Probe Mines Limited
TSX VENTURE : PRB

Probe Mines Limited

May 20, 2009 08:00 ET

Probe Mines Enters Into Joint Venture Agreement With Noront Resources in McFauld's Lake Area

TORONTO, ONTARIO--(Marketwire - May 20, 2009) - The Directors of PROBE MINES LIMITED (TSX VENTURE:PRB) ('Probe') are pleased to announce that a Joint Venture agreement (the "Agreement") has been signed between the Company and Noront Resources Ltd (TSX VENTURE:NOT) ('Noront'), comprising 87 claim units located in the "Ring of Fire" area of McFauld's Lake, Northern Ontario. The claim units, comprising 4 individual blocks of Probe's claims, fall along the interpreted ultramafic horizon in the area of the Eagle One nickel-copper discovery (see map at www.probemines.com). The Joint Venture does not include claims belonging to the Company's Tamarack or Victory properties, and excludes recently staked claims immediately north of the discovery area. The terms of the agreement will see the immediate formation of a 50-50 Joint Venture between Probe and Noront, under which Probe will act as operator for the first two years, and alternate operatorship every two years thereafter, as long as equal ownership is maintained. If one company acquires more than 50% of the joint venture, full operatorship will be transferred to the larger property interest. A technical committee will be formed comprising members from both companies to approve exploration programs.

Probe had an option on certain claims held by Noront in this area in 2006 (see press release of December 22, 2005) and the option was terminated by Probe in 2007 before the discovery of the Eagle One deposit by Noront. Both Probe and Noront expressed concerns about each of their respective property holdings in this area and their rights pursuant to the historical option agreement. The joint venture is viewed as the most practical arrangement to address and resolve all of these historical concerns. In addition, Probe believes the joint venture will benefit the Company, and therefore shareholders, by providing for mutual data exchange and access to Noront's significant experience and resources in the McFauld's Lake area, as well as reducing costs associated with evaluating the economic potential of these claims. To date, only 10 of the 87 claims have been subjected to drilling and, as first operator, Probe will consider commencing exploration at the earliest opportunity.

David Palmer, President and CEO of Probe, says "We are looking forward to working with Noront to advance these properties and bring added value to our shareholders. The potential for World-class deposits of nickel-copper and chromite have reaffirmed our belief that the area is one of Canada's most important exploration plays and has the potential to become Canada's newest mining camp. Noront has continually led the field in discoveries and, with their commitment to the area, we are pleased to have Noront as a partner."

Further updates regarding the joint venture property and Probe's other claims in the McFauld's area will be made available in the upcoming weeks as the Company begins preparation for field work. Probe has completed helicopter-borne geophysical surveys on all of its properties in the area and has a drill available to begin operations following Spring break-up.

McFauld's Lake

The McFauld's area continues to receive considerable attention with recent reports of high-grade chromite and PGE mineralization from Noront and Freewest Resources, in addition to continuing intersections of high-grade nickel and copper at Noront's Eagle One, Eagle Two and AT-12 discoveries. A preliminary economic assessment of the Eagle One Ni-Cu deposit reported an estimated resource (indicated) of 1,834,000 tonnes averaging 1.96% Ni, 1.18% Cu and 5.1g/t combined platinum, palladium and gold.

The discovery of chromite at McFauld's has added significantly to the area's value. The first massive chromite horizon was identified by Spider Resources in January 2006 while exploring for VMS mineralization. Noront Resources identified further chromite mineralization on its Black Bird 1 and 2 showings, while Freewest Resources returned significant intersections of massive chromite in its Black Thor and Black Label deposits. Highlights from the Freewest drilling include a 124m intersection grading 30% Cr2O3. The chromite occurrences are all located along a laterally extensive magnetic high that can be traced for approximately 20km in a northeast direction, along which many of the Probe-Noront joint venture claims occur.

About Probe Mines:

Probe Mines Limited is a Canadian base and precious metal exploration company with a portfolio of highly prospective mineral properties. The Company is currently focused on the McFauld's Lake area where it owns 931 claims covering almost 15,000 hectares. Probe currently has joint venture agreements on its Bristol Township gold project (West Timmins Mining Inc.) and Tamarack base metal project (Mantis Mineral Corp.). The Bristol Project is adjacent to the million-plus ounce gold deposit owned by Lake Shore Gold Corp., which has recently announced a positive pre-feasibility study for the project. Probe also maintains a 5% net smelter royalty on a portion of Agnico Eagle's Goldex Mine near Val d'Or, Quebec, slated for production in 2008. 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 www.probemines.com.

Forward-Looking Statements

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Probe, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially form those anticipated in such statements. Important factors that could cause actual results to differ materially from Probe's expectations are exploration risks detailed herein and from time to time in the filings made by Probe with securities regulators.

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

Contact Information

  • Probe Mines Limited
    David Palmer
    President
    (416) 777-6703
    or
    Probe Mines Limited
    Karen Willoughby
    Investor Relations
    (866) 365-4724