Mukuba Resources Limited

Mukuba Resources Limited

March 15, 2010 10:13 ET

Mukuba Begins Structural Interpretation and Targeting from Newly Acquired Airborne Magnetic and Radiometric Survey Data and Announces Grant of Stock Options

TORONTO, ONTARIO--(Marketwire - March 15, 2010) - Mukuba Resources Limited (TSX VENTURE:MKU) ("Mukuba" or the "Company") is pleased to announce the commencement of an independent structural interpretation from newly acquired airborne magnetic and radiometric surveys which cover their entire license area in Central Zambia. The surveys, completed in December 2009 by New Resolution Geophysics from South Africa, total 24,505 line kilometres within the Northcore Project's prospecting license area.

Dr. Ian Basson of Tect Geological Consulting has been contracted to undertake the interpretive and targeting work utilising the geophysical (aeromagnetic, radiometric and VTEM) data sets. This study will aim to provide an understanding of the regional geology and structural complexities within the highly prospective tenure and will identify additional target areas for follow-up and investigation during the 2010 field season.

Trevor Richardson, President and Chief Executive Officer of Mukuba stated, "Dr. Ian Basson is extremely knowledgeable about the Zambian-DRC Copperbelt having worked on 13 open-cast mines throughout the Copperbelt, including the development of new models for the Cu-Co mineralization. We look forward to working with Ian and having his valuable input on target generation and understanding of the Northcore Project."

Dr. Basson has provided consulting services in the fields of structural and economic geology to major mining companies in their generative studies of the Lufilian Arc in the DRC and Zambia. Dr. Basson utilizes a number of criterion in his work including: fabric interpretation to determine major terrain boundaries and/or tectonic units; delineation of lithological domains in order to generate an inferred geological map; comparison of inferred geological map with similar geology and structure which host copper mines to the north of the license area within the Zambian Copperbelt; brittle or brittle-ductile structural interpretation to determine late-kinematic, fluid-hosting and/or brecciated zones; and, implications for mineralization and fluid movement.

The Company also announces that it has granted an aggregate of 1,375,000 options to purchase common shares of Mukuba exercisable at a price of $0.45 per share until March 12, 2015, to directors and officers of the Company.

In addition, the Company has granted an aggregate of 300,000 stock options to purchase common shares of the Company to the President and Chief Executive Officer of the Company as an incentive for his future performance. These options are exercisable, subject to the prior occurrence of the Vesting Condition, at a price of $0.45 per share expiring on either (i) March 31, 2011, if the Vesting Condition has not occurred, and (ii) March 12, 2015, if the Vesting Condition has occurred.

The "Vesting Condition" shall have occurred if, at any time during the period commencing on the date of the option grant and ending on March 31, 2011 the volume weighted average trading price of the common shares of the Company on the TSX Venture Exchange, calculated by dividing the total value by the total volume of securities traded for any five consecutive trading days during such period, is or is greater than $0.70.

The common shares issuable upon exercise of the options are subject to a four month hold period from the original date of grant.

About the Company

The business of Mukuba consists of the exploration and development of two early-stage exploration projects (the Northcore Project and the Lunga Project) in the highly prospective Central African Copperbelt region of Central Zambia:

  • The Northcore Project encompasses approximately 4,562 km2 of geologically prospective ground in the Domes Region of the Zambian Copperbelt. The Northcore Project is licensed for copper and cobalt. Geological mapping, soil sampling and investigation of the historical showings as well as ground-truthing of the geophysical survey results have confirmed the historical geological anomalies, and identified new anomalies. The 2009 exploration program included drilling several of these anomalies.

  • The Lunga Project adjoins the south-west margin of the Northcore Project area, and is licensed for copper, cobalt, and other base metals. The property encompasses 480 km2 and contains numerous geochemically delineated copper and zinc anomalies along 10 kilometres of strike that also extend into the Northcore Project area. The Company can earn an 80% interest in the Lunga Project area through a farm-in agreement by completing a preliminary feasibility study.

The Central African Copperbelt is the world's largest and highest-grade sediment hosted stratiform copper province and includes both the Zambian Copperbelt and the Congolese Copperbelt which is located immediately to the north in the Democratic Republic of Congo. Over 95% of the known Zambian copper reserves occur in rocks of the Lower Roan Group, or in the adjacent basement complex. The Northcore Project area contains roughly 2,000 km2 of the Lower Roan Group.

Mr. Chris Meyer (Pr.Sci.Nat.) is a "qualified person" as defined by National Instrument 43-101 and oversees Mukuba's exploration programs. Mr. Meyer has supervised and approves the preparation of the technical information contained in this press release.

Forward-looking Information
Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

Contact Information

  • Mukuba Resources Limited
    Trevor Richardson
    President and Chief Executive Officer