MBMI Resources Inc.

MBMI Resources Inc.

March 08, 2005 08:30 ET

MBMI Resources Inc.: High Grade Gold Zone Extended On Mcmillan Gold Mine Property; 22.2 g/t (0.65 oz.) Gold Over 1.85 Metres


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MBMI RESOURCES INC.

TSX VENTURE SYMBOL: MBR

MARCH 8, 2005 - 08:30 ET

MBMI Resources Inc.: High Grade Gold Zone Extended On
Mcmillan Gold Mine Property; 22.2 g/t (0.65 oz.) Gold
Over 1.85 Metres

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 8, 2005) - MBMI
RESOURCES INC. (TSX VENTURE:MBR) "MBMI" and Young-Shannon Gold Mines,
Limited (TSX VENTURE:GYS) are pleased to report assay results from a
diamond drilling program completed on MBMI's McMillan Gold Mine
("McMillan") property located in Espanola, Ontario, Canada. Five drill
holes, totalling 1,485 metres have been completed to date.

Assay results showed that the gold zone continued both east and west
along strike from drill holes MM-2-04 and MM-3-04. The western strike
extension, in particular, showed that the lower part of the zone found
in drill hole MM-03-04 was extended to drill hole MM-05-04 with
continued high grades and widths. One intersection averaged 5.52 g/t
(0.16 oz.) gold over 4.05 metres and a second intersection 8.4 metres
lower in the hole averaged 11.16 g/t (0.32 oz.) gold over 4.65 metres,
including one section of 22.2 g/t (0.65 oz.) gold over 1.85 metres.

The fifth drill hole from this current campaign was designed to continue
defining the strike, plunge, and rake extensions to gold mineralization
previously mined on the property in the mid-1930's. Hole MM-05-05
intersected a high grade zone located approximately 310 ft. (94.5
metres) below the lowest mine workings and at least 75 ft. (23 metres)
along strike, which assayed 8.72 g/t (0.25 oz.) gold over 1.3 metres,
including one section of 27.22 g/t (0.79 oz.) over 0.3 metres.

The first four drill holes were collared from two setups and designed to
bracket the new gold zone discovered on the property during an April,
2004 drilling campaign by MBMI. Drill hole MM-3-04 reported 7.91 g/t
(0.23 oz.) gold over 10.85 metres; drill hole MM-2-04 (collared from the
same location as MM-03-04 with a shallower inclination) intersected the
up-dip extension of the gold zone in MM-03-04 (see MBMI's Press Release
of May, 12, 2004).

Drill holes MM-05-01 and MM-05-02, from the current campaign, were
collared from the same location with inclinations of -50 degrees and -65
degrees respectively, designed to test a 50 ft. eastward strike
extension of the new gold zone. Drill holes MM-05-03 and MM-05-04
likewise were collared from the same location with inclinations of -50
degrees and 65 degrees respectively and were designed to test a 50 ft.
westward strike extension of the new gold zone.

Drilling is expected to recommence on the McMillan property in April
with the objective of expanding the new gold zone as well as extending
the gold mineralization from the previous mine workings.

Results of the first five drill holes are tabled below:



--------------------------------------------------------------------
Interval Intersection
Hole No. (metres) (metres) Au (g/tonne) Au (Oz/ton)
--------------------------------------------------------------------
MM-05-01 117.10-120.6 3.5 1.59 0.046
including 117.10-119.0 1.9 2.05 0.06
140.7-142.5 1.8 2.76 0.08
including 140.7-142.15 1.45 3.1 0.09
181.45-183.0 1.55 3.08 0.09
187.2-191.1 3.9 2.99 0.087
including 188.0-188.4 0.4 14.47 0.422
190.3-191.1 0.8 3.32 0.097
--------------------------------------------------------------------
MM-05-02 169.0-172.35 3.35 1.60 0.047
including 171.35-171.85 0.50 3.63 0.106
200.70-203.0 2.3 4.02 0.17
--------------------------------------------------------------------
MM-05-03 152.0-155.0 3.0 7.74 0.23
including 153.5-155.0 1.5 12.59 0.37
167.75-168.3 0.55 4.79 0.14
172.1-174.0 1.90 3.85 0.11
177.9-178.25 0.35 7.41 0.22
--------------------------------------------------------------------
MM-05-04 210.65-214.70 4.05 5.52 0.16
including 223.10-227.75 4.65 11.16 0.32
223.60-225.45 1.85 22.2 0.65
--------------------------------------------------------------------
MM-05-05 444.5-445.8 1.0 8.72 0.25
including 444.5-444.8 0.3 27.22 0.79
--------------------------------------------------------------------


Assays by Swastika Laboratories Ltd., Swastika, Ontario

Gold was first discovered on the McMillan property in the early 1920's.
Shaft sinking and underground exploration were carried out in the late
1920's, with the shaft reaching 900 feet in depth. A 125 ton per day
mill was subsequently built and operated until 1937. The mine produced
60,000 tons of ore at a recovered grade of 0.18 ounces per ton.
Historical records indicate that mineralization continued below the 900
foot level, but a grade of 0.20 ounces per ton was considered uneconomic
at that time. In 1985/86 the mine was dewatered and sampled underground.
Sampling from different underground stopes ranged from 0.07 ounces per
ton to 0.48 ounces per ton. Based on these results, a work program
consisting of underground diamond drilling to determine vein continuity,
and to locate areas of undeveloped gold bearing zones was recommended at
that time, however, due to lack of funding, the program was not carried
out. The April 2004 program of diamond drilling was based on results of
the 1985/86 sampling program, and on testing geophysical targets from a
1997 survey that may indicate extensions to the mine area.

The McMillan claims comprise 34 unpatented mining claim units in
Mongowin and McKinnon townships, located approximately 14 kilometres
south of the town of Espanola, Ontario on the north shore of House Lake.

Young-Shannon's option agreement with MBMI was entered into in November,
2004 and enables Young-Shannon to earn a 50% interest in the McMillan
property over a three year period for staged payments of $75,000 in cash
and 650,000 common shares plus a three year work commitment of $900,000.
Young-Shannon has the option to increase its interest to 60% by issuing
an additional 250,000 common shares and spending $400,000 more on the
property.

Greg Lipton, P. Geo. is the qualified person for the Company as required
under National Instrument 43-101. He is a member of the Association of
Professional Geoscientists of Ontario (APGO).

MBMI maintains a major interest in three nickel properties in the
Philippines, and also holds the rights to three Canadian projects; the
McMillan gold mine property in Espanola, Ontario, the Copper Prince
Cu-Ni-Au/PGM property in Sudbury, Ontario, and the Squall Lake, Manitoba
gold project.

The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's
expectations and projections.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    MBMI Resources Inc.
    David G. Tafel
    VP Corporate Development
    (604) 683-1991 or Toll Free: 1-877-399-1991
    (604) 683-8544 (FAX)
    mbr@mbmiresources.com
    www.mbmiresources.com
    The TSX Venture Exchange has neither approved nor disapproved the
    contents of this press release.