Highbank Resources Ltd.

Highbank Resources Ltd.

May 09, 2008 11:28 ET

Highbank Options Moly Prospect in the Republic of Ireland

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 9, 2008) - Highbank Resources Ltd. ("HBK"), (the "Company") (TSX VENTURE:HBK)(FRANKFURT:V7O) is pleased to announce it has entered into a Letter of Intent ("LOI") to acquire a 100% interest in the Murvey and Mace molybdenum ("moly") Prospecting Licenses located in the County of Galway, Republic of Ireland.

Previous exploration programs on the licenses outlined two mineralized areas.

The Murvey Prospect was explored by shallow drilling in the late 1960's. A small near-surface deposit was outlined that was estimated to contain 240,000 tonnes at 0.13% Mo. The Mace Prospect, located within a separate license (45 square km), comprises a porphyry moly-copper system that follows a wide zone of shearing for at least 2 km. The porphyry system was partially explored during 1968-1970 by exploration programs that included more than 2000 metres of shallow drilling. The drill holes were located in the central portion of a strong geochemical anomaly - an area that measures 1400 metres in length and up to 300 metres in width. The drill holes were shallow (mainly less than 50 metres depth) and were widely spaced except within a segment of about 200 metres by 200 metres. Assays from eight diamond drill holes within this segment indicated an average grade of 0.08% moly and 0.07% copper for the portions of the core that were analysed - about 50% of the total length of material cored. More widely dispersed drill holes along the mineralized zone gave comparable moly-copper indications. The deepest of these holes (approx. 70 metres) intersected 6.1 metres at 0.11% Mo close to the bottom of the hole. The deepest 14.3 metres in another hole assayed 0.15% Mo and 0.19% Cu. It has been concluded that the Mace prospect constitutes a valid exploration target, with a potential for an open-pit moly-copper deposit, however there has been insufficient exploration to define the quantity and grade at this time.

The mineralized results above predates and therefore does not conform to the more stringent reporting requirements of NI 43-101 and should not be relied upon according to those standards. HBK has not yet done exploration work to verify or clarify the historical estimates as a current mineral resource and the Company is not treating the historical estimates as a current mineral reserve or resource.

The above information has been extracted from a report compiled by William R. Bergey, P.Eng. dated February 19, 2006. The technical information has been reviewed and approved by William R. Bergey, P.Eng., an independent Qualified Person under NI 43-101.

HBK believes that the historical information provides a favourable indication of the potential of these prospects and looks forward to further developing these licenses. The Company has commissioned a NI 43-101 Report to be completed by June 30, 2008.

Moly price information obtained from the U.S. Geological Survey ("USGS"), Mineral Industry Surveys has shown an increase of US$11.75/kg in 2003 to US$64.68/kg in 2007. Current molybdenum oxide prices have risen over $70.00.

The terms of the LOI provide that HBK will issue a total of 2.0 million common treasury shares in stages, with the first 500,000 shares at a deemed price of $0.20 to be issued within five (5) days of TSX Venture Exchange ("Exchange") approval, and a total of $250,000 in staged cash payments. HBK has agreed to grant warrants to the vendors to purchase up to an additional 500,000 common shares exercisable at the price of $0.30 per share for two years from Exchange approval. HBK has also agreed to expend up to $500,000 in exploration and development expenditures on the Licenses, to be completed within one year of Exchange approval. A finders fee is payable as per regulatory guidelines.

The LOI and Finders Fee are subject to Exchange acceptance for filing.


The Company is pleased to announce it has arranged a non-brokered private placement to raise up to $750,000 by the sale of 3,000,000 units at $0.25 per unit. Each unit will consist of one common share and one two year non-transferable share purchase warrant. One warrant will entitle the holder to purchase one additional common share of the Company for a period of two years at a price of $0.35 in the first year and $0.45 per share in the second year.


The Company has granted 600,000 incentive stock options to directors, officers and consultants under its Stock Option Plan for a period of two years at a price of $0.25 per share. All securities issued are subject to regulatory approval, and a four-month hold period.


Jake Bottay, President/Director

Statements contained in this news release contain certain forward-looking statements and information relating to Highbank's future plans, timing of development or potential expansion or improvements. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, Highbank's ability to raise sufficient capital to fund development, changes in economic conditions or financial markets, changes in prices for products, increases in environmental and other regulatory developments, operational difficulties or inability to obtain permits encountered in connection with our development activities, and changing foreign exchange rates.

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

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