Prize Mining Corporation
TSX VENTURE : PRZ

Prize Mining Corporation

May 14, 2008 09:00 ET

Prize Resumes Work on Yellowjacket Zone, Atlin Gold Property, BC

10,000 Tonne Bulk Sample From High Grade Gold Zone to Be Processed

CALGARY, ALBERTA--(Marketwire - May 14, 2008) - Prize Mining Corporation ("Prize") (TSX VENTURE:PRZ) is pleased to announce that it is resuming the Yellowjacket Zone bulk sampling (trial mining) program on its Atlin Gold Property, located in northwestern British Columbia. The project review below summarizes the results of exploration programs completed to date on the Yellowjacket Zone, followed by a description of the 2008 current work program now underway.

PROJECT REVIEW

Prize optioned the Atlin Gold Property in 2003 after researching prior exploration work conducted by Homestake Mineral Development Company ("Homestake") in the 1980s. Homestake diamond drilled 41 holes into the Yellowjacket Zone of the Atlin Gold Property, over a 230 metre strike length and to depths of 115 metres, discovering high grade gold mineralization (see Table I below). Homestake, based upon their limited drilling, defined a historical resource estimate for the Yellowjacket Zone of 453,500 tons averaging 10.26 g/t gold. This historical resource calculation, which pre-dates NI 43-101 standards, was completed by Homestake in 2000 and published by T.G. Schroeter and R.H. Pinsent, 2000; Gold Production and Resources in British Columbia (1858-1998): British Columbia Ministry of Energy and Mines Open File 2000-2. The mineral resource is believed relevant but should not be relied upon until verified. The historical estimate does not use mineral resource categories as stipulated in NI 43-101.



TABLE I
HOMESTAKE'S 1986-88 DIAMOND DRILL RESULTS
YELLOWJACKET ZONE SIGNIFICANT GOLD INTERSECTIONS
----------------------------------------------------------
HOLE # FROM (m) TO (m) WIDTH (m) GOLD (g/t)
----------------------------------------------------------
YJ86-6 85.34 88.39 3.05 17.93
----------------------------------------------------------
and 108.81 111.86 3.05 4.70
----------------------------------------------------------
YJ86-7 41.61 44.50 2.90 7.78
----------------------------------------------------------
YJ86-9 50.75 54.10 3.35 10.73
----------------------------------------------------------
and 61.26 62.79 1.52 7.20
----------------------------------------------------------
YJ87-20 26.00 29.00 3.00 7.70
----------------------------------------------------------
YJ87-21 90.00 92.00 2.00 4.05
----------------------------------------------------------
YJ87-23 55.00 59.00 4.00 15.01
----------------------------------------------------------
including 55.00 57.45 2.45 24.29
----------------------------------------------------------
and 63.00 64.00 1.00 16.99
----------------------------------------------------------
and 126.50 127.00 0.50 18.82
----------------------------------------------------------
YJ88-36 95.00 98.00 3.00 11.08
----------------------------------------------------------
including 95.00 96.00 1.00 32.19
----------------------------------------------------------
YJ88-37 97.00 99.00 2.00 4.07
----------------------------------------------------------
YJ88-43 69.49 71.50 2.01 4.01
----------------------------------------------------------
and 114.00 115.00 1.00 5.73
----------------------------------------------------------
YJ88-47 113.00 114.00 1.00 4.32
----------------------------------------------------------
YJ88-55 20.00 22.00 2.00 6.79
----------------------------------------------------------
and 87.00 90.00 3.00 5.27
----------------------------------------------------------
including 89.00 90.00 1.00 12.10
----------------------------------------------------------
YJ88-56 82.00 83.00 1.00 4.90
----------------------------------------------------------
YJ88-57 40.00 41.00 1.00 4.53
----------------------------------------------------------
and 92.00 104.00 12.00 8.06
----------------------------------------------------------
including 94.00 95.00 1.00 15.84
----------------------------------------------------------
including 95.00 96.00 1.00 12.14
----------------------------------------------------------
including 96.00 97.00 1.00 37.31
----------------------------------------------------------
including 101.00 103.00 2.00 10.94
----------------------------------------------------------
and 108.00 114.00 6.00 5.58
----------------------------------------------------------
including 108.00 110.00 2.00 15.67
----------------------------------------------------------


From 2003 to 2006, Prize diamond drilled 57 holes on the Yellowjacket Zone of the Atlin Gold Property over a strike length of 350 metres and to depths up to 140 metres. Prior to drilling, Prize re-plotted and re-interpreted the Homestake results and identified previously unknown structural controls for the high-grade gold mineralization. This new geological interpretation led Prize to intersect some very spectacular high grade gold mineralized shoots in their diamond drilling program. Table II below highlights the high-grade gold intercepts from the Prize drilling. Prize's gold values are often much greater than those previously reported by Homestake due to: 1) changing drill hole orientations to intersect the re-interpreted structurals controlling the high grade gold shoots; 2) narrower sampling widths; and 3) using metallics gold assaying techniques for better grade control when coarse gold grains are present.



