Committee Bay Resources Ltd.

Committee Bay Resources Ltd.

January 09, 2007 08:30 ET

Committee Bay Resources Ltd.: Substantial Resource Upgrade for Tindals Mining Center RJV Project, Western Australia

EDMONTON, ALBERTA--(CCNMatthews - Jan. 9, 2007) - Committee Bay Resources Ltd. (TSX VENTURE:CBR) (FWB:C3M) (the "Company") and Australian Redemption Joint Venture (RJV) partner Focus Minerals Ltd. (ASX:FML) have added further weight to their plans to develop the Redemption Joint Venture at Coolgardie, Western Australia with the announcement today of a 100% increase to the Inferred Gold Resource estimate for the Countess deposit and initial Inferred Resource estimates for two other nearby ore bodies, Tindals East (Cyanide) and Empress West.

The doubling of the 43-101 compliant Countess Inferred Resource estimate to 246,000t @ 4.26g/t Au, for 33,700 ounces, together with the initial Tindals East Inferred Resource estimate of 367,000t @ 5.54g/t Au, for 65,367 ounces, and the Empress West estimate of 129,500t @ 4.68 g/t Au for 19,485 ounces, amounts to a greater than fivefold increase in gold resources for the combined Tindals Mining Center at Coolgardie to 742,500 @ 4.97g/t Au for 118,546 ounces.

This significant mineralized system - which hosts the Tindals, Tindals East, Countess, Empress, Dreadnought and Perseverance lodes - has to date produced more than 525,000 ounces of gold from both open pit and underground operations. It will be a key development focus for the Redemption Joint Venture as part of the rejuvenated Coolgardie operation, representing an important source of high-grade ore for the re-commissioned Three Mile Hill treatment plant.

The upgraded resource estimate for the Tindals Mining Centre has resulted in an overall increase in the resource inventory for the Redemption Joint Venture to 385,138 measured and indicated ounces and 1,151,419 inferred ounces.

Previously, the stated Inferred Resource for the Tindals Mining Center, was limited to the Countess ore body, which is located between the Tindals and Empress ore bodies (see Fig. 1), just 7km south west of the Joint Venture's Three Mile Hill processing facility and within 100m of the Joint Venture's existing Empress underground infrastructure.

The revised Tindals Mining Centre resource was calculated using data from underground diamond core holes drilled by the Redemption Joint Venture during 2006, and historical diamond core holes, representing a total of 5879 metres, all drilled from the Empress decline (see Fig. 2).

Committee Bay President and CEO, Mr John Williamson said the Tindals Mining Center resource upgrade is another example of the considerable success of the $5 million exploration program commenced last year by the Redemption Joint Venture and highlights the potential to establish a significant gold resource inventory at Coolgardie to underpin a long-life gold operation.

"As announced last year, there is excellent potential to further increase the resource base at the Tindals Mining Center," Mr Williamson said. "Each of the Countess lodes is open and untested up plunge, Empress West and Tindals East remain open at depth and along strike and more drilling is planned."

"Our work has already added a significant number of ounces to the high-grade Tindals system, which was a prolific historic producer, showing that it is clearly the dominant mining centre within this region, and growing," he added. "The joint venture partners are keen to complete further work to upgrade the classification of our resources and verify the continuity of the high-grade zones already confirmed.

"Today's announcement is the perfect complement to our recent announcement of ongoing work at the Perseverance ore body, which confirmed multiple gold zones just 300m north of the Empress decline, and to our December Dreadnought results."

In addition to Dreadnought and Perseverance, the Redemption Joint Venture is completing resource re-evaluations for the Bayleys, Lindsays and Norris gold projects, and low-grade stockpiles.

"These upgrades will be incorporated into the Feasibility Study which the Joint Venture is currently completing," Mr Williamson said.

The previous Countess inferred resource estimate of 111,700t @ 4.7 g/t/Au for 16,880 ounces of contained gold was reported by Gold Mines of Coolgardie in 2004.

Significant intersections previously announced for the Countess deposit include:

Hole From To Length (m) Au ppm
ED196 133.33 144.1 10.77 5.60
ED197 131.11 138.32 7.21 6.96
ED220 133.26 141 7.74 4.85
ED221 127.39 134.81 7.42 8.99
ED227 143.8 150.27 6.47 11.38
ED228 111.78 120.12 8.34 5.25

To see Fig. 1, Tindals mining center plan view, please click the following link:

To see Fig. 2 Tindals East Perseverance project Long Section, please click the following link:

Coolgardie Project, Western Australia

Committee Bay Resources Ltd., through the Redemption Joint Venture (Committee Bay in a 50% partnership with Focus Minerals Ltd. (ASX:FML), has the mineral rights to more than 210 km2 of under-explored greenstone tenements, located in one of the world's most significant gold and nickel mining regions. These tenements contain Measured resources of 31,107 ounces gold(i) (0.55 million tonnes at 1.77 g/t gold), Indicated resources of 315,720 ounces gold(i) (5.32 million tonnes at 1.85 g/t gold) and Inferred resources of 1,135,629 ounces gold(i) (13.25 million tonnes at 2.66 g/t gold). The RJV also has a 100% interest in the fully permitted, 1.2mtpa, Three Mile Hill Mill processing plant.

(i) For more information on the stated gold resources and historic drill results of Committee Bay Resources Ltd., please refer to the detailed NI 43-101 compliant technical reports filed on SEDAR by Committee Bay on December 20, 2004, and by Matador Exploration Inc. (wholly owned subsidiary of Committee Bay Resources Ltd.) on July 18, 2005.

Committee Bay Resources Ltd. maintains an extensive quality control program in the preparation, shipping and checking of all samples from the property as detailed in Committee Bay Resources Ltd. 'Technical Report for the Coolgardie Gold Project, Coolgardie, Western Australia' by Dean Besserer - May 27, 2005 pp. 76-80. The program is supervised by Peter Kleespies, M.Sc. P.Geol., Vice President of Exploration , who is the Qualified Person as defined by NI 43-101.

About Committee Bay

Committee Bay controls major greenstone belts in Nunavut and Western Australia and has the opportunity to conduct year-round exploration on three continents in order to build on its existing gold resources.

On behalf of the Board

Committee Bay Resources Ltd.

John Williamson, P.Geol., President

Certain disclosures in this release, including management's assessment of Committee Bay's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Committee Bay's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Committee Bay expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Committee Bay Resources Ltd.
    Investor Relations
    Derek Iwanaka
    (604) 331-2269 or Toll-Free 1-888-331-2269
    Committee Bay Resources Ltd.
    Investor Relations
    Jim Paterson
    (604) 331-2269 or Toll-Free 1-888-331-2269