Mountain Boy Minerals Ltd.
TSX VENTURE : MTB

May 12, 2011 11:49 ET

Mountain Boy Minerals Ltd.: Active Exploration Season Planned for 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2011) - Mountain Boy Minerals Ltd. ("Mountain Boy") (TSX VENTURE:MTB) announces that in 2011 the company will actively explore nine of the Company's projects. The largest two, Silver Coin and the BA, are totally funded by the joint venture partners. There is no cost to Mountain Boy. A description of the projects and work programs are as follows:

Silver Coin

Mountain Boy announces that its joint venture partner, Jayden Resources Inc. has approved a $5 million dollar budget for a significant development drilling program at the Silver Coin Project near Stewart, B.C., with an anticipated start-up by June 1. At present Mountain Boy owns 30% of the project with Jayden having the option to earn an additional 10% through this year's program. The overall goals for Silver Coin project in the coming year are to significantly advance the project towards production by expanding the resource and upgrading existing resource classifications, improving understanding of metallurgy and processing options, continuing to refine mine engineering and project economics and continuing our ongoing environmental studies. Jayden aims to bring the project to the prefeasibility stage by early 2012. In addition, this year's program will have a strong geologic component which will significantly enhance the company's ability to model the already demonstrated, significant high-grade portions of the Silver Coin deposit.

Drilling Program

Additional drilling is required to upgrade resource classification and to expand the existing resource. Infill drilling will facilitate upgrade of the resource from the inferred category to measured and indicated, as well as contribute significantly to ongoing efforts to build a comprehensive geologic model for Silver Coin's mineralization. Approximately 80% of the planned 2011 drilling will be comprised of infill and close extension drilling, with the additional 20% focusing on exploration drilling on several surface showings of mineralization outside of the resource area that have not been drill tested. We are planning 15,000 to 20,000 metres of diamond drilling and two drill rigs have been contracted through Sunrise Drilling Ltd., Burnaby, B.C. In addition to resource drilling, the Company is considering additional drilling to collect geotechnical and hydrological data, however this program has not been finalized at this time.

Metallurgy and Processing

Additional metallurgical testing is planned and will involve the creation of a new master composite sample at a grade of 1 gram per tonne gold. Further flotation and cyanidation tests will be conducted on the composite in a continuing effort to optimize recoveries. This work is being supervised by F. Wright Consulting, Vancouver, B.C. The drilling of large diameter metallurgical core may be undertaken later in the season to conduct comminution tests, and, if necessary, to further optimize recoveries based on variations in deposit grade and mineralogy.

Mining Engineering

The Company is currently soliciting bids for additional engineering studies. These will focus on facilities layout, including power and roads, waste and tailings engineering and pipelines.

Environmental Studies

Geochemical characterization of waste rock and low grade mineralization are underway, to determine the acid generating potential of Silver Coin, and appropriate mitigation measures. Baseline surface water studies were initiated in the past and data collection to support these studies is continuing with additional sampling and monitoring. Plant and wildlife studies are also planned, and the company continues to collect meteorological data from its onsite weather station. AMEC Earth & Environmental Inc., Vancouver, B.C., has been contracted to complete this work.

The BA, George Copper and Surprise Creek Projects

Great Bear Resources Ltd. ("Great Bear") is earning a 51% interest in the BA project. The Surprise Creek property, located immediately north of the BA project, is included under the terms of the JV Agreement The terms of this agreement (announced on October 28, 2010) are as follows:

  • Acquisition costs for the Surprise Creek property will be borne entirely by Great Bear, and will be applied against its earn-in requirement towards the BA property.
  • Great Bear now has until December 2015 to complete a Positive Feasibility Study that will give it the option to acquire a 70% interest in the BA project.
  • In addition, Great Bear is now required to fund all costs associated with the BA project through December 2015.

