URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

July 11, 2005 13:17 ET

URSA Major Minerals Announces Positive Results from Feasibility Drilling at Shakespeare Nickel, Copper, Platinum Group Metal Deposit, Sudbury Area, Ontario

TORONTO, ONTARIO--(CCNMatthews - July 11, 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 the completion of a positive 19 hole (2,442 meter) drilling program that is part of the feasibility program at the Shakespeare nickel-copper-platinum group metal deposit, located 70 kilometers west of Sudbury, Ontario. The program was primarily designed as in-fill drilling to upgrade the existing reserve estimate, with some holes testing the western extent of the mineralized zone and additional holes for geotechnical purposes. Assay results for holes U3- 66 to U3-75 are presented in the following table.

Highlights of the current program in this release are holes U3-69 and U3-75 which encountered exceptionally wide near-surface mineralization at higher than average grade for the deposit. Hole U3-69 is at the western end of the deposit and intersected higher grade mineralization which remains open at depth. Results for holes U3-76 to 83 are pending. Results of the drilling program will be incorporated into a new reserve and resource model for the feasibility study.



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DDH Location(a) Azim. & From: To: Length:
Incl. (m) (m) (m)
---------------------------------------------------------------------
U3-66 583W/32N Vert/-90 degrees 1.2 20.9 19.77(b)
---------------------------------------------------------------------
U3-68 1924W/160N 147 degrees/-45
degrees 21.5 31.8 10.3
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U3-69 1693W/149N Vert/-90 degrees 33.8 102.2 68.4
---------------------------------------------------------------------
incl. 66.0 74.0 8.0
---------------------------------------------------------------------
U3-70 1602W/98N 147 degrees/-68
degrees 4.7 17.6 12.9
---------------------------------------------------------------------
U3-71 1602W/147N 147 degrees/-84
degrees 25.7 43.7 18.0
---------------------------------------------------------------------
U3-72 1212W/186N 147 degrees/-60
degrees 45.8 52.8 7.0
---------------------------------------------------------------------
U3-74 299E/100N 147 degrees/-48
degrees 90.5 116.8 26.3
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U3-75 299E/102N 147 degrees/-63
degrees 89.4 145.6 56.2
---------------------------------------------------------------------
Incl. 89.4 106.1 16.7
---------------------------------------------------------------------
(a) Grid coordinates are in feet. U3-67 had no significant values.
U3-73 was a geotechnical hole drilled into the hanging wall of
deposit.

(b) Hole U3-66 is a vertical hole to test the proposed bulk sample
location and was stopped in mineralization.

-------------------------------------------------------------
DDH Location(a) Ni Cu Co Pt Pd Au
(%) (%) (%) (g/t) (g/t) (g/t)
-------------------------------------------------------------
U3-66 583W/32N .49 .55 .028 .55 .58 .25
-------------------------------------------------------------
U3-68 1924W/160N .30 .27 .025 .29 .28 .15
-------------------------------------------------------------
U3-69 1693W/149N .42 .49 .027 .43 .45 .23
-------------------------------------------------------------
incl. .56 .67 .032 .57 .65 .32
-------------------------------------------------------------
U3-70 1602W/98N .47 .54 .020 .42 .48 .28
-------------------------------------------------------------
U3-71 1602W/147N .47 .42 .032 .46 .46 .25
-------------------------------------------------------------
U3-72 1212W/186N .33 .38 .023 .32 .38 .19
-------------------------------------------------------------
U3-74 299E/100N .36 .41 .023 .38 .45 .29
-------------------------------------------------------------
U3-75 299E/102N .46 .51 .027 .46 .52 .25
-------------------------------------------------------------
Incl. .59 .62 .033 .58 .61 .31
-------------------------------------------------------------


At the Shakespeare deposit, a diluted Probable Reserve of 7,301,000 tonnes grading 0.37% nickel, 0.39% copper, 0.024 cobalt, 0.37 g/t platinum, 0.40 palladium, 0.20 g/t gold has been defined by Micon International Limited in 2004 (Mr. E. Puritch, P. Eng., and Mr. T. Hennessey, P.Geo Qualified Persons). The reserve is based on an internal C$31.94 NSR cut-off and is to a maximum depth of approximately 200 meters below surface.

Drill core was split and samples with a nominal 1.0 meter length were analyzed at SGS-XRAL Laboratories, Toronto, Ontario and Rouyn-Noranda, Quebec, using fire assay for platinum, palladium, and gold and ICP with multi-acid digestion for copper, nickel, and cobalt. Mr. Harold Tracanelli, P. Geo., is supervising the exploration program and is the Qualified Person under National Instrument 43-101. Exploration and geotechnical drilling is continuing on the property.

URSA Major has an 80% interest in the Shakespeare property. Exploration on the property is currently proceeding on the basis of a joint venture between URSA Major and Falconbridge Limited with URSA Major as the project operator. Based on an anticipated budget of approximately $1.5 million for the feasibility study, URSA's interest in the project area would increase to approximately 86% at the end of the feasibility program. As announced in May, URSA Major has signed a letter of intent with North American Palladium Ltd. (NAP), whereby NAP can acquire a 60% undivided interest in URSA's interest in the Shakespeare Property. To acquire a 60% interest, NAP must secure 100% of the financing necessary for commercial production and make payments of $1.5 million to URSA Major which is the estimated cost of the feasibility study. URSA Major has 21,224,119 shares outstanding.

Address: 8 King Street East, Suite #1300, Toronto, Ontario, Canada M5C 1B5

Symbol & Exchange: UMJ - TSX Venture Exchange (TSXV)

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
    http://www.ursamajorminerals.com
    or
    URSA Major Minerals Incorporated
    Gus Garisto
    Investor Relations
    Cell: (416) 805-3106