Macarthur Minerals Limited
TSX VENTURE : MMS

Macarthur Minerals Limited

August 02, 2006 22:09 ET

Macarthur Minerals Limited: Iron Ore and Nickel Drilling Update on Lake Giles Project Western Australia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 2, 2006) - Macarthur Minerals Limited (TSX VENTURE:MMS) (the "Company") is pleased to announce it has completed its maiden iron ore drilling program on its 100% owned Lake Giles project located in Western Australia. The program included 7 RC holes for a total of 933 meters. In addition, the Company, with respect to its ongoing nickel exploration on the Lake Giles property, is pleased to announce that a HOSITEM survey flown over Lake Giles during 2004 has been reinterpreted by Newexco Services Pty Ltd. to identify anomalies consistent with bedrock conductors that may potentially be associated with sulphide deposits within the Northern, Middle and Southern Ultramafic areas as described in further detail below.

Iron Ore Drilling Update

The Company has completed its maiden iron ore drilling program of 7 RC holes for a total of 933 meters. As indicated in Figure 1 below, the Company is initially focusing on 3 prospective hematite and magnetite Banded Iron Formations ("BIF") prospects - Snark, Athena and Volga.



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Hole ID Northing Easting Depth Azimuth Dip
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LGRC_001 6,698,856 781,822 156 90 -60
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LGRC_002 6,698,771 781,803 163 110 -60
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LGRC_003 6,696,410 784,712 204 60 -60
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LGRC_004 6,696,901 784,178 210 210 -60
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LGRC_005 6,694,762 787,621 122 210 -60
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LGRC_006 6,694,898 787,549 24 030 -70
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LGRC_007 6,694,966 787,493 54 210 -60
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Snark Drilling

LGRC_001 drill hole was drilled to follow up samples P83553 and P83554 the hole intersected visible magnetite from 80m to 145m (65m interval).

LGRC_002 drill hole was collared 85m south of LGRC_001 to test the southern strike extension. Visible magnetite was observed from 89m to 163m (76m interval) the hole was then terminated in the visible magnetite due to drilling problems.

Athena Drilling

LGRC_004 drill hole was collared 2.4 km south of LGRC_001 along the same lineament of BIF drilled in the Snark Project Area. Visible magnetite was observed from 102m to 125m (23m interval).

Volga Drilling

Three holes were drilled LGRC_05 to LGRC_07 in this area to test an aeromagnetic anomaly that has suggested supergene enriched hematite and goethite minerlisation.

In hole LGRC_07 hematite alteration was reported from 16m to 35m (19m interval) iron alteration and quartz veining was observed below this depth and the drill hole continued into fresh ultramafics and was terminated at 55 meters.

Additional drill targets identified

A comprehensive geological review undertaken by Nick Revell of historical and recent geophysical data has resulted in a further 15-20 iron ore targets that will be drilled in the coming months.

Nickel Exploration Update

A HOSITEM survey flown over Lake Giles during 2004 was reinterpreted to identify anomalies consistent with bedrock conductors that may potentially be associated with sulphide deposits within the Northern, Middle and Southern Ultramafic areas.

Rock sampling of these outcrops returned the following significant results:



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SAMPLE NUMBER Cr (ppm) Ni (ppm)
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1046 4094 288
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1047 4197 289
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1059 5120 326
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1060 9409 493
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1061 4277 1530
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1065 5724 760
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1066 5886 379
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1080 5067 1438
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1099 3117 882
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1100 3714 1481
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1109 3618 1051
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1110 14388 (1.43%) 1460
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1111 13135 (1.31%) 259
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1112 14767 (1.47%) 233
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1114 6131 256
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1115 4953 1046
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Quality Control

Due to the recent passing of Gary Clark, BSc (Hons), FAusIMM, who was a Company director, and who was a qualified person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), exploration on the Lake Giles project is being conducted under the supervision of Mr. Nick Revell, who is a Member of The Australasian Institute of Mining and Metallurgy and is the Company's Qualified Person as defined in NI 43-101.

All samples were collected in accordance with industry standards.

QA-QC Statement:

Mr. Nick Revell is responsible for the verification and quality assurance of the Company's exploration data and analytical results from the Lake Giles project.

Reverse Circulation Drilling hole collar surveys used a handheld GPS and down-hole surveys used a Eastman single shot camera instrument.

There is high assay confidence with systematic laboratory QA/QC procedures.

Samples from the drill holes described in this release were prepared and analysed by Genalysis Laboratory in Perth (Western Australia) the following procedure sample prep and assaying were:

1. Sort and dry all samples.

2. Generate 5m Composites using half the 1 meter samples (Store excess 1 meter samples.)

3. Robotic Sample preparation NO QTZ WASH - Auto Crush to approximately 2mm & Split 1kg, bag and store excess crushed material, Grind 1kg to generate assay 200g assay pulp + 800g bulk pulp.

4. Package 800g Bulk pulp for Davis Tube Test.

5. XRF Package 4: Fusion for Fe Ore Suite + Single point LOI.

6. Au Cu Pb Zn Ni & Co by Aqua Regia Digestion with AAS finish.

On behalf of the Board of Directors,

MACARTHUR MINERALS LIMITED

David K. Barwick, President & CEO

To view accompanying Figures 1 and 2, please click on the following link: http://www.ccnmatthews.com/docs/MMS_Figure1and2.pdf.

ACN 103 011 436


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

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