URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

October 19, 2010 13:09 ET

URSA Major Minerals Provides Update on Drilling at Nickel Offsets Property and Production from Shakespeare Mine, Sudbury Mining District

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2010) -

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URSA Major Minerals Incorporated ("URSA Major" or the "Company") (TSX:UMJ) is pleased to provide an update on production from the Shakespeare Mine, located 70 km west of Sudbury, Canada and on exploration programs at the Company's nickel-copper and platinum group metal (PGM) projects. The update and planned programs are pursuant to the semi-annual strategic business review by the board of directors of the Company.

Drilling Nickel-Copper Targets at Nickel Offsets Property - URSA Major is currently drilling at the past- producing Nickel Offsets mine. This highly prospective nickel-copper-PGM property is located 15 km northeast of Vale's Coleman Mine and Xstrata Nickel's Strathcona mill. The Nickel Offsets Property hosts the Foy Offset Dyke, one of four major nickel and copper mineralized offset dykes in the Sudbury Basin. URSA Major is successfully utilizing diamond drilling and bore-hole EM geophysics to target nickel-copper sulphide mineralization which also carries high-grade platinum group metal values. The Company's previous work programs have confirmed the nickel-copper mineralization continues down-dip and along strike from previously mined ore lenses.

Nickel-copper-PGE mineralization on URSA Major's Nickel Offsets property package is typical of that hosted by quartz diorite offset dykes in the Sudbury mining camp. Examples include the significant deposits at Vale's North and South Mines hosted by the Copper Cliff offset dyke; Vale's Totten deposit under development in the Worthington offset dyke and Quadra FNX's recent discovery on its Victoria project, also hosted in the Worthington offset dyke. Harold Tracanelli, P.Geo., URSA Major's QP for the Nickel Offset program commented "The Foy Offset represents a highly prospective target environment where potentially large-scale high-quality, nickel, copper and precious metal bearing sulphide mineral deposits can potentially be found through ongoing exploration efforts. Such efforts could result in the discovery of mineral deposits similar to those which are currently known to exist on the Copper Cliff, Parkin and Worthington Offset dykes."

The historical pre-production resource at Nickel Offsets (pre NI43-101 – see below) was 359,000 tons grading 1.9% Ni and 1.45% Cu (Nickel Offsets Limited Annual Report 1940). No PGM assays were reported in the historical mining campaign. Assays from drill hole U15-02 provided the best intersection of URSA Major's initial program in 2009 and demonstrated high PGM values in the sulphide mineralization at Nickel Offsets. U15-02 contained 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 (see February 1, 2010 press release).

In the current 2,000 meter drilling program, URSA Major has completed 2 holes to date totalling 679.6 meters testing the up-dip extension of lens 4 and a third hole is in progress to test a down dip extension of lens 3 beneath the existing mine workings where previous drilling by Nickel Offsets Limited intersected up to 21 feet of 1.94% nickel and 1.05% copper (Nickel Offsets Limited Annual Report 1951) (link to longitudinal section is provided below). URSA Major has a new target area between the No 1 and No 2 shafts to test the down dip extension of lens 2 and to test areas where historical drilling indicated significant widths of disseminated mineralization including: 28.5 feet of 1.92% nickel and 1.929% copper, and 13 feet of 2.02% nickel and 0.375% copper (Nickel Offsets Limited Annual Report 1940). Reports have indicated that early underground development on the 350 foot east drift of the No. 1 mine identified about 200 feet of disseminated sulphides in drift assaying 1% nickel and 0.5% copper, east along strike from lens 2. The company anticipates that initial assay results from current drilling will be available in early November. Drilling will be followed by bore-hole EM surveys to generate additional conductive mineralization targets for a follow up drill program expected to start in 2011.

