Inspiration Mining Corporation
TSX : ISM
FRANKFURT : OI8

Inspiration Mining Corporation

April 08, 2014 09:54 ET

Inspiration Continues to Advance the Langmuir Property

TORONTO, ONTARIO--(Marketwired - April 8, 2014) - Inspiration Mining Corporation (the "Corporation") (TSX:ISM) (FRANKFURT:OI8) would like to provide an update as to its current operations at its Langmuir property. Further to its press release of February 5, 2014, the Corporation is continuing with the process of converting its mining claims in the Langmuir into mining leases.

As background, mineral claims allow the holder to conduct exploration on the property covered by those claims. When mineral discoveries are made, those claims can be converted to leases, which is similar to actual fee ownership of the mineral rights to those properties. This is a preliminary step in the process of developing mining of those properties.

One of the fundamental requirements in taking a property to lease is the determination of which existing hazardous and other conditions found on the property are the responsibility of the lessee and which are not. In the case of the Langmuir properties, this process was unusually complicated due to the historic mines and mills which were abandoned on the property. Another basic requirement is the completion of a professional survey of the property by a licensed surveyor. Part of that process is determining, and then establishing permanent monuments, designing the precise boundaries of such claims. This process involves significant physical efforts and, due to the harshness of the past winter, has taken more time than anticipated. Notwithstanding that, the survey of the Langmuir property and its acceptance by the ministry is approaching completion.

Langmuir Property

The Langmuir Property comprises 69 mining claims covering 1121 hectares in the Langmuir Township, 25 km southeast of Timmins, Ontario. It hosts the past nickel producing mines of Langmuir No. 1 and 2.

In 2010, Micon International Limited ("Micon") completed the National Instrument 43-101 compliant resource estimate report (the "Micon Report") for the Langmuir North Deposit and the Langmuir No 1 Deposit. A copy of the Micon Report can be viewed under the Corporation's profile on the SEDAR website (www.sedar.com).

Given that the Langmuir No. 1 mine already has some infrastructure in place, such as its access ramp, and the presence of high grade nickel (ranging from 1.5% to 15%, as ret out in the Micon Report), the Corporation is of the opinion that in light of the current economics, it will make economic sense to further advance the Langmuir No. 1 deposit.

The Corporation has completed several internal studies which supports its decision to focus on the development of the Langmuir No. 1 mine. Based on the results of such studies, the Corporation is confident that once the ramp is reopened and the mine is dewatered, it will be able to proceed with preliminary underground drilling with the objective of completing a bulk sample.

Underground exploration and mining of Langmuir No. 1 deposit dates back to 1976 when a ramp was first constructed by Noranda, which then owned those claims. That ramp was 12 foot by 15 foot and extended to a length of 1,250 feet. Noranda ceased underground development of the ramp in 1977, 70 m short of the deposit, due to what it explained as deteriorating economic conditions in its mining operations. When Timmins Nickel subsequently took control of the property, it completed the dewatering of Noranda ramp, extended the ramp for 400 feet (121.9 m) to the 315 foot mine level. It then completed 4,652 feet (1,417.9 m) of underground diamond drilling and metallurgical and ore compatibility studies

During 1990 and 1991, 101,132 tonnes of ore, grading 1.74 nickel was milled from the Langmuir No. 1 mine. However, all underground work at the Langmuir No.1 site ceased in early 1992, when Timmins Nickel was petitioned into bankruptcy. Since the mine closed a further 33,569 metres of resource definition drilling has been completed resulting in a total of 18,776 core samples, which have been analyzed for the Langmuir No.1 deposit. As set out in the Herron Report dated May 17, 2004, the testing to that date has resulted in 127,000 tonnes of inferred resource, grading 2.21% Nickel.

The reader is cautioned that the quantities and grades reported as inferred resources are conceptual in nature and there has been insufficient exploration to define indicated mineral resources in these deposits, and it is uncertain if further exploration will result in delineation of indicated or measured mineral resource in these deposits.

The current sampling practice of the Corporation has identified a broad halo zone of greater than 0.20% Ni with several higher grade intersections greater than 2.0% Ni exceeding 20 metres in true width. This extensive surface DDH drilling, together with the Micon Report, dated January 6, 2010, and the NordPro report, dated May 16, 2012, have all been primarily directed to the extensive, but lower grade, disseminate resources which are inferred to be the halo effect. The higher grade massive resource detected at, and open at, depth have not, at this point, been pursued. The Corporation's near term intent is to direct its attention to the dewatering and, to the extent necessary, repair of the ramp to give it access to this higher grade ore.

The processes to be pursued are two-fold. The Corporation is allowed to extract bulk samples of up to an aggregate of 60,000 tonnes from three (3) different deposits as part of its exploration. Bulk sampled ore can be milled and sold by the Corporation as part of its exploration and does not require the necessary permitting necessitated in the mining phase. Additionally, the Corporation will then be able to do underground DDH drilling to target what it believes to be higher grade minerals lying at depth.

Historically, the East Zone was approximately 400 feet long but with limited sampling indicated narrow widths. Inspiration's drilling has been concentrated in the northern portion and down plunge of the East Zone below the 315-foot mine level to a vertical depth of approximately 825 feet below surface. The current sampling practice of Inspiration has identified a broad halo zone of greater than 0.20% Ni with several higher-grade intersections greater than 2.0% Ni exceeding 20 metres in true width.

The assaying of split core samples was conducted by Swastika Laboratories, and included the insertion of blanks and standards. The Qualified Person in charge of the Langmuir Project and the person who prepared the technical data in this release is Andre Ciesielski, P.Geo.

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

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

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