Mantra Mining Inc.
TSX VENTURE : MAN

Mantra Mining Inc.

September 10, 2009 09:01 ET

Mantra Reports: 7.28g/t in Drill Results From Colorado Creek, Project Exploration Updates, and Information Circular Mailed Out for Upcoming Shareholder Meeting

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2009) - Mantra Mining Inc. (the "Company") (TSX VENTURE:MAN) is pleased to announce that the notice of a special meeting of shareholders, and an Information Circular dated August 24, 2009, have been mailed to all shareholders and are available on the Company's profile at www.sedar.com. The meeting will be held in Vancouver on September 25, 2009 at 10:30 am.

The Company is seeking the approval of its shareholders to pass a special resolution approving the spinout of AsiaBaseMetals Inc. in a manner where each existing shareholder of Mantra would receive an equivalent number of shares of AsiaBaseMetals Inc. as held in Mantra as of the effective date. AsiaBaseMetals Inc. will be listed a separately traded company on the TSX Venture exchange. Furthermore, the Company is seeking shareholder approval to pass an ordinary resolution approving and ratifying a potential "change of control", as defined by TSX Venture Exchange policies, of Mantra to Electrum Strategic Metals LLC and the removal of certain restrictions on exercise of warrants of Mantra held by Electrum Strategic Metals LLC, as more fully set forth in the Information Circular. Please refer to Mantra Mining press release dated June 22, 2009 and the Information Circular for more detailed information.

The Company is also pleased to announce that it has completed its planned 2009 work programs on its exploration properties in Alaska. Updates on the exploration work, including the drilling at Colorado Creek are provided for each project below.

COLORADO CREEK PROPERTY

The Company's 2009 drilling program at its Colorado Creek, Alaska, property was completed with 2,547 meters drilled in 12 core holes across an area measuring 1.2 kilometers by 0.5 kilometers. The program was designed to test the potential for a major gold mineralized system from a multi-kilometer long area of elevated gold in soil and rock samples. The area of elevated surface gold values is the source area for the extensive Colorado Creek and Cripple Creek placer deposits, estimated to have historic production in excess of 250,000 ounces of gold and still producing. The property lies in the Tintina Gold Belt in southwest interior Alaska and has geologic, geophysical and geochemical characteristics similar to the 30 million ounce gold reserve at the Donlin Creek deposit being developed by NovaGold and Barrick.

The results from the Company's first three core holes of its 2009 drilling program at Colorado Creek, Alaska, confirm that gold mineralization is present across significant thicknesses and lateral extent (see attached Map - A1 and A2). Mineralization in these three holes occurs primarily in a rhyodacite quartz porphyry sill which intrudes siltstone, sandstone and andesite, and measures 117.6 meters (approximately 350 feet) thick in DDH CC09-14 (based on the geologic projections, this intersection is believed to approximately represent the true thickness of the sill in this location). These three holes test a gold mineralized area of about 150 m by 470 meters (approximately 450 feet by 1500 feet), and the mineralized rhyodacite remains open to expansion to the south, southwest and southeast.

Gold mineralization in the rhyodacite porphyry is associated with disseminated and veinlet controlled sulfide mineralization. Mineralization has also been observed in both the surrounding sedimentary and volcanic rocks in structurally favorable zones. In addition, drilling further east encountered significant quantities of disseminated sulfide mineralization hosted by altered andesite, diorite, and siltstone proximal to the Cripple granodiorite stock.

Analyses for the next nine drill holes are still pending. Further work could significantly expand the size of the known mineralized body. Additional comprehensive soil sampling and mapping has also been completed over the property as part of this year's program to determine the extent of the elevated gold target. Of particular interest are large areas of mapped rhyodacite and andesite porphyry units which are known to host mineralization elsewhere in the district.

In the drilling to date, oxidation is pervasive down to approximately 75 meters (approximately 225 feet), but can occur intermittently throughout the entire drilled thickness. Some oxidized veins show visible gold, and visible gold is apparent in drill cuttings and in core saw sludge.

Core samples were split in half and one half was sent to an ALS Chemex facility in Fairbanks, Alaska for preparation into pulps for analysis. Au analyses were done by the ALS Chemex Au-AA23 method which consists of fire assay and an atomic absorption finish.

A complete list of composite gold analyses for the first three holes is shown below:



Hole Hole DDH09-012 Total Depth 206.0 meters
From (m) To (m) Length (m) g Au/Tonne
Has 46.0 144.4 98.4 0.57
With 62.0 84.0 22.0 1.01
and contains 80.0 84.0 4.0 2.21
and contains 143.2 144.4 1.3 6.62
and has 182.0 184.0 2.0 3.53


Hole Hole DDH09-013 Total Depth 353.9 meters
From (m) To (m) Length (m) g Au/Tonne
Has 45.3 80.0 34.7 0.55
and has 279.0 302.2 23.2 0.66
and contains 296.0 299.3 3.3 1.65


Hole Hole DDH09-014 Total Depth 221.0 meters
From (m) To (m) Length (m) g Au/Tonne
Has 49.0 160.0 111.0 0.64
which contains 49.0 73.0 24.0 1.15
With 59.0 61.0 2.0 6.38
and contains 122.0 136.0 14.0 1.44
With 122.0 124.3 2.3 7.28
and contains 150.0 160.0 10.0 1.29


Please see attached Map - A1 and A2 for drill hole locations.