In 2010, all zones explored and discovered were expanded through sequential step out drilling. The drilled strike length of the Main zone has been extended to 800+ metres, while the Stockwork zone has been extended to 300+ metres. Prospecting at the George Copper claims on the BA property has resulted in discovery of multiple gold bearing structures associated with a higher temperature phase of the VMS system that is developed at BA.

In 2011, Great Bear will apparently continue exploration on the joint venture properties.

Dunwell Project

The Dunwell Gold Mine is a former producing gold mine owned 100% by the Company,and is located 7.5 kilometres northeast of Stewart BC, 2 kilometres off paved highway 37A. The property has excellent infrastructure. In addition its low elevation allows for year round exploration.

Drilling is directed at expanding the zones of mineralization, established in 2009 and 2010. Holes to date have intersected pyrite, sphalerite, galena and chalcopyrite mineralization within quartz breccia and brecciated argillite zones next to altered weakly mineralized dyke rocks. Mineralization forms zones ranging from 3 to 9 metres in width. Drilling is intersecting these zones between 170 and 260 metres below the original gold mine's No. 4 level, the lowest level on which mining occurred during previous operations. This drilling has extended the zone 75 metres along strike over a dip extent of 260 metres. The mineralized zone is open in all directions. Recent drilling is testing the zone just below the No 4 Level down to the area of the deep intersections.

MB Silver and FR

Mountain Boy plans to explore the high grade silver properties it owns along American Creek during the 2011 field season. The exploration will follow up on results obtained in programs carried out in 2006 and 2007. Elevated silver values occur in replacement type mineralization, sulphide veins and breccia zones within rocks along the valley. The main properties to be explored include the Mountain Boy and FR claims. The Company plans to explore both the High Grade and Mann veins with approximately 5,000 metres of drilling.

Blackwater Area

Mountain Boy Minerals Ltd. acquired 3 separate blocks of claims (by jointly staking with its partner Decade Resources Ltd.) in the Blackwater region of BC. One block adjoins the discovery property owned by Richfield Ventures Ltd. The companies acquired a total of 37,296.28 ha in 80 claims. The properties are readily accessible along a well developed network of established forestry roads in the area.

At Blackwater, disseminated gold-silver mineralization and high-grade gold in shear-hosted veins is reported as being hosted in Jurassic aged Hazelton Group rhyolites.

Mountain Boy and Decade plan to explore the claims with a program of geochemical sampling and prospecting starting in the next 2 weeks.

Red Cliff

A program of modeling all available drill data will be incorporated in planning the next drill program.

This is the area where extremely rich zones have been identified. One of the holes (DDH-MON-31) yielded 25.91 meters of 10.91 grams gold per ton. There are approximately 150 drill holes from the Redcliff and Montrose zones to be entered into a concentrated program. The Company plans to use the information to guide in continued exploration, particularly on the Montrose zone where the goal is to define a gold resource.

Ed Kruchkowski, P. Geo., a qualified person under National Instrument 43-101, has prepared this release and is charge of the exploration program on behalf of the company.

About Mountain Boy Minerals:

Mountain Boy Minerals Ltd. is a Canadian based mineral exploration company with diverse property and resource holdings around the Stewart region in British Columbia's golden triangle. It owns 30% of the Silver Coin project, a gold-silver-base metals project that is having a new 43-101 compliant resource calculated. The Company is also exploring silver-base metals on its American Creek and Bear Valley properties as well as copper-gold on their Stewart area claims.

For further information, please contact Company investor relations at 604-681-0710, Ed Kruchkowski at 250-636-9232 or visit the website at http://www.mountainboyminerals.ca (The Company website is being changed at present and will be available shortly).

ON BEHALF OF THE BOARD

Ed Kruchkowski, Director

"This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Mountain Boy Minerals Ltd.
    Investor Relations
    604-681-0710

    Mountain Boy Minerals Ltd.
    Ed Kruchkowski
    250-636-9232
    250-636-9233 (FAX)
    www.mountainboyminerals.ca