NEWSAugust 14, 2006
Grande Portage Announces Merry Widow Drill Program Update-Signs Property Option Agreement
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 14, 2006) - Grande Portage Resources Ltd. (TSX VENTURE:GPG) ("Grande Portage" or "the Company") is pleased to announce the following:
Property Option Agreement Signed
The Company has entered into an option agreement (the "Option") with United Exploration Management Inc. ("United") to acquire an undivided 100% interest in seven mineral claims located in the Nanaimo Mining Division, B.C., known as the MWM Property.
The Company can acquire the MWM Property by making option payments in installments aggregating $60,000 and issuances of non-transferable share purchase warrants to acquire up to a total of 1,000,000 common shares of the Company (the "Warrants"), as follows:
(a) Upon acceptance of the Option (the "Completion Date") by the TSX Venture Exchange (the "Exchange"), an initial payment of $15,000 and the issuance of Warrants to purchase up to 250,000 shares at an exercise price of $0.60 per share for a period of two years from the Completion Date;
(b) Within six (6) months of the Completion Date, an additional payment of $15,000, and the issuance of Warrants to purchase an additional 250,000 shares at an exercise price equal to the ten day average trading price preceding the date which is 6 months following the Completion Date for a period of two years;
(c) Within twelve (12) months of the Completion Date, an additional payment of $15,000, and the issuance of Warrants to purchase an additional 250,000 shares at an exercise price equal to the ten day average trading price preceding the date which is 12 months following the Completion Date for a period of two years; and
(d) Within eighteen (18) months of the Completion Date, an additional payment of $15,000, and the issuance of Warrants to purchase an additional 250,000 shares at an exercise price equal to the ten day average trading price preceding the date which is 18 months following the Completion Date for a period of two years.
United has also reserved a 2.5% net smelter returns royalty over the MWM Property, and the Company has an option to purchase 60% of such royalty (or 1.5%) for $1,500,000. The above described property acquisition is subject to the acceptance for filing of the Exchange.
The Company will now incorporate these new claim boundaries and relevant available geological, geochemical and geophysical data into its growing digital data package. Initial prospecting, mapping and silting of all accessible areas will commence this fall.
Merry Widow Drill Program Update
The Company is pleased to announce that it recently had a geologist specific to GIS implementation on the Merry Widow property to catalogue, into 3D space, all 25 drill holes completed. A legal land surveyor to provide total station accuracy is expected shortly.
The first 23 diamond drill holes (all intersecting massive sulphides) were completed in and around the former producing Merry Widow pit and as such was the focus of earlier exploration work by previous operators. Various drill holes were completed from each set up with different angles and bearings. Accordingly, the assay results will be released per collar set up with relevant UTEM coordinates, drill hole angles and bearings provided per set up.
Drill holes MW06-1 to MW06-04 were from drill hole Site I and will be released first followed by, as they are received (see below):
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Drill Set Up Drill Holes
Site II MW06-5 to MW06-8
Site III MW06-9 to MW06-11
Site IV MW06-12 & MW06-13
Site V MW06-14
Site VI MW06-15 to MW06-18
Site VII MW06-19 & MW06-20
Site VI MW06-21 to MW06-23
Site VIII MW06-24
Site IX MW06-25
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The assay data will then be incorporated with previous drill hole data and assays and modeled in order to further evaluate the potential.
The exploration program is being conducted under the direction of Warren Robb, P.Geo. and George Nicholson, P.Geo., both are qualified geologists as defined under National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Alistair MacLennan, President/CEO
About Grande Portage Resources Ltd.
Grande Portage Resources Ltd. is a mineral exploration and development company focused on massive sulphide exploration in British Columbia. Grande Portage is operated by experienced managers and professionals who have been effective in discovery, mine development, and mining operations throughout North and South America, Africa, Europe, and Central Asia.
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward-looking statements". The Company intends that such forward-looking statements be subject to the safe harbours created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from the expected results.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.