Britannica Resources Corp.

Britannica Resources Corp.

January 30, 2007 14:09 ET

Britannica Clarifies Disclosure of Historical Resource Estimates and Provides Further Information on Its Acquisition and Exploration Programs on the JAG and Revillard Properties

Malartic Township, and Mckenzie Break Property, Fiedmont Township, Quebec

VAL D'OR, QUEBEC--(CCNMatthews - Jan. 30, 2007) - Britannica Resources Corp. (TSX VENTURE:BRR)(PINK SHEETS:BRRRF) (the "Company") takes this opportunity to re-state and clarify certain information published since March 2006 on its JAG, Revillard and McKenzie Break Properties, in accordance with the requirements of National Instrument 43-101 ("NI 43-101").

McKenzie Break Property

In its news releases dated November 30 and December 5, 2006, the Company has previously announced contrary to NI 43-101 historical resource estimates prepared by Placer Dome Canada Ltd. in 1991 on two known zones, the Green Zone and the lower Orange Zone on the McKenzie Break Property. The Green Zone is a series of four "en echelon" diorite hosted, discrete shear zones (lenses No. 1 to No. 4) with 643,633 tons grading 0.22 oz/t Au of inferred resources. The Orange Zone underlies the diorite, which hosts the Green Zone and consists of a broad quartz-carbonate-sericite schist shear zone, which hosts two gold enriched sub-zones called the Orange and the Sulphide zones. These sub-zones are lower grade and cumulatively indicated a mineral inventory of 170,562 tons grading 0.132 oz/t Au with a lower cut off grade of 0.08 oz/t Au and minimum width of seven (7) feet. These resources used estimation practice guidelines prior to May 30th, 2003 (CIMM current and adopted guidelines). All zones are subparallel, striking and dipping 10 degrees to 15 degrees northeast.

In 1994, Western Quebec Mines Inc. completed 67 drill holes totalling 5,259.2 meters at 30 meters spacing on a staggered grid pattern, designed to provide a reasonable indication of the internal continuity of targeted zones. The work was focussed exclusively on the Green Zone, where cost-effective exploration had the best potential. Based on this work, George Mannard, Geol., M.Sc., of Western Quebec Mines Inc. calculated drill indicated resources in April 1994 of 161,348 tons grading 10.86 g/t Au for the Green Zone, employing a cut off grade of 3.5 g/t Au, a minimum width of 1.83 meters and a statistically determined upper cutting factor of 50 g/t Au.

Mr. Claude Larouche, Ing., has been recently appointed the qualified person ("QP") for the Company's mineral exploration properties. The Company's QP has not done sufficient work to classify any of the above historical estimates as current mineral resources. Further, the Company is not treating these historical estimates as current mineral resources as defined under NI 43-101. These historical estimates should not be relied upon, as they were calculated prior to the enactment of NI 43-101 standards. Nevertheless, the Company does consider that these estimates are relevant, as they were conducted on strict parameters similar to current standards for quality assurance ("QA") and quality control ("QC") procedures. The Company has hired Geologica, Groupe-conseil to prepare a NI 43-101 compliant technical report.

The Company has established its acquisition and exploration strategies on recent regional compilation published by the Ministry of Natural Resources in Quebec on the Cadillac mining camp, located between Val d'Or and Rouyn - Noranda, and encouraging results obtain from other projects along the Cadillac Fault and in the Bousquet Formation of the Blake River Group. The JAG and Revillard Properties (discussed below) are centered on the Blake River Group.

JAG Property

The Company negotiated and executed an option agreement with Les Mines JAG Ltee. ("JAG") on their Malartic township property, known as the "JAG Property". During the period of 1983 to 1988, JAG completed systematic exploration on the JAG Property, including line cutting, geophysical surveys, stripping, sampling and 17,721 meters of diamond drilling, in 122 holes. All previous work completed by JAG has been summarized into a comprehensive final report in 1998 by Pierre Falco, Geol., which included historical estimates of resources. In its news releases dated March 29 and September 19, 2006, the Company has previously announced contrary to NI 43-101, these historical resource estimates.

In his 1988 report to JAG, Mr. Falco calculated an "inferred resource" estimated at 78,915 tonnes grading 5.61 g/t Au in the "probable" category (in use at that time), with an additional 46,810 tonnes grading 4.96 g/t Au in the "possible" category, for a total "resource" of 125,725 tonnes grading 5.37 g/t Au. A cut off grade of 1.0 g/t Au was used with a minimum true width of 1.22m, and sections + level plans + longitudinal sections were used together to define the mineralized zone, comprising eight (8) different lenses. Following a due diligence review by the Company, the Company confirmed that all of the information was collected and presented in accordance with industry standards at the time, but do not comply with the CIMM Estimation of Mineral Resources Best Practice Guidelines of May 30th, 2003.

The Company's QP has not done sufficient work to classify the above historical estimates as current mineral resources. Further, the Company is not treating these historical estimates as current mineral resources as defined under NI 43-101. Accordingly, these resource figures should not be relied upon, as they were calculated prior to the enactment of NI 43-101 standards. Nevertheless, the Company does consider that these estimates are relevant, as they were conducted on strict parameters, similar to current standards for QA and QC procedures. However, this zone will require additional diamond drilling, as neither the diamond drill core, nor the original samples are available for further testing.

No diamond drilling has been completed on this structure since 1988, and the Company has no immediate intention to conduct further drilling on this zone. Currently, the main exploration target on the JAG Property, remains the south contact of the Blake River Group, in search of mineralization similar to Laronde Mine (Agnico Eagle), located some 15 kilometres west, along the same geological contact.

