General Properties Ltd.

General Properties Ltd.

August 18, 2006 11:20 ET

General Properties Announces Update on Proposed Acquisition of Iron Project and Filing of Technical Report

CALGARY, ALBERTA--(CCNMatthews - Aug. 18, 2006) - General Properties Ltd. (TSX VENTURE:GPL) ("General Properties" or the "Corporation") is pleased to announce that it has filed a technical report on the oolitic iron resource property located in the Peace River area of northern Alberta (the "Property"). The Property is owned by Clear Hills Iron Inc. ("Clear Hills") a wholly owned subsidiary of CaNev Resources Corporation ("CaNev"). General Properties has entered into a Letter of Intent for the proposed acquisition (the "Acquisition") of CaNev and its wholly owned subsidiaries Clear Hills and Peace River Energy Ltd. ("Peace River") (Peace River and Clear Hills are collectively referred to as the "Companies"). Clear Hills owns a 100% undivided interest in the Property. The terms of the Acquisition were announced March 2, 2006 and August 4, 2006. It is intended that the Acquisition comprise a "change of business" and "reverse take over transaction" for the purposes of Policy 5.2 of the TSX Venture Exchange (the "Exchange") and result in the Corporation being classified as a mining company on the Exchange.

The Property consists of 29 Metallic and Industrial Minerals permits covering 205,006 hectares and 3 permits covering 8,200 hectares for a total of 213,206 hectares (approximately 831 square miles). The permits are located in the Clear Hills district of northwestern Alberta, about 475 kilometers northwest of Edmonton, Alberta.

Marmot Research Ltd., Consulting Geologists and Engineers, Calgary, Alberta ("Marmot"), have completed a National Instrument 43-101 compliant technical report dated March 17, 2006 ("Technical Report") on the Property.

The Technical Report provides a comprehensive description of the Property, previous work, the geology and mineralization and recommendations for work on the Property. Marmot has developed a multi phase program including a budget in conjunction with General Properties. Phase I of the program totals $0.959 million allocated as follows:

Clear Hills Iron Ltd.
Phase 1: Permit Area Assessment Project
Component Cost
Legal, licencing, etc. $ 15,000.00
Initial processing and metallurgical characterization 26,670.00
GIS Update 18,000.00
Base map updates 3,000.00
Baseline Environmental 26,000.00
Intial Drilling & Logging 600,000.00
Airborne Geophysics 125,000.00
Petrology 15,000.00
Reporting 5,000.00
Overhead @ 15% 125,050.50
Total $ 958,720.50

Specific allocations may be modified as field requirements and evolving events dictate.

The program consists of a tightly focused field program in the Rambling River Basin, located in the northeast portion of the Property and includes a diamond drill program of approximately 100 meters in 50 drill holes in the Rambling River Basin, a scoping study to include order of magnitude estimates of capital and operating costs, a marketing study to determine revenue and potential markets that might reasonably be expected from the products produced from the Property and geological interpretation and resource estimates for the deposits using the available drill hole analytical and test work data. Phase II of the program, to be conducted contingent on the results of Phase I, would involve the preparation and completion of a "pre feasibility" study. The study would investigate many of the expected costs of the project in more detail and would include in it some of the preparatory stakeholder input and environmental studies required. Bulk sampling and plant design would be part of this process as well as any additional drilling and development work required to provide the detailed cost base required for a full bankable feasibility study.

In clarification of the General Properties press release dated March 2, 2006, the Technical Report details historical reserves and historical work, most of which relate to property adjacent to the Property as opposed to directly on the permit area.

Other information in the Technical Report details historical resource estimates on the Property and on adjacent properties, as well as details on the structural geology, mineralogy, mineral processing and metallurgical testing, regional climate and physical characteristics including climate, local infrastructure and accessibility.

Clear Hills is currently proceeding with phase 1 of the exploration program as recommended in the Technical Report and expects the drilling program in the Rambling River Basin program being under taken in the Rambling River area to be completed during the month of August, 2006. The program is intended to quantify the mass of the iron resource and coal that is believed be present in the target area.

A copy of the Technical Report was filed concurrently with this release and may be found on the SEDAR website at

CaNev is currently preparing the Companies financial statements and detailed selected financial information and information will be released when available.

The Exchange has granted the Corporation an exemption from sponsorship requirements and expects of the Corporation's Common Shares to begin at the opening of trading on Monday, August 21, 2006.

Completion of the Acquisition continues to be subject to a number of conditions, including but not limited to Exchange acceptance and compliance with all conditions to such acceptance in accordance with the CPC Policy. There can be no assurance that the Acquisition will be completed as proposed or at all.

Investors are cautioned that except as disclosed in the filing statement to be prepared in connection with the Acquisition, any information released or received with respect to these matters may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this news release.

Tom Sneddon, P.Geol., a "qualified person" under National Instrument 43-101, has reviewed the historical reserve information, and has reviewed and approved the contents of this new release.

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

Contact Information

  • General Properties Ltd.
    Robert B. Knight
    President and Director
    (403) 804-5200