Nov 08, 2005
Probe Mines Limited Signs Joint Venture Agreement with Sydney Resource Corporation on the Bristol Gold Project/Pursues Winter Geophysical and Drilling Program on McFauld's Lake Project
Toronto, November 8, 2005 - Probe Mines Limited (TSX-V: PRB) is pleased to announce that it has signed a joint-venture agreement with Sydney Resource Corporation (TSX-V: SYR) on Probe's 100% owned Bristol Township gold property, situated in the emerging West Timmins Camp. The property is strategically located, sharing numerous boundaries with Lakeshore Gold's (TSX-V: LSG) property, which hosts the areas first million ounce deposit. Sydney is currently exploring its own Northshore property, which represents the potential down-dip extension of the Lakeshore gold zone.
Dr. David Palmer, President of Probe states, "The Joint-Venture comes at an opportune time for Probe, as we begin to focus on the new copper-rich massive sulphide discovery on our McFauld's Lake property in Northern Ontario. Sydney is an aggressive exploration company with strong technical experience and sound management and we are pleased to be in partnership with them."
Under the terms of the Agreement Sydney may earn an initial 55% interest in Probes' Bristol Project by making cash payments totaling $55,000, issuing 400,000 common shares over three years and completing $2,000,000 in exploration expenditures on the properties over a four year period. Sydney will commit to fund a minimum of $250,000 in exploration during the first 12 months of the agreement. Share payments of 100,000 shares at each of the first and second anniversary dates are value limited to $200,000 based on the 10 day trading average of SYR common shares preceding the date of issue. Having vested at 55% SYR may opt to increase its interest to 70% by making an additional cash payment of $50,000 and issuing an additional 50,000 common shares within 60 days of vesting and delivering a resource report to the standards required by National Instrument 43-101 on a resource developed within the bounds of the properties within 2 years of having vested. The agreement is subject to a 20 day due diligence period, approval by the board of directors of Sydney and regulatory approval.
On the 100%-owned McFauld's Lake Project, Probe is currently developing winter geophysical and drilling programs in order to further delineate the discovery zone, as well as identify other targets in the area of the new VMS find. The program will focus on an area with several interesting airborne anomalies and comprises extensive deep-probing ground electromagnetic surveys, to be followed by drilling on the main zone and other satellite conductors. Probe hopes to complete the geophysical program before the end of 2005, with drilling to commence early in the new year.
About the Company:
Probe Mines Limited is a well-funded base and precious metal exploration company with a portfolio of highly prospective mineral properties. Probe has made a significant copper VMS discovery during recent drilling on its McFauld's Lake property in the James Bay Lowlands, including a shallow intersection of 7.8m grading 3.1% Cu. As well, Probe maintains a 5% royalty interest in claims covering part of Agnico-Eagle Mines Limited (TSX: AGE) Goldex Mine property in Val d'Or, Quebec, which is slated to begin production in 2008. Probe's shares trade on the TSX Venture Exchange under the symbol PRB.
David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Mines Limited (TSX-V: PRB), visit our website at www.probemines.com.
This press release is available on the Probe Mines IR HUB for investor commentary, feedback and questions. Investors are asked to visit http://www.AGORAcom.com/IR/ProbeMines. Alternatively, investors are asked to e-mail all questions and correspondence to [email protected] where they can also request addition to the investor e-mail list to receive all future press releases and correspondence directly.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Probe, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Probe's expectations are exploration risks detailed herein and from time to time in the filings made by Probe with securities regulators.
You can view the Next News Releases item: Tue Nov 29, 2005, Probe Mines Commences Deep EM Geophysical Program on McFauld's Lake Project
You can view the Previous News Releases item: Tue Nov 1, 2005, High Grade Copper Mineralization Discovered on Probe Mines McFauld's Lake Property, including 7.8m of 3.1% Cu
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