NXA Inc.
TSX VENTURE : NXI

February 28, 2008 21:02 ET

NXA Inc. Recaps 2007 Exploration Results and Announces 2008 Exploration Programs on Its British Columbia Mineral Properties

TORONTO, ONTARIO--(Marketwire - Feb. 28, 2008) - NXA Inc. (TSX VENTURE:NXI) ("NXA" or the "Company") is pleased to announce its 2008 exploration program for the Topley-Richfield epithermal gold-silver base metal property, Trail Peak porphyry copper-gold property and Axelgold alkalic gold-uranium property, each of which is located in the Omineca Mining Division of northern British Columbia.

NXA is planning to complete a minimum of 3,000 m of diamond drilling on the Topley-Richfield Property, the Company's principal mineral exploration property (please see the technical report in respect of the Topley Richfield Property which has been filed on www.SEDAR.com under the Company's profile), to verify grade and extent of the principal vein and test an additional four structures that have not been previously drilled. The principal vein according to historical drill results is between 0.5 and 3 m wide and has been traced for 325 m along strike and to 180 m depth and is open along strike and to depth. Historical assays returned grades between 0.5 to 27.8 g/t Au and 3 to 4037 g/t Ag. A re-sampling program of the historical core will augment the 2008 drill program in an effort to verify the historical estimates. It is NXA's intention to expand the geophysical and geochemical survey completed in 2006 and 2007 an additional 21 and 11 line-km, respectively, in an effort to identify additional vein structures.

The potential quantity and grade of the principal vein is conceptual in nature and there has been insufficient exploration to define a mineral resource or mineral reserve (within the meaning of these terms in section 1.2 and 1.3 of National Instrument 43-101). It is uncertain if further exploration will result in the principal vein being delineated as a mineral resource or mineral reserve. A qualified person has not done sufficient work to verify the historical data although recent sampling by NXA suggests the Au and Ag grades and dimensions of the vein are reasonable. However, undue reliance should not be placed on such historical data.

Exploration work in 2007 on the Topley-Richfield Property was successful in characterizing the geophysical and soil geochemical signature of the principal gold-silver veins exploited by miners in the 1920's and 1930's. This work outlined the strike extents of the known veins and defined several additional structures that mimic the geophysical and geochemical signature of the previously mined veins. A vast majority of the Topley-Richfield Property is covered by a layer of glacial till which completely covers all of the delineated structures except for one historically excavated trench where 4 of 5 surface grab samples by NXA in 2007 returned significant gold assays of 0.9, 1.2, 1.3 and 16.1 g/t Au. The vein sampled by NXA in 2007 has not been tested by drilling but returned gold assays in the range of the historical values reported in underground workings on this vein. Please see the press release of the Company dated December 28, 2007 for more information.

The Company also commenced certain initial exploration activities during 2007 in respect of its two inventory properties, the Trail Peak and Axelgold Properties, in order to determine whether any future exploration activities are warranted on these properties. NXA is proposing an exploration program on its Trail Peak Property to expand the area covered by the 2007 soil grid as well as conducting infill soil sampling to better define drill targets. This geochemical survey will be accompanied by approximately 25 line-km of induced-polarization and magnetic susceptibility geophysical surveying to highlight structures and further delineate drill targets.

Wide-spaced reconnaissance geochemical soil sampling on the Trail Peak Property in 2007 successfully identified a large1800 m long and 100 to 400 m wide zone of elevated copper (greater than 100 ppm up to 1170 ppm Cu) in a covered area adjacent to a 300 x 500 m area of phyllic altered rocks. The presence of a large copper in soil anomaly, abundant propyllitic and phyllic alteration and the presence of Babine Suite Intrusive rocks and its associated Newman Group volcanic rocks, makes the Trail Peak Property a highly prospective target for Babine Cu-Au-Ag Porphyry deposits such as the nearby Bell (77 MT @ 0.46% Cu(i)), Granisle (52 MT @ 0.41% Cu(ii)) and Morrison (206.9 MT @ 0.39% Cu(ii)) deposits. Please see the press release of the Company dated November 20, 2007 for more information.

On the Axelgold Property, NXA plans to conduct an airborne radiometric, TDEM (time-domain electro-magnetic) and magnetic survey over the entire property. This survey should enable NXA to define the margins of the Axelgold syenite beneath cover and identify more radioactive phases of the intrusion which are associated with gold mineralization. Reconnaissance geochemical soil sampling on the Axelgold Property identified a 450 x 450 m area of elevated gold, silver, cadmium, bismuth, lead and thorium in soils. Please see the press release of the Company dated December 28, 2007 for more information.

NXA can earn a 100% interest in the Topley-Richfield, Axelgold and Trail Peak Properties by fulfilling the terms of option agreements with the vendors of these properties which require total payments of $360,000 in cash (of which $30,000 has been paid) and 1,200,000 in shares (of which 300,000 have been issued), and incurring $2,100,000 in exploration expenditures over 4 years (of which approximately $430,000 has been incurred).

Exploration work was conducted by Caracle Creek International Consulting, Inc. ("CCIC") under the supervision of CCIC's Operations Manager (Western Division), Stephen Wetherup, P.Geo. (APEGBC). All rock and soil samples were submitted to Acme Analytical Laboratories in Smithers, Canada (an ISO 9001:2000 certified laboratory) directly by CCIC representatives.

This press release has been reviewed and approved, and the data (including sampling, analytical and test data) has been verified, by Stephen Wetherup, P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101, working with Caracle Creek International Consulting Inc. Appropriate quality control and quality assurance protocols were utilized to verify the data.

(i)Data derived from BC Government Ministry of Energy, Mines and Petroleum Resources- MINFile Production Reports

(ii)Data derived from Pacific Booker Minerals Inc. NI43-101 Report - Mineral Resources Update , Morrison Project, Omineca Mining Division, British Columbia, May 4, 2007

NXA INC.

NXA is a mineral exploration company with mineral properties in British Columbia, Canada. NXA is listed on Tier 2 of the TSX Venture Exchange.

FORWARD-LOOKING STATEMENTS

Certain statements herein relating to NXA's plans to continue its exploration activities on its mineral properties are forward-looking statements and represent NXA's current intentions in respect of future activities. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. The risks associated with these forward looking statements in respect of the Company's ability to carry out its exploration plans include the availability of exploration equipment and manpower, adverse weather conditions, unfavourable changes in environmental, mineral tenure holding or other legislation and regulations respecting mineral exploration in British Columbia, increases in political or social antithesis to mineral exploration in British Columbia and whether sufficient resources will be available to the Company to conduct such exploration, including whether any required financings of the Company can be arranged. Other factors not currently anticipated could also adversely affect the Company's exploration plans set out herein. All these factors should be considered carefully when making decisions with respect to the Company and actual results could be significantly different from those anticipated in the forward-looking statements, and therefore undue reliance should not be placed on the Company's forward-looking statements. Other than as required by applicable laws, the Company does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf.

Shares Outstanding: 40,874,555

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the information contained herein.

Contact Information

  • NXA Inc.
    Robert J. Metcalfe
    President and CEO
    (416) 400-4457
    or
    NXA Inc.
    Chuck Lilly
    Chief Financial Officer
    (705) 522-2400, ext. 207