Prize Mining Corporation
TSX VENTURE : PRZ

Prize Mining Corporation

January 14, 2008 13:39 ET

Prize Mining Provides Update Regarding Silvermet Inc.'s Drilling Program on Prize's Muskox Property

CALGARY, ALBERTA--(Marketwire - Jan. 14, 2008) - Prize Mining Corporation ("Prize") (TSX VENTURE:PRZ) is pleased to provide the following update regarding the drilling program being conducted by Silvermet Inc. ("Silvermet") on Prize's nickel-copper-platinum group metal ("Ni-Cu-PGM") Muskox Property. This property is located approximately 90 kilometres south of the village of Kugluktuk (formerly known as Coppermine), Nunavut. Silvermet has the right to earn a 70% interest in the Muskox Property.

On January 10 2008, Silvermet provided the drill results from its 2007 Muskox Ni-Cu-PGE project, located 90 kms south of Kugluktuk. The June - September drill program completed 26 holes totaling 4130 meters.

Drilling, as well as surface rock and soil geochemistry, has established that extensive zones of disseminated sulphides with localized high-grade Ni-Cu-PGE sulphide concentrations are present along both margins of the intrusive complex. The 2007 drilling demonstrated that significant intersections of new high-grade mineralization exist on the Muskox Property in areas previously unexplored by drilling.

Observations made by Lakefield (SGS Laboratories) on selected drill cores and from specimens taken from surface indicate the presence of nickel and copper in coarse grain sulphides distinct from other principal minerals especially pyrrhotite. Preliminary laboratory work at Lakefield indicates that bulk or separate nickel and copper sulphide concentrates can be readily floated at reasonably high recoveries in the 90 percent range, and at concentrate grades in the order of 10% nickel and 10% copper in the bulk state. Alternatively, separate nickel and copper concentrates appear possible. Further testing by Lakefield is currently under way. Separately, mineralogical investigations on the suite of minerals present in the cores and samples are nearly complete and the report is being prepared.

Final assays for the 2007 samples were received in December. Planning for the drill program for 2008 is in progress.

Highlights of the 2007 drill program include:

- Drill hole SM-07-VL-08, collared along the western margin of the intrusion at Valley Lake, intersected 15.53 m of 0.77% Ni, 2.37% Cu, 364 ppb Pd, 52 ppb Pt, and 12.97 ppm Ag at a depth of 49.77 m to 64.88 m from surface (see table below).

- Within this interval, the best nickel intersection contained 2.77% Ni, 2.60% Cu, 1 ppb Pt, 9 ppb Pd, 1 ppb Au, and 11.7 ppm Ag over 1.22 m; whereas, the best copper intersection had 0.54% Ni, 16.25% Cu, 237 ppb Pt, 1070 ppb Pd, 305 ppb Au and 44 ppm Ag over 1.04 m.

- Numerous sulphide accumulations ranging from 0.08 m to 1.22 m in thickness with greater than 0.97% Ni were intersected from 50.4 - 62.76 m. This cumulative sulphidic interval had a weighted average of 1.8% Ni, 2.97% Cu, 56 ppb Pt, 446 ppb Pd, 34 ppb Au and 18.31 ppm Ag over 5.85 m.

- SM-07-VL-08 is the most significant new drill hole intersection on the Muskox intrusion, outside the Pyrrhotite Lake area, since discovery of the Pyrrhotite Lake deposit by INCO in 1959, and demonstrates the potential for future discoveries. Silvermet drilled a hole through this deposit (SM-07-MX-01) in June 2007 to serve as a benchmark for the nature and character of this desired style of mineralization. SM-07-MX-01 recorded a weighted average of 1.46% Ni, 3.6% Cu, 3990 ppb pd, 504 ppb Pt, 264 ppb Au over 14.5 m.

- Drilling in the Valley Lake area revealed that better sulphide intersections tend to be associated with the edge of embayments along the margins of the intrusion.

- Drilling and sampling along the margin of the intrusion at Valley and Pyrrhotite Lakes, and elsewhere on the intrusion has established extensive zones of disseminated sulphides with localized high-grade concentrations of Ni-Cu-PGE sulphides. Two composite samples from the Valley Lake area were submitted to SGS Lakefield Research for mineralogical examination. Tests thus far show that the nickel is predominantly present as pentlandite and violarite, and the copper is predominately present as chalcopyrite. Laboratory tests also show that both the nickel and copper mineralization is fairly coarse and should be amenable to processing by flotation. Floatation tests are now underway.



