DiscFactories Corporation
TSX VENTURE : DSK

DiscFactories Corporation

August 21, 2006 11:18 ET

DiscFactories Corporation Receives NI 43-101 Technical Report on the Needles Property in Nye County, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 21, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Further to its previously announced reorganization and Change of Business, DiscFactories Corporation (the "Corporation") (TSX VENTURE:DSK) is pleased to announce that a current technical report has been completed on the mining claims located in Nye County, Nevada (collectively, the "Property") to be acquired by it from Taranis Resources Inc. ("Taranis"). As previously announced, the Corporation has entered into an agreement with Taranis to complete a Change of Business transaction pursuant to which it will acquire the Property and become involved in mineral exploration (the "Transaction").

The technical report, which is dated July 31, 2006 and entitled "NI 43-101 Technical Report Prepared for DiscFactories Corp. Concerning the Needles Au-Ag Property, Nye County, Nevada, USA", was prepared by Peter C. Hubacheck, P. Geo. of W.A. Hubacheck Consultants Ltd. in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Hubacheck is a qualified person as defined in NI 43-101 and is independent of the Corporation.

In the technical report, the author has reached the following conclusions:

- the Property virtually covers an entire district of epithermal gold and silver occurrences, and as such presents a unique opportunity to explore for and develop precious metal occurrences in the area;

- the early history of the mining camp, coupled with the lack of activity completed after 1928 in the area, make the Property an attractive exploration target. Unfortunately, only minimal historic data has been obtained from the mining in/around the Arrowhead Mine, making it necessary to "re-discover" much of the history around the Arrowhead Mine;

- Gold and silver occur in the classic low-sulfur epithermal environment similar to many other famous districts in Nevada. These deposits range from being small, ultra high-grade deposits to larger, lower grade bulk-mineable deposits. There are indications that both the high-grade occurrences (Arrowhead Deposit) and the lower-grade occurrences are present (Whopper Junior) at the Property;

- the Arrowhead Mine sits on the west side of the caldera-ring fracture system, and is most probably related to the large Arrowhead Fault that extends east-northeast though the property, and flanks the north side of the buried intrusive body. This fault can be traced for 3.5 km across the Property. At Arrowhead, high-grade gold and silver mineralization is found in silicified dacite/rhyolite adjacent to the fault, and dips to the west. High-grade gold and silver occurs with traces of galena, argentite, sphalerite and rarely chalcopyrite. The author performed check assaying of three hand specimens (crushed & pulverized) which returned 11.72 g/t (0.34 oz./ton) Au and 3670 g/t (107 oz./ton) Ag. Gold occurs within electrum that is characterized by slightly higher levels of silver;

- the Whopper Junior Zone occurs along the Arrowhead Lineament Fault, and represents a very different type of mineralized zone from the Arrowhead Mine. Although no ore-grade values have been encountered in the six drill holes completed, highly anomalous gold values are accompanied by the pathfinder elements arsenic, antimony, sulfur and selenium. These pathfinder elements are identical to Arrowhead as the mineralization does not occur in high-grade zones, however as disseminated pyrite that accompanies millimetric scale quartz vein crackle brecciation and stockworks. This zone has a very large "footprint" and is interesting since it could occur in close proximity to a large, low-grade bulk mineable deposit. The importance of the Arrowhead Lineament Fault is important in this zone, but not fully understood.

In the opinion of the author, the Property's overall geoscientific quality is of sufficient merit to justify continuation of a multi-disciplined exploration program. As a result, the technical report recommends two phases of exploration work, which include the following:

- renewed priority to exploration in and around a series of caldera fractures located east of the Arrowhead Mine (Arrowhead Mine, Zippo Zone and Eastern Shaft), which may represent the origin of much of the gold/silver mineralization seen in the area (excluding the Whopper Junior Zone) and has prolific argillic alteration; and

- an attempt to connect the Whopper Junior Zone to the Arrowhead Mine area using ICP-MS soil sampling where the Ridge Line Target now exists. It is known that in the intervening area there are rock samples that have highly anomalous gold and silver with analyses of 100-300 ppb Au, 99 g/t Ag respectively and this was never followed-up with any drilling. It is highly likely that the Arrowhead Lineament cuts through this area, and is an important control to precious metal mineralization.

The technical report recommends a Phase 1 reverse circulation drilling program by several shallow holes (100m to 150m lengths) requiring a budget of $CAD 223,000, in which the Arrowhead Lineament target will be tested.

For further information, reference should be made to the technical report. A copy of the technical report will be filed by the Corporation on SEDAR and will be available under the Corporation's profile at www.sedar.com.

Peter C. Hubacheck, P. Geo., qualified person and the author of the technical report, has verified the contents of this press release relating to the technical report.

The Corporation remains in the process of finalizing its management information circular to be used in connection with a special meeting of its shareholders to seek approval of the Change of Business transaction and related matters, and expects to finalize and mail the circular to shareholders in the near future.

The completion of the Transaction is subject to the approval of the TSX Venture Exchange and all other necessary regulatory approvals.

On behalf of the Board of Directors:

Edwin Bergsteinsson, Chairman

Completion of the Transaction is subject to a number of conditions, including Exchange acceptance and disinterested shareholder approval. The Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular of the Corporation to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Corporation should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of 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

  • DiscFactories Corporation
    Edwin Bergsteinsson
    Chairman
    (604) 681-2961
    (604) 484-9101 (FAX)
    www.discfactories.net