Fortress Minerals Corp.
TSX VENTURE : FST

Fortress Minerals Corp.

March 23, 2006 13:32 ET

Phelps Dodge to Invest US $1.3 Million into Fortress and Exercises Option Over Teltiin Gol Project in Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2006) - Fortress Minerals Corp. ("Fortress" or "the Company") (TSX VENTURE:FST) is pleased to announce that Phelps Dodge Exploration Corporation ("PDEC") will, pursuant to a strategic alliance agreement, invest US $1.3 million into Fortress by way of a private placement of 766,776 common shares of the Company at a price of Cdn $1.97 per share. The private placement is subject to regulatory approval. Net proceeds of the private placement will be used towards its ongoing exploration programs in Mongolia. Under the strategic alliance agreement, PDEC has the right to earn 70% of any identified project area in Mongolia selected by PDEC after 2,000 metres of drilling by Fortress, by funding continued exploration and development on any identified project area through to the end of feasibility. PDEC has provided notice to the Company that it will exercise its right to earn a 70% interest in the Teltiin Gol copper/gold project in Mongolia.

Results have been received from three reconnaissance drill holes (FTG-006, FTG-007, and FTG-008) completed at Teltiin Gol. This brings the total metres drilled within the 6 square kilometre project area to 2,000 metres. Hole FTG-008 was drilled into a buried geophysical anomaly lying 1,200 metres southeast of surface exposures containing gold and copper mineralization investigated in 2004 and 2005.

Drill hole FTG-008 intercepted anomalous copper mineralization throughout its 325 metre length. Significant intercepts include:



Teltiin Gol Phase 2 Drill Program

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Intercept Grade
Hole ID Depth Length (m) % Copper
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FTG-008 86 - 180 metres 94 0.12%
and 214 - 302 metres 88 0.13%
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Holes FTG-007 and FTG-008 were emplaced into a covered, or blind, geophysical target characterized by an induced polarization (IP) anomaly approximately 1.3 square kilometres in size occurring south and east of holes FTG-001 through FTG-006. The geophysical target was the third conceptual target tested during reconnaissance drilling within the project last year. The discovery of copper mineralization over such significant widths within the blind target is considered a very positive development. A drill has arrived on-site with follow-up drilling scheduled to begin immediately in an effort to further define the extent and grade of mineralization associated with the geophysical anomaly.

Mr. Thomas Bowens, M.Sc., P.Geo., Vice President of Exploration and a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information contained in this news release. Samples were prepared and analyzed by Analabs Laboratories (a Division of SGS) in Ulaanbaatar. Mongolia. True widths are not accurately known at this time; in some cases they may be less than the core lengths reported.

ON BEHALF OF THE BOARD

Ron F. Hochstein, President

This News Release contains forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of its properties, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described in the Company's periodic filings with the British Columbia Securities Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.

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

Contact Information

  • Fortress Minerals Corp.
    Sophia Shane
    Corporate Development
    (604) 689-7842