TABLE II
PRIZE'S 2003-2006 DIAMOND DRILL RESULTS
YELLOWJACKET ZONE SIGNIFICANT GOLD INTERSECTIONS
----------------------------------------------------------
HOLE # FROM (m) TO (m) WIDTH (m) GOLD (g/t)
----------------------------------------------------------
YJ03-01 13.95 19.51 5.56 513.50
----------------------------------------------------------
and 21.96 22.87 0.91 21.06
----------------------------------------------------------
and 25.00 26.52 1.52 40.42
----------------------------------------------------------
and 35.97 39.02 3.05 34.81
----------------------------------------------------------
and 42.99 44.21 1.22 57.88
----------------------------------------------------------
YJ03-02 50.30 50.91 0.61 16.28
----------------------------------------------------------
YJ04-01 92.50 93.00 0.50 128.15
----------------------------------------------------------
YJ04-07 38.66 37.16 0.50 24.61
----------------------------------------------------------
and 48.85 54.45 6.10 40.10
----------------------------------------------------------
including 53.40 53.71 0.31 588.87
----------------------------------------------------------
including 53.95 54.45 0.50 98.85
----------------------------------------------------------
YJ04-17 33.10 33.60 0.50 19.41
----------------------------------------------------------
YJ04-20 140.00 141.00 1.00 142.40
----------------------------------------------------------
YJ04-22 31.50 32.00 0.50 16.19
----------------------------------------------------------
and 106.80 107.30 0.50 156.95
----------------------------------------------------------
YJ04-27 68.85 69.35 0.50 22.43
----------------------------------------------------------
YJ04-29 68.00 68.50 0.50 119.62
----------------------------------------------------------
YJ04-33 57.50 58.00 0.50 20.04
----------------------------------------------------------
and 80.65 81.15 0.50 16.76
----------------------------------------------------------
and 91.80 92.30 0.50 31.30
----------------------------------------------------------
YJ04-35 106.70 107.40 0.70 47.24
----------------------------------------------------------
and 107.40 108.00 0.60 15.80
----------------------------------------------------------
and 108.00 108.80 0.80 21.17
----------------------------------------------------------
YJ04-36 87.00 87.50 0.50 31.70
----------------------------------------------------------
YJ04-37 109.50 110.00 0.50 23.11
----------------------------------------------------------
YJ05-42 65.40 66.60 1.20 15.20
----------------------------------------------------------
YJ06-46 89.50 90.22 0.72 18.12
----------------------------------------------------------
TW05-01 12.20 12.90 0.70 29.78
----------------------------------------------------------
TW05-02 10.67 12.79 2.62 853.29
----------------------------------------------------------
including 10.67 11.58 0.91 2397.59
----------------------------------------------------------
including 11.58 12.19 0.61 74.51
----------------------------------------------------------
and 20.05 41.50 21.45 11.49
----------------------------------------------------------
including 24.00 25.29 1.29 26.80
----------------------------------------------------------
including 26.82 27.28 0.46 28.22
----------------------------------------------------------
including 31.00 31.50 0.50 129.00
----------------------------------------------------------
including 34.50 35.50 1.00 16.13
----------------------------------------------------------
including 37.50 38.50 1.00 86.83
----------------------------------------------------------


These extremely high-grade gold values underlie one of the richest placer gold channels in the Atlin region, and it is likely that the up dip projection of these gold intercepts are responsible for a portion of the spectacular gold nuggets placer mined nearby.