Drill holes planned to test higher-grade mineralization down-plunge from Shakespeare Mine – URSA Major has planned two holes, located 200 and 400 m east of previous drilling, to test for higher grade mineralization down-plunge from the Shakespeare mine. The planned holes are 725 m and 875 m deep. Previously reported holes U3-112 to 114, which were drilled northeast of the Shakespeare mine intersected significant widths of mineralization. U3-112 contained an intersection of 3.0 metres grading 0.91% nickel, 0.32% copper, 0.07% cobalt and 0.84 g/t precious metals located above a wider 25.9 metre interval grading 0.34% nickel, 0.42% copper, 0.02% cobalt and 0.95 g/t precious metals which is typical of Shakespeare deposit grades (see July 8, 2008 press release). The results continue to be very encouraging because the intersections define a plunging zone of consistently higher-grade nickel mineralization within an envelope of typical Shakespeare grade. The texture and tenor of mineralization is also geologically permissive of development of high-grade nickel massive sulphides. If successful, the planned drilling could significantly improve the opportunity for developing an underground mine down-plunge from the planned Shakespeare east pit. The Shakespeare drilling program is one of the priorities within the Company's strategic plan.

Airborne Survey contracted at Disraeli Property, Thunder Bay area – In accordance with the Company's strategic plan, URSA Major has contracted Aeroquest Limited to complete an AeroTEM IV airborne magnetic and time domain EM surveys at the Disraeli Property, located approximately 25 km north of Magma Metals' Thunder Bay North Property. The Disraeli property has several copper showings hosted by both intrusive rocks and Sibley group sediments. The Disraeli Intrusion is interpreted to be a similar geological environment to Magma Metal's Thunder Bay North property that contains the Current Lake discovery. The discovery at Current Lake is an advanced platinum group metal exploration project with excellent widths, a 1:1 ratio of platinum to palladium, significant copper and nickel credits, and the potential for a large mineralized system. URSA Major's geophysical survey will be completed by the end of November 2010 and will allow for the evaluation of drill targets.

Operations update at the Shakespeare Mine – In August and September, URSA Major shipped a total of 41,106 tonnes of ore with an average grade of 0.38% nickel, 0.43% copper, and 1.1 g/t precious metals. Results for October to date indicate that this trend will continue to the end of the third quarter which is the Company's first full quarter of commercial production. Eric Loch, URSA Major's V.P. of Operations and Projects, stated "Operations at the Shakespeare Mine are now running very consistently. The mine management team is continuously reviewing opportunities to improve operations and investing in new technology and human resources, with the result that nickel and copper grades are maintaining a steady trend, and that the mine can reliably plan production grades."

Richard Sutcliffe, URSA Major's CEO stated "Having established production at the Shakespeare Mine, our team at URSA Major is now turning attention to increasing shareholder value with an active exploration program and to build on our successful record of mineral resource discovery. In the near term, we expect that Nickel Offsets will be our main exploration focus and we are encouraged by drill results and technical data received to date. The current drill program is funded by cash flow from production at the Shakespeare Mine. However, the Company is evaluating options to accelerate and expand the drilling campaign. In accordance with our strategic plan, we are also evaluating further opportunities for base metal property acquisition, particularly for copper, nickel and PGM-rich deposits."

Appointment of Health, Safety and Environmental Coordinator - URSA Major is pleased to announce the appointment of Ms. Jennifer Holla as Health, Safety and Environmental Coordinator for the Shakespeare Mine. Ms. Holla will be responsible for managing the Company's health and safety programs and ensuring Shakespeare operations are in full compliance with mining and labour regulations and operating permits. Ms. Holla is a graduate of the Civil Engineering Technician program at Cambrian College and was previously employed by the civil engineering infrastructure department of the City of Sudbury.

URSA Major is a Canadian mining company with two nickel sulphide projects containing significant NI 43-101 compliant nickel and copper reserves and resources. The Company is focused on increasing its nickel and copper production from its Sudbury, Ontario projects and growing its nickel, copper and platinum group metal resources through exploration and development, primarily in Ontario, Canada.

NI43-101: A qualified person has not done sufficient work to verify the historical pre-production resource grades 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 Nickel Offsets 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.

Nickel Offsets location map: http://www.ursamajorminerals.com/projects/pdf/nickel-holdings.pdf

Longitudinal Section: http://www.ursamajorminerals.com/projects/pdf/nickel-property-boundary.pdf

Address: 8 King Street East, Suite #1300, Toronto, Ontario, Canada M5C 1B5
   
Symbol & Exchange: UMJ – TSX

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

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