Conway Resources Inc.
TSX VENTURE : CWY

Conway Resources Inc.

May 04, 2009 07:00 ET

Conway Resources Inc. Announces its Drill Results for the Belleterre Mine

Vein 14 and 16 mineralized structures confirmed

QUEBEC CITY, QUEBEC--(Marketwire - May 4, 2009) - Laurent Beaudoin, President and Chief Executive Officer of Conway Resources Inc. (TSX VENTURE:CWY), is pleased to report the results of drilling to the end of December 2008 on the Belleterre Mine property. Conway is currently finalizing an agreement to acquire a 100% interest in the property.

The 4,949-metre, 18-hole program was aimed at confirming Vein 14, an unmined gold ore zone identified during the compilation of previous work at the old Belleterre mine, which produced 800,000 ounces of gold between 1937 and 1958 from 2.4 million tonnes of ore averaging 9.7 g/t Au. All assays were performed by Laboratoire Expert Inc. of Rouyn-Noranda, and were subject to quality control.

Drilling confirmed the continuity of the mineralized structure from surface to the 1,250-foot level. There are exploration drifts and small stopes on the 500-, 750-, 1,250-, 1,500-, 1,800- and 2,250-foot levels, excavated by McIntyre Porcupine Mines, the former owner of the Belleterre Mine, who also carried out bulk sampling. Drilling also intersected and traced Vein 16, a sub-parallel structure that lies about 225 metres southeast of Vein 14.



The main mineralized intersections are shown in the following tables:

-----------------------------------------------------------------------
Vein 14
-----------------------------------------------------------------------
Level Hole From To Width Grade
(ft) (m) (m) (m) (g/t)
-----------------------------------------------------------------------
225 B08-01 89.67 91.68 2.01 18.38
B08-02 104.57 105.77 1.20 2.96
B08-08 90.95 93.25 2.30 2.41
B08-12 78.40 78.66 0.26 3.84
B08-17 66.20 67.65 1.40 1.99
-----------------------------------------------------------------------
500 about 7 g/t Au over a width of about 0.8 m in the drift(i)
-----------------------------------------------------------------------
625 B08-03 258.65 259.07 0.42 3.71
B08-10 260.82 261.94 1.12 0.94
B08-13 260.00 260.37 0.37 2.48
B08-14 247.88 249.00 1.12 0.53
-----------------------------------------------------------------------
750 about 9-10 g/t Au over a width of about 0.65 m in the drift(i)
-----------------------------------------------------------------------
875 B08-04 318.13 318.81 0.68 0.45
B08-05 333.40 337.80 4.40 0.80
B08-06 317.45 317.85 0.40 trace
B08-15 325.73 326.10 0.37 0.29
328.45 328.97 0.52 0.42
-----------------------------------------------------------------------
1125 B08-07 352.50 354.20 1.70 0.81
B08-11 346.17 346.52 0.35 1.93
B08-16 371.10 371.74 0.64 9.67
-----------------------------------------------------------------------
1250 B08-09 406.49 410.75 4.26 2.60
about 6 g/t Au over a width of about 0.50 m in the drift(i)
-----------------------------------------------------------------------
(i) Historical estimate calculated from McIntyre Porcupine's original
mine plans.




-----------------------------------------------------------------------
Vein 16
-----------------------------------------------------------------------
Level Hole From To Width Grade
(ft) (m) (m) (m) (g/t)
-----------------------------------------------------------------------
100 B08-03 44.38 45.64 1.26 1.06
B08-14 47.60 50.50 2.90 trace
B08-18 21.11 22.56 1.45 0.21
B08-10 89.12 91.47 2.35 0.73
-----------------------------------------------------------------------
200 B08-13 70.54 73.15 2.61 26.35
B08-15 58.23 59.65 1.42 1.16
B08-04 92.40 95.10 2.70 1.01
-----------------------------------------------------------------------
300 B08-06 63.96 64.19 0.23 0.11
B08-07 93.00 93.80 0.80 0.39
B08-05 163.60 164.83 1.23 0.12
-----------------------------------------------------------------------
400 B08-11 133.26 134.16 0.90 0.22
B08-16 157.90 159.88 1.98 0.37
-----------------------------------------------------------------------
500 B08-09 179.04 182.23 3.20 0.49
-----------------------------------------------------------------------


Drilling systematically intercepted the structure (shear) that controls the mineralized zones or veins. These veins consist of lenses of smoky quartz and carbonate, with variable quantities (0-8%) of sulphides (pyrite, pyrrhotite) and small amounts of copper and zinc occurring locally. Grades range from less than one gram to up to 18.38 g/t Au over 2.01 metres (B08-01).

