URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

December 17, 2007 09:13 ET

URSA Major Minerals Signs Processing Agreement With Xstrata Nickel, Sudbury Area, Ontario

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2007) -

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 (TSX:UMJ) ("URSA Major") is pleased to report that the Company has signed an agreement with Xstrata Nickel that provides for the further treatment of ore from the Shakespeare nickel deposit at Xstrata Nickel's Strathcona Mill. URSA Major will resume shipments of ore to Xstrata as soon as possible in January 2008.

Xstrata Nickel has agreed to initially process another 50,000 tonne batch of ore from the Shakespeare property. The batching of ore through the mill is expected to take place on or about April 1, 2008, subject to confirmation of Xstrata Nickel's milling schedule and weekly production profile.

Immediately after the batch sample, Xstrata Nickel has agreed to treat Shakespeare ore at the Strathcona Mill on a blended basis. The initial target blending rate is 500 tonnes/day and this may be increased. Xstrata will treat the blended ore for a period of at least 12 months with Xstrata Nickel giving 4 months notice of cancellation of treatment. The blended ore shipments are anticipated to commence on April 1, 2008.

"This is a significant agreement for the development of the Shakespeare deposit and for URSA Major" stated Richard Sutcliffe, URSA Major's CEO "The batch ore processing in early 2008 will provide further data on recovery and deposit grade, while the subsequent ongoing ore blending will ensure steady cash flow. We can expect to process a minimum of 185,000 tonnes of ore in 2008, and possibly more. Based on the performance of the bulk sample processed in 2007, it is expected that ore processed in 2008 should produce contained metals in concentrate of approximately 1,000,000 lbs of nickel, 1,500,000 lbs of copper, 50,000 lbs of cobalt and 3,200 ounces of precious metals. This processing arrangement will provide the opportunity for significant cash flow to be realized in 2008 and well into 2009." The recovered and contained metals are subject to smelter recoveries and to further smelter deductions.

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
    Richard Sutcliffe, Ph.D., P.Geo
    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)
    Email: info@ursamajorminerals.com
    Website: www.ursamajorminerals.com
    or
    URSA Major Minerals Incorporated
    Gus Garisto
    Investor Relations
    Cell: (416) 805-3106