Angus Mining (Namibia) Inc.

Angus Mining (Namibia) Inc.

November 10, 2011 07:00 ET

Angus Mining (Namibia) Inc. Strategic and Corporate Update

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2011) - Angus Mining (Namibia) Inc. ("Angus Mining" or the "Company") (TSX VENTURE:ANA) is pleased to provide a strategic and corporate update related to the Ondundu Gold Project ("Ondundu"), and the Company's majority ownership stake in Silver Reef Resources Ltd. ("Silver Reef").

Silver Reef

On August 8th, 2011, Angus Mining completed the acquisition of a 68% stake in the undiluted share capital of Silver Reef, a privately held company, through the purchase of 20.5 million units. Silver Reef has the option to earn a 100% ownership stake in eight land packages in Central and South-Eastern Nevada, the largest and most prospective of which are Freiberg (6,640 acres) and Reveille (6,620 acres). Both projects have been mined previously for silver and gold, through a combination of open-pit and underground methods.

At Freiberg, development continued until 1981, after which operations were halted due to declining silver prices. Highlights from an eight-hole drilling program completed in 1981 at the Incline Ore Body Zone are presented below in Table 1:

Table 1
DDH From, ft To, ft Au Oz/t Ag Oz/t
FRE 81-3 45 55 nil 5.33
155 165 0.03 42.04
165 175 0.05 6.96
FRE 81-4 160 170 nil 17.01
FRE 81-5 220 225 nil 11.1
FRE 81-6 95 100 0.013 14.44
290 295 0.01 18
FRE 81-7 90 100 0.03 9.72
FRE 81-8 205 210 0.015 2.39
210 215 0.024 2.1
FRE 81-10 90 100 nil 14.44
170 190 0.01 2.29
190 195 0.04 9.62
195 200 0.05 7.92
200 210 0.06 15.21

The previous operators did not systematically assay for copper, lead or zinc. As a result, Silver Reef collected and sent for assay eighteen samples from across the Freiberg property, including three samples from the dumps at Smelter Shaft, one of many historically mined zones at Freiberg. These samples were selected and assayed as indications of the presence and distribution of mineralization. The results are presented below in Table 2:

Table 2
Sample_ID UTM_E UTM_N Area Ag (ppm) Au (ppm) Cu (%) Pb (%) Zn (%) W (ppm)
23051 622907 4200814 Zinc Showing 15.75 0.027 tr 0.05 >30.0 5.3
23052 623794 4201314 Northeast Claims 2.41 0.016 tr 0.02 0.06 1.5
23053 623794 4201314 Northeast Claims 1.56 0.006 tr 0.01 0.06 0.5
23054 623757 4201296 Northeast Claims 8.42 0.026 tr 0.04 0.10 0.9
23055 621971 4202144 Tungsten Showing 0.41 <0.001 tr tr 0.07 1670
23056 622002 4202146 Tungsten Showing 0.54 0.009 tr tr 5.92 1260
23057 622103 4202000 Tungsten Showing 0.25 0.023 tr tr 0.02 25.8
23058 624229 4200756 Eastern Claims 142 0.109 0.14 8.11 18.65 8.7
23059 624226 4200723 Eastern Claims 224 0.14 0.26 14.55 29.30 2.4
23060 624226 4200723 Eastern Claims 71.1 0.057 0.08 1.94 7.15 2.5
23061 624226 4200723 Eastern Claims 8.99 0.004 0.01 0.54 1.48 0.5
23062 624226 4200723 Eastern Claims 53.3 0.022 0.20 0.43 2.36 0.6
67346 623784 4199461 Southcentral Claims 28.2 0.055 tr 5.80 25.40 0.3
67349 624320 4199772 Eastern Claims 245 3.62 0.13 12.8 4.17 1.5
67350 622916 4200844 Zinc Showing 3.4 0.006 tr 0.03 0.21 14.6
67206 624331 4198178 Smelter Shaft 205 0.048 2 8.74 24.80 1.2
67207 624333 4198180 Smelter Shaft 95 0.024 4.19 3.42 12.55 0.7
67208 624328 4198183 Smelter Shaft 35 0.044 0.31 0.78 >30.0 5.6

Silver Reef completed an airborne geophysics survey over both Freiberg and Reveille properties in Q3 of 2011, and is scheduled to commence a 2,000 meter diamond drill campaign at Freiberg in November 2011. Silver Reef has targeted and permitted 28 drill holes at Freiburg, split between the Smelter Shaft Zone and the Incline Ore Body Zone, and has contracted a drill crew. Silver Reef is fully financed through the first stage of drilling at Freiberg.

Angus Mining CEO, Fraser Buchan comments: "Angus Mining is encouraged by the early work completed by Silver Reef, and believes the company has identified several high probability silver, poly-metallic targets at Freiberg and Reveille following extensive geophysical survey and mapping/sampling programs. The drill program set to commence at Freiberg will test the extent of mineralization at two previously mined zones, and test the potential for reactivating mining operations. Angus Mining looks forward to re-focusing its attention to Nevada, and to providing results to the market this quarter."

Ondundu Gold Project

Angus Mining has completed the first stage of exploration drilling at the Ondundu Gold project in Namibia and currently has no ongoing activities in the country. The Company is in discussions with its joint venture partner, Forsys Metals Corp., with the view of creating the most value in relation to the Ondundu Gold Project. Such alternatives may include Angus Mining returning part of its interest in the Project and operatorship to Forsys. Angus Mining expects to provide an update to the market regarding Ondundu in Q4 of 2011.

Currently, the Company is focused on Silver Reef, and the drill program at Freiberg.

About Angus Mining

Angus Mining is a Canadian based precious metals exploration company focused on developing various silver properties in Nevada through its ownership in Silver Reef and the Ondundu Gold Project in West-Central Namibia via a joint venture agreement with Forsys Metals Corp. The Company's goal is to deliver superior shareholder returns by identifying, acquiring and developing high quality assets in a safe and socially responsible manner.

Quality Assurance/Quality Control

Gary DeSchutter, M.Sc., P.Geo. is the qualified person under National Instrument 43-101 who has supervised the preparation of and verified the technical information presented in this press release.

Angus Mining and Silver Reef both adhere to rigorous QA/QC program across all aspects of the sampling and analysis process. All assay samples are handled by independent courier companies, and are processed by independent laboratories. All drill, trench, and grab samples are logged and split for future reference.

Forward-Looking Statements

This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward- looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Certain of the statements made herein by the Company are forward- looking and subject to various risks and uncertainties, both known and unknown, many of which are beyond the ability of the Company to control or predict. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Forward-looking information is subject to known and unknown risks and uncertainties that may cause the Company's actual results, performance or achievements may be materially different from those expressed or implied by such forward-looking information, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties with or interruptions in operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, risks inherent to conducting business activities in the developing world and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward- looking statements or information.


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