Opawica Explorations Inc.

Opawica Explorations Inc.

November 06, 2006 15:32 ET

Opawica Explorations Inc.: News Release

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 6, 2006) - Opawica Explorations Inc. (TSX:OPW) ("Opawica" / the "Company") announces that the Company has settled the terms of three option agreements relating to the Dingman Group & Area, situated within South Eastern Ontario, and a purchase agreement relating to the Matachewan Group in North Eastern Ontario, Canada.

DINGMAN GROUP & AREA, SE ONTARIO

The Company may earn a 100% interest in the Mono and Bannockburn gold properties by Opawica paying $181,000 in cash and bond liabilities, by paying 2,000,000 shares of the Company and incurring $100,000 in expenditures on the property all within the next two years.

The Mono property has a reported historic geologic reserve of 248,160 tons at 9.15 g/t Au (House & Sawyer 1989, MNDM) and has historically had 268m of ramp development to the 23m level, 97m of drifting on three veins and 1,727m of underground drilling. The Bannockburn property is known to host a 3ft wide vein system for 700 ft in length and to a depth of 75 ft. with values of up to 0.17 opt Au reported by previous operators. The Mono and Bannockburn gold zones are open on strike and to depth.

In addition, Opawica has optioned the Addington Gold property ("Addington") from Imperial Metals Corporation ("IMC"). Opawica may earn a 100% interest in the property from surface down to the 300 metre level and a 50% interest in the property below 300 metres by paying $265,000 in cash, 3,000,000 shares of Opawica and incurring $500,000 in exploration all within the next four years. IMC will retain a 2% NSR of which half may be purchased by Opawica at any time for $250,000. In addition, in the event that Opawica earns its interest in Addington then cash consideration of a further $1,000,000 is also payable by Opawica to IMC upon commercial production or within the next 5 years, whichever first occurs.

An Inferred Mineral Resource of 720,900 tons at 4.5 g/t Au has been reported by past operators (Imperial Metals Corporation 1999). Between 1936 and 1939 Addington has been explored to the 220m level consisting of 221m of raising, 2,262m of drifting and 1,054m of crosscutting on six developed levels.

Finally, Opawica has optioned 162 acres of surface rights covering the eastern half of the Dingman gold property. The Dingman property hosts the Dingman granite which has a reported Measured and Indicated Resource of 12,600,000 tons of 0.70 g/t Au (Barnes Engineering Services Inc., Dingman Resource Model, Deloro Minerals Ltd.,1998). Opawica has the option to earn 100% of the mineral rights of the Dingman gold property as announced by the Company on September 27, 2006

All of the above resources are situated primarily within 150m of surface and are within 10km of the main Dingman property, except for Addington which is about 40 km east of Dingman. The Company is proceeding to acquire further properties in the district.

The Dingman Group properties have not been sufficiently drilled by Opawica to have economic considerations applied to them to enable such resources to be categorized as reserves. Further drilling is required to upgrade the resources to Measured and Indicated Resources and there can be no certainty that the preliminary or historical assessments, which are prior to NI 43-101, will be realized. Accordingly the Company is not presently treating the Inferred Mineral Resource estimates or historical estimates as NI-43-101 Defined Resources.

MATACHEWAN GROUP, NE ONTARIO

Opawica has settled the terms of a purchase and sale agreement whereby Opawica may acquire 100% of the Welsh group claims by paying $21,000 cash and paying 200,000 shares of the Company. The Welsh group consists of 31 claims which are contiguous to the northern border of the Young-Davidson Mine property owned by Northgate Minerals Corporation.

The qualified person for the Dingman Group and the Matachewan Group is Mr. Todd Keast, P.Geo., of Timmins, Ontario

Shares Issued: 79,353,867

Stock Options: 7,282,000 @ $.10 to $.15

Warrants: 4,900,000@$0.15

Restricted Shares: Nil

Contact Information

  • Opawica Explorations Inc.
    Dan M. Clark
    President
    (604) 681-3170
    or
    Opawica Explorations Inc.
    Alexander (Sandy) Bain
    Director
    (604) 681-3170