URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

August 24, 2005 16:26 ET

URSA Major Minerals Announces Acquisition of Shining Tree Nickel Property, North of Sudbury, Ontario

TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2005) -

This press release is not for distribution to any U.S. news wire service or for dissemination in the United States.

URSA Major Minerals Incorporated (URSA Major) (TSX VENTURE:UMJ) is pleased to announce that the company has signed an option agreement to acquire a 100% interest in a nickel-copper deposit located near Shining Tree, Ontario. The Shining Tree property is located in Fawcett Township, 110 km north of Sudbury, Ontario.

The Shining Tree property consists of 40 staked mining claims covering an area of approximately 1,600 acres. Previous operators have drilled 16 holes on the deposit and significant nickel mineralization has been intersected in 12 of these holes. The intersections outline a deposit with a strike length of over 80 meters that extends from surface to a depth of at least 400 meters. Three holes drilled by previous operators were resampled and analyzed by URSA Major as part of due diligence program prior to signing the option agreement. These holes returned significant intervals of mineralization that is reported in the following table. Highlights include holes 87104 and 87105 that were drilled 25 meters apart and returned 18.77 meters grading 1.37% nickel and 0.60% copper and 16.46 meters grading 0.98% nickel and 0.36% copper respectively. These intervals are contained within wider intersections of lower grade mineralization.



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Hole From To Width Nickel Copper Cobalt TPM(i)
# (m) (m) (m) (%) (%) (%) (g/t)
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87104 57.85 91.65 33.80 1.04 .47 .038 .04
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Incl. 72.88 91.65 18.77 1.37 .60 .050 .06
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87105 95.65 154.84 59.19 .63 .27 .026 .11
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Incl. 138.38 154.84 16.46 .98 .36 .038 .27
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87103 88.03 90.31 2.28 .81 .22 .031 .17
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(i)TPM - total gold, platinum and palladium


Drill core was quarter-split and samples with a nominal 1.0 meter length were analyzed at SGS-XRAL Laboratories, Toronto, Ontario and Rouyn-Noranda, Quebec, using ICP with multi-acid digestion for copper, nickel, and cobalt and fire assay for platinum, palladium, and gold. Dr. Chris Moreton, P.Geo. supervised the sampling program and is the Qualified Person under National Instrument 43-101.

URSA Major is planning an autumn drill program to test the near-surface portion of the deposit and delineate a NI 43-101 compliant mineral resource. Down hole geophysical surveys are also planned to test for along-strike extensions of the nickel-copper mineralization. The deposit is road accessible and is located 140 km north-northeast of URSA Major's Shakespeare property.

URSA Major can earn a 100% interest in the property from Premier Explorations Inc. (Premier) of Timmins, Ontario by making total cash payments of $180,000 and issuing 660,000 common shares on or before the 2nd anniversary of the option. URSA Major will make a one time payment to Premier of $400,000 on achieving commercial production on the property. Premier will retain a 1% NSR. The share issuances are subject to approval by the TSX Venture Exchange.

URSA Major also announces that a shareholder meeting will be held on September 29, 2005 for the purpose of obtaining shareholder approval for an option and joint venture agreement with North American Palladium Ltd. (NAP) on URSA Major's Shakespeare nickel, copper, platinum metal deposit. The record date for the meeting is August 29, 2005. URSA Major considers the NAP option and joint venture to be a very positive transaction for our shareholders, primarily because if the option is exercised, URSA Major will have financing arranged through to production with a 40% interest. A full bankable feasibility study on an open pit mine and a 4,000 plus tonne per day mill at Shakespeare is currently in progress. The agreement with NAP also provides for a substantial $1.5 million initial option payment. URSA Major further reports that it has received a letter dated August 19, 2005 from Northern Securities Inc. which states that Northern Financial Corporation on behalf of its investors will oppose the approval of the proposed agreement with NAP. URSA Major has 21,224,119 shares outstanding.

This release was prepared by management of the Company who takes full responsibility for its contents.

Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.

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

Contact Information

  • URSA Major Minerals Incorporated
    Dr. Richard Sutcliffe
    President & CEO
    (416) 864-0615
    (416) 864-0620 (FAX)
    or
    URSA Major Minerals Incorporated
    Chris Chadder, C.A.
    CFO
    (416) 864-0615
    (416) 864-0620 (FAX)
    info@ursamajorminerals.com
    www.ursamajorminerals.com
    or
    Gus Garisto
    Investor Relations
    Cell: (416) 805-3106