URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

February 04, 2010 11:44 ET

URSA Major Minerals Starts Mining Operations at Shakespeare Nickel Mine, Sudbury Area

TORONTO, ONTARIO--(Marketwire - Feb. 4, 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 that the Company has started mining operations at the Shakespeare Nickel Copper Mine located 70 km west of Sudbury, Ontario.

The Company has mobilized contractors to the site this week.  Mining and crushing operations are currently underway. The Company plans to begin truck haulage in February to deliver 200,000 tonnes of ore for processing at Xstrata's Sudbury operations in 2010.  Based on previous ore grades and metallurgical results it is expected that the 200,000 tonnes of ore should produce contained metals in concentrate of approximately 1.1 million lbs of nickel, 1.7 million lbs of copper, 55.7 thousand lbs of cobalt and 3,100 ounces of precious metals.  The recovered and contained metals are subject to smelter recoveries and to further smelter deductions.  Guidance on costs will be released once all contracts are finalized.

Richard Sutcliffe, URSA Major's CEO stated "The significant improvement in nickel, copper and platinum prices over the past year and the ratification of Xstrata's labour contract in Sudbury earlier this week allows URSA Major to move forward into commercial production.  The cash flow from the Shakespeare Mine combined with our successful exploration record will place URSA Major in a strong position for growth.  We have an active exploration program in the Sudbury area and are currently planning to resume drilling shallow, high-grade, massive sulphide targets at the past-producing Nickel Offsets property."

URSA Major is a Canadian mining company with two nickel sulphide projects containing significant 43-101 compliant nickel/copper reserves and resources.  The Company is focused on becoming a mid-tier nickel producer and growing its nickel, copper and platinum group metal (PGM) deposits through exploration and development, primarily in Ontario, Canada.  At the Shakespeare Mine, located 70 km west of Sudbury, the Company has completed a positive feasibility study on a 4,500 tonne/day open pit mining operation and on-site processing plant. The project has a diluted Probable Reserve of 11,828,000 tonnes grading 0.33% nickel, 0.35% copper, 0.02% cobalt, 0.33 g/t platinum, 0.36 g/t palladium and 0.18 g/t gold.  URSA Major has an option to earn a 70% interest in the past-producing Nickel Offsets mine, a 100% interest in the Shining Tree nickel deposit, and has recently acquired PGM exploration properties in the Thunder Bay area, Ontario.

NI43-101 - Mr. Eugene Puritch, P.Eng. of P&E Engineering is the qualified person for the Shakespeare reserve estimate. Mr. Ian Ward, P.Eng., formerly of Micon International Ltd., is the qualified person for the Shakespeare feasibility study.

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
    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