Brett Resources Inc.
TSX VENTURE : BBR

Brett Resources Inc.

May 18, 2010 10:20 ET

Brett Resources Inc.: 400m South A-Zone Step Out Hole Intersects 226.5m of 0.67 g/t Au; Infill Drill Hole Intersects 206.5m of 1.02 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2010) - Brett Resources Inc. ("Brett") (TSX VENTURE:BBR) is pleased to provide an update on its drill program at its Hammond Reef Project, in northwestern Ontario. Over 35,000 metres of drilling or 116 diamond drill holes have been completed since January 2010. Assay results for an additional 25 holes are reported in this news release.

Assay results in this release include data from infill and exploration holes. Infill holes reported have been completed in the A-Zone and the 41-Zone. Results are also reported for exploration holes that tested the areas south of the A-Zone (South A-Zone), the RAB, Sande Stewart, Snail Bay and to the East of the 41 Zone. Please refer to attached plan views (http://www.brettresources.com/i/pdf/may18/all.pdf) for the locations of these holes.

A-Zone and 41 Zone infill and step-out drilling

A-Zone infill drilling continues to return both good thicknesses and good grades. Hole BR-207 intersected 206.4 metres of 1.02 g/t Au, BR-218 returned 156.0 metres of 1.04 g/t Au, and BR-219 cored 157.50 metres of 1.05 g/t Au. Other significant intersections from the A-Zone are listed in Table 1.

Table 1. A-Zone intersections (http://www.brettresources.com/i/pdf/may18/100517_Drilling_PR_AZone.pdf)

X_Sect Hole-ID From To Int (m) Au g/t
1820_E BR-207 141.8 348.2 206.4 1.02
  Incl 248.5 261.5 13.0 3.79
  Incl 283.5 296.4 13.0 1.54
    381.9 393.2 11.3 0.43
1470_E BR-216 11.0 20.0 9.0 0.75
    56.0 185.0 129.0 0.63
    197.0 285.5 88.5 0.78
1370_E BR-218 54.5 72.5 18.0 1.02
    110.0 156.5 46.5 0.82
    182.0 338.0 156.0 1.04
  Incl 279.5 299.0 19.5 3.31
1570_E BR-219 50.0 107.0 57.0 0.34
    123.5 156.5 33.0 0.45
    170.0 327.5 157.5 1.05
  Incl 176.0 186.5 10.5 5.20
  Incl 272.0 279.5 7.5 3.90
1270_E BR-223 14.0 41.0 27.0 0.77
    66.5 113.0 46.5 0.90
    125.0 165.5 40.5 1.11
1470_E BR-226 96.5 123.5 27.0 1.12
    134.0 173.0 39.0 0.63
    221.0 363.5 142.5 0.93
  Incl 248.0 275.0 27.0 1.88
1870_E BR-227 209.0 228.5 19.5 0.47
    272.0 287.0 15.0 1.12
    303.5 315.5 12.0 0.47
    348.5 365.0 16.5 0.75
1320_E BR-228 20.0 156.5 136.5 0.49
    176.0 219.5 43.5 1.11
    231.5 303.5 72.0 0.40
1320_E BR-233 174.5 273.5 99.0 0.69
    305.0 335.0 30.0 0.33
1320_E BR-235 2.0 18.5 16.5 0.46
    75.5 105.5 30.0 0.67
    123.5 303.5 180.0 0.63
    317.0 327.5 10.5 0.57
1770_E BR-236 20.5 25.0 4.5 1.09
    160.0 196.0 36.0 0.37
    224.5 236.5 12.0 0.59
    263.5 337.0 73.5 0.53
1320_E BR-242 14.0 77.0 63.0 0.54
    110.0 236.0 126.0 0.80
  Incl 192.5 207.5 15.0 2.37
    224.0 236.0 12.0 0.46
1720_E BR-246 188.0 200.0 12.0 0.60
    242.0 252.5 10.5 0.48

Hole BR-261, drilled on cross section 1670_E (http://www.brettresources.com/i/pdf/may18/may2010-1670E.pdf), represents a 400m step out south of the A-Zone. This hole tested an area that is further down-dip than any previous hole. BR-261 intersected intervals of anomalous gold mineralization starting at 68m and these intervals continue to the end of the hole at 497m.