A recent re-interpretation of the published geological and structural data on the mining properties under study tend to confirm that the Blake River formation is folded in the southern part of the JAG Property, and similar structures are known to carry gold mineralization in the immediate area. The recent Lapa-Agnico Eagle discovery is located within such a fold axis, the same situation exists for the former producer Malartic Hygrade, and other projects like Black Cliffs.

Revillard Property

An option agreement was recently negotiated between Northern Star (the original owner) and the Company, on the Revillard Property, Malartic Township. The Revillard Property is adjacent to the east and west of the JAG Property. Including the JAG and Revillard Properties, the Company's property interest holdings now cover a strike length of over 8 kilometres along favourable geology, adjacent to the east of Agnico Eagle's significant holdings in the area (namely, its Lapa property). The local geology and structural deformation on the Revillard Project, is very similar to the JAG Property which is centered to the two claim blocks being referred to as the Revillard Property.

Previous work on the Revillard Property, along with recent work completed by the Company, has confirmed the presence of significant gold mineralization along the northern contact of the Blake River, which opened up a new exploration target in the immediate area.

An old shallow exploration shaft (Thompson Malartic) is present on the property. It is located at a similar stratigraphic position as the Malrobic shaft on the JAG Property, at the contact between the Kewagama sediments and the Blake River mafic volcanics. The mineralization is described as irregular quartz veinlets, within a zone of shearing at the sedimentary-volcanic contact. Minor disseminated pyrite with trace of galena, chalcopyrite and free gold has been observed and the alteration is characterized by chloritization and carbonatization.

This contact has also been drilled (GM 58108) in 1999, close to the shaft. Four diamond drill holes are reported to have intersected gold values, reported as:

Hole Number from to width g per tonne Au

AMS-99-01 84.83m 85.74m 0.91m 1.80
AMS-99-02 145.39m 146.91m 1.52m 1.90
AMS-99-04 152.70m 154.23m 1.53m 4.30
MT-99-01 127.56m 128.99m 1.43m 6.52 (VG)

These holes intersected the intended structure at the contact of the Kewagama sediments and the Blake River volcanics, but also intersected interesting gold values within the Blake River volcanics, before they came to the main structure:

Hole Number from to width g per tonne Au

AMS-99-04 107.0m 108.5m 1.52m 20.41

This gold zone was projected to surface by the Company's geologist, and became the site of surface stripping and sampling. This zone was located on surface, and this new gold discovery is interesting because it confirmed the importance of the other two new gold zones identified by JAG, within the Blake River, south of the sedimentary contact. All of these zones remain to be detailed with further exploration work, as all exploration in the past was focussed at the north contact of the Blake River volcanics, and not within the Blake River itself.

A program of detailed channel sampling was initiated by the Company on the Revillard property, close to the north contact of the Blake River Volcanics. A diamond saw was used to cut 334 channel samples about 5 cm wide, 3cm to 5 cm deep with an average length of 0.5m per sample. A total of 174 linear metres were sampled under this geochem survey from a stripped area measuring 30m N-S by 80m E-W.

The assay results returned the following:

Number of samples g/t Au g/t Au

200 returned trace to 1.00 g/t Au
70 returned 1.00 g/t Au to 3.00 g/t Au
35 returned 3.00 g/t Au to 6.00 g/t Au
19 returned 6.00 g/t Au to 10.00 g/t Au
10 returned 10.00 g/t Au to 29.00 g/t Au

Preliminary description of the geology indicates that the better gold values are associated with narrow grey to black quartz stringers with strong halos of disseminated pyrite. These quartz stringers are irregular orientation, but closely spaced and trend roughly in a north-eastern direction with a sub-vertical dip. A second type of quartz stringers composed mainly of quartz and carbonate exists, but this system appears to be earlier than the grey to black quartz stringers, and do not carry any significant gold values. Locally, a third generation of quartz veining is represented by a larger, up to 1m, barren looking white quartz vein. This later quartz, possibly filling up a tension fracture, appears folded in place and carry erratic gold values, principally where it contains inclusions of the grey to black quartz.

Additional channel sampling is required to better delineate the higher grade section. It is also recommended to re-assay the original samples for multiple-elements, such as silver, copper and zinc. This methodology can help to define possible alteration zones.

Ground geophysical surveys, recently completed over part of the JAG and Revillard Properties, located strong EM conductors, the most promising (Anomaly EM-01) being located along the south contact of the Blake River. Anomaly EM-01 corresponds to a polarizable, conductive, and magnetic anomaly identified from a previous survey, possibly being associated with VMS (volcanic massive sulphide) mineralization. The Company's geophysical consultant recommend drilling this anomaly northwardly as first priority target, along line 3+00W near the TDEM (Time Domain ElectroMagnetics) target center and strong IP response location. Pending drilling results, a TDEM survey extension could be carried out southeastwardly and northwestwardly to delineate trend extensions. At Agnico Eagle's Laronde mine, 15 kilometres west along the same geological contact, the gold deposit is directly associated with massive sulphides.

The information contained in the present news release, has been compiled and verified by Claude Larouche, Ing., a consulting geological engineer and QP to the Company. Although the information has been reviewed carefully, because of the time constraints, no checking of recent sampling was possible, but it clearly appears that very strict QA and QC procedures have been observed by the Company consistent with NI 43-101, and typical of the industry standards. The Company has kept under lock all rejects and pulps for further testing. The samples were processed at Bourlamaque Assay Laboratories in Val d'Or, Quebec. A regional compilation map, showing the pertinent information will also be added to the Company's website shortly.

This news release may contain certain forward looking statements. These statements may involve a number of known risks and uncertainties, typical to mineral exploration and development, and other factors that may cause the actual results, level of activities and performance to be materially different from the Company's expectation and projection.


Jeffrey A. Cocks, Chairman

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information