URSA Major Minerals Incorporated

URSA Major Minerals Incorporated

February 28, 2005 09:18 ET

URSA Major Minerals Initiates Bankable Feasibility Study At Shakespeare Nickel-Copper-Precious Metal Deposit, Sudbury Mining Division, Ontario


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: URSA MAJOR MINERALS INCORPORATED

TSX VENTURE SYMBOL: UMJ

FEBRUARY 28, 2005 - 09:18 ET

URSA Major Minerals Initiates Bankable Feasibility
Study At Shakespeare Nickel-Copper-Precious Metal
Deposit, Sudbury Mining Division, Ontario

TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 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 Micon International Limited (Micon) has been
engaged to carry out a bankable feasibility study at the Shakespeare
nickel-copper-precious metal deposit, located 70 kilometers west of
Sudbury, Ontario. The feasibility study will evaluate a preferred base
case scenario of a 2,900 tonne/day open-pit operation at Shakespeare
with truck haulage to custom milling in Sudbury. An alternative case of
constructing a processing plant on the Shakespeare property and
transporting concentrate to a third party for further treatment will be
evaluated at a prefeasibility level. The bankable feasibility program
will include the extraction of a 15,000 tonne bulk sample.

In addition to Micon, the feasibility study team will include Met-Chem
Canada Inc. (Met-Chem), Golder Associates Ltd. (Golder), P&E Mining
Consultants Inc. (P&E) and Knight Piesold Ltd. Golder will complete rock
mechanic studies and design waste rock dumps, Eugene Puritch, P.Eng., of
P&E will complete the mine design, and Met-Chem will complete the design
of infrastructure plus the process design for the alternative
stand-alone mill at a prefeasibility level. Knight Piesold Ltd. has
previously been engaged to carry out a program of environmental studies
and permitting.

URSA Major intends to complete the feasibility study budgeted at $1.5
million by the end of 2005. Subject to regulatory approvals and
permitting, the company anticipates that the bulk sampling program will
be carried out in mid-2005. Malcolm Buck, P.Eng. will be the project
manager for URSA Major on the feasibility program and will supervise the
bulk sampling program. Completion of the bankable feasibility on the
base case scenario will require that URSA Major obtains custom milling
and treatment agreements. Subject to determining milling and treatment
arrangements, completion of a positive feasibility study, and obtaining
permits, production could be achieved at the Shakespeare project in 2006.

The evaluation of the Shakespeare property is currently proceeding on
the basis of a joint venture between URSA Major and Falconbridge Limited
(Falconbridge) with URSA Major as the project operator. URSA Major will
solely fund the feasibility study. Falconbridge has elected not to
exercise its back-in right in the feasibility project area. URSA Major
anticipates that its joint venture interest in the project area will
increase to approximately 86% by the end of the feasibility program.
Should URSA Major increase its interest to greater than 90% in the
project as a result of solely funding further programs, Falconbridge's
interest will revert to a 1.5% NSR.

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 on the Shakespeare project by Micon in 2004. 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. The resource remains
open on strike and further drilling will commence on the deposit in
March 2005.

URSA Major has 21.1 million shares outstanding and over $3.5 million in
cash.

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

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 at the Shakespeare Project, future profitability
and production.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    URSA Major Minerals Incorporated
    Richard Sutcliffe, Ph.D., P.Geo.
    President & CEO
    416-864-0615
    416-864-0620 (FAX)
    or
    URSA Major Minerals Incorporated
    Mr. Chris Chadder
    CFO
    416-864-0615
    416-864-0620 (FAX)
    info@ursamajorminerals.com
    http://www.ursamajorminerals.com/