The results from these three holes provide further confirmation that the Colorado Creek property hosts a large scale gold system with significant concentrations of gold in and proximal to felsic intrusions. Colorado Creek shows many geologic similarities with the 30 Million ounce gold reserve at the Donlin Creek deposit in the southwestern portion of the Tintina Gold Belt, where like Donlin Creek porphyry dike and sill complexes intrude Cretaceous age shales and siltstones. The property, geology and option agreement are described in more detail in a recently completed National Instrument 43-101 report (see the Company's website or the Company's profile on Sedar for a link to the full report).

KUGRUK PROPERTY

The Kugruk property is located in Western Alaska on the northern Seward Peninsula and consists of 176,640 acres of Alaska state claims and 640 acres of leased Alaska state claims. The property is 100% owned by Mantra. The very large scale targets developed to date on the Kugruk property show excellent potential for the discovery of large copper-gold porphyry, IOCG and replacement style deposits.

Historic shallow drilling in the 1970's encountered massive magnetite-chalcopyrite calc-silicate assemblage along the east margin of the Kugruk granitic intrusive complex, where it intrudes Paleozoic meta-sediments (please refer to attached Map - B1). A small amount of drill core left on site returned copper assays as high as 9060 ppm within massive magnetite and calc-silicate rock. This core came from holes drilled along a small portion of the 14-kilometer long Kugruk Magnetic Belt which flanks the east margin of the Kugruk pluton. It is speculated by geologic inference that the entire belt may contain additional Fe-Cu mineralization. Further east are scattered high grade silver-lead-zinc occurrences including the Independence mine. Extensive reconnaissance soil sampling across the 52 kilometer by 17 kilometer area of the property shows that glacial loess cover masks the bedrock geology and geochemistry in the lower elevations, and that only the tops of the low hills in the area produce a reliable bedrock-generated soil geochemical response. The strongest and most extensive Cu-in-soil anomalies where sampling was effective occur within the intrusive complex on Kugruk Mountain (see attached Map - B1), and in the southern part of the property in the Knowles Creek area (see attached Map - B2).

Exploration activities in 2009 included an orientation ground geophysical survey carried out by Zonge Engineering to investigate three of the many strong magnetic anomalies and low resistivity anomalies outlined in a Fugro 2006 airborne magnetic and EM survey. The survey consisted of 16.4 line kilometers of 100 meter dipole-dipole Induced Polarity and resistivity, and 11 gravity profiles. Work focused on three distinct areas: 1) a three kilometer segment of the northern Kugruk magnetic belt; 2) on a three kilometer non-magnetic airborne low resistivity anomaly on the south slope of Kugruk Mountain (see attached Map - B1); and 3) on a five kilometer non-magnetic airborne low resistivity anomaly, coincident with a copper-in-soil anomaly, near Knowles Creek in the southern part of the property (see attached Map - B2). In all cases, the survey confirmed the low resistivity response shown in the airborne survey, and showed a coincident and unusually high IP response. The scale of the geophysical response in all cases was larger than the size of the survey - additional work is planned in the future. In addition, the magnetic high in the northern Kugruk magnetic belt also showed an extremely high gravity response.

The results of this orientation geophysical survey strongly indicate widespread concentrations of metallic minerals in the subsurface of the Kugruk property, some of which are coincident with copper mineralization known from soil sampling and from very limited historic shallow surface drilling. The targets developed to date indicate the potential for large scale metal deposits and define several excellent targets for drill testing for large copper-iron-gold porphyry, IOCG and replacement deposits.

BAIRD PROPERTY

The Baird property is located in the Baird Mountains of northwest Alaska and consists of 80,560 acres of 100% owned Alaska state claims, and the 9,600 acre Omar claim block where Mantra is earning a 60% joint venture interest from Teck. The property lies 100 kilometers southeast of Red Dog, the world's largest zinc producing mine. Work by NovaGold and Mantra Mining to date includes collecting 3,826 soil, rock, talus fine, and stream silt samples and has identified four large copper-zinc mineralized areas ranging from 4 to 10 kilometers in length which contain multi-percent-level copper and zinc mineralization hosted by Paleozoic carbonate (see Map C). At Omar, an historic drill program conducted by Bear Creek Mining Co. in the 1960's intersected 6.1 meters of 9.6% copper in one hole, and 36.6 meters grading 3.2% copper in another within a 4.3 kilometer long area of anomalous Cu and Zn. The Deadfall prospect lies within a 4 kilometer belt of strongly anomalous Zn and Pb where channel samples returned 36 meters grading 6% zinc and 21.7 grams silver per tonne. At Frost, a 4.3 kilometer belt of strongly anomalous Zn and Cu in soils is coincident with widely extensive silica-barite rock with strong copper and zinc mineralization occurring in both stratabound and cross cutting structural zones. The fourth area, Peak, consists of an extensive 10 kilometer long trend of Zn, Pb, and Ba geochemical anomalies with locally anomalous Cu.

