United Reef Limited

United Reef Limited

March 21, 2005 09:00 ET

United Reef Limited: Diamond Drilling to Commence on Nickel Offsets Property, Sudbury Mining District


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: UNITED REEF LIMITED

CNQ SYMBOL: URPL

MARCH 21, 2005 - 09:00 ET

United Reef Limited: Diamond Drilling to Commence on
Nickel Offsets Property, Sudbury Mining District

TORONTO, ONTARIO--(CCNMatthews - March 21, 2005) - United Reef Limited
(CNQ:URPL) is pleased to announce that a diamond drilling program will
commence later this week on its Nickel Offsets property located 40 km
northwest of Sudbury. Heath & Sherwood Drilling (1986) Inc. of Kirkland
Lake, Ontario has been awarded the contract for the diamond drilling
program. A field crew has re-established reference markers on the
property-wide exploration grid in preparation for spotting drill hole
collar locations. The program is being funded by International CHS
Resource Corporation ("International CHS") (ICJ-TSXV) as part of its
option to acquire an interest in the property.

This first round of drilling on the project will consist of just over
2,500 metres of diamond drilling in 13 holes and will cover several
exploration targets within and in close proximity to the Foy Offset
dike, which occupies a 2.25-km strike length across the property.
Planned lengths for each drill hole range from 75 to 325 metres,
representing vertical depths from 65 to 281 metres. The objective of the
upcoming diamond drill program is to test new chargeabilty anomalies
interpreted from Induced Polarization surveys conducted on the property
in 2003 and 2004, to test potential extensions of ore lenses in the
vicinity of the old mine workings and to investigate the platinum group
metals ("PGM") potential of the property. Mineralized core will be
assayed for Ni, Cu, and PGM.

Part of the scheduled exploration program will consist of systematic
rock and tailings sampling to evaluate the relationship between PGM
levels of the tailings and mineralized massive sulphide material found
in existing waste and muck piles on the property. Results of this
sampling program may give an indication of PGM grades for the property
and may also provide information on the possible PGM resource potential
of the tailings. Only limited historical information is available
regarding the PGM content of the previously mined ore. United Reef has
confirmed the presence of significant values for PGM in material
previously mined on the property (see September 25, 2003 press release).

United Reef and International CHS have entered into an option agreement
(see January 4, 2005 press release) whereby International CHS may
acquire a 50% working interest, over the next 4 years, in United Reef's
wholly-owned Nickel Offsets property. Under the terms of the agreement,
United Reef, as operator, will manage the upcoming drill program. The
Nickel Offsets property hosts the past producing Nickel Offsets (Ross)
Mine which produced 208,000 tons of Ni-Cu ore between 1943 and 1957
through two shafts, with reported recoveries of 4.56 million pounds of
Ni and 3.32 million pounds of Cu.

Gary Nassif, P.Geo. is United Reef's qualified person for purposes of NI
43-101 and the person responsible for supervising the above programs.
The programs are expected to take 8 weeks to complete.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    United Reef Limited
    Michael Coulter
    President
    (416) 368-3332
    or
    United Reef Limited
    Gary Nassif
    Exploration Manager
    (416) 368-3332
    info@unitedreef.com
    www.unitedreef.com