Mobilization Commences at Committee Bay Project, Nunavut; Update on Sale of Coolgardie Gold Project, Australia
Thu Apr 10, 8:30 AM
ca.news.finance.yahoo.com
EDMONTON, ALBERTA--(Marketwire - April 10, 2008) - Committee Bay Resources Ltd. (TSX VENTURE: CBR.V)(FRANKFURT:C3M) ("Committee Bay" or the "Company") announces that the Company has commenced the mobilization of fuel and supplies for a 2008 exploration program at the Committee Bay Greenstone Belt Project located northeast of Baker Lake, Nunavut, Canada.
The first crew was mobilized to the project in mid-March and is currently completing the construction of a 1.6 km long ice airstrip to facilitate the mobilization of the fuel and supplies for the 2008 program.
Last year, the Company successfully expanded the resource base of the Three Bluffs Deposit(i) and discovered new high grade mineralization at the Inuk Prospect (See CBR press release dated September 5, 2007). The drilling conducted in 2007 confirmed the continuity of the grades and widths of the Three Bluffs Deposit and step-out drilling identified potential for additional high grade structures on the limbs within the Three Bluffs fold. Based on the 2005 and 2007 drill programs, the Company successfully upgraded the Three Bluffs Gold Resource to 468,400 Indicated ounces (2,451,000 tonnes @ 5.94 g/t Au) and 230,900 Inferred ounces (1,344,000 tonnes @ 5.34 g/t Au). (i)(See CBR press release dated March 13, 2008)
The main objective of the 2008 program will be to continue expanding the current gold resource through targeted drill programs and to follow up on specific high-grade gold occurrences discovered during previous regional programs along this highly mineralized belt. The company is in the process of finalizing the scope and budget for this year's program.
About Committee Bay Project
Committee Bay currently holds a 100% interest in approximately 640,000 acres of land with prospective geology along the Committee Bay Greenstone belt. The belt is 300 km long, 5 to 50 km wide and is one of the most prospective greenstone belts in Canada, hosting more than 40 high-grade gold occurrences. The Committee Bay Project is one of the most advanced gold projects in Nunavut, Canada, after such projects as Hope Bay (Newmont Mining Corporation) and Meadowbank (Agnico-Eagle Mines Limited), which are advancing towards production.
Update on Sale of Coolgardie Gold Project
The sale of Committee Bay's 50% interest in the Coolgardie Gold Project is expected to close shortly after April 14, 2008, when the shareholders of Focus Minerals Ltd ("FML"), Committee Bay's partner in the Redemption Joint Venture, are scheduled to approve the deal. In addition to the AUD$1 million deposit received from FML under an Exclusivity Agreement (See CBR press release dated January 30, 2008), Committee Bay will receive on closing: AUD$19 million in cash; a one year AUD$2 million convertible note at 8.25% per annum; and 140 million shares of FML.
In conjunction with the sale, Committee Bay has acquired approximately AUD$2 million in drilling equipment from the Redemption Joint Venture for a price of AUD$586,000 and retained the exclusive right to provide drilling services to FML for a two year period. Further, Committee Bay retains the priority right to process a minimum of 200,000 tonnes of ore per annum at FML's Three Mile Hill plant for a period of two years. Thus the sale and related agreements will provide a platform for Committee Bay to pursue other exploration opportunities in Australasia.
Committee Bay Resources Ltd. maintains an extensive quality control program in the preparation, shipping and checking of all samples from the property. The program is supervised by Peter Kleespies, P.Geol. who is the Qualified Person as defined by NI 43-101. A detailed description of Committee Bay's QA/QC program is provided on the Company's website at www.committeebay.com.
On behalf of the Board
Committee Bay Resources Ltd.
John Williamson, P.Geol., President, CEO & Director
Certain disclosures in this release, including management's assessment of Committee Bay's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Committee Bay's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Committee Bay expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts
Derek Iwanaka
Committee Bay Resources Ltd.
Investor Relations
(604) 646-4524 or Toll Free 1-888-331-2269
Website: www.committeebay.com |