This year's limited work program focused on following up geochemical anomalies generated by a 2007 NovaGold sampling program. Most work was focused on the Capital Hill area at the southeast end of the 10 kilometer long Peak mineralized trend. Here, scattered narrow gossan trains occur in the carbonate for over 1.5 kilometers and include a broad zone of mixed gossan, silica rock, and baritic rock. A two meter wide silica-barite vein in the carbonate returned 5.3% Zn. From broad areas of carbonate subcrop with widely scattered cobbles and pebbles of gossan float, samples of gossan return as much as 1% Zn, 0.5% Pb, and 500 ppm Cu. All the material is strongly oxidized and determining original metal concentrations will require drilling. Additional results are pending.

These exceptionally large metal anomalies are hosted in Paleozoic carbonates, and Re-Os dating of Cu mineralization at Omar by the U.S.G.S. shows an early Devonian age of mineralization, demonstrating that the Baird occurrences are part of the same regional metallization event that produced the nearby Red Dog zinc deposit, the Ruby Creek copper deposit, and the Ambler Cu-Zn deposit. Mantra's geologists believe that the Baird property represents an excellent district-scale target in which to locate another giant base metal deposit.

OMILAK PROPERTY

The Omilak property consists of 19,680 acres of 100% owned Alaska state claims in the eastern Seward Peninsula. Mantra's 2009 work included soil sampling across mineralized trends and rock sampling across the claim block (see attached Map - D). Results are pending. The claims cover an area including the historic Omilak lead-zinc-silver mine which was active during the late 19th century and produced high grade direct shipping silver ore. One report from 1889 records 142 ounces per ton silver and 75% lead in the 41 tons shipped. The Omilak East and the Foster prospects lie 4 to 6 kilometers east of Omilak and show argentiferous galena and sphalerite replacement mineralization focused on both structural and stratigraphic controls. At Omilak East, part of which is controlled by a third party, gossan float occurrences extend for over five kilometers along strike. At the nearby Foster prospect, a 1953 work program by the U.S. Bureau of Mines encountered values reaching 30 ounce Ag per ton in pit, trench, and float sampling, and recovered samples reaching 10 ounces per ton Ag in their shallow drill testing of the oxidized occurrence.

These silver-rich carbonate replacement deposits lie near a large granitic pluton northeast of the property which presumably provided the mineralizing fluids which invaded the Paleozoic carbonates. The property offers Mantra an excellent opportunity for discovery of a large high grade, silver rich polymetallic deposit.

Jerry Zieg, Vice President Exploration for the Company, is a Qualified Person for the purposes of National Instrument 43-101 and has reviewed and approved the information of a scientific or technical nature contained in this news release.

About Mantra

Mantra is a growth company focused on the exploration and development of precious and base metals properties around the world. The Company's experienced management team has assembled an impressive portfolio of gold and base metal projects in Alaska, including the Colorado Creek gold project, located in southwest Alaska approximately 100 miles northwest of the 40 million ounce Donlin Creek project. The Company, in a short period of time, has successfully become one of the most significant gold and base metal explorers in the Tintina Gold Belt - one of the most exciting and prolific gold belts of the world. Mantra trades on the TSX Venture Exchange under the symbol MAN. More information is available online at www.mantramining.com or by e-mail at info@mantramining.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Raj I. Chowdhry, C.A., President & CEO

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the Company's properties, statements regarding intentions with respect to obligations due for various projects, strategic alternatives, quantity of resources or reserves, timing of permitting, construction and production and other milestones, future operating or financial performance including production, rates of return, recoveries, cash costs and capital costs are forward-looking statements. Statements concerning Mineral Reserves and Mineral Resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward-looking statements 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 include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies and native groups in the development and operation of properties; the need to obtain permits and governmental approvals; risks of construction and mining projects such as accidents, equipment breakdowns, bad weather, non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases; fluctuations in metal prices and currency exchange rates, and other risks and uncertainties disclosed in the Company's Annual Information Form filed with the Canadian securities regulatory authorities, and the Company's annual report s and documents filed with applicable securities regulatory authorities from time to time. Mantra's forward looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. Mantra assumes no obligation to update the forward looking statements if management's beliefs, opinions, projections, or other factors should they change.

To view Maps A - D associated with this release, please click on the following link: http://media3.marketwire.com/docs/MANN0910.pdf.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information