PGM Ventures Corporation
TSX VENTURE : PPG

PGM Ventures Corporation

May 29, 2006 16:45 ET

PGM Ventures Corporation: Drills Confirms Continuity of Aguas Tenidas' Main Deposit & Western Extension

TORONTO, ONTARIO--(CCNMatthews - May 29, 2006) -

All dollar amounts are in Canadian dollars unless otherwise noted.

PGM Ventures Corporation (TSX VENTURE:PPG)("PGM" or the "Company) is pleased to report the last set of results of its 2005 surface drilling program at its wholly owned Aguas Tenidas project in SW Spain designed to further test the known copper/zinc mineralisation in the Western Extension to the Aguas Tenidas Main Deposit. For a complete description of the geology, geological controls, mineral occurrences and the nature of mineralization at Aguas Tenidas, please refer to the positive feasibility study prepared by SRK Consulting (Cardiff), UK. The receipt of this study was announced on January 20th 2006, and the study is available within the Company information at www.sedar.com. The drilling program consisted of 9 holes totalling of 5,200 meters. Assay results have now been received from the last two diamond drill holes,

1. The latest surface drilling program on Aguas Tenidas' Western Extension is now complete. The results from the recent drilling are shown below:



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ATW-6
D1
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Section From To Width(a) Cu Zn Pb Ag
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689100E 690.1m 696.7m 6.6m 0.4% 7.9% 3.2% 66.7g/t
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And 700.0m 719.7m 19.7m 3.1% 1.2% 0.2% 44.2g/t
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Incl. 704.0m 714.0m 10.0m 4.0% 1.2% 0.1% 43.0g/t
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ATW-10
D1
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689550E 670.3m 679.7m 9.4m 1.6% 0.9% 0.3% 33.1g/t
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The following results on the Western Extension were reported from surface drilling during 2005:



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ATW-5
Section From To Width(a) Cu Zn Pb Ag
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689250E 657.0m 681.3m 24.3m 3.3% 0.9% 0.4% 48.6g/t
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Incl. 661.0m 678.4m 17.4m 4.0% 0.5% 0.2% 51.7g/t
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And 682.8m 686.9m 4.1m 1.1% 12.3% 4.7% 188.1g/t
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ATW-5 D
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689250E 677.1m 695.0m 17.9m 2.1% 0.4% 0.1% 13.0g/t
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Incl. 677.1m 682.5m 8.1m 3.1% 1.1% 0.4% 20.0g/t
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ATW-7
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689050E 697.7m 699.5m 1.8m 0.6% 7.0% 6.6% 275.4g/t
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And 706.3m 749.3m 43.0m 2.4% 1.5% 0.6% 49.6g/t
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ATW-9
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688825E 751.9m 755.2m 3.3m 1.1% 10.4% 4.8% 158.9g/t
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(a) The mineralised zones in the western part of Aguas Tenidas dip at a shallow angle to the west; the true width of the above intercepts is estimated to be 95% of the widths shown above.

Note: ATW-5D was a deviation hole, which passed northwards through the "Northern Fault" into a stockwork system containing copper mineralisation. The "Northern Fault" represents the usual northern boundary for massive sulphide mineralisation at Aguas Tenidas.

The drill core from this program was examined and logged, and samples selected, by Raul Hidalgo, B.Sc, EurGeol, Chief Geologist of MATSA, as qualified person on site for PGM. The selected samples were split, bagged and tagged under the supervision of the qualified person, and sent by bonded air courier to Omac Laboratories (Ireland) for analysis by 19-element Aqua-Regia oregrade ICP-ORE assay and Fire assay/AA for gold. QA/QC procedures were designed under the guidance of Mike O'Neill B.Sc, P.Geo, EurGeol, (Independent qualified Person) included the submission of systematic duplicates, blanks and both low-grade and high-grade standard samples within the sample batches submitted to Omac Laboratories (Primary lab), in conjunction with systematic check assay in external laboratory (10 per cent of all samples were submitted to ALS Chemex, in Vancouver, for an external laboratory check assay). The results of the QA/QC program have been reviewed recently (January 2006) by SRK Consulting.

2. This drill program has confirmed the continuity (on approximate 100 metre spacing) of the massive sulphide mineralisation in the Western Extension to the west of the Aguas Tenidas Main Deposit. The SRK Consulting feasibility study, dated January 18th 2006, set out the mineral reserves for the Aguas Tenidas Main Deposit, which were announced in a PGM press released dated January 20th, 2006, and which are restated below.

