Probe Mines Limited
TSX VENTURE : PRB

Probe Mines Limited

August 23, 2010 09:28 ET

Probe Mines Announces Initial Resource Estimate for Its Black Creek Chromite Deposit; Commences Phase III Drilling; Borden Lake Update

- Massive chromite zone estimated to contain a Measured and Indicated Resource of 5,714,000 tonnes averaging 40.00% Cr2O3 and an additional Inferred Resource of 2,726,000 averaging 40.99% Cr2O3

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2010) - The Directors of Probe Mines Limited (TSX VENTURE:PRB) ("Probe") are pleased to announce that the Company has received the initial mineral resource estimate for its 100%-owned Black Creek chromite deposit from Micon International Limited ("Micon").

The resource estimate, which meets the guidelines for reporting mineral exploration programs as set out in National Instrument 43-101, was based on an initial 15 diamond drill holes that tested the chromite horizon along approximately 200 metres (m) of strike length and to a vertical depth of approximately 175 m at a spacing of approximately 50 m by 50 m. Mineralization at Black Creek is dominated by three massive chromite layers, with subordinate amounts of banded, semi-massive and disseminated chromite found between and below the massive layers. The cumulative thickness of the mineralized zone averages approximately 65 m.

The following table summarizes the Black Creek chromite mineral resource estimate at a cut-off grade of 30% Cr2O3:

Summary of Black Creek Chromite Resources
 
Category   Tonnes   Avg. Cr2O3 (%)   Cr:Fe Ratio
Measured (M)   3,729,000   39.90   1.8
             
Indicated (I)   1,985,000   40.06   1.8
             
Total M & I   5,714,000   40.00   1.8
             
Inferred   2,726,000   40.99   1.9

Mineral resources do not have demonstrated economic viability. The estimate of mineral resources may also be materially affected by other relevant factors or issues. There is no guarantee that the project will be placed into production. Micon is currently in the process of completing the NI 43-101 Technical Report supporting the estimate and the Technical Report will be filed within 45 days of this press release with SEDAR.

The mineralized material was classified into the Measured, Indicated or Inferred mineral resource category on the basis of a combination of the following factors: (a) confidence in the geological and mineralization continuity, (b) position of blocks in relation to the range of influence as defined by the variographic analysis and (c) and the search ellipse ranges.

The Black Creek deposit Measured and Indicated resources have been categorized taking into account the search parameters in relation to variographic results, and the observed geological and mineralization continuity based on sectional interpretation. The inferred resource down to a vertical depth of about 360 m is based on drilling intercepts recorded at this depth at the adjacent Big Daddy deposit. The known mineralization in the entire McFaulds Lake sill has been considered in the process of resource categorization.

The cut-off grade of 30% Cr2O3 is based on consideration of chromite operations in South Africa, Zimbabwe and Finland. The lack of infrastructure in the McFauld's Lake area demands an above-average grade deposit to ensure reasonable prospects for economic extraction.

Phase III Diamond Drilling

The report also recommends additional diamond drilling to establish the full lateral limits of the deposit and the continuity of chromite horizons down dip. The Company has now mobilized crews to the McFauld's Lake area to begin the drilling recommended by Micon in order to expand the deposit in preparation for updating the current resource estimate. The drilling will comprise six holes designed to test the lateral continuity of the deposit along an additional 100 m to 150 m of strike length and the down-dip continuity to approximately 400 m depth, more than twice the depth of the currently drilled resource. The Company will provide an update on the drilling once the program has been completed.

Dr. David Palmer, President of Probe states "We are extremely pleased with the results of the initial resource estimate and thank Micon for the excellent job they did in preparing this. Probe will now focus on expanding the deposit and updating this current resource through the next phase of drilling. The results of this resource estimate show that Black Creek is not only strategically located between the Black Thor and Big Daddy deposits, but is a quality, high-grade deposit with strong economic potential. To date, we have only tested the zone down to a 175 m vertical depth and this next program, if successful, will more than double this to 400 m as well as extending the chromite along strike."

Micon International Limited

Ing. Alan San Martin, MAusIMM and Charley Murahwi, M.Sc., P.Geo, MAusIMM of Micon were responsible for the preparation of this resource estimate. They are Qualified Persons as defined in NI 43-101, and are independent of Probe. Micon acknowledges that it has read this press release and there are no errors contained herein. Micon has provided consulting services to the international mining industry since 1988, with particular focus upon mineral resource estimations, metallurgical services, mine design and production scheduling, preparation of pre-feasibility and feasibility studies, independent reviews of mining and mineral properties, project monitoring, independent engineer roles, financial analysis and litigation support. Additional information about Micon can be found at www.micon-international.com.

Borden Lake Project

The Company announces that it has amended the previous Borden Lake agreement to include additional claims staked by the vendors surrounding the original property package. In consideration for the claims the Company will issue an additional 50,000 shares to the vendors upon signing of the amended agreement, subject to regulatory approval. The agreement has also been amended to include an area of influence covering these new claims and all future acquisitions by the Optionor. All other terms and payments from the original agreement remain unchanged. The Company recently completed a first phase drilling program on the property and will provide geochemical results once they have been received and reviewed.

About Probe Mines:

Probe Mines Limited is a well financed, Canadian base and precious metal exploration company with approximately $4.5MM in treasury and a portfolio of highly prospective mineral properties. The Company is currently focused on the McFauld's Lake area where it owns 875 claims covering approximately 14,000 hectares, including a 100% interest in the Black Creek chromite deposit. In addition, the Company has acquired two new gold properties, Cree Lake and Borden Lake, which show strong potential through limited previous exploration. Probe currently has an option-joint venture agreement with Lake Shore Gold Corp on its Bristol Township gold project adjacent to Lake Shore's million-plus ounce gold deposit. Recent exploration results from Lake Shore include an 83.4m intersection grading 12.75 g/t gold less than one kilometre from Probe's claims. Probe also maintains a 5% net smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val d'Or, Quebec, which began production in 2008. The Company has only 36,602,581 shares issued and outstanding, which trade on the TSX Venture Exchange under the symbol PRB.

David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Mines Limited, visit our website at www.probemines.com.

Forward-Looking Statements

This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Probe, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Probe's expectations are exploration risks detailed herein and from time to time in the filings made by Probe with securities regulators.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Probe Mines Limited
    David Palmer
    President
    (416) 777-6703
    or
    Probe Mines Limited
    Karen Willoughby
    Investor Relations
    (866) 936-6766