Prize Mining Corporation

Prize Mining Corporation

April 03, 2007 14:00 ET

Prize Purchases Knelson Gravity Processing Plant

CALGARY, ALBERTA--(CCNMatthews - April 3, 2007) - Prize Mining Corporation (TSX VENTURE:PRZ) is pleased to announce it has commissioned Knelson Gravity Solutions to build a 3-cycle processing plant for the bulk sampling (trial mining) program to be conducted on the Yellowjacket Zone of Prize Mining's Atlin Gold Property in northwestern British Columbia. Along with the processing plant, Prize Mining has also purchased a Cedarapids two trailer jaw/rolls 50 tonne per hour crushing unit and has leased a 7' x 8' Allis Chalmers Ball Mill and an 800kw generator. The equipment is all being mobilized to site for anticipated crushing and processing. This work is expected to start in mid-June once the excavation and sample extraction from the micro pit has been completed.

The state-of-the-art plant will utilize three Knelson concentrators of different diameters to produce a high-grade gold concentrate. The final concentrate will be separated using a Gemini 20 table. The plant will process 12 tonnes per hour and will operate 24 hours per day during the processing stage. The extraction, crushing and processing of the entire 10,000 tonne bulk sample is anticipated to be completed by late September 2007.

The 10,000 tonne bulk sample will consist of forty 250 tonne blocks of varying gold grades, which will each be processed independently in order to compare surface and drill samples with the gold values obtained from the larger blocks. The primary purpose for extracting and processing the bulk sample in this manner is to assist Prize Mining in mitigating gold assay variabilities associated with the "nugget effect" of the coarse gold mineralization found in the Yellowjacket Zone. This program will lead to a better understanding of the gold distribution and grades throughout the zone and will assist in future development planning and assist in the calculation of a NI43-101 compliant resource estimate.

Metallurgical tests indicate that the Knelson processing plant will be able to gravity separate approximately 70% of the gold. An extensive head grade and tail sampling program will be ongoing throughout the processing period, allowing calculation of the actual recoveries and true gold grades of the sample blocks. Protocols for the head and tails sampling programme have been devised by Dr. Simon Dominy of Snowden using Gy Sampling Theory. The proposed protocols have been optimized to ensure minimum sampling errors. The tailings will be retained for future gold extraction if economics designate.

"The decision by Prize Mining to acquire the Knelson Gravity Processing Plant, rather than lease, is an indication of management's commitment," stated Feisal Somji, Chairman of Prize Mining. "We feel strongly that the Atlin Gold Property can transition from this trial mining stage into a profitable mining operation and that the ability to amortize our capex costs on the eventual mining operation within this first phase will give the company is a big cost advantage in moving towards our goal of becoming a mid-sized gold producer in the near future."

Ms. Linda Dandy, P.Geo. is the project supervisor and is the "Qualified Person" for the purposes of National Instrument 43-101 and has reviewed and verified the geological contents of this release.

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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