Results from drill hole SM-07-VL-08

DDH from to interval Ni Cu Pt Pd Au Ag
# metres metres (metres)(i) % % ppb ppb ppb ppm
SM-07-VL-08 49.77 50.07 0.30 0.63 0.81 22.1 309 23 15.8
SM-07-VL-08 50.07 50.40 0.33 1.61 2.33 41.3 615 35 14.8
SM-07-VL-08 50.40 50.55 0.15 0.28 1.27 11.2 359 49 25.8
SM-07-VL-08 50.55 51.25 0.70 1.00 1.36 54.7 421 23 7.3
SM-07-VL-08 51.25 51.69 0.44 0.03 0.08 5.5 40.9 4 1.7
SM-07-VL-08 51.69 51.89 0.2 0.36 1.05 139 626 169 13.3
SM-07-VL-08 51.89 52.41 0.52 0.11 0.35 76.5 279 41 2.1
SM-07-VL-08 52.41 53.01 0.60 1.67 2.22 123 1023 61 31.3
SM-07-VL-08 52.71 52.81 0.10 0.03 0.20 51.9 204 29 2.4
SM-07-VL-08 52.81 53.01 0.20 1.04 1.37 35.3 630 38 21.2
SM-07-VL-08 53.01 53.17 0.16 0.00 0.00 0.6 5 0.5 0.05
SM-07-VL-08 53.17 53.40 0.23 0.10 0.36 53.8 323 32 23.8
SM-07-VL-08 53.40 53.58 0.18 1.21 1.22 104 610 30 61.4
SM-07-VL-08 53.58 53.80 0.22 0.01 0.01 10.1 50.7 9 1.4
SM-07-VL-08 53.80 54.01 0.21 1.34 1.14 100 691 37 32.7
SM-07-VL-08 54.01 54.57 0.56 2.06 2.68 21.5 207 9 10.5
SM-07-VL-08 54.57 55.07 0.50 1.44 1.93 32.6 356 20 6.3
SM-07-VL-08 55.07 55.35 0.28 0.49 1.17 101 869 61 5.1
SM-07-VL-08 55.35 55.85 0.50 0.10 0.49 41.7 572 85 5.7
SM-07-VL-08 55.85 56.89 1.04 0.03 0.25 28.2 179 32 3.1
SM-07-VL-08 56.89 57.32 0.43 0.01 0.03 1 17.1 0.5 0.7
SM-07-VL-08 57.32 57.61 0.29 0.82 1.31 16.1 392 24 65
SM-07-VL-08 57.61 58.76 1.15 0.02 0.10 4 61.3 4 0.7
SM-07-VL-08 58.76 58.90 0.14 1.92 2.04 5 256 20 7.7
SM-07-VL-08 58.90 59.05 0.15 0.00 0.02 0.4 0.7 0.5 0.2
SM-07-VL-08 59.05 59.13 0.08 2.14 3.01 5.7 173 18 8.9
SM-07-VL-08 59.13 59.40 0.27 0.03 0.11 1.5 27.7 3 0.7
SM-07-VL-08 59.40 60.05 0.65 0.06 0.16 13.2 147 12 0.8
SM-07-VL-08 60.05 60.21 0.16 1.99 2.64 24.8 614 56 21.2
SM-07-VL-08 60.21 61.01 0.80 0.02 0.11 3.6 223 10 0.3
SM-07-VL-08 61.01 61.32 0.31 2.46 2.58 28.7 625 43 12.2
SM-07-VL-08 61.32 61.42 0.10 0.00 0.01 0.3 1.9 2 0.2
SM-07-VL-08 61.42 61.54 0.12 0.43 0.66 352 1197 79 3.8
SM-07-VL-08 61.42 61.54 0.12 2.26 2.23 99.5 528 46 13.7
SM-07-VL-08 61.54 62.76 1.22 2.77 2.60 1.6 9.1 1 11.7
SM-07-VL-08 62.76 63.09 0.33 0.02 0.04 1.1 184 15 0.4
SM-07-VL-08 63.09 63.18 0.09 0.03 0.06 0.4 5.1 1 1
SM-07-VL-08 63.18 63.72 0.54 0.97 11.02 183 759 122 41.2
SM-07-VL-08 63.72 63.84 0.12 0.01 0.04 0.6 2 1 1.9
SM-07-VL-08 63.84 64.88 1.04 0.54 16.25 237 1070 305 44.1
(i) approximate true widths.


