Antares Minerals Inc.

Antares Minerals Inc.

January 10, 2005 15:01 ET

Antares Minerals Inc.: Drilling Commences at Rio Grande


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ANTARES MINERALS INC.

TSX VENTURE SYMBOL: ANM

JANUARY 10, 2005 - 15:01 ET

Antares Minerals Inc.: Drilling Commences at Rio Grande

WATERDOWN, ONTARIO--(CCNMatthews - Jan. 10, 2005) - Antares Minerals
Inc. (TSX VENTURE:ANM) is pleased to announce that a reverse circulation
and diamond drilling program is underway at the Rio Grande copper-gold
project in northwestern Argentina. Approximately 8-9 holes (2000-2500 m)
are planned to test a series of geophysical, geochemical, and geological
targets in an area with known copper-gold mineralization at surface as
well as in drill holes (see press release dated October 18, 2004).

About Rio Grande

Rio Grande is a copper-gold prospect located in the Salta Province of
northwestern Argentina. Mineralization at Rio Grande covers a large area
measuring at least 4 sq. km. Copper-gold mineralization occurs as
disseminated and veinlet-controlled magnetite-chalcopyrite. Primary
copper sulfides have been weathered to secondary copper oxides to depths
in excess of 200 m. A thorough review of work previously completed by
Teck Corporation ("Teck") in 2000-2001 has identified a series of target
areas with potential for higher Cu-Au grades within a distinct 2 km
diameter ring of anomalous surface and subsurface Cu and Au
geochemistry. The 200 m average estimated depth to the top of the IP
anomalies suggests that there is an extensive area for potential
oxidized mineralization that may be amenable to SX-EW recovery of
copper.

Drilling has commenced in the "Discovery Zone" in the southeast corner
of the chargeability ring where previous trenching, soil sampling and
surface trenching by Teck and Mansfield Minerals Inc. ("Mansfield") has
defined a 750 m long and 200-300 m wide zone with highly anomalous gold
and copper. Antares plans to drill the area beneath the higher-grade
trenches and undrilled areas to the southwest along a structural
corridor that is interpreted to control the trend of mineralization.

Field crews are now completing detailed geological mapping, trench
sampling, and geophysical surveys at four additional target areas within
the chargeability ring where management believes there is potential for
higher grade Cu-Au mineralization. The Company is also preparing an
initial metallurgical testing program to evaluate the feasibility of
using SX-EW processing on the copper-oxide material.

John Black, President of Planet Ventures Inc, commented as follows:

"The previous widely-spaced drilling at Rio Grande encountered
widespread, moderate-to-low grade copper and gold mineralization in
2000-2001 at a time when copper and gold prices were significantly
lower. The focus then was to discover a very large, contiguous orebody.
Based on a review of the earlier work, we now believe there is good
potential for a series of distinct, structurally controlled and
higher-grade copper-gold orebodies that could collectively form a
significant resource. We also feel there is good potential to utilize
SX-EW technology to recover copper from the predominantly
low-to-moderate grade oxide material. We are excited about the potential
of Rio Grande and are pleased that drilling is underway."

The Rio Grande prospect is wholly owned by Mansfield Minerals Inc. (MDR.
TSX.V). Under the terms of an option-joint venture agreement between the
companies, Antares can earn an initial 50% interest in the property by
completing work expenditures totaling US$3,000,000, making option
payments totaling US$600,000 and issuing 900,000 shares, all over a
four-year period. Antares' commitment for the first year is to complete
work expenditures of US$400,000 and make an option payment of US$25,000.
Antares may terminate the agreement at anytime thereafter. If Antares
completes the 50% earn-in, it can elect to earn an additional 10%
interest by spending an additional US$1.5 million over 18 months.

Peter Drobeck is the Qualified Person, as defined by NI 43-101, who has
reviewed and approved the information contained in this press release.

Management Change

Antares announces that Peter Drobeck has resigned as Vice President,
Exploration of Antares to pursue consulting opportunities in the mineral
sector. Mr. Drobeck has agreed to consult to Antares for a three-month
period with a view to identifying mineral prospects in Mexico for
possible acquisition by Antares. This consulting arrangement may be
extended after the initial three-month period with the mutual agreement
of both parties.

About Antares Minerals Inc.

Antares is a recently reorganized mineral exploration company with a
highly experienced management team. The Company is focused on gold and
copper exploration properties in Latin America that can be quickly and
cost-effectively advanced to the drilling and discovery stage.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Antares Minerals Inc.
    John Black
    President
    (303) 618-7797
    or
    Antares Minerals Inc.
    Mark Wayne
    CFO
    (905) 667-5075
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.