Coronation Minerals Inc.
TSX VENTURE : MSA

Northern Platinum Limited
TSX VENTURE : NTH

Northern Platinum Limited

July 22, 2005 16:03 ET

Coronation Minerals Inc./Northern Platinum Ltd.: Press Release

TORONTO, ONTARIO--(CCNMatthews - July 22, 2005) - Coronation Minerals Inc. ("Coronation")(TSX VENTURE:MSA) and Northern Platinum Ltd. ("Northern")(TSX VENTURE:NTH) have entered into an agreement which gives Coronation the right to purchase 100% interest in Northern's Wellgreen Cu-Ni-PGM property for CDN$25 million. The property will be subject to a 5% net smelter royalty in favor of Northern Platinum. A 1.5% net smelter royalty can be purchased for CDN$7.5 million.

Coronation will purchase a $1,000,000 private placement of Northern stock in the form of 1,000,000 units. Each unit will consist of 1 common share and one half share purchase warrant with each full warrant giving the holder the right to purchase an additional share of Northern for $1.50 CDN for a period of 24 months.

The Wellgreen platinum group metal (PGM) rich, copper-nickel deposit is located in the southwestern Yukon, approximately 317 Km northwest of Whitehorse and 125 Km northwest of the town of Haines Junction. The property consists of 91 claims held under a renewable 21-year mining lease.

Mineralization on the Wellgreen property occurs within a variably serpentinized, 20-Km long ultramatic body, known as the Quill Creek Complex that intrudes Permian sedimentary and volcanic rocks. Three main zones of PGM-enriched copper-nickel mineralization have been outlined on the Wellgreen property, the East Zone, the West Zone and the North Zone.

Proven and probable reserves are estimated to be 50.03 million tones grading 0.35% copper, 0.36% nickel, 0.54 grams/tonne platinum and 0.34 grams/tonne palladium (Preliminary Feasibility Study, Watts, Griffis and McQuat Limited, April 21, 1989). Caution should be used when evaluating these reserves as they were estimated prior to National Instrument 43-101 being in place.

Coronation's initial exploration focus will be on the "North Zone" where Cu-Ni-PGM massive sulphides have been encountered. Coronation will also focus on bringing the historical reserves up to National Instrument 43-101 standard levels.

The Directors and Qualified Persons of both companies have reviewed this press release.

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

Contact Information

  • Coronation Minerals Inc.
    Peter W. Holmes, M.SC.
    Chairman and C.E.O
    (416) 628-5936
    info@coronationminerals.com
    or
    Coronation Minerals Inc.
    347 Bay St. Suite 301
    Toronto, Ontario M5H 2R7
    or
    Northern Platinum Ltd.
    John McGoran
    President
    (604) 669-2066
    or
    Northern Platinum Ltd.
    #206- 837 Hastings St.
    Vancouver, BC V6C 3N6