URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

December 02, 2010 11:02 ET

URSA Major Minerals Targets Resource Expansion at the Shakespeare Nickel-Copper Mine, Sudbury, Ontario

TORONTO, ONTARIO--(Marketwire - Dec. 2, 2010) -

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URSA Major Minerals Incorporated ("URSA Major" or "the Company") (TSX:UMJ) announces that an exploration drill program to expand mineral resources has resumed at the Shakespeare Nickel-Copper Mine located 70 km west of Sudbury, Ontario.  The Company has planned an initial two hole, 1,600 meter program, targeting the eastern extension of the Shakespeare deposit. The drill holes will test for nickel-copper-platinum group metals mineralization up to 400 metres east of, and down-plunge from, the previous sulphide mineralized drill intersections reported in 2008 (see press release dated July 8, 2008).  The Company also plans to complete bore hole time-domain EM geophysical surveys of the drill holes to identify conductive sulphides and generate additional drill targets.  It is anticipated that this work program will be completed in January, 2011.

The strike length of mineralization at Shakespeare is currently defined over 1.4 kms and includes the producing West Pit, the fully permitted Shakespeare East Deposit discovered by URSA Major in 2002, and the down plunge resources extending east from the Shakespeare East Deposit.  The Shakespeare deposit remains open at depth. Highlights of previous drilling east of the planned Shakespeare East Pit, that intersected significant widths of mineralization include (see July 8, 2008 press release):

  • U3-112 with 3.0 metres of 0.87% nickel, 0.29% copper, 0.06% cobalt and 0.72 g/t precious metals and 11.0 meters of 0.48% nickel, 0.59% copper, 0.03% cobalt and 1.39 g/t precious  metals and;
  • U3-113 with 13.0 meters of 0.46% nickel 0.57% copper, 0.03% cobalt and 1.31 g/t precious metals

The results in the holes reported in July 2008 are very encouraging because these intersections define a plunging zone of consistently higher grade nickel mineralization within an envelope of typical Shakespeare grade.  A long section illustrating the proposed targets in relation to the current mining operations, reserves and resources and previous drilling will be available on the company's website at www.ursamajorminerals.com.

URSA Major Minerals' President and CEO, Richard Sutcliffe stated, "Our main focus during the past two years has been on bringing the Shakespeare Mine into production.  We have now achieved the delivery of consistent grades and tonnages to Xstrata's Strathcona Mill and we have moved our attention to expanding our operations to realize the potential of our properties.  We have increased our exploration program, funded out of cash flow from Shakespeare production, in order to develop the resources at our Ontario properties. An immediate goal is to expand the size of our Shakespeare deposit and assess the potential of underground production and continue to test the viability of the proposed 4,500 tpd operation in our full feasibility study.  Alongside the Shakespeare program, we will continue the exploration of the highly prospective Nickel Offsets Property.  Our vision is to eventually become a mid-tier base metal producer, starting from the 2002 URSA Shakespeare discovery."

URSA Major's updated feasibility study in 2008 defined an open pit mineable, diluted Probable Reserve of 11,824,000 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. The mineral reserve is to a maximum depth of 250 metres below surface and was determined by applying a C$12.84/tonne NSR internal cut-off value which is derived from the sum of the milling and G&A costs. An additional Indicated Resource of 1,832,000 tonnes grading 0.37% nickel, 0.41% copper, 0.03 % cobalt, 0.36 g/t platinum, 0.39 g/t palladium and 0.22 g/t gold at an NSR cut off of CDN$50/tonne is located outside of the pit shell. The majority of the Indicated Resource is down plunge to the east of the pit shell. The July 2008 drilling, while widely spaced, indicates that the higher grade zone has a strike length of in excess of over 200 metres and remains open to depth. The current drilling has the potential to further extend this zone.  If successful, this program could significantly improve the opportunity for developing an underground mine down-plunge from the planned Shakespeare east pit.

About URSA Major Minerals Incorporated

URSA Major is a Canadian mining company with two nickel sulphide projects with significant NI 43-101 compliant nickel and 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.

NI43-101. Harold Tracanelli, P.Geo. is the qualified person for drilling results reported from the Shakespeare property and the planned drilling program and has reviewed and approved the contents of this news release.  Mr. T. Hennessey, P.Geo, of Micon and Mr. E. Puritch P.Eng. of P&E Mining Consultants Inc. are the qualified persons for the resource and reserve estimates.

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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