Coronation Minerals Inc.
TSX VENTURE : MSA

Northern Platinum Limited
TSX VENTURE : NTH

Northern Platinum Limited

October 26, 2005 16:29 ET

Coronation Minerals Inc.: Press Release

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 2005) - Coronation Minerals Inc. ("Coronation") (TSX VENTURE:MSA) and Northern Platinum Ltd. ("Northern") (TSX VENTURE:NTH) announce that they have, subject to final regulatory approval, closed a previously announced $1,000,000 private placement (the "Placement") into Northern by Coronation which was completed in connection with an agreement (the "Agreement") between the parties which gives Coronation the right to purchase 100% interest in Northern's Wellgreen Cu-Ni-PGM property for CDN$25 million. The Agreement and the Placement were first disclosed to the market in a press release on July 22, 2005.

Under the terms of the Placement, Coronation purchased $1,000,000 worth of Northern stock in the form of 1,000,000 units of Northern, each unit consisting of one common share and one-half of one common share purchase warrant with each whole warrant giving the holder the right to purchase an additional common share of Northern for CDN$1.50 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. 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 ultramafic 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.

An historical resource study by Watts, Griffis and McQuat Limited for Allnorth Resources dated 1989 shows a near surface "reserve category" of probable 46.7 million tons of 0.35% copper, 0.36% nickel, 0.015 ounces per ton platinum and 0.010 ounces per ton palladium, with an additional "possible category" of 8.5 million tons of 0.36% copper, 0.35% nickel, 0.015 ounces platinum and 0.009 ounces per ton palladium, with additional values of cobalt, gold and silver. No significant work has been done on the Wellgreen deposit since the historical resource estimate was prepared. The companies have not done the work necessary to verify the classification of the resource and are not treating them as an NI 43-101 resource verified by a QP. The historical estimate should not be relied upon.

The 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 Wellgreen deposit up to National Instrument 4-101 standards
This news release has been approved by John McGoran, P.Geo.

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.
    (520) 240-5306
    info@coronationminerals.com
    347 Bay St. Suite 301, Toronto, Ontario M5H 2R7
    or
    Northern Platinum Ltd.
    John McGoran, B.Sc.
    President
    (604) 669-2066
    #206 - 837 Hastings St., Vancouver, BC V6C 3N6