URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

February 01, 2010 08:30 ET

URSA Major Minerals Drilling and Borehole EM Identifies Shallow Massive Sulphide Targets at Nickel Offsets Property, Sudbury Area

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2010) -

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:UMJ) is pleased to announce further results from exploration at the past-producing Nickel Offsets Mine, located in Foy Township, 40 km northwest of Sudbury, Ontario. URSA Major's initial 5-hole 1,807 meter drilling and borehole electromagnetic (EM) geophysical survey program has identified massive sulphide targets in proximity to the existing workings of the past producing Nickel Offset No.1 Mine in the Foy Offset Dyke, located in the footwall of the Sudbury Complex.

Richard Sutcliffe, URSA Major's CEO stated "We are encouraged with the initial exploration results on the Nickel Offsets property. We have identified a new high-grade lens of mineralization and have developed an understanding of important geological and structural controls on mineralization. The approach of careful geological targeting with follow-up borehole EM surveying has given us very specific high-grade massive sulphide targets for the next phase of drilling. We plan to carry out a follow up drill program in mid-2010 to test these targets."

Results from the program are reported in the following tables. Assays from drill hole U15-02 which were previously reported (see press release dated December 1, 2009) provided the best intersection of the program with 1.6 meters grading 3.12% nickel, 1.15% copper, 0.12% cobalt, 1.39 g/t platinum, 2.04 g/t palladium and 0.21 g/t gold. This high grade intersection is a newly discovered mineralized lens and is located at a shallow level adjacent to the former mine workings at a down hole depth of 250.4 to 252.0 meters. A borehole EM survey in U15-02 identified an in-hole anomaly coincident with the massive sulphide intersection. The in-hole anomaly in U15-02 is modelled as the response from a conductive source centered east of and below U15-02. Hole U15-04, which targeted the up-dip extension of the massive sulphide lens in U15-02, encountered disseminated sulphides, however, borehole EM surveying of U15-04 identified an off-hole anomaly modelled as the response from a conductor centered east and below hole U15-04. These borehole EM anomalies are indicative of a massive nickel sulphide lens that was intersected in hole U15-02 and is centered east of and below holes U15-02 and -04. URSA Major is planning further drilling to test this target.

Hole U15-05 was drilled approximately 160 meters east of holes U15-02 & 4 to test the up dip extension of mineralization in the number 3 lens in former mine workings. This hole encountered a narrow 0.30 cm interval of heavily disseminated sulphide grading 1.41% nickel, 0.44% copper and 0.82 g/t precious metals. Borehole surveying in U15-05 identified another conductive source off the end of the hole. Further drilling borehole surveying will be required to determine the specific location of this target.

Diamond Drill Hole (DDH) Location and Assay Summary
DDH Drill Collar Location Az & Incl. From: To: Length: Ni Cu Co Au Pt Pd
  UTM NAD83   (m's) (m's) (m's) (%) (%) (%) (g/t) (g/t) (g/t)
U15-01 481348E/5178217N 032 /-60  No Significant Values Encountered
U15-02 481167E/5178293N 025 /-53 249.45 253.00 3.55 1.40 0.54 0.05 0.10 0.63 0.92
incl.       250.42 252.00 1.58 3.12 1.15 0.12 0.21 1.40 2.04
U15-03 481167E/5178293N 025/-58 335.90 337.75 1.85 0.13 0.13 0.01 0.04 0.11 0.12
U15-04 481167E/5178293N 025/-50  No Significant Values Encountered
U15-05 481330E/5178265N 025/-50 275.09 276.50 1.41 0.32 0.14 0.01 0.04 0.10 0.13
incl.       275.09 275.39 0.30 1.12 0.44 0.03 0.12 0.27 0.43
and       295.29 299.30 4.01 0.21 0.13 0.01 0.05 0.12 0.13
 
Results of Crone Geophysics, Borehole Pulse EM Geophysical Surveying
DDH Depth Bore hole EM survey results Location of Modeled Geophysical Response
  (m's) Easting Northing  Vert. Depth (m)
U15-01 477 DDH blocked, could not be fully probed          
U15-02 369 In-hole anomaly, center of source east and below hole 481237 5178433   217  
U15-03 338 DDH not probed, hole ended in former mine workings          
U15-04 314 Off-hole anomaly, center of source east and below hole 481249 5178445   239  
U15-05 309 Detection of conductivity off the end of the hole          

The Nickel Offsets Property consists of twelve contiguous patented mining claims and five unpatented mining claims covering a total of 358 ha (884 acres). URSA Major has an option to earn a 70% interest in the property from United Reef Limited (TSX VENTURE:URP). (See March 6, 2008 press release for the terms of the option agreement.)

The historical pre-production resource (pre NI43-101 – see below) was 359,000 tons grading 1.9 % Ni and 1.45 % Cu (Nickel Offset Mines Limited Annual Report 1940). Between 1943 and 1957, the Nickel Offsets Mine, produced 208,551 tons of nickel and copper ore with reported recoveries of 4.56 million lbs of nickel and 3.32 million lbs of copper. Historical underground exploration and mining development at the Nickel Offset Mine included 1,599 feet of shaft sinking, approximately 10,000 feet of drifting and 3,980 feet of raising on 9 levels at the No. 1 Mine and 1,056 feet of shaft sinking, approximately 6,000 feet of drifting and 410 feet of raising on 5 levels in the No. 2 Mine.

URSA Major is an emerging mining company that is focused on growth through nickel, copper, and precious metal exploration and development, primarily in Ontario, Canada. URSA Major recently announced that it has entered into a Letter of Intent with Xstrata Nickel to process ore from the Company's Shakespeare Mine at Xstrata's Strathcona mill located in Sudbury, Ontario. Based on previous grades and metallurgical results, it is expected that 200,000 tonnes of ore to be processed in 2010 should produce contained metals in concentrate of approximately 1.2 million lbs of nickel, 1.9 million lbs of copper, 62.4 thousand lbs of cobalt and 3,800 ounces of precious metals. The recovered and contained metals are subject to smelter recoveries and to further smelter deductions.

NI43-101: A qualified person has not done sufficient work to verify the historical pre-production resource estimate at the past producing Nickel Offsets property. These historic estimates predate NI43-101, are not compliant with current definitions, have not been verified by the company and consequently should not be relied on by investors. The historical estimates are provided as an indication of historically reported grades. Harold Tracanelli, P.Geo., is the qualified person for the drill program. Samples were analyzed by Accurassay Laboratories, in Thunder Bay, Ontario. Gold, platinum and palladium have been analyzed using fire assay techniques with Atomic Absorbsion finish. Copper, nickel and cobalt were determined using Multi Acid Digestion with Atomic Absorbsion finish. A 3D borehole time-domain pulse EM system was used by Crone Geophysics and Exploration Ltd. to survey the drill holes.

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

Symbol & Exchange: UMJ – TSX

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.

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX 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)
    info@ursamajorminerals.com
    http://www.ursamajorminerals.com
    or
    URSA Major Minerals Incorporated
    Chris Chadder
    CFO
    416-864-0615
    416-864-0620 (FAX)
    or
    Investor Relations
    Michael D'Amico
    647-500-6023