Prize Mining Corporation

Prize Mining Corporation

March 27, 2007 12:12 ET

Prize Mining's Joint Venture Partner Prepares Major Drill Program for Nickel-Copper-Platinum Group Metals, Muskox, Nunavut

CALGARY, ALBERTA--(CCNMatthews - March 27, 2007) - Prize Mining Corporation ("Prize Mining") (TSX VENTURE:PRZ) is pleased to announce that the company's joint venture partner, Silvermet Inc., has initiated mobilization of fuel and supplies for a major drilling program on its nickel-copper-platinum-group metal (PGM) Muskox project, located in Nunavut. Initial drilling will focus on the Pyrrhotite Lake and Valley Lake areas, where coincident Ni-Cu-PGM soil targets were identified by a large-scale soil geochemical survey completed by Silvermet in 2006. A number of other geochemical targets are currently being interpreted that will likely also be drilled during the 2007 season.

Drilling is scheduled to commence in mid-May 2007, with a planned 8,000- to 10,000-metre program to be completed prior to October of 2007.

The mineral claims optioned under the joint venture cover an area of approximately 200 square kilometres along a 60-kilometre strike length of the southern portion of the Muskox intrusion, which is one of the world's largest layered ultramafic complexes. The marginal zones and feeder dike contain semi-massive and massive sulphide mineralization strikingly similar to that found in the Norilsk mining district in Russia, whereas the Muskox layered sequence contains stratiform PGM mineralization similar to that of the Merensky Reef and UG2 chromitite horizons in the Bushveld complex in South Africa. The Silvermet optioned land claims were assembled by Prize Mining Corp. between 1994 and 2001. The claims are centred approximately 90 kilometres south of the village of Kugluktuk (Coppermine), Nunavut.

Silvermet's agreement with Prize Mining permits it to earn a 70-percent interest in the claims by incurring not less than $10-million expenditure by Dec. 7, 2010, of which $4-million must be spent by June 30, 2008. To date, Silvermet has spent approximately $1.1-million on Muskox and has in hand sufficient flow-through financing to initiate its proposed drill program this April.

Pyrrhotite Lake area

Previous drilling in the Pyrrhotite Lake area outlined a small lens of massive sulphides with an average grade of 1.2 percent nickel and 2.6 percent copper along the east side of the marginal zone of the intrusion. Two recent Prize Mining drill holes intersected 4.7 percent nickel, 10.6 percent copper, 2.2 grams per tonne platinum and 11.1 grams per tonne palladium over 5.4 metres, and 3.22 per cent nickel, 7.52 percent copper, 2.2 grams per tonne platinum and 17.5 grams per tonne palladium over 5.5 metres. No National Instrument 43-101 resource estimates have been completed.

This sulphide lens is located on the south end of a large Ni-Cu-PGM soil geochemical anomaly that covers an area of 5.7 square kilometres along a 4.8-kilometre strike length, parallel to the east margin of the Muskox intrusive. Silvermet intends to complete 10 to 15 drill holes to provide an initial evaluation of this trend during the 2007 program.

Valley Lake area

In the Valley Lake area there is a large Ni-Cu-PGM soil geochemical anomaly that covers an area of 8.5 square kilometres along a 4.5-kilometre strike length of the intrusion. The highest anomalous values are near the east and west margins of the intrusion; however, the anomalies extend from each margin down-dip toward the centre or keel area of the intrusion, outlining a target trend that is continuous across the full width of the intrusion along a strike length of 4.5 kilometres. Silvermet intends to complete 10 to 15 drill holes to provide an initial evaluation of this trend during the 2007 program.

About Prize Mining

Prize Mining Corporation (TSX VENTURE:PRZ) is a company dedicated to the exploration, discovery and development of precious metal deposits. The company is exploring for Gold in the Atlin area of British Columbia, Canada and its Nickel-Copper-Palladium and Platinum project on the Muskox Layered Intrusion in Nunavut, Arctic Canada.


Harry McGucken, President and CEO

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

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