Manicouagan Minerals Inc.

Manicouagan Minerals Inc.

November 06, 2007 06:30 ET

Manicouagan Expands Near North Nickel-Copper-PGE Mid Quebec Exploration Portfolio-Options Former Xstrata Nickel Properties From Pure Nickel

TORONTO, ONTARIO--(Marketwire - Nov. 6, 2007) - Manicouagan Minerals Inc. (TSX VENTURE:MAM) announced today that has entered into an option agreement with Pure Nickel Inc. ("Pure Nickel") (TSX:NIC)(OTCBB:PNCKF) to earn up to a 70% interest in 39 mining claims comprising the Forgues and Haut Plateau de la Manicouagan East (HPM) projects located some 100 kilometres south-southeast of Manicouagan's Mouchalagane Nickel/PGE property in northern Quebec.

The HPM and Forgues properties are situated in NTS area 22O11. The properties straddle the Shefferville - Sept Iles Railway and lie just east of Highway 389 which runs between Baie Comeau and Fermont. The properties are the culmination of some ten years of exploration work by Xstrata Nickel (formerly Falconbridge Limited) who commenced work in the HPM and Forgues areas in 1992.

The properties lie within the Manicouagan Metamorphic Complex within the Grenville geological province. The metamorphic complex hosts several gabbroic plugs, ultramafic dykes and anorthositic intrusions which intrude a granulitic assemblage. Nickel - copper mineralization consists of both massive sulphide breccia veins as well as disseminated sulphide zones. Limited drilling by Falconbridge Limited and Rockwell Ventures (who briefly optioned the HPM property in 2002) intersected intrusive hosted nickel - copper mineralization ranging from massive sulphide breccia veins assaying 2.74% nickel, 0.86% copper and 0.20% cobalt over 5.95 metres (Drill hole RCW-2004: 165.5 - 171.45 metres downhole) to broad zones of disseminated mineralization assaying 0.53% nickel, 0.27% copper and 0.04% cobalt over 28.60 metres (Drill hole 151-04: 175.80 to 204.40 metres downhole). These results are based on public records and have yet to be verified by a Qualified Person on behalf of Manicouagan.

Manicouagan believes that the HPM and Forgues properties have significant potential for magmatic nickel-copper-PGE deposits and complement the Company's significant land holdings at Mouchalagane. Initial exploration work on the HPM and Forgues properties will focus on compiling all existing public and proprietary data available for the properties as well as detailed helicopter borne electromagnetic surveys which are planned for early 2008 and will be completed in conjunction with airborne surveys to be completed at Mouchalagane.

A sketch showing the location of the HPM, Forgues and Mouchalagane properties is available for viewing at the following link:

To acquire its interest in the properties, Manicouagan will make an initial payment of $30,000 to Pure Nickel and during the first year of the agreement compile all reasonably available data for the claims and complete an airborne electromagnetic survey over the claims. Manicouagan will also, subject to regulatory approval, issue 250,000 non-transferable warrants to purchase common shares of Manicouagan at a price of $0.40 cents per share for a period of two years. The warrants will be subject to a four month hold period.

To maintain the option in good standing and earn a fifty percent interest in the claims Manicouagan must make further cash payments to Pure Nickel of $25,000 on the second and third anniversary of the agreement and incur expenditures on the property totaling $750,000 before the second anniversary of the agreement.

Manicouagan can earn an additional twenty percent interest by electing within 60 days of the second anniversary of the agreement to carry Pure Nickel during the next 12 months by expending an additional $1,500,000 on the property.

Once Manicouagan has earned an interest in the claims a joint venture will be formed. Dilution is provided for if, after a joint venture is formed, a party fails to fund its pro-rata share of expenditures. The parties have also agreed to an area of interest within a 5 kilometre radius of the outside boundaries of the 39 claims.

Xstrata Nickel ("Xstrata") retains certain rights with respect to the mining claims including (i) a 2% NSR on each Property (Pure Nickel and Manicouagan, if it earns an interest having the right to reacquire 1% thereof for C$1,000,000); (ii) off-take and marketing rights for all concentrate or product produced from the properties; and (iii) a one time back-in right to 50% for any mining project with an economic threshold of 15,000,000 tonnes of resources unless such right has been previously exercised in respect of another property that was part of the Xstrata - Pure Nickel transaction.

Exploration programs are being carried out under the supervision of Rod Thomas, Vice President - Exploration of the Company. Mr. Thomas, a professional geologist, has reviewed and verified the technical content of this press release on behalf of Manicouagan Minerals and is a "Qualified Person" as defined in National Instrument 43-101.

Manicouagan Minerals Inc. is a Canadian based exploration company with a diversified portfolio of properties including the Brabant Lake Zinc deposit and the Mouchalagane Nickel/PGE project.

Additional information about Manicouagan Minerals and its exploration projects can be found at

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 the Company, 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 exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.

The TSXV has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of this news release. The TSXV has neither approved nor disapproved the contents of this news release.

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