URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

June 12, 2009 17:07 ET

URSA Major Minerals Reports Financial and Operating Results for the Quarter Ended April 30, 2009

TORONTO, ONTARIO--(Marketwire - June 12, 2009) -

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" or the "Company") (TSX:UMJ) announces its financial and operating results for the quarter ended April 30, 2009. The audited financial statements and related Management Discussion and Analysis have been filed on SEDAR (www.sedar.com). Additionally these documents are available on URSA Major's website at www.ursamajorminerals.com. All amounts are in Canadian dollars unless otherwise indicated.

Financial and Operating Highlights:

- For the period ended April 30, 2009, URSA Major received receipts of $576,718 on the sale of metals from test mining programs in the fall of 2008

- Since the Company has not declared commercial production at the Shakespeare project, pre- production revenue was applied against the investment in the Shakespeare project in accordance with Canadian general accepted accounting principles. As a result, the Company reported no operating revenue for the quarter ended April 30, 2009. Net loss for the quarter was $103,207 or ($0.002) per share

- During the quarter, the Company sold its remaining 118,355 shares in Richmont Mines Inc. for gross proceeds of $392,428

- In April 2009, URSA Major announced that it completed an agreement with Xstrata Nickel ("Xstrata") to ship approximately 10,000 tonnes of Shakespeare nickel copper ore for processing in Sudbury, Ontario. The ore was available on the Shakespeare site and delivery is to be completed by the end of June 2009. This shipment will enable further evaluation of opportunities for blending Shakespeare ore with Xstrata's ore and will provide URSA Major with additional cash

- In April 2009, URSA Major announced the staking of the Seagull and Disraeli exploration properties located 70 km north of Thunder Bay, Ontario that target intrusions similar to Magma Metals Limited's platinum-palladium discovery at Current Lake, north of Thunder Bay. The Company plans a prospecting and mapping program in the early summer to follow up on results of data compilation and develop targets for drill testing

Outlook - Although pre-production mining operations at Shakespeare were suspended due to low commodity prices in the last quarter of 2008, the pre-production mining program exceeded the block model ore grades by approximately 10% and successfully demonstrated that the Shakespeare ore has a very consistent grade and metallurgical properties. The project is fully permitted and, being an open pit, can quickly be restarted once commodity prices improve. During the quarter, URSA Major announced that it will ship approximately 10,000 tonnes of Shakespeare nickel copper ore for processing in Sudbury, Ontario. This shipment will enable further evaluation of opportunities for blending Shakespeare ore with Xstrata's ore and will provide URSA Major with additional cash.

URSA Major continues to evaluate its' exploration properties and anticipates resuming field exploration programs once liquidity is improved and market conditions warrant. At Nickel Offsets, the Company has planned a five hole, 1,800 meter diamond drilling program to explore potential sulphide bearing environments within the Foy Offset dyke, all occurring in close proximity to the existing workings of the former Nickel Offset No.1 Mine. At the Seagull and Disraeli properties in the Thunder Bay area, the Company plans a prospecting and mapping program in the summer to follow up on results of data compilation and develop targets for drill testing.

Numerous nickel and other base metal mines have been forced to suspend operations in the past few months and there has been a significant reduction in global base metal supply. Management considers that metal prices are responding favourably and is evaluating restarting mining operations at the Shakespeare Project.

On May 25, 2009, URSA Major and Canadian Arrow Mines Limited ("Canadian Arrow") (TSX VENTURE:CRO) announced that they have entered into a letter agreement whereby Canadian Arrow has granted to URSA Major an exclusivity period in which to complete due diligence and a definitive agreement in respect of a proposed business combination ("the Proposed Transaction") of the two companies. The Proposed Transaction, if completed, will create a larger exploration and development company with experienced management and two advanced nickel sulphide projects in Ontario.

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. Mining at URSA Major's Shakespeare Nickel Project located 70 km west of Sudbury, Ontario has been temporarily suspended since October 2008. To date, URSA Major has mined approximately 150,000 tonnes of ore at Shakespeare and this has been processed at Xstrata Nickel's Strathcona mill.

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.

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
    CFO
    416-864-0615
    416-864-0620 (FAX)
    info@ursamajorminerals.com
    www.ursamajorminerals.com
    or
    URSA Major Minerals Incorporated
    Gus Garisto
    Investor Relations
    416-805-3106