Overall, the values intersected by drilling appear to be lower than the average historical values reported by McIntyre Porcupine Mines, which generally tend to be between 6 and 9 g/t Au in the Vein 14 exploration drifts.

The structure itself was intersected where anticipated, and showed a slightly greater average thickness than expected, often more than one metre, while the historical thicknesses tend to be closer to 0.8 metre.

For the moment, it would appear that the drill grid used to explore the structure is sufficient to accurately locate the structure but provides less information as to its grade, which is a common problem with vein-type gold mineralization. Some of the intersections in Vein 14 returned grades similar to the historical averages, including:



-----------------------------------------------------------------------
Hole Grade Width Depth
-----------------------------------------------------------------------
-----------------------------------------------------------------------
B08-01 18.38 g/t Au 2.01 m Between surface and Level 500
-----------------------------------------------------------------------
B08-03 3.71 g/t Au 0.42 m Between Levels 550 and 750
-----------------------------------------------------------------------
B08-16 9.67 g/t Au 0.64 m Between Levels 750 and 1250
-----------------------------------------------------------------------
B08-09 4.39 g/t Au 2.00 m Level 1250, included in the 4.26-m
section.
-----------------------------------------------------------------------


Vein 16, intersected only at a shallow depth in the upper part of the holes drilled in 2008, appears to be slightly narrower than Vein 14, with generally lower gold grades. The best intersection was from 70.54-73.83 metres in Hole B08-13, which returned 26.35 g/t Au over 2.61 metres.

Like Vein 14, Vein 16 consists of injections and/or lenses of smoky quartz in a highly schistose shear zone, concordant with the basic volcanic host rocks and cut by numerous diorite lenses and dikes. Both structures strike N50 degrees E and dip 70 degrees south on average. The shear zones are rarely more than two metres thick, and the gold values in the quartz lenses fall rapidly in the adjacent wall rock.

The two veins have been traced over a distance of 300 metres along strike, and remain open in both directions. Vein 14 is traced/controlled by exploration drifting and a few stopes to Level 2250, with the indicated historical grades slightly higher at the deepest levels. It remains open in all directions. Vein 16 was traced to a depth of about 150 metres by the current drilling, and was explored by McIntyre Porcupine Mines down to Level 1800. A few structures several centimetres to several decimetres in size were intersected in Veins 14 and 16, including one section of 7.08 g/t over 1 metre at a depth of 34.66 metres in Hole B08-01. Shaft No. 1 of the old mine, which provides access to the Vein 14 and 16 development drifts, lies about 100 metres south of the Vein 16 surface outcrop.

An additional 5,500-metre drilling program is recommended, and will be carried out in the summer of 2009 to delineate the lateral extensions of the two structures, with a few deep holes drilled to test the extension of Vein 14 below the 2,250-foot level.

Under the terms of the agreement announced on October 22, 2008 for the purchase of the Belleterre Mine property, Conway must issue 8,476,450 common shares at a deemed price of $0.05 per share, each accompanied by half a warrant to purchase one common share at $0.15 for a two-year period after closing, for a total of 4,238,225 warrants. Conway must also pay $100,000 upon closing and incur $500,000 in exploration expenses on the Belleterre Mine property before the first anniversary of the agreement. Finally, Conway must pay an additional amount of $400,000 and incur a total of $1,000,000 in additional exploration expenses over a three-year period. Subject to regulatory approval, Conway may choose to make half the stipulated cash payments in common shares of its share capital, at a share price equal to the average trading price of its shares on the TSX Venture Exchange for the 20 business days preceding the payment date. The two parties have agreed to delay the closing date of the transaction until June 30, 2009.

Jean-Louis Robert, D.Sc. Geol., Vice President, Exploration of Conway Resources and a qualified person under National Instrument 43-101, has reviewed the contents of this press release.

Forward-Looking Statements

This press release contains forward-looking statements that reflect management's expectation regarding the Company's future growth, results, performance and business opportunities. These statements reflect the Company's perspective and are based on current information available to management. Forward-looking statements are subject to risks and uncertainties. Many factors may cause actual results to differ considerably from the results anticipated by such forward-looking statements. While the forward-looking statements in this press release are based on assumptions considered reasonable by management, the Company cannot assure readers that actual results will comply with such statements. These forward-looking statements are made as of the date hereof, and the Company is under no obligation to update or revise them to take into account new events or circumstances.

The TSX Venture Exchange assumes no responsibility for the adequacy or accuracy of this press release.

Contact Information