URSAMajor Minerals Updates Exploration Plans for Its Ontario Nickel, Copperand PGM Projects and Fourth Quarter Operations at the Shakespeare Mine2/10/2011 1:19:43 PM - NFD
TORONTO, ONTARIO, Feb 10, 2011 (Marketwire via COMTEX News Network) --
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URSAMajor Minerals Incorporated ("URSA Major" or the "Company") (TSX:UMJ)is pleased to provide an update on exploration plans for the Company'snickel, copper and PGM projects in 2011 and provide results from thefourth quarter mining operations.
Highlights include:
-- Drilling and borehole geophysics at the Shakespeare East target
identified additional sulphide mineralization and a strong borehole EM
conductor 200 meters east of previous drill intersections;
-- Nickel Offsets drilling and borehole geophysics provided additional
high-grade massive sulphide targets below the 1550 foot level of the
past-producing mine workings;
-- Acquired an additional PGM property in the Thunder Bay area and airborne
geophysical survey completed at Disraeli Lake property;
-- Shakespeare Mine delivered 64,947 tonnes of ore at a grade of 0.34%
nickel, 0.40% copper, and 0.98 g/t PGM in quarter ended January 31,
2011, compared with 66,769 tonnes at a grade of 0.38% nickel, 0.43%
copper, and 1.08 g/t PGM in the previous fiscal quarter.
URSAMajor Minerals' President and CEO, Richard Sutcliffe, commented "Ourmain focus during the past two years has been to bring the ShakespeareMine into profitable production. During the past year, we havedemonstrated that consistent ore production and grades can be achievedat Shakespeare. We have now shifted our attention to expandingexploration activity in order to develop the resources at our Ontarioproperties with an immediate goal to increase the size of ourShakespeare deposit and assess the potential for underground production.We continue to evaluate various options to improve the economics of aproposed 4,500 tpd mining and milling operation contained in the 2008feasibility study. In addition to the Shakespeare program, we continueexploration of the highly prospective Nickel Offsets Property and ourPGM properties in the Thunder Bay area."
Shakespeare EastExploration - The strike length of mineralization at Shakespeare iscurrently defined over 1.4 kms and includes the producing West Pit, thefully permitted Shakespeare East Deposit discovered by URSA Major in2002, and the down plunge resources extending east from the ShakespeareEast Deposit. The Shakespeare East Deposit remains open down plunge tothe northeast. Highlights of previous drilling east of the plannedShakespeare East Pit, that intersected significant widths ofmineralization include (see July 8, 2008 press release): U3-112 with 3.0metres of 0.87% nickel, 0.28% copper, 0.06% cobalt and 0.72 g/tprecious metals and 11.0 meters of 0.48% nickel, 0.59% copper, 0.03%cobalt and 1.39 g/t precious metals and; U3-113 with 13.0 meters of0.46% nickel 0.59% copper, 0.03% cobalt and 1.31 g/t precious metals.
InDecember 2010, URSA Major initiated a drill program to test the downplunge extension of the Shakespeare East Deposit. An immediate goal ofthe program is to expand the size of the Shakespeare East Deposit andassess the potential of underground production from this section of theDeposit. A long section illustrating the proposed targets in relation tothe current mining operations, reserves and resources and previousdrilling is available on the Company's website atwww.ursamajorminerals.com.
To date, the Company has drilled twoholes totalling 1,365 meters on the Shakespeare East down plunge target.U8-01, located 200 meters northeast of previous drilling by theCompany, was drilled to a depth of 798 meters and intersected a narrow0.35 meter interval of sulphide mineralization at 684 meters that wastruncated by a fault structure. A borehole time domain electromagnetic(EM) survey identified a strong off-hole conductive response at a depthof 675 meters down the hole. Modelling indicated a conductive plate witha 60 degrees north dip and terminating just above the trace of U8-01.This orientation is consistent with that of the Shakespearemineralization. Hole U8-01 is located east of the 100% owned Shakespeareproperty on ground that is currently under a joint venture agreementwith Xstrata Nickel. URSA Major has earned a greater than 81% interestin the property, subject to certain back-in rights to Xstrata. A followup hole, U8-02 has been collared to test the conductive responsedetected above U8-01.
Hole U3-115, located on property that is100% owned by the Company and 60 meters northeast of hole U3-112 wasdrilled to a depth of 567 meters. This drill hole intersected 30.0meters of sulphide mineralization from a depth of 472.1 to 502.1 metersdown hole. Assay samples from U8-01 and U3-115 are in process.
