Cambridge Mineral Resources plc

Cambridge Mineral Resources plc

February 28, 2005 10:00 ET

Cambridge Mineral Resources plc Announces Exercise of Option to Acquire Patacancha Gold Claims in Peru


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CAMBRIDGE MINERAL RESOURCES PLC

LSE SYMBOL: CMR

FEBRUARY 28, 2005 - 10:00 ET

Cambridge Mineral Resources plc Announces Exercise of
Option to Acquire Patacancha Gold Claims in Peru

BRISTOL, ENGLAND--(CCNMatthews - Feb. 28, 2005) - Cambridge Mineral
Resources plc (LSE:CMR)("Cambridge" or "the Company") is pleased to
announce that it has exercised an option to acquire a 50 per cent equity
interest in the Patacancha project located in the gold-rich Ayacucho
volcanic belt of southern Peru. Cambridge's Peruvian subsidiary, Minera
Peru Gold SAC, and its operating partner, Minera Argento SRL, have
formed a new joint venture company, Minera Sucre S.A., which will direct
the production, development and exploration of the Patacancha claim
group.

A production management company has been appointed and bids are
currently being received from contract mining groups. In addition,
negotiations are underway with relevant parties to determine whether
initial ore production will be sold at the mine head or trucked and toll
processed at a nearby facility.

The Patacancha claim group covers approximately 15 square kilometers and
is characterised by high-grade precious metal veins and breccias. The
Marcelita-2 vein, averaging one meter in width with average grades
exceeding 16 g/t Au and 100 g/t Ag, will be the first target for
development. The mineralization outcrops on surface and extends to a
known depth of 70 meters remaining open ended. Surface sampling over the
Marcelita-2 vein returned values up to 1.30 metres of 45 g/t Au.

Production will commence following selection of a contract mining
company. Initial development and production on the Marcelita-2 vein will
consist of two raises from the access level to the surface where the
highest grades have been encountered to date. Project advancement will
be similar to other small mine operations in Peru where development
headings will provide the initial production.

Multiple additional veins and breccias on the claim group will be
explored concurrently with development and production at Marcelita-2.
Additionally, porphyry copper potential has been recognized on the claim
group and is being evaluated. New gold targets currently under
evaluation include the following zones with their respective surface
sample results:



Veta Rasuhuilca 2.40 metres at 26 g/t Au and 11 oz/t Ag
Veta Punto Triple 0.60 metres at 75 g/t Au
Veta Baritina 0.61 metres at 13 g/t Au and 17 oz/t Ag


Cambridge's Chairman, Michael Thomsen, stated today in London: "We are
very pleased to advance our partnership with Minera Argento in
developing the Marcelita-2 gold deposit. This will represent the first
gold production for the Company and we expect this purchase of equity in
the Patacancha gold claims to be followed by further acquisitions in
Peru and elsewhere."

Ore samples and technical information from the project will be displayed
at the Prospectors and Developers Conference in Toronto, Canada on March
6 and 7. The Marcelita gold deposit will be displayed at the Core Shack
located on the lower level of the Toronto Convention Centre.

A technical summary of the Patacancha project has been posted on the
Company's website at www.cambmin.co.uk

Cambridge Mineral Resources plc (LSE:CMR)

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cambridge Mineral Resources plc
    Michael Thomsen
    Executive Chairman
    1-303-470-3896 (US office)
    cambmin@aol.com
    or
    Cambridge Mineral Resources plc
    David Bramhill
    Managing Director
    + 44 (0) 117 957 3666 (UK office)
    office@cambmin.co.uk