Manicouagan Minerals Inc.

Manicouagan Minerals Inc.

July 31, 2006 09:56 ET

Manicouagan Minerals Closes Acquisition of the Lac Maugue Copper/Silver Property in the Labrador Trough, Quebec and Commences Field Work

TORONTO, ONTARIO--(CCNMatthews - July 31, 2007) -

Attention Business Editors:

Manicouagan Minerals Inc. (TSX VENTURE:MAM) announced today that it has completed the acquisition of the Lac Maugue Copper Silver property in the Dunphy-Romanet Lakes area of the central Labrador Trough region of Quebec as provided for in the previously announced letter of intent with the Labrador Silver Syndicate (LSS). (See MAM Press Release dated June 27, 2006) Fieldwork, described below, has commenced at the property.


The property consists of 88 map designated claims (4,225 hectares) situated near Lac Maugue approximately 160 km northwest of the all services town of Schefferville, Quebec. The property secures an area where prospecting and trenching on behalf of Outokumpu Mines Ltd. in 1993-94 over an area underlain by magnetite rich argillite, dolomite and sandy dolomite encountered significant copper-silver mineralization in outcrop and boulders. The bedrock source of some of the boulders has yet to be discovered. One 3.19-metre section in a bedrock trench assayed 0.61% copper and 135 g/t silver including a 0.5 metre section which assayed 1.26% copper and 267 g/t silver. These assays pre date NI 43-101 and have not been verified by a qualified person on behalf of the Company and as such should not be relied upon. A sketch showing the location of the Lac Maugue Copper/Silver property can be found with the copy of this press release posted on the Company's website at

Occurrences of copper, silver, lead, zinc, gold and other metals are widespread throughout the central Labrador Trough and the Dunphy-Romanet Lake region has known metal associations (uranium, copper, gold) and a geological
environment which is indicative of potential for iron oxide copper-gold type deposits in addition to sediment-hosted copper-silver mineralization found at Lac Maugue.

In view of the geological environment and the potential for large tonnage sedimentary-hosted deposits, Manicouagan Minerals has acquired an additional 470 claims covering approximately 22,560 hectares by way of map designation to
secure selected areas of geological interest which are considered to have potential to host sedimentary hosted copper-silver deposits similar to the occurrences at Lac Maugue. The majority of these claims lie within the 10 km
Area of Interest created by the agreement with the LSS. Following the registration and acceptance of these claims by the Province of Quebec, Manicouagan Minerals will grant the LSS a 1 percent NSR royalty in the portion of the 470 map designated claims falling outside of the 10 km area of interest.


Manicouagan Minerals has retained the services of MPH Consulting Limited to undertake the current fieldwork on the property that is now underway. Initial field work is being focused on an area 800 metres west of, and along trend with, the historic Lac Maugue copper-silver showings. Prospecting work in this latter area in the early 1990's on behalf of Outokumpu Mines Ltd. reportedly discovered mineralized boulders which assayed up to 2.32% copper and 82.5 g/t silver. The bedrock source of this material has never been discovered. These assays pre date NI 43-101 and have not been verified by a qualified person on behalf of the Company and as such should not be relied upon. Further work will include similar activities on other known showings as well as new exploration targets identified by an airborne electromagnetic (AEM) survey that will be completed over selected areas. Fugro Airborne Services have been contracted to complete the AEM survey and are expected to mobilize to the property on or about August 1, 2006.

Exploration programs at Lac Maugue will be carried out under the supervision of Rod Thomas. Mr. Thomas, a professional geologist, has reviewed and verified the technical content of this press release on behalf of Manicouagan Minerals and qualifies under the definition of "Qualified Person" set out in National Instrument 43-101.


At closing, Manicouagan made a cash payment of $50,000 and issued 500,000 shares to the LSS. The agreement provides for a further payment of $50,000 and the issuance of an additional 500,000 shares one year from closing in order for Manicouagan to earn a 100% interest in the property subject to a 3 percent Net Smelter Return (NSR) royalty of which 2/3 of the 3% NSR may be bought out for $2,000,000. The NSR applies to the Lac Maugue property as well any other claims acquired by Manicouagan Minerals or the LSS within 10 km of the outer boundary of the existing 88 claims forming the Lac Maugue property.

Joseph Baylis, President and Chief Executive Officer of Manicouagan Minerals noted that "with summer field programs already underway at the Manicouagan meteorite impact crater, the Mouchalagane Copper/Nickel property
and now at Lac Maugue, it will be a busy and exciting summer field season for us."

Additional information about Manicouagan Minerals, the Manicouagan meteorite impact crater and the Company's projects can be found at

All statements other than statements of historical fact, includedin this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.

See attached location map:

%SEDAR: 00017383E

The TSXV has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of this news release. The TSXV has neither approved nor disapproved the contents of this news release.

Contact Information

  • Joseph Baylis
    President and Chief Executive Officer