Basedon the encouraging results to date, URSA Major intends to use part ofthe proceeds from the recent financing to accelerate and expand thisexploration program. The Company plans to complete approximately 7,000meters of drilling, a new resource estimate on the Shakespeare East downplunge extension and conduct a preliminary economic analysis ofunderground mining of this resource. P&E Mining Consultants Inc. hasbeen engaged to produce a technical report on the updated resourceestimate and economic analysis. The work program will take approximatelysix months to complete.
The Company regrets to report that onJanuary 18, an accident resulting in a critical injury to a contracteddrill operator occurred at the Shakespeare East exploration site. Theaccident was investigated by the Ontario Ministry of Labour and a stopwork order was issued for the specific diamond drill equipment. Contraryto initial reports in the local press, this accident did not affectoperations at the Shakespeare Mine. The Company anticipates thatdrilling will resume early next week, once the equipment has been fittedwith additional safety guards. The Company appreciates and thanks siteemployees and contractors for their decisive first aid treatment andrapid evacuation of the injured driller. Our thoughts are with theinjured man and his family and wish him an expeditious recovery.
NickelOffsets Property - At Nickel Offsets, the Company completed a sevenhole, 2,582 meter diamond drilling program in November 2010. Sinceoptioning the Nickel Offsets Property in 2008, URSA has undertaken twodiamond drill programs totalling 4,389 meters in 12 holes.
Assayresults for holes U15-6, 7, and 10 were reported on November 24, 2010.Hole U15-10 is of particular interest, intersecting 2.89 meters ofnickel-rich massive sulphides grading 2.90% nickel, 0.97% copper, 0.16%cobalt, 0.94 g/t platinum, 1.28 g/t palladium, and 0.11 g/t gold. HoleU15-10 also intersected an additional 2.0 meters of platinum group metalmineralization grading 3.04 g/t platinum, 2.00 g/t palladium, 0.82 g/tgold, with 0.07% nickel and 0.37% copper in disseminated sulphides inthe footwall of the nickel-rich massive sulphides. As reported inNovember, holes U15-8, 9, 11 and 12 did not intersect visuallysignificant sulphides, and subsequent careful logging and assaying forpotential precious metal bearing disseminated sulphides did not revealany significant mineralization.
Drilling to date indicates thatthe previously mined number 2 and 4 ore lenses were probably truncatedby a longitudinal fault structure that parallels the strike of theoffset dyke and the contained mineralization. URSA Major contractedCrone Geophysics to conduct bore-hole time-domain EM surveys of therecently drilled holes to target new massive sulphide lenses. Hole U15-8targeted the interpreted down-dip extension of lens 3, below the 1550foot level of the past producing Nickel Offset No. 1 Mine. While thisdiamond drill hole did not encounter significant sulphides, a bore-holeEM survey of hole U15-8 has defined a conductive target down plunge fromlens 3 and below the existing mine workings. The results of currentdrilling and the geophysical surveys will be compiled into a3-dimensional model to generate targets for the next round of drilling.The Company plans to complete a five hole, 2,500 meter program withfurther bore-hole EM surveys at Nickel Offsets over the next six months.
The Nickel Offsets Property consists of 12 contiguous patentedmining claims and five unpatented mining claims covering a total of 358ha (884 acres). The highly prospective property is located 15 kmnortheast of Vale's Coleman Mine and Xstrata Nickel's Strathcona mill.The Foy Offset Dyke is one of four major nickel and copper mineralizedoffset dykes in the Sudbury Basin. Nickel-Copper-PGE mineralization onURSA Major's Nickel Offsets Property is typical of that hosted by quartzdiorite offset dykes in the Sudbury mining camp. Examples include thesignificant deposits at Vale's North and South Mines hosted by theCopper Cliff offset dyke; Vale's Totten deposit under development in theWorthington offset dyke; and Quadra FNX's recent discovery on itsVictoria project, also hosted in the Worthington offset dyke. URSA Majorhas successfully utilized diamond drilling and bore-hole EM geophysicsto target and identify nickel-copper sulphide mineralization which alsocarries high-grade platinum group metal values.
URSA Major has anoption to earn a 70% interest in the property from United Reef Limited(TSX VENTURE:URP). (See March 6, 2008 press release for the terms of theoption agreement.) The historical pre-production resource at the NickelOffsets Mine (pre NI 43-101 -- see below) was 359,000 tons grading 1.9 %Ni and 1.45 % Cu (Nickel Offset Mines Limited Annual Report 1940).Between 1943 and 1957, the Nickel Offsets Mine, produced 208,551 tons ofnickel and copper ore with reported recoveries of 4.56 million lbs ofnickel and 3.32 million lbs of copper. Historical undergroundexploration and mining development at the Nickel Offset Mine included1,599 feet of shaft sinking, approximately 10,000 feet of drifting and3,980 feet of raising on nine levels at the No. 1 Mine and 1,056 feet ofshaft sinking, approximately 6,000 feet of drifting and 410 feet ofraising on five levels in the No. 2 Mine.
