Pro Minerals Inc.
TSX VENTURE : PRM

Pro Minerals Inc.

October 20, 2009 10:35 ET

Pro Minerals Inc.: Lac Laura Gold Project Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2009) - Pro Minerals Inc. (TSX VENTURE:PRM); and its Board of Directors are pleased to announce that the company has entered into an option agreement to acquire a 100% interest in the "Lac Laura Gold Project", from Apella Resources Inc. The property consists of 36 mineral claims located in Levy Township, near Chapais Quebec. The property is located directly alongside the highway between Chapais and Chibougamau and is road accessible year round. Pursuant to the terms of the Agreement, Pro Minerals can acquire a 100-percent interest in the Lac Laura Gold Project by paying the optionor a total of 2,000,000 common shares of the company (1,000,000 upon acceptance by the TSX Venture Exchange and 1,000,000 by October 5th, 2010) and work commitments as follows:

  • $250,000 work carried out by October 5th, 2010; and
  • $500,000 work carried out by October 5th, 2011 (cumulative)

The optionor will receive a 2.0% Net Smelter Return ("NSR"), of which the Company may purchase one-half of the Royalty for the sum of $500,000. The Company also retains a First Right of Refusal on the balance of the NSR. The shares to be issued to the optionor will be subject to a hold period in accordance with the policies of the TSX Venture Exchange. The agreement is subject to the approval of the TSX Venture Exchange.

The following are a few key highlights of the Lac Laura Gold Project.

Summer 2009 - Apella Resources carried out a sampling program on the property, which resulted in the discovery of a new gold-silver-copper showing on the Northern part of the property. Assays received from the showing returned values of 128.5 g/T (4.1 oz) Gold, 113 g/T (3.6 oz) Silver and 2.61% Copper(As per Apella Resources News Release dated 16-10-09 – Qualified Person Dr. Christian Derosier P.Geo).

Farther to the North, the Apella sampling re-discovered a second historic showing. The showing features a trench which was created in the 1950's by a company named Indian Lake. This blasted trench shows a shear zone filled with massive to semi-massive pyrrhotite and chalcopyrite. The shear zone is 30 cm thick, dipping vertically and oriented almost E-W. One representative grab sample was taken by Apella which returned assays of 0.2 g/T Gold, 10.05 g/T Silver, 0.74 % Copper, 185 ppm Cobalt, and 95 ppm Nickel(As per Apella Resources News Release dated 16-10-09 – Qualified Person Dr. Christian Derosier P.Geo).

In 1987, Minnova Inc. reported a drill defined resource estimate of 163,295 tonnes grading 5.83 g/T gold on what is now part of the Property. Pro Minerals is not treating this historical resource estimate as a National Instrument 43-101 defined resource for reserves verified by a qualified person and the historical resource estimate should not be relied upon.

This past summer the Lac Laura Gold Project was also highlighted and selected to be the subject of a Quebec Government geological compilation project. The results of the Government project will be released as part of a comprehensive report due this fall, which the company will be able to utilize in defining future exploration targets.

A new timber road has also recently been built parallel to the Chapais-Senneterre Highway, which permits much better access to the northern part of the property which is covering the southern portion of the Blondeau Formation. This Formation comprises volcanic rocks as well as Gabbro sills. Those sills are known to contain chalcopyrite, pyrrhotite, pyrite and sometimes sphalerite. The Blondeau Formation is known to be favourable for the discovery of "Cooke Mine type" copper mineralization as well as VMS type mineralization. Several MEGATEM and INPUT anomalies cover this northern part of the property and Pro Minerals intends to verify these targets by ground geophysical surveys and a diamond drilling program.

Pro Minerals invites the public to visit its website at http://www.promineralsinc.com or e-mail us at info@promineralsinc.com to be added to the Company's e-mail list for press releases and updates.

ON BEHALF OF THE BOARD OF DIRECTORS OF PRO MINERALS INC.

Adrian O'Brien, President/COO

Neither 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.

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