Pyrrhotite Lake

Nine drill holes were completed in the Pyrrhotite Lake area and all contained disseminated sulphide zones ranging in thickness from 5.1 m to 28 m, average 11 m, with weighted average nickel and copper concentrations ranging from 0.14 to 0.42% and 0.17 to 0.44% respectively. Drill hole locations are shown on the accompanying map (available at www.prizemining.com). Excluding the high-grade SM-07-MX-01 hole, thirty-eight percent (38%) of the other drill holes contained semi-massive and massive sulphide concentrations ranging in thickness from 0.14 m to 0.65 m and with nickel and copper concentrations of 0.84% to 2.2% and 0.76% to 4.15%, respectively. Silvermet drilled a hole (SM-07-MX-01) through the Pyrrhotite Lake deposit in June 2007 and recorded a weighted average of 1.46% Ni, 3.6% Cu, 3990 ppb pd, 504 ppb Pt, 264 ppb Au over 14.5 m. These results support the historical estimate of Muskox Minerals Corp. who calculated a (non 43-101 compliant) resource for the Pyrrhotite Lake deposit of 155,000 tonnes of 1.2% Ni, 2.6% Cu, using a cut-off grade of 0.4% Ni and 0.8% Cu.

Valley Lake

Sixteen drill holes were completed in the Valley Lake area and all contained disseminated sulphide zones ranging in thickness from 4.5 m to 45.9 m, average 20 m. Excluding the high-grade hole SM-07-VL-08 the weighted average nickel and copper concentrations fall in the range 0.1 to 0.18% and 0.14 to 0.34% respectively. Nineteen percent (19%) of the holes, excluding SM-07-VL-08, drilled by Silvermet at Valley Lake contained semi-massive and massive sulphide intervals ranging from 0.26 to 0.94 m thick with nickel and copper concentrations of 0.67 to 2.25% and 0.75 to 2.83% respect.

There is a striking similarity of the disseminated sulphide zones along both the western and eastern margins of the Muskox intrusion at Valley Lake, and that of its counterpart along the eastern margin of the intrusion at Pyrrhotite Lake. The association of contained 0.14 to 0.94 m thick semi-massive to massive sulphides within these disseminated zones, and the discovery of localized enhanced concentrations of Ni-Cu-PGE sulphides at Pyrrhotite Lake (SM-07-MX-01) and now Valley Lake (SM-07-VL-08) is very encouraging. Recognition that embayments along the margins of the intrusion are favourable sites for localization of massive Ni-Cu-PGE sulphides in conjunction with recently completed ground based geophysical and geochemical surveys will further constrain drill targets in 2008. A large embayment (greater than 1 kilometer in length) with a number of strong proximal geophysical anomalies along the western margin of the intrusion will be tested by future drilling.

The 2007 results suggest a 2008 drilling program that will focus on proving up large tonnage low-to-medium grade Ni-Cu-PGE zones along with associated higher-grade concentrations, and discovery of larger more extensive zones of high-grade Ni-Cu-PGE mineralization similar to that discovered in SM-07-MX-01 and SM-07-VL-08. The Lakefield tests are expected to substantiate that a Ni-Cu concentrate can be achieved in the 10% range for the Ni and Cu, thereby putting the project on track as potentially viable.

Quality Control

Aurora Geosciences Ltd., Yellowknife was the project operator for Silvermet. Drill core was logged on site by Aurora's geologist. Core was then cut, one half was retained and stored on site for reference, and one half was sent for analysis. Blanks and CANMET certified reference material are inserted at regular intervals as quality control. Additional standards, blanks and duplicate analyses are also employed by the analytical laboratory.

Core samples are delivered to Acme Analytical Laboratories' Vancouver preparation facility for crushing and pulverizing. Pulps are analyzed for multiple trace elements by ICP-MS. Samples exceeding 1.0% copper or nickel are assayed using a hot 4-acid digest and ICP-ES (method Group 7TD).

Silvermet is earning up to a 70% interest in the Muskox property from Prize Mining Corporation by making expenditures of $10 million over 5 years.

Dr. Larry Hulbert, Silvermet's "qualified person" has reviewed the content of this press release. Dr. Hulbert supervised the 2007 exploration program.

About Prize Mining

Prize Mining Corporation (TSX VENTURE:PRZ) is dedicated to the exploration, discovery and development of precious metal deposits. Prize is exploring for gold in the Atlin area of British Columbia, Canada and for nickel-copper-palladium and platinum on the Muskox Layered Intrusion in Nunavut, Arctic Canada.

ON BEHALF OF THE BOARD OF PRIZE MINING CORPORATION

Harry McGucken, President and CEO

The TSX Venture Exchange Inc. has neither approved nor disapproved the information contained herein.

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