A broad interval of gold mineralization, from 252.5 to 474.5, reports 222m of 0.68 g/t Au. This zone has higher intervals that include 159m of 0.71 g/t Au from 252.0 to 411.5m and 46.5m of 0.76 g/t Au from 426.0 to 471.5m. Furthermore, a 7.5m interval within 7.5m of the bottom of the hole assayed 2.28 g/t Au.

The anomalous intervals of gold mineralization intersected in BR-261 are detailed in Table 2. It is recognized that the intervals between those reported in Table 2, are of very low grade and some portions are barren of gold mineralization, however it is encouraging that this newly discovered gold system straddles a 411m interval in a single drill hole. The results of BR-261 are shown on the schematic vertical cross section 1670_E attached.

Hole BR-261 is a follow up to results previously announced (April 22, 2010) in hole BR-214, and appears to confirm that significant down-dip potential exists southeast of the A-Zone. BR-216 returned five gold-bearing intervals above a 0.30 g/t Au cut-off.

Table 2. Summary of results in South A-Zone

X_Sect Hole-ID From To Int (m) Au g/t
1670_E BR-261 68.00 86.00 18.00 0.16
    120.50 155.00 34.50 0.28
    177.50 183.50 6.00 0.58
    224.00 236.00 12.00 0.88
    252.50 479.00 222.00 0.68
  Incl 252.50 411.50 159.00 0.71
  Incl 288.50 299.00 10.50 3.21
  Incl 411.50 425.00 13.50 0.12
  Incl 425.00 471.50 46.50 0.76
  Incl 464.00 471.50 7.50 2.28

Assays have been received for two holes completed in the 41-Zone. BR-241, completed on section 3245_E, report 82.5 metres of 1.01 g/t Au, and hole BR-244 intersected 93m of 1.33 g/t Au from 104m to 197m. Summary of significant mineralized intervals from 41 Zone are listed in Table 3.

Table 3. Significant assay intervals from 41 Zone

X_Sect Hole-ID From To Int (m) Au g/t
3245_E BR-241 14.00 18.50 4.50 1.37
    32.00 50.00 18.00 1.01
    102.50 185.00 82.50 1.01
  Incl 117.50 132.50 15.00 2.53
3205_E BR-244 38.00 86.00 48.00 0.15
    104.00 197.00 93.00 1.33
  Incl 143.00 161.00 18.00 3.10

New Areas Exploration Drilling

Up to four drills have been testing exploration targets on the Hammond Reef property over the last few months. Drill results from the RAB, Sande Stewart, and Snail Bay areas have been encouraging.

Results for three RAB holes are reported and these results include assay data from holes BR-230, BR-232, and partial assays from BR-278. The geological interpretation of the mineralization in these holes, and other holes previously completed in the RAB, suggests a westerly dip direction to the mineralization. This trend of mineralization is not consistent with that found in the main A and 41 Zones and this orientation may represent structural controls not identified elsewhere on the property. Table 4 details the mineralized intervals from RAB.

Table 4. RAB Assay results (http://www.brettresources.com/i/pdf/may18/100517_Drilling_PR_RAB_41_SB.pdf)

X_Sect Hole-ID From To Int (m) Au g/t
3095_E BR-224 197.00 206.00 9.00 0.36
3135_E   276.50 287.00 10.50 0.38
3135_E BR-230 20.00 30.50 10.50 0.61
    39.50 45.50 6.00 0.36
3135_E BR-232 35.00 39.50 4.50 0.36
    39.50 71.00 31.50 0.10
    71.00 74.00 3.00 0.31
    92.00 101.00 9.00 0.14
    111.50 140.00 28.50 0.07
    285.50 293.00 7.50 0.22
3160_E BR-237 7.00 27.50 20.50 0.48
19850_N BR-278 3.59 93.50 89.91 0.26
  Incl 9.50 36.50 27.00 0.44
  Incl 54.50 63.50 9.00 0.32

Assays have been received from three of four holes completed along the Sande Stewart trend. Holes BR-239 on section 3900_E intersected five mineralized intervals that are summarized in Table 5. The gold mineralization intersected at Sande Stewart is of low grade but is noted to have significant thickness and will require follow-up exploration work. Sande Stewart Assays are detailed in Table 5.

