MPH Ventures Corp.
TSX VENTURE : MPS

MPH Ventures Corp.

October 17, 2007 02:30 ET

MPH Ventures Amends Agreement to Acquire Over 90% of Pidgeon Molybdenum Mining Shares From Rio Algom and Goldcorp

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2007) - MPH Ventures Corp. (TSX VENTURE:MPS) (the "Company") announces that further to its News Release dated August 29, 2007, the Company has amended the terms to its previously announced agreement (the "Formal Agreement") with Rio Algom Limited ("Rio Algom"), a wholly-owned subsidiary of BHP Billiton Ltd. ("BHP Billiton") Goldcorp Inc. ("Goldcorp") for the acquisition by the Company of 93.45% of the outstanding shares of Pidgeon Molybdenum Mines Limited ("PMML").

PMML holds a 100% interest in 210 hectares of mining claims under the name "Pidgeon Molybdenum Deposit". The Pidgeon Molybdenum Deposit is accessible through the #1 Trans Canada Highway and is approximately 50 kilometres east from the city of Dryden, District of Kenora, Northwestern Ontario. In addition to the accessibility of the property by road, it also has power lines running though its entire length, and is within 8 km of the nearest rail link.

Pidgeon Molybdenum Deposit Claims Map: http://www.mphventurescorp.com/i/maps/MPS-ON-Pidgeon-area-map.gif

Under the terms of the amended agreement (the "Amended Agreement"), the Company agrees to purchase all existing shares held by BHP Billiton and Goldcorp for the sums of $353,290.47 and $103,216.14 respectively. The Company also agrees to make a payment of $93,493.39 to BHP Billiton in respect of existing debt owed by PMML to Rio Algom.

The transaction is subject to TSX Venture Exchange acceptance with closing scheduled for October 31, 2007.

Highlights

- Acquisition of majority control of Pidgeon Molybdenum Mines Limited ("PMML") from BHP Billiton and Goldcorp Inc.

- Historic drilling demonstrates excellent potential for a significant large scale and high-grade molybdenum deposit.

- The system remains open in all directions.

Work on the property for molybdenum dates back to 1946 with diamond drilling carried out in the 1950's, 60's, and 70's. Several historical resource estimates, produced in the 1950's through to the late 1980's, have been prepared on the Pigeon Molybdenum Deposit that include reports by T. Bottrill for BHP Billiton (Sept. 17, 1979) and consulting engineering firm Strathcona Mineral Services Ltd. for BHP Billiton (July 16, 1980). These reports are the most recent and extensive on the deposit and are believed to be the most reliable. The most recent reports indicate the contained tonnage in the mineralized zone varies from Strathcona's report of 9,000,000 tons drill indicated at 0.096% molybdenum to as much as T. Bottrill's report of 55,000,000 tons inferred with grades of 0.081% molybdenum. Both reports used a cut-off grade of 0.04% molybdenum. The tonnage varies depending on the parameters used and the assumptions made with respect to molybdenum grades, limits of the mineralization, and geometry of the mineralized body. The historic estimates were based on a total of 76 variably spaced diamond drill holes completed on the property and the historic resources were not calculated to National Instrument 43 101 standards and therefore cannot be relied upon.

The Company has not yet completed the work necessary to verify the classification of the mineral resource estimates and since the resource estimates are historical in nature and predate and are non-compliant with National Instrument 43-101 standards, the estimates should not be relied upon. For this reason, and in conjunction with Wardrop Engineering Corp, MPH Ventures has initiated a technical report to confirm the historic data and plans to initiate a fill-in diamond drill program to provide sufficient reliable information to complete a National Instrument 43-101 compliant resource estimate. This diamond drill program will commence immediately upon receiving the necessary recommendations from Wardrop Engineering.

Pidgeon Molybdenum Deposit Drill Map: http://www.mphventurescorp.com/i/maps/MPH-ON-PMML-Drill-Map.gif

The Pidgeon Molybdenum Deposit mineralization is contained within what has been referred to as a "mineralized shell". This shell has a strike length of 1,500 metres and an average true thickness of 30 metres and dips 45 degrees to the south. The bulk of the known deposit is within 100 metres of surface. The property covers an elongated granodiorite that has intruded metavolcanic rocks. The granodiorite trends almost east west and forms the core of an anticline. Molybdenum mineralization occurs within the granodiorite along the contact with the metavolcanic rocks. Molybdenum mineralization is associated with abundant aplitic sills that intrude the outer margins of the granodiorite.

The simple geology with 30 metre widths and shallow dips indicate potential for development as an open pit mine. Only a portion of the prospective geology on the property has been adequately tested. "Based on the preliminary geologic interpretation of the Pidgeon Molybdenum Deposit, the Company believes there is real potential of increasing the tonnage significantly", stated Jim Pettit, President of MPH Ventures Corp, "upon completion of a technical report by Wardrop Engineering, the Company will initiate a drill program to confirm existing historical information, expand upon the known zone, and to test new targets."

Majority ownership in PMML was acquired by Rio Algom and Dickinson Mines in 1979 and subsequently by BHP Billiton and Goldcorp (respectively) through on-going mergers and acquisitions. Prior records indicate that historical data on the Pidgeon Molybdenum Deposit dates back to 1946 with the original owner, G.L. Pidgeon.

Molybdenum is used as an alloying agent in steel to enhance strength and resistance to wear and corrosion. It is also used in lubricants developed for high-temperature and high-pressure applications. There are no known substitutes for molybdenum's unique properties which are used in most of the present day super-alloys. The price of molybdenum oxide has gone from $3 per pound to $30 per pound over the last couple of years due to the strong demand and short supply.

Wardrop Engineering ("Wardrop") is a multidisciplinary consulting engineering firm and has completed projects in more than 40 countries throughout North America, South America, Europe, Africa and Asia. Wardrop was founded in 1955 and is in the business of providing engineering, environmental, information technology and business solutions around the world. Some of the notable high-profile projects that the company has worked on include the Canadian Space Station Team in the development of the Canadian Mobile Base System (MBS), the partial decommissioning of the Chernobyl nuclear reactor in Ukraine, the rebuilding of New York's subway line under the former World Trade Centre and Winnipeg's Provencher Bridge. The company currently has projects underway in Canada, the United States, Chile, Nigeria, Uganda, Ghana, Russia and Uzbekistan. Wardrop has international offices in most of the locations where it has projects and is involved in infrastructure, manufacturing, supply chain, mining, mineral processing, nuclear, oil, gas, power and pulp and paper. The company's North American operations have achieved ISO 9001:2000 Certification and the company's mining division has experience in all facets of the mining life cycle from exploration through to mine development, production, closure and reclamation.

David J. Busch, B.A., B.Sc., PGeo., MPH Ventures' Project Manager, is the qualified person under the meaning of National Instrument 43-101 and has reviewed the data in this News Release.

For further information on MPH Ventures Corp. (TSX VENTURE:MPS), visit the Company's web site at www.mphventurescorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS

DONALD C. HUSTON, Director

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein 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 from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.

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

Contact Information

  • MPH Ventures Corp.
    Donald C. Huston
    Director
    (604) 687-3376 or Toll Free: 1-800-567-8181
    (604) 687-3119 (FAX)
    or
    MPH Ventures Corp.
    Don Myers
    Director
    (604) 687-3376 or Toll Free: 1-800-567-8181
    (604) 687-3119 (FAX)
    Email: info@mphventurescorp.com
    Website: www.mphventurescorp.com