Prize Mining Corporation
TSX VENTURE : PRZ

Prize Mining Corporation

August 06, 2008 09:00 ET

Prize Mining Corporation: Update on Yellowjacket Zone Bulk Sample Processing, Atlin Gold Property, BC

CALGARY, ALBERTA--(Marketwire - Aug. 6, 2008) - Prize Mining Corporation ("Prize") (TSX VENTURE:PRZ) is pleased to announce that good progress is being made on the Yellowjacket Zone bulk sampling (trial mining) program on its Atlin Gold Property, located in northwestern British Columbia. Prize's previous news release, dated May 14, 2008, gave a full project review, summarizing the results of exploration programs completed to date on the Yellowjacket Zone.

Over the past week, Prize has processed one test block and the first official block of its bulk sampling program. The 10,000 tonne bulk sample is being run through the Knelson designed processing plant in 40 250 tonne blocks with full gold cleanup to be completed at the end of each block run.

Due to the "nugget" effect of the high grade coarse native gold mineralization in the Yellowjacket Zone, completion of the bulk sample is required in order to help mitigate grade variability to allow for determination of an expanded resource estimate for the zone. The bulk sample blocks were extracted from a location where the high grade gold mineralization within the bedrock comes to surface. The following table shows the shallow depths of high grade gold mineralization from the diamond drill core samples taken from holes drilled within the bulk sample pit area.



YELLOWJACKET ZONE BULK SAMPLE PIT AREA
SHALLOW DIAMOND DRILL CORE GOLD ASSAY RESULTS

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HOLE # FROM (m) TO (m) WIDTH (m) GOLD (g/t)
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YJ03-01 13.95 19.51 5.56 513.50
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and 21.96 22.87 0.91 21.06
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and 25.00 26.52 1.52 40.42
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and 35.97 39.02 3.05 34.81
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and 42.99 44.21 1.22 57.88
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YJ04-07 38.66 37.16 0.50 24.61
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and 48.85 54.45 6.10 40.10
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including 53.40 53.71 0.31 588.87
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including 53.95 54.45 0.50 98.85
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YJ04-17 33.10 33.60 0.50 19.41
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YJ04-29 68.00 68.50 0.50 119.62
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TW05-01 12.20 12.90 0.70 29.78
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TW05-02 10.67 12.79 2.62 853.29
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including 10.67 11.58 0.91 2397.59
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including 11.58 12.19 0.61 74.51
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and 20.05 41.50 21.45 11.49
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including 24.00 25.29 1.29 26.80
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including 26.82 27.28 0.46 28.22
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including 31.00 31.50 0.50 129.00
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including 34.50 35.50 1.00 16.13
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including 37.50 38.50 1.00 86.83
------------------------------------------------------------


The first official 250 tonne block has been milled and the mill has been cleaned with 25 tonnes of clean crushed rock. Approximately two tonnes of concentrate was collected from this first block and is ready to be further concentrated by tabling. A clean gold concentrate and a magnetic-rich concentrate will be produced off the table. The clean concentrate will be saved to pour into a gold bar onsite, and the remaining magnetic concentrate will be assayed and saved to ship to a smelter at the end of the season. Processing of the next official block has now commenced.

During processing of the first official 250 tonne block, 140 head grade and tailings samples were collected for assay. The results from this assaying program, combined with the gold produced from the concentrate will give reliable gold grade information for this sample block. During the course of assay sample collection, standard QA/QC practices were put in place consisting of duplicate sampling and insertion of blanks and gold standards.

The test block, which had never been assayed, returned a small amount of visible gold mineralization when tabled. The first two "official" blocks being processed are from the central portion of the excavated pit in an area adjacent to blocks where channel sampling returned high grade gold assays. Bedrock channel sampling of these two blocks did not return any gold assay values above detection limits, although the blocks are located within a favourable lithologic zone. The reason for choosing to run these blocks first is two-fold. First, until Prize is certain that the mill is running efficiently (and it appears to be doing an excellent job of milling and concentrating the rock during processing of the first block) high grade blocks will not be put through. Second, one of the main reasons for doing this entire bulk sampling program is to determine gold quantities in areas where channel sample results did not pick up gold grades. These "nuggety" systems, such as the one hosting the Yellowjacket Zone gold mineralization, are notorious for their gold assay inconsistencies. In some instances, two side-by-side samples can vary in grade by several orders of magnitude. Where gold assay values are low in channel samples, the adjacent several metres may contain areas of high grade gold mineralization that were not included in the assayed sample. The 250 tonne block samples being processed during the current program are large enough to allow meaningful comparisons of the gold assay values from the prior channel sampling with the gold content of the entire block.

After this second low grade block has been run, and mill and tabling efficiencies are optimized, the third block to be processed will be one that was extracted from central, higher grade area of the pit. The following table shows select channel sample gold assay results. Assays for the two metre channel samples vary in grade from less than detection up to 311.27 g/t gold.



