Probe Mines Limited

Probe Mines Limited

July 31, 2012 08:00 ET

Probe Mines Announces Additional Assay Results for its Borden Lake Gold Project, Continued Expansion of Gold Mineralized Zones; Goldex Royalty Update

TORONTO, ONTARIO--(Marketwire - July 31, 2012) - Probe Mines Limited (TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce that it has received further assays from its ongoing drilling program at the Company's Borden Lake Gold Project near Chapleau, Ontario. Results for diamond drill holes BL12-197 to BL12-226 were received and continue to expand the Borden Lake gold zone to depth and confirm its continuity through infill drilling. Twenty of the thirty new holes represent expansion drilling of the gold mineralization. A new series of holes are also being drilled to identify possible parallel mineralized zones, near surface, above the main mineralized zone, commonly referred to as the "Hanging Wall" side. These Hanging Wall holes were designed to delineate and expand other shallow gold zones in the potential open pit area. The remaining 10 holes were drilled on infill sections, and were successful in confirming the continuity of the main mineralized horizon.

Deeper expansion drilling on the main mineralized zone suggests that, although narrowing somewhat, gold grades are generally improving, with many intervals returning gold averages greater than 1 g/t gold ("Au"). This indicates that the higher-grade gold zone is persisting to depth. Hole BL12-226 returned a thick intersection of 46.9 metres averaging 1.4 g/t Au, including 19 metres of 2.4 g/t Au, representing new mineralization which is at or above the grades identified in the higher-grade core of the recently updated gold Resource Estimate (see release dated April 2, 2012). In addition, Hole BL12-209 intersected a significant 19 metre interval averaging 4.4 g/t Au, approximately three times the average grade of the Borden Lake higher-grade gold resource. These two intervals are separated by approximately 1,600 metres of strike length, suggesting that the higher-grade mineralization is laterally extensive at depth, similar to that observed in shallower sections. Highlights also include: 61.4 metres averaging 1 g/t Au in Hole BL12-208; and 36 metres grading 1.7 g/t Au in Hole BL12-198.

Although the Hanging Wall drilling program has just started, it has already been successful in delineating other potential gold zones parallel to the main mineralized horizon. The majority of the holes have intersected gold-bearing intervals above the main zone. The intervals are typically narrow, but can contain above average grades and may potentially be added to future Resource Estimates if their continuity is confirmed. Continued drilling on this program will be required to more thoroughly evaluate the presence of other potential gold mineralization in the Hanging Wall area. Highlights include 5.8 metres averaging 1.2 g/t Au in Hole BL12-225 and 7.7 metres of 1 g/t Au in Hole BL12-218.

The following tables show selected results from Depth Extension, Hanging Wall and Infill drilling programs. For the majority of holes, drill width approximates true width. For holes BL12-198, -200, -204, -205, -209, -211, -213, -216 and -222 true width is approximately 85% of drilled width. The drilling program is currently on Hole BL12-256, and final assay results are pending. The Company is well financed to continue drilling at its current pace until 2014.

