Micrex Development Corp.

Micrex Development Corp.

October 19, 2005 07:30 ET

Micrex Announces Joint Venture On Deadwood Property

EDMONTON, ALBERTA--(CCNMatthews - Oct. 19, 2005) - Micrex Development Corp. (TSX VENTURE:MIX) announced today that it has entered into an Earn-In / Joint Venture Agreement with a private exploration company to help explore and develop the Micrex Deadwood Gold Property in New Mexico.

Micrex owns 100% of the Deadwood Property, which is made up of two claims, the Deadwood Claim and the Sunburst Claim, known collectively as The Deadwood Group.

Two confirmed gold bearing veins run the length of both claims for approximately 2500 feet.

On the Deadwood Claim, a mine was developed prior to World War II called The Deadwood Mine. The Deadwood Mine is a proven historical mine with development on the gold bearing structure to a depth of 600 feet.

The structure is a vein type gold / silver deposit with historical production and confirmed gold values. The long average on production from the mine confirmed .127 oz gold and 6.96 oz. silver per ton. Records show stope widths of over 20 feet in some places.

More recent grab samples across vein exposures in the Deadwood Mine yielded assays as high as .82 oz gold and 39.42 oz silver per ton.

Though the Deadwood Mine had a history of excellent production, the mine was shut down during World War II as part of the war effort.

The mining company left the mine "mothballed" with every intention of returning from the war and resuming operations. However, circumstances changed with the principle directors during the war and they did not return.

The mine has been held by several parties since then, but none of them were able to finance a mining effort. As the mining claims were Patented they have endured even though work has been suspended for many years.

For those unfamiliar with the term "Patented", it refers to a claim that is owned outright. It is deeded and surveyed into the legal survey for the area as real estate. A Patent claim enjoys certain benefits over a regular mineral claim, with one of the main benefits being the ease of maintenance. Unlike a regular claim that has work requirements, a Patent claim holder must only pay a very low land tax each year.

The historic mine focused on one main vein, but two other parallel structures were confirmed by cross tunnels. Little work was done on evaluation at the time, as the mine owners felt that they could open the new areas once the main vein was mined out, and use the depleted tunnels and stopes as dump areas for waste rock. With the current price of gold and modern mining methods, these structures offer significant potential for exploration and development.

Though the mine was developed to the 600 foot level with tunnels and shafts, examination of the workings shows that much of the vein between levels has yet to be exploited. With only partial development to 600 feet on a structure confirmed to be at least 1100 feet deep and 1429 feet long, the Deadwood Claim offers excellent potential for development.

The adjoining Sunburst Claim is the second property in the group, and is on the same confirmed gold bearing structure but has not yet been fully evaluated.

On surface the gold bearing structure has been traced for the entire length of the Sunburst Claim; a distance of approximately 1049 feet.

Exploratory tunnels from the Deadwood into the Sunburst have confirmed continuation of the gold vein, but no drilling has been carried out.

Both claims are permitted for mine development under minimum impact allowance, and those permits can be upgraded to higher production levels as needed.

The Private Company will spend $350,000 over the next two years to earn a 49% interest in the property. Work is expected to include an evaluation of the existing mine, as well as an extensive drilling program on the entire property.

Micrex will also participate on additional property acquisitions in the region through an Area of Influence Agreement.

Micrex is not required to do any work or provide any funding during the earn-in period. The Private Company will plan and conduct the exploration activities independently, and then share all results with Micrex.

This arrangement enables Micrex to continue to focus its efforts on bringing the Burmis magnetite property into production.


A mineral exploration and development company operating in Canada and the United States

Peace River Diamond Property - Burmis Magnetite Property - St. Charles de Bourget Magnetite/Titanium Property - Fort Steele Placer Property - Bighorn Gold Mine - Banks Gold Mine - Mount Royal Gold Mine - Deadwood Gold Mine - Sunburst Gold Property

Section 12(g)(3) Exemption 82-4281


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