April 25, 2007 16:00 ET

New Island Resources Inc.: Activity Report

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(CCNMatthews - April 25, 2007) -


New Island Resources Inc. (TSX VENTURE:NIS) ("New Island") is pleased to announce the acquisition of 3,214 claims (81,651 hectares or 201,679 acres) located in the Sims basin area of western Labrador. These claims cover ground prospective for uranium mineralization.

The Sims Basin is located in the Labrador Trough (the host to major iron ore deposits of western Labrador such as at Wabush, Labrador City, and Mount Wright) and extends south, abutting against the Grenville Front. Maps also show the outline of the major Proterozoic Basin, which extends from Hudson Bay and down through Quebec into Labrador and west back into Quebec. This is a continentally significant basin, which contains the Labrador Trough.

The Labrador Trough has seen a surge in uranium exploration resulting in the discovery of new uranium mineralized deposits such as Jacques Lake and expanding on existing deposits (e.g. Kitts-Michelin by Aurora Energy Resources Inc. ("Aurora") and Moran Lake by Crosshair Exploration and Mining Corp.("Crosshair")).

Crosshair reports 3 types of uranium mineralization - unconformity (Athabasca type), Olympic Dam and shear zone within the project area underlain by the Bruce River and Moran Lake Groups of Proterozoic age. This geological setting is very similar to the Sims Basin, in fact, the Moran Lake Group consisting of shale and sandstone also extensively underlies the south portion of the Sims Basin.

The Shabogamo Gabbro and trans-Labrador Bathoilith Intrusions into the Sims Basin rocks present an added feature for depositing uranium mineralization. Within the Athabaska model for deposition, most of the uranium deposits are deposited along the flanks for dormal structures formed by the intrusions.

There are many similarities between the overall geological setting contributing to the uranium mineralization deposited throughout the Athabasca Basin and the Sims Basin which is displaying many geochemical signatures typically found in the Athabasca Basin and also in the central mobile belt uranium district and sited along and close to the Grenville Front, a major deep-seated structural zone for the ascent of solutions and the focal point for many types of ore deposits throughout eastern and central North America.

At Sims Basin, the older crystalline basement rocks are represented by the eastern basement metamorphic Complex of the Archean aged, Ashuanipi Metamorphic Complex, and the types of sedimentary rocks present in the Athabasca basin are mapped in the Sims Basin.

The forms/shapes of deposit/ore bodies in the Athabaska basin are controlled by faults, shear zones and unconformities and the deposits are commonly associated with the unconformity where it is intersected by faults, shear zones, or fractured zones.

At Sims Basin, there are similar regional major, regional fault or shear zones trending in a general east west direction, which cut across the dominant north - south trends of unconformities present in the Sims Basin, thereby providing many locations where fault zones intersect and potential sites for uranium deposition.

A series of maps show a regional uranium geochemistry and lead signatures (lead is associated with Athabaska Basin uranium deposits) extending from the central mineral belt uranium play into the Sims Basin. Detailed maps show the distribution of lake sediment anomalies and highlighting several of the metals and associated elements in the Sims Basin, and the characteristic of uranium mineralized districts, particularly the Athabaska Basin and its metal signatures.

Historical and recent reports confirm a number of major mining companies including, Hollinger Mines Ltd, Imperial Oil Ltd, Uranerz Exploration, Gulf Minerals and Eldorado Nuclear have explored the Labrador Trough and the uranium potential in the Sims Basin. Most of this work in the trough and at the Sims Basin pre-dates the mid 1980's.

H.L. Wareham, President of New Island Resources Inc. states, "The Company is very pleased to have secured a uranium asset with high merit in a play fairway that is producing very significant discoveries such as those that have been achieved by companies like Aurora and Crosshair. With a significantly large land holding, the company is well positioned to aggressively pursue this tremendous opportunity".


Crew Gold Corporation ("Crew") has signed a joint venture agreement to earn an interest in New Island's large Glover Island property situated in western Newfoundland. Under the terms of the joint venture agreement, Crew has committed to spend $5 million in exploration expenditures over five years to earn a 60% interest in the property.

