Mengold Resources Inc.
TSX VENTURE : MNI

Mengold Resources Inc.

March 03, 2008 08:45 ET

Mengold Initiates Joint Venture with X-Ore at Greenwater Lake-Shebandowan

MONTREAL, QUEBEC--(Marketwire - March 3, 2008) - Mengold Resources Inc. (TSX VENTURE:MNI) has staked, in a joint venture with X-Ore Resources Inc., the Greenwater Lake Ni-PGE Property (Greenwater) comprised of approximately 8,904 hectares (22,000 acres). This Property, located in Begin and Lamporte Townships in the Shebandowan area west of Thunder Bay, Ontario, provides Mengold with a key land position in a potentially developing nickel and PGE mining camp.

Mengold has entered a Joint Venture Agreement with X-Ore Resources of Montreal on a 50:50 basis and an initial prospecting and sampling program is planned for this spring and summer. The new property is located about half-way between Mengold's Burchell Lake and Goldcreek Properties. Immediately to the north, North American Palladium and Vale Inco have rampt into their Shebandowan Nickel Project to conduct a bulk sample.

According to government and public data, the Greenwater Lake Property is represented by a series of mafic and ultramafic units. Little work has been done over the claimed area however the Ontario Geological Survey has conducted a regional geochem lake sediment and till sampling program which outlined several prospective areas for the occurrence of nickel and PGE's as well as other base metals.

In the OGS survey, the best anomalous geochemical signature is present over the Greenwater Lake Property. Several different clusters of anomalies have been identified within the limits of the Property. Many areas display nickel, chromium, cobalt, platinum, and palladium anomalies especially in the central part of Begin Twp where mafic and ultramafic intrusive rocks were mapped by Osmani in 1997. Also, anomalous concentrations of base metals were found in the central part of Begin Twp including copper-lead-zinc and cadmium. Scattered throughout the Greenwater Lake Property are conductive and magnetic zones displayed by airborne input anomalies and strong magnetic features indicative of mafic and ultramafic rocks. The OGS also mapped in several faults cutting through most of the claims. These faults represent important conduits for the concentration of nickeliferous, PGE and base metal fluids throughout the area that could lead to the occurrence of a deposit.

The former producing Inco Shebandowan Nickel-Copper Mine lies within the limits of the Shebandowan Nickel Project and from 1971 to 1998 produced 8.7 million tonnes of 2.07% nickel, 1% copper, and 3.0gpt combined PGE's and gold. According to a press release disseminated by North American Palladium (PDL), dated October 25, 2007, the Shebandowan Nickel Project hosts a measured and indicated resource of 2.58 million tonnes of 0.91% nickel, 0.62% copper, 1.09gpt palladium, 0.34gpt platinum, and 0.23gpt gold. The northern boundary of Mengold's Greenwater Lake Ni-PGE Property lies within three kilometres of PDL's resource.

The Shebandowan Mine area is underlain by a complex ultramafic komatiitic rock unit that formed the host of the nickel-copper and PGE mineralization at the former minesite. The ore occurs as stringer, breccia and massive sulphides that are hosted within highly altered and deformed ultramafic rocks interpreted as basaltic komatiities.

Mengold has a booth at the Prospectors and Developers Convention (PDAC) being held from March 2 - 5 in Toronto. The booth number is 2607 and it is located in the Investors Exchange near the Teck/Cominco cafe.

The Qualified Person supervising the work being carried out on the Burchell Lake and Goldcreek Properties is Joel Scodnick, P.Geo., President & CEO of Mengold Resources Inc.

Mengold is engaged in mineral exploration for precious and base metals. The Company is currently conducting a 5,000m diamond drilling program at the Burchell Lake and Goldcreek Properties, both prospective for gold, copper, zinc, nickel, and molybdenum, in the Shebandowan area of Northwestern Ontario. Mengold has 36,820,088 common shares outstanding.

For further information, please bookmark www.mengold.ca.

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

Contact Information

  • In Canada
    Mengold Resources Inc.
    Joel Scodnick, President and Chief Executive Officer
    (705) 522-4439 or (807) 629-7516
    (705) 522-8694 (FAX)
    Email: scodnick@mengold.ca or scodnick@netspectrum.ca
    or
    Mengold Resources Inc.
    Douglas Reeson, C.F.O. and Director
    (416) 533-0323 or
    (416) 533-2890 (FAX)
    Email: reeson@mengold.ca
    or
    In Europe
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director
    011.41.22.809.9511
    011.41.22.899.9501 (FAX)
    Email: forrest@mengold.ca
    Website: www.mengold.ca
    or
    Noble Investment
    Dan Patience, Investor Relations
    (403) 262-7111
    Email: noblehouse@shaw.ca