Apr 21, 2010
Probe Mines to Option the Cree Lake Gold Project, Swayze Belt, Ontario from Mantis Mineral Corp
Toronto, April 21, 2010 -- The Directors of PROBE MINES LIMITED (TSX-V: PRB) ("Probe") are pleased to announce that the Company has entered into an option agreement (the "Agreement") with Mantis Mineral Corp (CNSX:MYN) ("Mantis") to acquire the Cree Lake Gold Project, subject to regulatory approval. Pursuant to the Agreement, Probe has an option to acquire up to a 70% interest in nineteen mining claims covering 4,032 hectares comprising the Cree Lake Gold Property. In 2009 Mantis discovered a new gold zone on the property characterized by thick, near surface, drill intersections of low-grade gold mineralization. This style of mineralization is not typical of the Swayze Belt and represents excellent potential for the delineation of a large tonnage, low-grade gold deposit. The project is located in Swayze Township, approximately 195 kilometres northwest of Sudbury, Ontario, and seven kilometres southwest of the past-producing Kenty gold mine. Probe is currently planning its first phase of drilling on the property, to begin as soon as ground conditions permit. Details of the drilling will be announced prior to commencement of the program.
Probe may earn a 51% undivided interest in the Cree Lake Gold Project by making an initial payment of 150,000 common shares of Probe within 10 days of the signing of the option agreement; fund expenditures of $1,000,000, which includes an IP survey and a diamond drill program; issue a total of 1,000,000 Consideration Shares in aggregate; and complete and fund an additional 5,000 metres of drilling by April 2013. Upon completing all the payments mentioned above, Probe will have a second option to acquire an additional 9% undivided interest in the Cree Lake Gold Project by paying two million dollars ($2,000,000) on or before April 15, 2014 to Mantis. Probe will have a third option to acquire a further undivided 10% interest in the property by paying three million dollars ($3,000,000) on or before April 15, 2015 to Mantis. Four of the claims comprising the Cree Lake Gold Project are subject to a 1.5% net smelter return royalty in favor of previous vendors.
The Mantis occurrence represents a new gold discovery in the Swayze Belt. Recent drilling intersected a volcanic-hosted, quartz stockwork system carrying significant gold values along substantial drill hole widths, which include a 15.5-metre interval averaging 2.05 g/t Au from hole CL09-6 (see Mantis press release September 9, 2009). The zone comes to surface and represents excellent open-pit potential for a gold deposit of the high tonnage, low-grade type.
Follow-up trenching conducted by Mantis immediately west of hole CL09-6 exposed a 50-metre length of intermittent quartz veining and shearing over a 10-metre width. Grab samples within this zone yielded significant gold values ranging from 0.61g/t to 43.2 g/t, with an average of 6.47 g/t.
The property is situated along the Ridout deformation zone, a 130-kilometre long structure that hosts past producers such as the Jerome, Tyrranite and Kenty Mines, as well as numerous gold showings. The area has received recent attention with the identification of thick intervals of gold mineralization by Trelawney Mining on its Chester Gold Project, located approximately 60 kilometres southeast along strike in the Swayze Belt.
About Probe Mines:
Probe Mines Limited is a well financed, Canadian base and precious metal exploration company with approximately $4MM in treasury and a portfolio of highly prospective mineral properties. The Company is currently focused on the McFauld's Lake area where it owns 931 claims covering almost 15,000 hectares, including joint venture properties with Noront Resources covering 87 of these claims. Probe currently has an option-joint venture agreement with Lake Shore Gold Corp on its Bristol Township gold project adjacent to Lake Shore's million-plus ounce gold deposit. Recent exploration results from Lake Shore include an 83.4m intersection grading 12.75 g/t gold less than one kilometre from Probe's claims. Probe also maintains a 5% net smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val d'Or, Quebec, which began production in 2008. The Company has only 34,066,472 shares issued and outstanding, which 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, visit our website at www.probemines.com, or contact:
Tel: (416) 777-6703
Tel: (866) 365-4724
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: Mon Apr 26, 2010, Probe Mines to Acquire the Borden Lake Gold Project, Chapleau, Ontario
You can view the Previous News Releases item: Tue Apr 13, 2010, Probe Mines Provides Exploration Update for Its McFauld's Lake Projects; Options Granted
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