Mineral Reserves - Aguas Tenidas Main Deposit



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Reserve Tonnes Copper Zinc Lead Silver Gold
Category (millions) (%) (%) (%) (g/t) (g/t)
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Polymetallic (Zinc)
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Proven 5.49 0.7 6.4 1.9 56.6 0.9
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Probable 5.43 1.2 7.7 2.4 78.2 0.8
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Total: 10.92 1.0 7.1 2.1 67.4 0.8
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Cupriferous (Copper)
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Proven 6.91 2.3 1.1 0.2 28.0 0.5
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Probable 2.73 2.7 0.4 0.1 29.0 0.5
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Total: 9.64 2.4 0.9 0.2 28.0 0.5
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Note 1: The cutoff grades used to calculate the mineral reserve above were: 6.5% Zn equivalent for the polymetallic ore and 1.7% Cu equivalent for the cupriferous ore.

Note 2: The mineral reserves were calculated after allowing for the following dilution factors: Drift & fill stopes: 10%, longhole open stopes: 5%.

Note 3: Ore densities were calculated as: HW Polymetallic 4.45t/m3, FW Polymetallic 4.66t/m3 & Cupriferous 4.50t/m3.

Note 4: SRK is unaware of any environmental, permitting or any other matter which might have an adverse effect on any of the above figures.

Note 5: The effective date of the mineral reserve estimate described above is January 18th 2006.

The Aguas Tenidas Main Deposit's mineral reserves shown above are located between sections 689900E and 691100E, an E-W distance of 1,200 metres. The furthest west drill hole completed to date, which has intersected massive sulphides, is ATW-9, located on section 688825E, 1,075 metres west of section 689900E. The known length of the Aguas Tenidas mineralised systems is 2,275 metres.

3. The final two holes (ATW-6 D1 & ATW-10 D1) in the recently completed surface drill program both intersected massive sulphide mineralisation. Drill hole ATW-6 D1 confirmed the continuity of copper mineralisation approximately half way between the mineral intercepts in hole ATW-7 (43 metres @ 2.4% Cu) and hole ATW-5 (24m @ 3.3% Cu) located approximately 200 metres apart. The intercepts in these holes indicate a flattening out of the massive sulphide zones to the west of the Aguas Tenidas Main Deposit. Drill hole ATW-10 D1 was located in a known faulted area and for the first time has provided confirmation that the Aguas Tenidas' Main Deposit and the Western Extension can be considered to be parts of the same E-W trending mineralised system. The Western Extension remains open to the west.

Future Plans

Management of the Company is of the view that any further drilling of the Aguas Tenidas Western Extension would be more efficient and cost effective if undertaken from underground. The next phase of drilling, is expected to consist of underground infill drilling intended to: i) improve the quantity and quality of mineral reserves within the Main Deposit, and ii) investigate the copper stockwork mineralisation underlying the massive sulphides. In addition, the Company is planning a modest 3-5 hole (1,000-1,500 metre) surface drilling program to more accurately determine the extent and final boundaries of mineralisation in the shallower easternmost parts of Aguas Tenidas.

PGM is planning a modest drill program on some of the high priority targets in the Company's other exploration licences in Spain's Northern Pyrite Belt. Included in these targets is the La Majada prospect located adjacent to the now closed Rio Tinto copper/gold mine.

About PGM

PGM's prime focus is continuing the development of its Aguas Tenidas copper/zinc project located in the Region of Andalucia, SW Spain. In January this year, a feasibility study on the project was received from SRK Consulting of Cardiff UK, which demonstrated the technical feasibility and economic viability of the project. The mine has sufficient reserves for a 13 year operating life a production rate of 1.60 million tonnes annually. PGM has also signed a long term offtake agreement with Trafigura Beheer AG for the sale of all its metal concentrates from Aguas Tenidas. The Company is in the process of arranging the financing required for the US$168.2 million project through a combination of project bank debt, subordinated debt, and equity. Construction is expected to begin in third quarter 2006, with initial commercial production of metal concentrates commencing in early 2008.

Mike Newbury, P.Eng., a director of the Company, is the Qualified Person who has reviewed the technical information in this news release on behalf of the Company.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements".




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

Contact Information

  • PGM Ventures Corporation
    Peter Miller
    1 (416) 815-8666
    or
    PGM Ventures Corporation
    Norm Brewster
    1 (416) 815-8666