purchase up to an additional 1.6 million shares. “While we are surprised at the price shareholders are prepared to sell their shares at, we continue to believe purchase and cancellation is in the best interest of all shareholders,” says Mr. Clarke.

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. The technical information provided in this press release was reviewed by Warren Robb, PGeo, and Wes Raven, PGeo, who are both qualified persons for the purposes of National Instrument 43-101.


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