The Glover Island property is owned 100% by New Island and is highly prospective to host significant gold deposits. Title thereto is held under two mineral licenses covering 3,216 hectares and one mining lease covering 1,925 hectares which encompass a 16 kilometer zone of gold mineralization.

This gold mineralization is located along a major regional structure, the Baie Verte - Brompton Line (BV-BL) which is a zone of intense shearing and faulting - The Cabot Fault Zone (CFZ).

Extensive testing along the 16 kilometer Glover Island Belt (GI Belt) is required to fully evaluate the gold potential on Glover Island. Fill-in drilling at drill advanced zones (LPSE, e.g.) and between zones/prospects (partially drill tested and untested) is necessary. Future drilling should also test the high-grade gold veins, which contain visible gold and Bonanza Grades ranging between 1 and 10 oz/t (35 - 356 g/t) - pre National Instrument 43-101.

Eighty percent (80%) of the drill holes have focused on testing only 3 of the 20 known prospects, the Lunch Pond South Extension (LPSE) and Kettle Pond South (KPS) Zones, separated by 1 kilometer and the Lucky Smoke (LS) Zone located 8 kilometers north. The gold mineralization at these zones is predominantly hosted in felsite sheets up to 35 meters thick, and also in quartz veins, (e.g. the KPS Zone).

The association of gold deposits along the BV-BL is well documented by numerous other gold zones sited along this structure, which include the gold deposits at Pine Cove and Cape Ray, respectively located on the north and south coasts of Newfoundland. This association is well established within the GI Belt where trenching and 70 drill holes at selected targets along an 8 kilometer section have consistently revealed economically significant gold mineralization in both felsite and quartz veins.

The 35 holes drilled to date at the LPSE Zone suggest significant mineralization at this newly expanded target area. This zone extends to surface below thin overburden cover which could be amenable to open pit mining. The high-grade shoots at the LPSE Zone may be amenable to underground mining.

A total of 20 gold mineralized zones and prospects identified along the 16 kilometer GI Belt are hosted in felsic volcanic rocks (felsites) and large, quartz veins focused along the shear zone (CFZ). These relationships are also seen in the major gold producing systems in Ontario and Quebec. The Glover Island Belt is also analogous to the Mother lode District in California, where the gold is hosted in shear zone-related, volcanic - hosted ribboned quartz veins. Large, drill untested quartz veins are exposed along the GI Belt they and contain Mother lode Type, Bonanza gold grades.

These gold mineralized zones are open along strike and may be connected, thereby indicating a potential for significant tonnages over several kilometers hosted in thick felsite sections, which may be amenable to open pit-mining methods.

H.L. Wareham, President of New Island, states, "The Company is quite pleased with the arrangements made with Crew. Crew is a significant international mining company with substantial resources and management strength, which augers well for advancing the full potential of the large Glover Island property".


New Island also advises that progress is continuing on bringing its Pine Cove property into production. This property is situated on the Baie Verte Peninsula, about 40 kilometers west of Nugget Pond, and is on option to Anaconda Mining Inc. ("Anaconda"), (TSX:ANX) which can earn a 60% interest by arranging the financing and bringing the property into production.

The Pine Cove deposit hosts probable reserves of 2,332,676 tonnes grading 2.76 grams per tonne for 207,000 ounces of gold and is mineable by open pit methods. The property is prospective for additional discoveries, particularly in and around the Romeo and Juliet and Anaroc zones. Anaconda advises that certain milling equipment has now been delivered and that commercial production is scheduled to begin in the second half of 2007.

Anaconda has closed a financing which will enable it to complete the plant and site infrastructure at New Island's Pine Cove gold property located near Baie Verte, Newfoundland (see Anaconda's news release in Stockwatch of Feb. 5, 2007).

The company is pleased with this development, which should enable production to commence during 2007 and bring the company into gold producer status.


New Island is involved in mineral exploration and development on the island of Newfoundland and in Labrador. With working capital in excess of $6 million it is well positioned to aggressively pursue its' current projects and other opportunities of high merit.

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

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