Radisson Mining Resources Inc.

Radisson Mining Resources Inc.

November 04, 2005 11:29 ET

Radisson Acquires Dryden Area Molybdenum Showing in Northwestern Ontario

TORONTO, ONTARIO--(CCNMatthews - Nov. 4, 2005) - Radisson Mining Resources Inc. (TSX VENTURE:RDS) is pleased to announce that the Company has acquired a newly discovered molybdenum showing from Dryden Ontario prospectors Sherridon Johnson and Kevin Prouty. The discovery is a key acquisition in an area of historical multi- metallic occurrences, and is located approximately 100 km south of Dryden, Ontario, along Highway 502.

Property acquisition was based on assay results of up to 0.328% Mo (6.56 lbs/ton) from grab samples taken during a site visit by Dale Hendrick, Director and technical consultant of Radisson. The discovery consists of two parallel veins approximately 12 metres apart, exposed in a road cut. This constitutes a new discovery, as no previous exploration for molybdenum has been reported in the immediate area.

Radisson has entered into a three-year option agreement with the prospectors for the thirty-two claim unit property. Terms of the agreement provide for a payment schedule over the next three years of $50,000 cash and the issuance of 50,000 shares of the company over the period. The agreement is subject to a 2% Net Smelter Return retained by the vendor, which can be repurchased from the vendor for the sum of $1,000,000.

The showing is associated with northeast trending quartz veins, hosted by granodiorite. Veining parallels the regional fracture direction, as well as splays off the Pipestone-Cameron Lake-Manitou fault system, which transgresses the Archean complex of mineralized multi-phase intrusives and volcanic rocks. The region has long been considered highly favorable for both precious and base metal occurrences, although the molybdenum potential appears largely neglected.

An initial prospecting program has been undertaken on the property. Sampling has returned molybdenum values of 0.150% (3.0 lbs/ton), 0.371% (7.42 lbs/ton), and 0.644% (12.88 lbs/ton). Three samples collected from a follow-up program have all returned values of greater than 0.8% Mo (16.0 lbs/ton); results from the re-analyses of these samples are pending.

Molybdenum is one of the least fashionable metals for exploration, and is becoming a scarce commodity with global metal prices currently in the $35/lb range. It is used predominantly in the steel industry as an anti-corrosive, strengthening, high temperature additive. The element/ commodity might also be called an "energy metal" in that all steel alloyed oil and gas pipelines and drill piping contain 20% Mo. The same applies for anti-corrosive stainless steel piping in nuclear power plants. Molybdenum is a non-toxic element and shows up in multi-vitamin pills and fertilizers. Industrial and urban growth in China, India, Asia and East Europe and to rebuild natural disaster areas in the world including North America will require vast supplies of molybdenum that are not in the global inventory now.

By initiating this venture, Radisson management is becoming strategically diversified it to enhance shareholder value by identifying a new commodity - molybdenum - as a valuable target. Radisson is also diversifying geographically by becoming involved in the prolific untested mineral belts of the Precambrian Shield in Western Ontario.

In other business, the company has granted one director and two consultants a total of 175,000 options to purchase Class A shares that can be exercised at a price of $0.30. The options are valid until October 31, 2010. The company will also issue 166,666 Class A shares at a price of $0.30 to one director, for payment of an accumulated debt of $50,000 for prior services.

Radisson is a Quebec-based mining exploration company. It is the sole owner or has interests in nine gold-bearing properties, with some containing base metals, located in northern Quebec. The most advanced and also the company's principal asset is the former O'Brien Mine property in Cadillac, Quebec. This mine produced near 600,000 ounces of gold from 1,45 million short tons at an average grade of 0,434 ounces gold per short ton. The company also owns a gold mill, rated at 200 tons per day, on the O'Brien property.

The TSX Venture Exchange is not responsible for the truth or accuracy of this press release.

Contact Information

  • Radisson Mining Resources Inc.
    Dale M. Hendrick, P. Eng.
    (416) 955-8630
    (416) 365-2966 (FAX)
    Radisson Mining Resources Inc.
    Donald Lacasse, P.Eng.
    President and Chief Executive Officer
    (819) 797-0606
    (819)797-0100 (FAX)