Cigma Metals Corporation
PINK SHEETS : CGMX
FRANKFURT : C9KA.FSE
FRANKFURT : C9KA.ETR

November 30, 2006 06:10 ET

Cigma Metals Corporation: Large Zinc Deposit in Kazakhstan

Cigma Metals Corporation is pleased to announce results from data reviews on the 14,000 km2 Dostyk Project in North Eastern Kazakhstan indicate the company has a series of potentially large Zinc and base metals deposits.

COOLUM BEACH, QUEENSLAND, AUSTRALIA--(CCNMatthews - Nov. 30, 2006) - Cigma Metals Corporation (PINK SHEETS:CGMX)(FRANKFURT:C9KA)(FRANKFURT:C9KA.ETR) (the "Company", "Cigma") is pleased to announce that the ongoing literature search of the 14,000 km2 Dostyk license located in northern Kazakhstan, has a large stratabound Zinc deposit.

Cigma entered into a Memorandum of Understanding (MOU) with Eureka Mining Plc ("Eureka"), a company registered in UK through its Kazakh subsidiary TOO Dostyk. As part of Cigma's plans to diversify into base metals the Company entered into a MOU over the 14.000 km2 Maikubinsk base and precious metals mining area located in the North East of Kazakhstan. Cigma and Dostyk intend to form a joint venture with the aim of identifying a base and precious metals resources.

A review of the available exploration data and results was partially completed during the initial due diligence period. The data review included a literature search of all previous exploration, which included several phases of exploration. Previous exploration included mapping, geophysics, geochemistry some trenching and drilling, which resulted in several poly metallic occurrences throughout the project area. Currently Cigma has identified over 130 metal occurrences including Nickel, Gold, Silver, and Copper, Zinc, Lead, Molybdenum, Cobalt and others. More occurrences are expected during the literature review of the many volumes of data.

As a result of the initial categorising of occurrences and project areas, a potentially very large Zinc resource has become noted.

In central part of Dostyk license, covering an area of 10,000m x10,000m a previous discovery of a series of large strata bound lead-zinc (with associated gold, silver and copper) mineralization has been documented. The mineralisation is hosted by a Devonian limestone formation where Zinc mineralisation is controlled by jasperoid-like horizons. The open-ended length of each of the mineralised horizons on each area is approximately 700m to 1000m with a width ranging from 15 to 30m. Based on limited drilling and series of trenches the reported grades of the metallic component of the potential resources average out to be as follows:

Zinc 0.73% to 0.97%, Lead 0.4% to 0.67%, Gold 0.2 to 0.8g/t, Silver 1 to 73g/t, Copper 0.05%-0.1%.

Based on the data available the project area has the exploration potential for Zinc and Zinc-equivalent resource estimated at approximately 3,000,000 tonnes of metal.

The deposits are traced on surface and based on the nature of the deposit type would represent ideal open pit mining scenarios.

Cigma is confident that based on the many large occurrences and extensive library of exploration data that the company will quickly locate a series of large gold and base metals deposits.

The Dostyk project is located in well developed industrial region of Kazakhstan. Some 30km away from project is located the biggest of the post-Soviet countries Ekibastuz Coal Basin supplying electric energy and coal to the entire Kazakhstan and major industrial regions of Urals in Russia. As a result the project area is crossed by several high-voltage power lines. The region boasts gold production from mines which have operated for 3 decades.
Cigma Metals Corporation is a mineral exploration company currently focusing on the exploration and development of its 2 exploration properties totaling 740 square kilometers in the Tomsk Oblast region of Siberia in Russia. The project areas were selected due to their proximity to a well-developed infrastructure, known gold occurrences and from historical records of gold production. The lithologies associated with the projects are similar to those that have proven to be the host of significant gold occurrences elsewhere in the Black shales of Asia. Cigma Metals Corporation's stock trades under the symbol "CGMX" on The Pink Sheets in the United States of America, and under the symbols "C9KA" on the Frankfurt Stock Exchange in Germany.

ON BEHALF OF THE BOARD

Lars Pearl, President and Director

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains statements that plan for or anticipate the future, called "forward-looking statements." In some cases, you can identify forward looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of those terms and other comparable terminology.

These forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements about: our market opportunity; revenue generation; our strategies; competition; expected activities and expenditures as we pursue our business plan; the adequacy of our available cash resources; our ability to acquire properties on commercially viable terms; challenges to our title to our properties; operating or technical difficulties in connection with our exploration and development activities; currency fluctuations; fluctuating market prices for precious and base medals; the speculative nature of precious and base medals exploration and development activities; environmental risks and hazards; governmental regulations; and conduct of operations in politically and economically less developed areas of the world.

Many of these contingencies and uncertainties can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, us. Forward looking statements are not guarantees of future performance. All of the forward looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to our most recent annual report on Form 10KSB and other filings made by us with the United States Securities and Exchange Commission for more detailed discussions of the contingencies and uncertainties enumerated above and the factors underlying the forward looking statements. These reports and filings may be inspected and copied at the Public Reference Room maintained by the U.S. Securities & Exchange Commission at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information about operation of the Public Reference Room by calling the U.S. Securities & Exchange Commission at 1-800-SEC-0330. The U.S. Securities & Exchange Commission also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the U.S. Securities & Exchange Commission at http://www.sec.gov.

We disclaim any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF INFERRED RESOURCES.

This section uses the term "inferred resources". We advise U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. investors the U.S. Securities and Exchange Commission does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally minable.

This press release is for informational purposes only and is not and should not be construed as an offer to solicit, buy, or sell any security.

Contact Information

  • Cigma Metals Corporation
    Lars Pearl
    President and Director
    (+61) 411-156-177
    Website: www.cigmametals.com