Gossan Resources Limited

Gossan Resources Limited

June 11, 2007 17:15 ET

Marathon PGM Initiates Program at Gossan's Bird River Property

WINNIPEG, MANITOBA--(Marketwire - June 11, 2007) - Gossan Resources Limited (TSX VENTURE:GSS) (FRANKFURT/FREIVERKEHR:GSR) has been advised by its partner, Marathon PGM Corporation ("Marathon"), that it has commenced its 2007 exploration campaign at Gossan's Bird River Property.

Positive Initial Results from Prospecting

Marathon has started a detailed compilation of historical work and has mobilized geological staff to the Bird River Sill. Initially, prospecting will be the main focus of work, which will verify some of the airborne geophysical targets and evaluate the numerous occurrences. Marathon's prospecting has yielded positive initial results, as a number of rock samples collected over a strike length of 100 meters exhibit high values of PGM and variable nickel and copper values. Collected at Ward's in the far western end of the Bird Rriver Property, some 21 km west of the Page Block, the chemistry of the samples clearly demonstrates that PGM mineralization is known to occur in multiple environments over the entire property.

Sample Au (gpt) Pt (gpt) Pd (gpt) PGM+Au Ag (gpt) Cu(%) Ni(%)
C377509 0.04 0.37 0.35 0.76 0.2 0.01 0.02
C377511 0.70 1.21 1.39 3.30 1.2 0.44 0.21
C377514 0.34 0.38 0.78 1.50 1.1 0.39 0.22
C377519 0.09 0.35 0.70 1.14 0.7 0.27 0.19
C377520 0.23 0.67 1.48 2.17 0.4 0.09 0.32
C377521 0.14 0.45 0.84 1.43 1.1 0.21 0.02

The Page Zone

The Page Block is the most advanced target within the Bird River Property, having several holes containing nickel, copper, platinum and palladium values over a strike length of 1 km. Most of the historic drill holes were not assayed for PGM. The Page Block is approximately 4 km north-west of Mustang Minerals Maskwa mine, which is at present undergoing a prefeasibility study. The total potentially mineable material (prepared by Micon International, September 2006) at Maskwa is 9,048,200 tonnes at 0.62% Ni, 0.13% Cu, 0.02% Co, 0.15 gpt Pt and 0.58 gpt Pd.

Marathon has given the Page Block the highest priority for drilling due to both its proximity to the past producing Maskwa and Dumbarton mines and the similarity of the contact style of mineralization. Numerous showings of similar nickel, copper and PGM mineralization exist along the sill for much of the 21 km of the property's strike length. A ground geophysical program is planned to optimize drilling on the Page Block as well as to define on the ground the airborne geophysical targets for planned drilling later in the year.

Some Significant Historical Drillhole Results from Bird River Sill Page Zone

Inter- Total
Location Hole From To val Ni Cu Co Pd Pt Au PGM
(m) (m) (m) (%) (%) (%)(gpt) (gpt) (gpt) (gpt)
Zone BR-05-01 42.90 51.10 8.20 0.48 0.15 0.03 0.46 0.12 0.02 0.60
BR-05-02 43.68 61.40 17.72 0.96 0.45 0.04 0.65 0.24 0.03 0.92
BR-06-09 42.90 58.90 16.00 0.66 0.42 0.03 0.42 0.14 n/a 0.56
BR-06-10 77.90 86.60 8.70 0.92 0.45 0.05 0.89 0.26 n/a 1.15
HUDBAY 3 71.48 76.21 4.73 1.43 1.38 0.06 1.49 inc n/a 1.49

Notes to Table 1 - Assaying from HUDBAY hole 3 was sporadic, resulting in
"inc" indicating assaying was incomplete. Designation of
"n/a" indicates element not assayed for.

All of the samples from the "BR" holes were sent to Accurassay, an accredited laboratory in Thunder Bay, Ont., to be assayed using fire assay and other standard techniques. All of the "HUDBAY" holes were analysed by Hudson Bay Smelting and Mining Company's internal assay laboratory. The "C" series of rock samples were submitted to ALS Chemex, an accredited laboratory in Vancouver, BC., to be assayed using fire assay and other standard techniques.

All exploration work is being performed under the guidance and supervision of Phillip C. Walford, President and Chief Executive Officer of the Company, a professional geologist and Qualified Person as defined by National Instrument 43-101. Mr. Walford has approved the contents of this press release.

Under the terms of the Option and Joint Venture Agreement, Marathon can earn an undivided 50% interest in the Bird River Property by spending $3.0 million on exploration and making payments of $500,000 to Gossan by April 30, 2011. Thereafter, Marathon can earn a further 15% interest by completing a bankable feasibility study and an additional 5% interest, to a total 70% interest, by arranging project financing. Upon formation of a joint venture, Marathon must also make semi-annual, recoverable, advance payments of $50,000 until commercial production is achieved. In the first stage of this Agreement, Marathon's work expenditure commitment is $500,000 of exploration expenditures by April 30, 2008 and an initial cash payment of $50,000.

The Bird River Property, encompassing 7,301 hectares (18,040 acres), covers over 21 kilometres of the Bird River Sill Complex. This complex carries significant concentrations of palladium and platinum along with nickel, copper, zinc and chromite. The Bird River Property is located about 40-km east of Lac Du Bonnet, Manitoba and, along the Sill, approximately 4-6 km west and northwest of Mustang Minerals' Maskwa Deposit and the historic Dumbarton mine.

Gossan Resources Limited is engaged in mineral exploration in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty and minor metals, tantalum, lithium, chromium, titanium and vanadium. The Company also has a large deposit of magnesium-rich dolomite and a silica sand prospect. Marathon PGM has recently optioned Gossan's nickel-PGM property on the Bird River Sill. Gossan trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and has 28,787,900 common shares outstanding (38,676,576 shares fully diluted).

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

Contact Information

  • Gossan Resources Limited
    Douglas Reeson
    Chairman & CEO
    (204) 943-1990
    Website: www.gossan.ca