Burnstone Ventures Inc.
CNSX : BVE

May 03, 2011 12:25 ET

Burnstone Ventures Closes Acquisition of Major Cu Mo Porphyry Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 3, 2011) - Burnstone Ventures Inc. (CNSX:BVE) ("Burnstone" or the "Company") wishes to announce that the Company has closed the acquisition and acquired all of the issued and outstanding shares of Tomichi Copper Corp. ("Tomichi"), which has an option to earn a 100% interest in the Tomichi copper-molybdenum (Cu-Mo) porphyry project in Gunnison County, south-central Colorado, (the "Project"). The following table contains assay results for a selection of holes from the historic drilling on the Project within the core area of the porphyry target:

DDH #From ToInterval %Mo%Cu%Cu Eq(1)
mmm
TM-04140.2385.7245.40.0660.080.34
TM-0520.1328.4308.20.0540.240.46
TM-076.1441.2435.10.0240.260.36
TM-089.8420.7411.00.0360.250.39
TM-0910.1357.9347.90.0600.310.55
TM-108.2263.4255.20.0600.290.53
TM-11A30.5302.1271.60.0600.160.40
TM-1373.2398.5325.30.0420.320.49
TM-1470.1337.5267.40.0480.210.40
TM-1521.3337.5316.20.0600.220.46

(1) Copper Equivalent values were derived based on $10.00/lb moly and $3.00/lb copper.

Mineralization at Tomichi is a typical porphyry deposit characterized by disseminated and fracture controlled molybdenite and chalcopyrite hosted by a mid-Tertiary, potassic altered, intrusive system dominated by a porphyritic quartz monzonite. The mineralized porphyry is exposed at surface on top of Copper Hill and has been confirmed to continue to a depth of at least 550m. Diamond drilling intersected copper-molybdenum mineralization over a surface area in excess of 1500m by 800m and remains open to the north and east.

Burnstone wishes to announce the commencement of the 2011 exploration program on the Project located within the Colorado Mineral Belt. This Project was initially worked on in the 1950's by Climax Molybdenum Co. and, most recently, in the 1980's by Molycorp Minerals. No work has been carried out since the 1984 drill program primarily as a result of fractured land ownership. Core from a portion of the historical programs has been preserved in secure storage and is available to Burnstone for re-logging and re-analyses. This phase of the program is already underway by Company personnel based out of Denver, Colorado.

The location of drill holes has now been selected and permitting has begun for a 10,000-meter diamond drill program to be completed this summer. A combination of confirmation, infill and step out holes are planned. In addition, a comprehensive surface program of geological mapping, geochemistry and geophysics will be carried out to determine the limits of the mineralizing system and identify new target areas. The goal of the 2011 program will be to generate the data necessary to allow for the preparation of a 43-101 compliant resource report. The Gault Group, LLC based out of Cortez, Colorado, are specialists in the permitting process in the US and have been retained to secure the necessary permits and ensure that the Company is in compliance with all regulatory agencies. All of the 2011 drill core will be analyzed for copper, molybdenum, gold, silver and a suite of associated elements through ICP. None of the historical core has previously been assayed for precious metals.

The Company issued 3.1 million shares for the acquisition of Tomichi, and paid a finder's fee in compliance with the regulations of the Canadian National Stock Exchange. Tomichi, through its US subsidiary, has the right to purchase a 100% interest in the Project for an exercise price of $4 million US on or before the seventh anniversary of the option agreement (the "Option"). A payment of $15,000 was made on signing and, until the Option is exercised, cash payments of $40,000, $60,000, $80,000, $125,000, $150,000 and $180,000 are required on the first to sixth anniversary to keep the Option in good standing. If the Option is exercised, no further annual payments are required. The current owners will retain a 1.5% Net Smelter Royalty. Mr. James Chapman, P.Geo, is responsible for the design of the program and all exploration work on the Project will be done under his supervision.

On Behalf of the Board of Directors:

Douglas Fulcher – President

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com.

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