Consolidated Big Valley Resources Inc.

June 30, 2005 13:28 ET

Consolidated Big Valley Enters into an Agreement to Purchase Interest in the Former 'Spain Mine' Molybdenite Property in Ontario

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 30, 2005) - Consolidated Big Valley Resources Inc. (NEX BOARD:CBG.H) ("CBG") is pleased to announce that it has entered into an Option Agreement to acquire a 100% interest in the former Spain Mine molybdenite property located in Greater Madaskawa Township in the Southern Ontario Mining Division. The property encompasses three continguous and two adjacent mining claims - covering approximately 400 hectares of prospective mineral rights on both crown and patented lands, located about 120 km west of Ottawa, Ontario, and 12 km west of the former "Hunt Molybdenite Mine" and is in the epicentre of some 21 moly showings throughout the southern Renfrew County region.

The Spain Mine property highlights include:

- 25,000 tons of ore reserves grading 1.67% MoS2 based on a report prepared by Velocity Surveys Limited (Sept.13/68):

(a) The "K" zone tested with 52 vertical bore holes calculated to contain up to 20,000 tons of inferred moly ore of an average grade slightly better than 4% MoS2

(b) Intensive study of all reports indicate there are approx. 5000 tons of proven ore left in the main pit (measuring 25 meters in length, 40 meters wide, and 3 to 9 meters deep) assaying 1% to 1.5% MoS2

- Excellent open pit potential-mineral body 8 - 12 meters below surface and slightly dipping towards southwest;

- Excellent accessibility -located only 200 meters east of major all season north-south transportation route Hwy.41

- Excellent potential for increase in moly resource:

(i) Mineralized zone (25 meter in width) strikes northeasterly and is traceable for 1600 m with a possible additional 350 m extension;

(ii) A possible 150,000 tons of 1.78% MoS2 mineralization present in this (i) zone based on the projection of values received in the 25 m by 40 m open pit at the western end of the zone;

(iii) Potential for two parallel zones along the main strike;

(iv) "Legree" showing on the SE section of the property to be explored further;

(v) The moly crystals are very large averaging about 2 inches, some are from 6 to 12 inches across with some aggregate of the pure mineral weighing several pounds

No exploration has been carried out on the property since the early 1960's and with the recent substantial increase in the price of molybdenum oxide to more than $30 (U.S.) per pound, the Company believes this is an extremely promising property to acquire at this time.

The above resource figures on the Spain property are not 43-101 compliant, have not been verified by an independent qualified person, should not be relied upon, and are presented for disclosure purposes only.

The Company has commissioned a National Instrument 43-101 compliant report which is expected soon.

Agreement Terms (subject to regulatory approvals):

Consolidated Big Valley ("CBG") has acquired the option to earn 100% interest in the Spain property(s) from the vendor(s) Robert R. Robitaille and Douglas Lalonde of Timmins and Sheldon Davis of Toronto, Ontario, under the following terms:

(1) An Option to acquire a 60% undivided interest in the mining interests by delivering to the Vendors 900,000 CBG treasury common shares, subject to regulatory approvals, at a deemed price of $0.25 per share. The option expires September 14,2005.

(2) An additional option to acquire the remaining 40% undivided interest in the mining interests by delivering to the Vendors $200,000 in cash, or, at the option of the Purchaser, an equivalent value of CBG common shares priced at the 10 day arithmetic average closing price prior to September 14,2006. This option expires September 14,2006.

(3) If CBG, at any time prior to September 14,2006, assigns 50% or more of its interest in the mining interests, it shall be obligated to exercise this remaining 40% option at that time.

There shall be no finder's fee payable to anyone in respect of this Agreement.


Frank Basa, President/Director

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

Contact Information

  • Consolidated Big Valley Resources Inc.
    Frank Basa
    (705) 672-3551
    (705) 672-3551 (FAX)