Oct 10, 2006
Probe Mines Enters into Joint Venture Agreement with Avenue Financial
Toronto, October 10, 2006 - Probe Mines Limited (TSX-V: PRB) is pleased to announce that it has entered into a binding letter of intent with Avenue Financial for the acquisition of a 51% interest in Probe's 100%-owned Tamarack Project (the "Property") located in the McFauld's Lake area, James Bay Lowlands, Ontario. Probe is looking forward to working together with Avenue to advance the Tamarack Project. This collaboration will also allow Probe to focus its time and resources on its recently acquired Norway Lake and Greenlaw projects, as well as continued project generation and acquisition.
The terms of the purchase are: a.) 2,000,000 Avenue shares over a 3-year term (the "Consideration Shares") on closing for the Property, subject to regulatory approval, and b.) the completion of a $500,000 work program over three years, of which $100,000 is required for the initial year.
Probe's Tamarack (formerly McFauld's Lake) project consists of 360 claims covering a 5,800 hectare area in the McFauld's Lake area in James Bay Lowlands of Northern Ontario and includes the high-grade "A-zone" copper discovery.
In previous drilling a 7.8 metre section of chalcopyrite-rich VMS mineralization grading 3.1% copper was intersected in the "A-zone", starting at a vertical depth of 50 metres. Drill hole M7, collared 50 metres west and down dip from M6, intersected the A-zone at 97 metres vertical depth and returned 2.4% copper over 6.0 metres. Both intercepts also returned anomalous concentrations of zinc, gold and silver.
In late 2005, Probe conducted a ground-based InfiniTEM geophysical survey on the Tamarack project, centred over the A-zone. Results indicate the A-zone has a strike length of at least 500 metres. In addition, two high-priority targets have been delineated 600 metres to the south and 1200 metres to the north of the A-zone. These new targets comprise bedrock conductors coincident with strong magnetic anomalies. The southern anomaly consists of a 400 metre long horizon displaying stronger conductivity than the A-zone, while the northern zone extends for over 600 metres in length. The two new anomalies lie within the same stratigraphic horizon as the A zone, indicating potential for similar style VMS mineralization.
In 2006 twelve holes were drilled to further test the A-zone copper mineralization, and two new conductors identified in the winter ground geophysical program. A-zone mineralization was intersected in five holes, over a strike length of 100m, to the south and west of the initial discovery, while a new zone of massive sulphide mineralization was intersected 900m to the south of the A-zone and corresponds to one of the two new conductors. The new mineralization represents a significant sulphide intersection, comprising a continuous 35 meters zone of massive and semi-massive sulphides returning anomalous base metal values. The thickness of the sulphide layer would also suggest that the system was long-lived and had the capacity to generate significant volumes of base metal massive sulphide. The third target was unexplained in drilling, and may represent a deeper source.
The discovery of copper-rich VMS mineralization on the Tamarack project is confirmation that identification and drilling of geophysical anomalies is an excellent exploration technique in the McFauld's Lake area.
About the Company:
Probe Mines Limited is a Canadian base and precious metal exploration company with a portfolio of highly prospective mineral properties. Probe has only recently acquired the Greenlaw and Norway Lake base metal projects, which both host numerous base metal occurrences and untested conductors. Probe also owns a 5% net smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val d'Or, slated for production in 2008. In addition, Probe has signed a joint venture agreement on its Bristol Township project located in the new Timmins West gold camp and adjacent to the Timmins West deposit of Lake Shore Gold Corp. 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, visit our website at www.probemines.com, or contact:
David Palmer, Ph.D.
Tel: (416) 777-6703
Harry J. Hodge, P.Eng.,
Tel: (416) 363-4376
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 28, 2006, Probe Mines Confirms Base Metal-Bearing Horizons in First Phase Drilling Program on Greenlaw Project, Chapleau, Ontario; Second-Phase Drilling planned for Norway Lake Zinc Project, Northwestern Ontario
You can view the Previous News Releases item: Tue Oct 3, 2006, Probe Mines to Commence Drilling on Greenlaw Base and Precious Metal Project, Chapleau, Ontario - Planning Phase II Drilling on Norway Lake Project, Northwestern Ontario
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