Mukuba Resources Limited

Mukuba Resources Limited

September 16, 2010 10:05 ET

Mukuba Acquires Option on Massive Sulphide and Precious Metal Property in Zambia

Verification Sample Returns 3.13% Zinc Over 11.0 Metres

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2010) - Mukuba Resources Limited (TSX VENTURE:MKU) ("Mukuba" or the "Company") is pleased to announce that it has entered into an agreement (the "Option Agreement"), whereby it obtained the exclusive option to acquire an 85% interest in the exploration license rights to a property (the "Nyimba Project") near the town of Nyimba, approximately 300 km east of Lusaka, in Zambia.

Trevor Richardson, President and CEO of Mukuba Resources commented, "The addition of the Nyimba Project is an exciting opportunity for Mukuba and fits well into our African exploration strategy. We remain committed to the exploration and development of the Northcore Copper Project, which is our primary focus. The Company's current cash position will allow us the flexibility to explore and develop both properties and to increase shareholder value. The Nyimba Project is well advanced and substantial exploration work has been completed to date."

These polymetallic deposits host zinc, with copper, lead, molybdenum, silver, and gold, and were systematically explored and partially drilled by Minex (Mindeco), a Zambian government department, in the late 1970s and early 1980s. The Nyimba Project rights were acquired by Rio Tinto-Zinc Corporation (RTZ – now Rio Tinto) in 1994, which carried out EM, magnetic, and radiometric surveys, as well as initial RC drilling. Exploration work on the property ceased in 1997 when Rio Tinto, together with other mining companies, withdrew from Zambia.

In January 2007, Lukusashi Mining Limited ("Lukusashi"), a privately owned Zambian company, was granted the large scale prospecting license for the Nyimba Project area, which has now been updated to comply with the new Zambian Mines and Minerals Development Act, 2008. Mukuba continues to assess historic exploration records which indicate there are five defined areas of mineralization within the 500 square kilometre license area. The most prospective area appears to be Chipirinyuma, where soil sampling by Minex and Rio Tinto defined a surface anomaly measuring 3.5 km by 1.2 km.

Lukusashi completed two diamond drill holes, spaced 50 m apart, on the Chipirinyuma deposit in March 2009. Mukuba independently sampled and assayed the core from each of these holes. Analysis of the samples using a mixed, four acid digest with an AAS finish on the bulked solution was carried out by SGS Mineral Services (Zambia) in Kalulushi, which is currently awaiting final accreditation following a further inspection in November 2010. The results are as follows:

Drill Hole Reference Core Depth from (m) Core Depth to (m) *Interval (m) Zn (%) Cu (%)
CHDD001 23.00 24.00 1.00 1.88% 0.13%
28.00 29.00 1.00 2.37% 0.02%
30.00 35.40 5.40 4.77% 0.15%
CHDD002 21.00 32.00 11.00 3.13% 0.11%
 *intervals are not necessarily representative of true width

More widely spaced diamond drilling on the Chipirinyuma deposit was also reported by Minex in 1976 and 1977, which are set out in the table below. Mukuba has not independently verified these results.

Drill Hole Reference Core Depth from (m)   Core Depth to (m)   *Interval (m)   Zn (%)   Cu (%)   Au (g/t)
DDH 1 22.10   25.60   3.50   5.33%   0.13%   0.46
DDH 2 42.65   43.60   0.95   1.72%   0.88%   n/s
DDH 3 22.95   26.00   3.05   3.15%   0.18%   0.34
DDH 4 not sampled                    
DDH 5 not sampled                    
DDH 6 21.45   22.70   1.25   4.60%   0.13%   0.10
26.15   30.15   4.00   3.79%   0.19%   0.12
* intervals are not necessarily representative of true width

Mukuba is continuing to collate and review the historic exploration records, but initial indications suggest that further drilling on the Chipirinyuma deposit is warranted and the Company expects to mobilize a diamond drilling rig in October of this year.

The Option Agreement was entered into between Lukusashi and Lunga Resources Limited ("Lunga"), a wholly owned subsidiary of Mukuba Resources Limited. Under the Option Agreement, Lunga has the exclusive option to purchase an 85% interest in the Nyimba Project license rights, which must be exercised by Lunga before July 29, 2012. Lunga may exercise its option at any time before this date by making a onetime payment to Lukusashi of US$1,000,000. In addition, Lunga will pay Lukusashi a monthly retainer of US$10,000 for each month that the option remains in force.

Qualified Person

Mr. Chris Meyer (Pr.Sci.Nat.) is a "Qualified Person" as defined by National Instrument 43-101 and oversees Mukuba's exploration programs. Mr. Meyer has supervised and approves the preparation of the technical information contained in this press release.

About the Company

Mukuba is a Canadian mining company focused on the exploration and development of the Northcore Project, which is located in the highly prospective Central African Copperbelt region of Central Zambia. The Northcore Project encompasses approximately 2,274 square km of geologically prospective ground in the Domes Region of the Zambian Copperbelt. The Northcore Project holds an exploration license for both copper and cobalt. Geological mapping, soil sampling and investigation of the historical showings as well as ground-truthing of the geological surveying results have confirmed existing historical geological anomalies, and identified new anomalies. The Company's 2009 exploration program included drilling several of these anomalies and confirmed the presence of copper mineralization.

Forward-looking Information

Securities regulators encourage companies to disclose forward-looking information to help investors understand a company's future prospects. This press release contains statements about our results, planned drilling and future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this press release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.

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

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