During the course of the diamond drilling programs, Prize also conducted airborne and ground magnetic surveys. In September 2004, an 820 line kilometre airborne survey was flown over the Atlin Gold Property, followed up by ground magnetic surveys in 2005 and 2006. The geophysical survey results over the Yellowjacket Zone showed some extremely interesting magnetic susceptibility and resistivity features, which correlate well with drilled areas containing high-grade gold mineralization. Several magnetic susceptibility features were defined by the airborne survey, and along with the Yellowjacket Zone, two additional targets (Rock of Ages and Gold Run) were followed up with detailed ground magnetic surveys. In 2008, Prize will carry out a drilling program to test the Gold Run Zone.

As a result of the very encouraging drill results obtained by Prize, in mid 2006 BGC Engineering of Vancouver, BC and Eur. Geol. Dr. Simon Dominy, C.Eng., C.Geol., Principal Geological Engineer and General Manager of Snowden Mining Industry Consultants Ltd (UK) were contracted to assist Prize in planning and implementation of a bulk sampling program on the Yellowjacket Zone. The bulk sampling program is designed to mitigate the erratic nature of the very coarse-grained and "nuggety" high grade gold concentrations found in the Yellowjacket Zone in order to produce a new 43-101 compliant resource estimate. Dr. Dominy brings a wealth of knowledge to the project with his extensive global experience in the field of coarse gold ("high nugget effect") deposit evaluation and exploitation along with practical experience in the planning and expiation of surface and underground bulk sampling/trial mining programs.

The bulk sampling program consists of extraction and processing of 10,000 tonnes of bedrock material excavated from a surface pit. The bedrock has been excavated in 250 tonne blocks and each block will be processed individually in order to better mitigate grade control issues that commonly occur in these very high grade coarse-grained nuggety gold deposits.

In order to excavate the surface pit prior to collecting the bulk sample blocks, Pine Creek, which flows through the pit area was diverted to the other side of the disturbed placer mining channel. Once the creek diversion was completed, an average of 10 metres of overburden was stripped to expose the top of the bedrock surface. During stripping the overburden-bedrock interface material was stockpiled separately and later sluiced by Prize returning 206.9 ounces (6434.6 grams) of gold.

The exposed bedrock surface, measuring 40 x 70 metres was cleaned, mapped and channel sampled at 2 metre intervals. During the course of mapping and sampling, visible gold mineralization was observed in 3 different rock units. As anticipated, high grade gold assay values were returned from the channel sampling correlating to mapped structural and lithologic controls (see Table III below for select channel sample gold assay values). The central portion of the pit area, which hosts the main Pine Creek fault (assumed to be the strongest control for gold mineralization), showed very high grade gold in channel samples. Interestingly, both ends of the pit area also returned some very good gold assay values. Again, the assay results exhibited a characteristic coarse gold "nuggety" signature. The two metre long samples from the pit area range in gold grades from trace to 329.83 g/t. The nuggety nature of the high grade gold mineralization is illustrated, not only by the grade variability (heterogeneity) but also by the large amount of gold found in the coarse (+150 mesh) fraction by metallics screening prior to assaying.



TABLE III
YELLOWJACKET ZONE BULK SAMPLE PIT
2 METRE BEDROCK CHANNEL SAMPLE RESULTS

CENTRAL AREA
--------------------------------------------------------------------------
SAMPLE # TOTAL GOLD g/t GOLD g/t (+150 MESH) GOLD g/t (-150 MESH)
--------------------------------------------------------------------------
350943 4.99 13.43 1.71
--------------------------------------------------------------------------
350979 5.45 1.72 5.01
--------------------------------------------------------------------------
350980 4.61 2.78 3.91
--------------------------------------------------------------------------
350981 23.31 2.21 22.73
--------------------------------------------------------------------------
350999 15.07 20.73 10.01
--------------------------------------------------------------------------
351000 195.32 38.69 185.40
--------------------------------------------------------------------------
351104 36.00 94.84 12.52
--------------------------------------------------------------------------
351139 4.40 9.65 1.63
--------------------------------------------------------------------------
351160 5.43 1.75 4.99
--------------------------------------------------------------------------
351161 311.27 443.18 201.30
--------------------------------------------------------------------------
351208 4.15 7.91 2.22
--------------------------------------------------------------------------
351307 4.07 11.68 1.04
--------------------------------------------------------------------------
WEST END
--------------------------------------------------------------------------
350785 90.61 179.91 45.29
--------------------------------------------------------------------------
EAST END
--------------------------------------------------------------------------
351365 39.58 49.36 26.92
--------------------------------------------------------------------------
351555 6.16 11.26 3.34
--------------------------------------------------------------------------
351556 10.01 10.54 7.37
--------------------------------------------------------------------------
351576 31.75 58.65 17.09
--------------------------------------------------------------------------
- Note: The table above shows the +150 (coarse gold fraction) and the -150
(fine gold fraction) assay values as returned from ACME Laboratory Ltd.
Total gold content is obtained by weighted averaging of the coarse and
fine fraction gold contents.