Thunder Bay Properties -In November 2010, URSA Major contracted Aeroquest Limited to complete a610 line km airborne magnetic and time domain EM survey of theCompany's Disraeli Property (total 207 claim units) that hostsultramafic and gabbroic intrusions and is located 25 km north of MagmaMetals' Thunder Bay North Property. In late November, URSA Major alsoacquired 144 claim units on the Seagull Intrusion that are contiguouswith the Disraeli property. The Seagull Intrusion is known to containplatinum-palladium mineralization with selected drill results of up to7.9 g/t platinum plus palladium and gold, 0.47% copper and 0.33% nickelreported on adjacent ground in 2005. The Disraeli property has severalcopper showings hosted by both intrusive rocks and Sibley groupsediments. The Company is naming the combined property the Fox Mountainproject.
The Aeroquest survey identified a number of anomaloustargets that are being evaluated for drilling. The Company is targeting asimilar geologic environment as the Magma Metals Current Lake deposit,the Duluth complex and Marathon PGM's recently sold property inMarathon, ON. Proceeds from the recent financing will fund follow upexploration on the Fox Mountain property.
ShakespeareNickel-Copper Mine - In the fourth quarter ended January 31, 2011, URSAMajor delivered 64,947 tonnes of ore the Strathcona Mill at an averagegrade of 0.34% nickel, 0.40% copper, 0.02% cobalt, 0.36 g/t platinum,0.39 g/t palladium, 0.19 g/t gold, and 2.25 g/t silver compared with66,769 tonnes at a grade of 0.38% nickel, 0.43% copper, 0.03% cobalt and1.08 g/t PGM in the previous fiscal quarter. The grade for the fourthquarter was approximately 90% of budgeted grade. Shipments for the yearended January 31, 2011 totalled 198,181 tonnes of ore. The Company willprovide guidance on anticipated production for 2011 mining operationsand it is anticipated that produced tonnes and grade will be similar tothe results for the past year. Mining at Shakespeare and trucking at anominal rate of 1,000 tonnes per day will continue until approximatelyMarch 15th when trucking operations will be temporarily suspended due tothe spring season half-load trucking restriction. This restriction isan annual event and is taken into consideration in the annual operatingplan for the Mine. Trucking resumes when the spring load restriction isremoved by the Municipality of Sudbury, which typically occurs in lateMay.
URSA Major intends to use the proceeds raised from itsprivate placement of January 31, 2011 to accelerate and expand itsexploration programs at the Shakespeare nickel-copper deposit, NickelOffsets property and other Ontario properties. Inspiration MiningCorporation ("ISM") has delivered a notice of application to URSA Majoradvising that ISM will be bringing an application in the OntarioSuperior Court of Justice (Commercial List) under sections 106 and 248of the Business Corporations Act, Ontario seeking a declaration that theprivate placement that closed on January 31, 2011 be reversed. URSAMajor intends to vigorously defend its position. URSA Major believesthat ISM is a 16.5% shareholder in URSA Major (based on the number ofissued and outstanding shares of URSA Major after completion of theOffering on January 31, 2011).
About URSA Major Minerals Incorporated
URSAMajor is a Canadian mining company with an operating nickel-copper minein the Sudbury area and nickel sulphide deposits containing significantNI 43-101 compliant nickel and copper reserves and resources. TheCompany is focused on maintaining profitable operations at theShakespeare Mine, expanding its nickel, copper and platinum group metal(PGM) production and increasing mineral resources through explorationand development, primarily in Ontario, Canada.
NI43-101. HaroldTracanelli, P.Geo. is the qualified person for drilling results reportedfrom the Nickel Offsets and Shakespeare properties and has reviewed andapproved the contents of this release.
This release was preparedby management of the Company who takes full responsibility for itscontents. Some statements contained in this release are forward-lookingand, therefore, involve uncertainties or risks that could cause actualresults to differ materially. Such forward-looking statements includecomments regarding mining and milling operations, mineral resourcestatements and exploration program performance. Factors that could causeactual results to differ materially include metal price volatility,economic and political events affecting metal supply and demand,fluctuations in mineralization grade, geological, technical, mining orprocessing problems, exploration programs and future results ofexploration programs, future profitability and production.
SOURCE: URSA Major Minerals Incorporated
URSAMajor Minerals Incorporated Dr. Richard Sutcliffe President & CEO416-864-0615 URSA Major Minerals Incorporated Alison Tullis InvestorRelations Manager 416-864-0615 atullis@bellnet.cawww.ursamajorminerals.com
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