Table 5. Sande Stewart assay summary (http://www.brettresources.com/i/pdf/may18/100517_Drilling_PR_RAB_SS.pdf)

X_Sect Hole-ID From To Int (m) Au g/t
3900_E BR-239 32.00 42.50 10.50 0.107
    86.00 152.00 66.00 0.106
    171.50 224.00 52.50 0.124
    257.00 278.00 21.00 0.269
    293.00 320.00 27.00 0.275
3800_E BR-247 66.50 89.00 22.50 0.216
    117.50 141.50 24.00 0.163

Assay results for the first two of seven holes planned at Snail Bay have been received. Hole BR-245, drilled on section 5200_E, intersected elevated gold mineralization from 11 to 116 meters down hole. The significance of this mineralization will be reviewed once the other five holes are completed and their assays are received. Table 6 details the mineralization intersected in BR-245.

Table 6. Snail Bay drill hole intersection summary

X_Sect Hole-ID From To Int (m) Au g/t
5200_E BR-245 105.50 116.00 10.50 0.33
5050_E BR-252 78.50 89.00 10.50 0.70

A single hole was completed to the East of the 41 Zone. BR-238 did not intersect any significant mineralization that assayed above 0.30 g/t Au.

Hammond Reef drilling has been temporarily reduced to two drills with the purpose of expanding camp from a 40 to an 80-person camp. Two new drill contracts for 30,000 metres each are expected to be awarded in the very near term. One of the new drill contractors will deploy the first two of several drills in mid May. One of the first areas expected to be drilled is South A-Zone to follow up results in BR-214 and BR-261.

Barge drilling on Mitta Lake will begin as soon as permits are received and the geotechnical drill program is anticipated to begin shortly after the May long weekend.

Patrick Soares, President and CEO, comments, "We are excited by these drill results which continue to demonstrate the growth potential of the Hammond Reef Deposit. In particular the results in hole BR-261, along with those in hole BR-214 reported on April 22, 2010, indicate that the untested area to the south, and down-dip, of the A-Zone could develop into a significant new resource area. Extensive follow-up drilling will be undertaken in this untested area."

Brett has begun the 2010 surface exploration program with work underway in the Kabaskong area. The Kabaskong area is on strike with the A-41Zone Trend, and is 1.0km East-Southeast of the A-Zone. Exploration work has also been initiated in two condemnation areas. These two condemnation areas are potential tails disposal sites.

Osisko Mining Corp. Offer for Brett

On March 22nd, 2010, Osisko Mining Corp. agreed to offer shareholders of Brett 0.34 of an Osisko common share for each common share of Brett held. The consideration under the Offer at the time represented a premium of 52.5% using the 20-day volume weighted average prices of Osisko and Brett on the TSX and TSX Venture, respectively for the 20 trading day period ending March 16, 2010. The value of the total consideration offered to the Shareholders is approximately $372 million calculated on a fully-diluted basis, implying an enterprise value of approximately $308 million. The boards of directors of both companies have unanimously approved this transaction and the board of directors of Brett has recommended that Shareholders tender to the Offer. The offer to Brett shareholders is open until close of trading May 19, 2010.

Brett's exploration and development teams have been working with their Osisko counterparts, bringing them up to speed on the project's latest developments to ensure a smooth, uninterrupted workflow as the project advances.

Quality Assurance and Quality Control

The Company utilizes standard industry practices in quality control and quality assurance with insertion of blind standards, blanks, and duplicates, in addition to the quality assurance and quality control practiced by the assay laboratory. Sample preparation and analysis are conducted by ALS Chemex Laboratories with sample preparation in Thunder Bay, ON, and analyses of pulps in North Vancouver, BC, ISO/IEC guideline 17025 accredited facilities. The geologist and Qualified Person under the terms of National Instrument 43-101 responsible for the verification of work and data acquisition at Hammond Reef is John Zbeetnoff, P.Geo.

Assay results used in this news release may have some minor out of range control samples. As such, these control samples as well as some of their related core samples could be currently undergoing analytical rerun analyses for gold at the analytical lab. The assay results for these reruns are expected within four to six weeks. It is not expected that there will be any noticeable impact on the final length weighted grade calculations. All significant grade changes will be reported in future new releases, minor changes will be posted on the website.

The Qualified Person responsible for this news release under the terms of National Instrument 43-101 is Patrick Soares, P.Geo.

Contact Information