Micrex Development Corp.

Micrex Development Corp.

May 31, 2006 07:30 ET

Micrex Development Corp.: Additional Economically Important Mineralogy Recognized at Burmis

EDMONTON, ALBERTA--(CCNMatthews - May 31, 2006) - Micrex Development Corp (TSX VENTURE:MIX) announced today that the Burmis Magnetite Deposits of southwest Alberta have yielded additional titanium and zirconium minerals with potentially economic ramifications.

Petrographic and Scanning Electron Microscopic work by the Saskatchewan Research Council (SRC) has identified both a detrital and hydrothermal component for both the titanium and zirconium rich minerals within and immediately adjacent to the magnetite bearing sandstones. Based upon textural and chemical evidence, it appears that hydrothermal fluids have deposited titanium and zirconium rich minerals in the Burmis magnetite rich sandstones and in other adjacent sandstones and siltstones. Samples from within and immediately below the magnetite rich zones show titanium concentrations ranging from 0 to over 8 weight percent (TiO2) and zirconium concentrations up to 0.3 weight percent (Zr). A large portion of the rutile, monazite, apatite and zircon grains identified in thin section microscopy occur as euhedral grains in the carbonate rich matrix indicating the grains were most likely deposited by hydrothermal fluids deposited after the detrital magnetite layers were formed. The economic viability of mining these titanium and zirconium enriched zones under the main Burmis Magnetite Deposits will be assessed as part of the ongoing exploration at Burmis and will be investigated as part of the 2006 diamond drilling program this summer.

Originally tasked with continuing exploration along the 12 km strike length of the deposit, several holes in the 2006 diamond drill program will now be targeted in and around the area where this hydrothermal overprint in the Burmis magnetite was discovered. Core will be collected from below the magnetite rich horizons to help identify the nature and extent of the titanium and zirconium enrichment.

The Burmis Magnetite Deposits have traditionally been considered a sedimentary beach placer type deposit, with magnetite rich sandstone created through wave action along an ancient Late Cretaceous to Early Tertiary beach front. The magnetite, being a heavy mineral, was concentrated by the wave action that washed away the lighter minerals. This hydrothermal element, however, expands the possibilities for additional economic concentrations of other important minerals and Micrex intends to fully examine the potential it offers. With the possibility of hydrothermal activity in and around the Burmis Magnetite Deposits, Micrex will be expanding its exploration model to address the possibility of other minerals being mobilized and deposited in the area. Further studies will continue to determine the nature of the fluids, the temperatures and pressures associated with the hydrothermal mineral deposition to determine what other minerals might be deposited in that environment.

While the possibility exists that further mineral resources could be discovered below the magnetite zone or within the remainder of Micrex's 36 square mile land package, Micrex will continue to carry forward on permitting the magnetite as a stand alone project with the intent to move the Company into production with the benefit of cash flow from the sale of magnetite products helping to support the ongoing exploration effort in the area.

The Burmis Magnetite Deposits have been tracked in outcrop and with geophysics for over 12 km. Recent drilling of 45 RC drillholes indicates that at least one area of the Burmis Magnetite Deposit yields an average grade of 29.3 weight percent magnetic minerals over an average thickness of 5 m. Additional minerals including ilmenite, rutile, leucoxene, apatite, monazite and zircon are present within the magnetite rich portions of the deposit and immediately beneath and above the magnetite rich portions of the deposit. These minerals, which are the source minerals for titanium and zircon, are potentially recoverable within the process that recovers magnetite and may provide an additional income stream from any future mining operation.

A follow up diamond drilling program is being planned to assess the economic and geotechnical aspects of the Burmis Magnetite Deposits and to obtain specific gravity information.

Micrex also announces that the ground survey for the recently identified potential reclamation site has been finished. AMEC Engineering will now be completing an evaluation of the data.

As announced in the May 11,2006 Press Release:

"As part of the ongoing work on the mining permit at Burmis, Micrex has identified the potential to lower long term operating costs at the magnetite production facility while at the same time addressing the environmentally responsible operating parameters that the Company has established for the project in relation to tailings transport, storage and reclamation. A secondary storage and reclamation system has become an option that has the potential to impact both the permit and the long term economics of the project.

Rather than run the risk of delay at the permit approval stage or have a request for further public consultations after the permit application has been submitted, Micrex has hired AMEC Engineering to complete the tailings disposal plan and do a thorough evaluation of the concept. This has included site visits and a ground survey covering a substantial area to allow AMEC to design an integrated tailings disposal plan that will allow long term operation of the production plant at lower cost and greater facility efficiency. Once this plan is completed Micrex intends to have public consultations on the integrated operating plan for local stakeholders before making the final permit submission that was referred to in the Company's October 3, 2005 press release."

Micrex is well funded to complete this phase of work thereby preserving funds from the recently announced Private Placement for the exploration programs planned this year.

All technical programs for the Burmis Magnetite Deposits are being conducted under the supervision Michael Dufresne, M.Sc., P.Geol. of APEX Geoscience Ltd., Edmonton, Alberta, a Qualified Person under NI 43-101, who has reviewed this Press Release.


A mineral exploration and development company operating in Canada and the United States

SEC 12 g (3) Exemption 82-4281

Peace River Diamond Property - Burmis Magnetite/Titanium Property - St. Charles de Bourget Magnetite/Titanium Property - Fort Steel Placer Property - Bighorn Gold Mine - Banks Gold Mine - Mount Royal Gold Mine - Deadwood Gold Mine - Sunburst Gold Property

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