Updated plan and section maps are available on the Company's website at

Depth Extension Drilling
DDH Section From
To (m) Width (m) Au (g/t)
BL12-198 700m SE 311.0 347.0 36.0 1.7
including 339.0 341.0 2.0 21.1
BL12-198 362.0 392.0 30.0 0.7
including 363.0 370.0 7.0 1.0
BL12-207 200m NW NSA*
BL12-208 900m SE 315.6 377.0 61.4 1
including 323.0 329.0 6.0 1.6
also including 345.2 377.0 31.8 1.3
BL12-210 900m SE 292.9 298.0 5.1 1.6
BL12-210 311.3 371.0 59.7 1
including 328.0 340.0 12.0 2.1
BL12-211 900m SE 319.0 327.0 8.0 0.8
BL12-211 350.0 398.5 48.5 1
including 357.0 359.0 2.0 4.7
BL12-213 200m NW 139.0 146.0 7.0 0.8
BL12-213 376.0 396.0 20.0 1.9
including 380.4 386.0 5.6 2.4
also including 390.9 394.7 3.8 3.8
BL12-213 554.0 569.7 15.7 0.5
BL12-215 1000m SE 321.4 355.4 34.0 1.3
including 337.3 345.0 7.7 2.5
BL12-219 1000m SE 301.0 308.0 7.0 0.9
BL12-219 320.0 353.0 33.0 1.2
BL12-221 300m NW 433.5 436.5 3.0 2
BL12-222 1000m SE 293.0 303.7 10.7 0.8
BL12-222 311.0 313.0 2.0 1.5
BL12-222 321.0 374.0 53.0 0.9
BL12-226 1100m SE 315.1 362 46.9 1.4
including 330.0 349.0 19.0 2.4
*NSA - no significant assays
Hanging Wall Drilling
DDH Section From
To (m) Width (m) Au
BL12-212 800 NW 198.0 203.0 5.0 0.8
BL12-212 235.3 281.8 46.5 0.8
including 246.1 270.0 23.9 1.2
including 257.8 264.0 6.2 2.1
BL12-214 800 NW 158.0 179.0 21.0 0.6
including 158.8 161.0 2.2 1.3
BL12-216 800 NW NSA
BL12-217 700 NW 122.0 127.1 5.1 1
BL12-217 132.0 142.0 10.0 0.6
BL12-218 700 NW 188.3 196.0 7.7 1
BL12-218 243.2 248.0 4.8 1.1
BL12-218 255.0 278.0 23.0 0.6
including 256.0 259.0 3.0 1.3
BL12-220 700 NW NSA
BL12-223 700 NW NSA
BL12-224 600 NW 103.0 105.0 2.0 1.1
BL12-225 600 NW 122.2 128.0 5.8 1.2
BL12-225 145.2 154.0 8.8 0.7
*NSA - no significant assays
Infill Drilling
DDH Section From
To (m) Width (m) Au
BL12-197 650 NW 149.8 158.2 8.4 1.7
BL12-197 171.0 197 26.0 0.5
including 183.0 189 6.0 1.4
BL12-197 214.0 228 14.0 1.3
including 225.0 228 3.0 3.1
BL12-197 266.2 281 14.8 0.5
BL12-197 324.0 325 1.0 13.7
BL12-197 342.0 348.0 6.0 0.8
BL12-199 150m NW 468.0 472.0 4.0 0.7
BL12-200 650 NW 93.0 108.0 15.0 0.4
BL12-200 367.0 379.0 12.0 0.5
BL12-200 400.0 418.0 18.0 0.9
including 413.0 418.0 5.0 1.6
BL12-201 650m SE 219.3 244.0 24.7 0.6
BL12-201 279.0 294.0 15.0 1.2
BL12-202 650m SE 241.6 313.0 71.4 1.1
including 268.0 286.0 18.0 2
including 279.0 284.5 5.5 3.2
BL12-203 550 NW 180.3 191.6 11.3 0.7
BL12-203 278.0 303.0 25.0 0.7
BL12-204 150m NW 492.0 499.0 7.0 0.6
BL12-205 650m SE 233.0 253.5 20.5 1
BL12-205 269.0 339.0 70.0 1.3
including 289.0 318.6 29.6 2.4
including 295.0 299.0 4.0 9.9
BL12-206 550 NW 138.2 140.0 1.8 1.2
BL12-206 310.2 363.0 52.8 0.5
BL12-209 550 NW 197.6 212.0 14.4 0.9
BL12-209 251.0 270.0 19.0 4.4
including 264.0 268.6 4.6 13
BL12-209 284.0 288.9 4.9 1.3

Goldex Royalty Update

On July 25, 2012 Agnico-Eagle Mines Ltd. announced that its Board has approved the development of the M and E Zones of the Goldex Mine in Val d'Or, Quebec, with the first gold production beginning in 2014. Based on a Preliminary Economic Assessment, the operations are expected to produce 300,000 ounces of gold over a 4-year mine life. The cash flow generated from the operations is expected to help fund further exploration and development around the mine site, including the D Zone.

This announcement could have a potential positive impact on Probe, as the Company holds a 5% net smelter royalty ("NSR") on a portion of the Goldex mine site, which includes 100% coverage of the M Zone deposit currently slated for production. The royalty area may also include extensions to other deposits, such as the D Zone, where further exploration is planned.

The M Zone currently contains a reported Indicated Resource (underground) of approximately 257,000 ounces Au, and a reported Inferred Resource (underground) of approximately 56,000 ounces Au.

The Company will keep Shareholders apprised of any updates to planned development and production at Goldex.

Dr. David Palmer, President and CEO of Probe, states "We are very pleased with the continuing results coming out of our Borden Lake gold project and the recent developments with Goldex. Probe has a portfolio of high-quality assets, each with the potential to add considerable value to the Company. Hopefully this recent news will serve to alert investors to not only the progress we are making at Borden, but also the potential value of other assets like Goldex and our Black Creek chromite deposit, a strategic asset located next to Cliffs Natural Resources proposed chromite development project in the Ring of Fire. The Board and Management of Probe will continue to work diligently on Shareholders' behalf to realize the maximum value on all of our projects".

Probe has instituted a strict quality assurance and quality control ("QA-QC") program for the Borden Lake drill core sampling, with each fire assay furnace batch of 40 samples including two certified reference materials (standards), one blank sample and one core duplicate sample. Quality control guidelines and ongoing QAQC monitoring are being carried out by Probe personnel.

About Probe Mines:

Probe Mines Limited is a well financed, Canadian base and precious metal exploration company with approximately $31MM in treasury and a portfolio of highly prospective mineral properties. The Company is actively exploring a significant new gold resource on its Borden Lake project near Chapleau, Ontario and owns 875 claims covering approximately 14,000 hectares in the McFauld's Lake area, including a 100% interest in the Black Creek chromite deposit. Probe also maintains a 5% net smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val d'Or, Quebec and a 45% interest in a joint venture property with Lake Shore Gold Corp, which surrounds Lake Shore's Timmins Mine project. The Company's shares trade on the TSX Venture Exchange under the symbol PRB.

David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Probe Mines Limited, visit our website at

Forward-Looking Statements

This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Shares Issued: 65,021,533

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Probe Mines Limited
    David Palmer
    (416) 777-6703

    Probe Mines Limited
    Karen Willoughby
    Investor Relations
    (866) 936-6766