YELLOWJACKET ZONE BULK SAMPLE PIT
2 METRE BEDROCK CHANNEL SAMPLE RESULTS

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CENTRAL AREA
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SAMPLE # TOTAL GOLD g/t GOLD g/t (+150 MESH) GOLD g/t (-150 MESH)
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350943 4.99 13.43 1.71
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350979 5.45 1.72 5.01
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350980 4.61 2.78 3.91
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350981 23.31 2.21 22.73
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350999 15.07 20.73 10.01
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351000 195.32 38.69 185.40
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351104 36.00 94.84 12.52
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351139 4.40 9.65 1.63
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351160 5.43 1.75 4.99
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351161 311.27 443.18 201.30
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351208 4.15 7.91 2.22
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351307 4.07 11.68 1.04
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WEST END
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SAMPLE # TOTAL GOLD g/t GOLD g/t (+150 MESH) GOLD g/t (-150 MESH)
----------------------------------------------------------------------
350785 90.61 179.91 45.29
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EAST END
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SAMPLE # TOTAL GOLD g/t GOLD g/t (+150 MESH) GOLD g/t (-150 MESH)
----------------------------------------------------------------------
351365 39.58 49.36 26.92
----------------------------------------------------------------------
351555 6.16 11.26 3.34
----------------------------------------------------------------------
351556 10.01 10.54 7.37
----------------------------------------------------------------------
351576 31.75 58.65 17.09
----------------------------------------------------------------------
Note: The table above shows the +150 (coarse gold fraction) and the
-150 (fine gold fraction) assay values as returned from ACME
Laboratory Ltd. Total gold content is obtained by weighted
averaging of the coarse and fine fraction gold contents.


Currently, each 250 tonne sample block is grizzlied to 2" minus, with the oversize being jaw crushed to 2" minus. The 2" minus rock is then fed via conveyor into a seven by eight foot ball mill, with the ground material from the ball mill being screened to two or three millimetres. The screen oversize returns to the ball mill for further grinding and the screen undersize reports to two circuits containing Knelson CD20 Concentrators which produce a gold concentrate. At the end of the milling of each block, the gold concentrate is tabled on a Deister Table in order to produce a clean gold concentrate. An onsite assay lab runs internal assays to control mill efficiencies and to provide a timely but non-certifiable gold fire assay for grade control. The samples collected to be used for the 43-101 compliant resource estimate will be shipped to ACME Laboratory Ltd. in Vancouver for analyses.

Prize is still awaiting the arrival of a semi-autogenous grinding mill purchased from Titan Equipment in Ontario. Delays in modification of this mill have necessitated Prize's process consultant Rino Mihoc to do some leading-edge modifications in order to process the blocks utilizing the existing ball mill as the main grinding unit. Talc-clay content in the bedrock block material made the original plan to crush all the rock to 3/8" minus to feed the ball mill impossible. The fine crush simply compacted on the crushing unit and would not allow proper crushing to occur. Crushing to the larger 2" minus size works well with the crushing unit and with Mr. Mihoc's modifications also process well through the entire milling system. When the semi-autogenous grinding mill arrives on site, processing will continue at an increased rate which is estimated to double the current production rate.

Weekly updates will be provided by news release during the course of the Yellowjacket Zone bulk sample (trial mining) program.

Additional details and information regarding past work conducted on Prize's Atlin Property are set out in past news releases issued and technical reports published by Prize, all of which are available on SEDAR at www.sedar.com.

QUALITY ASSURANCE /QUALITY CONTROL (QA/QC)

Prize follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to ACME Laboratory Ltd. for analyses.

Ms. Linda Dandy, P.Geo., the project supervisor of Prize's trial mining program on the Yellowjacket Zone of the Atlin Gold Property, is Prize's nominated Qualified Person responsible for monitoring the supervision and quality control of the programs completed within the Atlin Gold Property. Ms. Dandy has reviewed and verified the technical information contained in this news release.

ON BEHALF OF THE BOARD OF PRIZE MINING CORPORATION

Harry McGucken, President and CEO

Prize Mining Corporation is a Tier One Company listed on the TSX Venture Exchange (symbol: PRZ-V). The Company is exploring for Gold in the Atlin area of British Columbia, Canada and its Nickel-Copper-Palladium and Platinum project on the Muskox Layered Intrusion in Nunavut, Arctic Canada.

Forward-Looking Statements

This news release contains forward-looking information including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations and potential mineral recovery processes. Forward-looking information includes disclosure regarding possible future events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. When used in this news release the words "estimated", "plan", "anticipated", "expected", "intend", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Prize to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. For any forward-looking information given, management has assumed that the analytical results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Although management has a reasonable basis for the conclusions drawn, there can be no assurance that forward-looking statements will prove to be accurate and actual results may differ materially from those currently anticipated in such statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise. Prize undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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

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