In July 2007, once the channel sample results were compiled, bedrock block excavation began. A total of 72 bedrock blocks of 250 tonnes each were extracted to a depth of 7.5 metres. Each block was stockpiled individually for individual processing and gold extraction.

After metallurgical testing by G&T Metallurgical Services of Kamloops, BC, a state-of-the-art gravity processing plant was developed for Prize by Knelson Gravity Solutions of Langley, BC. The processing plant utilizes three circuits containing Knelson concentrators of different diameters designed to produce a high-grade gold concentrate. Along with the processing plant, Prize purchased a Cedar Rapids crushing unit and leased a 7'x8' Allis Chalmers Ball Mill and 1000 Kw generator. The plant design is optimized for processing 250 tonnes of rock per 24 hour shift.

During the initial testing and commissioning of the plant in late 2007, it became apparent that the jaw-roller crushing unit was not working optimally with the soft talc-clay rich bedrock material, causing blockage in the crushers. In order to control this problem, a wash/screen plant was implemented prior to the material entering the crushing unit. Bedrock material was then able to be processed, however at a much reduced rate than original plant design intended. Therefore due to both time and cost inefficiencies the process plant was shut down in November 2007 for re-modelling. The processing was suspended entirely due to crushing inefficiencies, not due to milling, metallurigical, mineralogical or grade control issues.

Additional details and information regarding past work conducted on Prize's Atlin Property is set out in past news releases issued and technical reports published by Prize, all of which are available on SEDAR at www.sedar.com.

2008 WORK PROGRAM

During the winter 2007-2008 Prize continued test work to upgrade the efficiency of the processing plant. Studies were conducted by SGS Mineral Services Ltd. of Lakefield, ON and by Process Research Ortech Inc. of Oakville, ON. Laboratory studies, including bench and pilot scale tests, concluded that utilization of a semi-autogenous grinding ("SAG") mill rather than the previously used jaw-roller crushing unit will allow Prize to complete the processing of its 10,000 tonne bulk sample in a time and cost efficient manner.

Prize has purchased a SAG mill which is currently being re-engineered and modified to meet specifications required to insert this equipment into the existing Knelson designed processing circuit. The new equipment is expected on site by late June with plant re-commissioning scheduled for early July. Bulk sample processing will be completed by mid-September with final gold concentrates and assay results anticipated shortly afterwards.

Upon receipt of final gold values, Dr. Simon Dominy will review the data in order to produce a 43-101 compliant resource estimate for the Yellowjacket Zone, along with recommendations for the next step in the development of this resource. Prize's processing plant has been designed to work not only for bulk sample processing but also to be readily converted into a 250 tonne per day mill to be utilized in a full mining program.

Prize has all permits in place for processing of the bulk sample, and engineers and supervisors for this program have been retained. Currently the process plant site is being modified for insertion of the SAG mill unit.

QUALITY ASSURANCE/QUALITY CONTROL (QA/QC)

Prize follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to ACME Laboratory Ltd. for analyses. As well, Prize has instructed ACME to increase their internal standard and re-assay protocols for this project.

Ms. Linda Dandy, P.Geo., the project supervisor of Prize's trial mining program on the Yellowjacket Zone of the Atlin Gold Property, is Prize's nominated Qualified Person responsible for monitoring the supervision and quality control of the programs completed within the Atlin Gold Property. Ms. Dandy has reviewed and verified the technical information contained in this news release.

This news release contains forward-looking information including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations and potential mineral recovery processes. Forward-looking information includes disclosure regarding possible future events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. When used in this news release the words "estimated", "plan", "anticipated", "expected", "intend", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Prize to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. For any forward-looking information given, management has assumed that the analytical results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Although management has a reasonable basis for the conclusions drawn, there can be no assurance that forward-looking statements will prove to be accurate and actual results may differ materially from those currently anticipated in such statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise. Prize undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

ON BEHALF OF THE BOARD OF PRIZE MINING CORPORATION

Harry McGucken, President and CEO

Prize Mining Corporation is a Tier One Company listed on the TSX Venture Exchange (symbol: PRZ-V). 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.

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

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