SOURCE: ZNext Mining Corporation, Inc.

October 15, 2008 09:28 ET

ZNext Mining Mobilization of XYZ Gold Masbate Island Progressing Fast: Traditional Assay Results = 90.37g AU/ton Gold & 533.6 g Ag/ton Silver

By Gravity Assay Results = 39.3 g-AU/t. Gold, 61.7g Ag/t Silver, 0.01g-Pt/t, Platinum

MANILA, PHILIPPINES--(Marketwire - October 15, 2008) - ZNext Mining Corporation, Inc. (PINKSHEETS: ZNXT) (OTC Preferred: ZNXTP) announces that the XYZ Gold Project mobilization is moving along fast. ZNXT funding proceeds from an accredited investor will be used to build the 150 metric Tons/day capacity CIL Gold processing plant, with an added enhanced copper floatation device. On-site metallurgical laboratory will be set up. A portion of funds will be used to construct a 7 km access road, the general infrastructures of a base camp for staff housing, perimeter fencings, heavy tractors, trucking, mining equipment, expansion, growth and operating capital.

Last Dec. 20, 2004, about 9.5 kg XYZ samples were sent to Knelson Research & Technology Centre in Langley, Vancouver, B.C. for gravity concentration test work using Knelson Concentrator process -- the GAT (Gravity Amenability Test) procedure. Samples were crushed and ground to produce a product size of 86 microns (P80). The sample was using a lab scale Knelson Concentrator (the KC-MD3) to determine the precious metal recovery by gravity concentration.

The amount of gold recovered by gravity was 24.6% at a P80 value of 86 microns with a calculated head grade of 39.3 g-AU/t. of the recovered gold, 17.6 g were recovered in the pan tails which might suggest that this gold is associated with other minerals. No visible gold was observed during the panning of the concentrate. The amount of the silver recovered was 12.9% with a calculated head grade of 61.7 g Ag/t. The amount of platinum (Pt) recovered was 12.3% with a calculated head grade of 0.01G-Pt/t. Assays were also performed for Paladium (Pd) and Rhodium (Rh) but the grades were below detector limits.

In 1991, a Pre-World War II assay on the tunnel with high grade gold ores contained about 90.37 grams per ton of gold and 533.6 grams per ton of silver. Installation of 50-250 tpd (tons per day) milling plant can process an average of 15 grams of gold per ton of ores, can produce an estimated 3,750 grams of gold or 120.57 troy ounces of gold per day.

In 1997, a Canadian Company completed a written exploration and feasibility report showing the estimated monthly revenue based on the market price of gold @ $400.00 per troy (120.57 oz AU X $400.00/oz = about US $48,228.00 per day. The estimated yearly gross revenue based @ that market price was about $12,973,332.00 USD ($48,228 per day X 269 work days per year).

On Dec. 28, 2004 -- A new geological evaluation and assay were made and showed about the Resource/Reserve potential of 923,400 metric tons; The estimated Average Grade of Gold was 15.998 g/t Au and silver = 84.00 g/t Ag. The metal content in the resource was 474,950 oz Au & 2,493,790 oz Ag; The value and estimated total of Resource/Reserve @ the metal price of gold (AU) @ $400/oz and metal price of silver @ $6/oz of Ag was about $204,941.940 (Gold = $189,979,200 & Silver = $ 14,962,740).

The Net present value estimate assuming an over-all recovery of 90.68% Au and 83.10% Ag, and a total Operating Cost (Direct & Indirect) of $58.32/ tons of ore (feed): (Gross Revenue = $184,707,176 less Operating Expense = $53,852,688) equals the Net Income / Revenue of $130,854,488 before taxes. These estimates were derived from a production rate of 26,200 metric tons/year. The operating cost will be reduced when production rate increases.

Please note that these were merely estimates, particularly the resource/reserve potential including the ore grade. This could improve once extensive explorations are undertaken hence improving the confidence level of the estimates. Although there have been expenses associated with applying for the MPSA, it has been booked at a $1 cost to the company until the MPSA has been fully implemented, and the mine has become operational and profitable.

The week of Sept. 18, 2008, Chief Mining Engr. Palaroan and CEO Villanueva conducted the XYZ field assessment. Findings, observations and recommendations were noted on four tunnels. The Tunnel #1 is located at the lowest level of 4 existing tunnels at approximately 160 meter level and a 2 meters by 2 meters opening; the entrance was partially eroded which constricts the flow of fresh air and water underground. Approximately 30 meters from the portal, a collapsed timber support was noted, however, the walls and roof were not caving about 2 meters from the portal, and a stringer/vein structure was noted. Accordingly, these were the longest drives where mining was concentrated during the pre-world war II. Further down the tunnel, several collapsed portions from walls, roof and the face were noted. The tunnel was also inhabited by snakes and bats. Tunnel # 2~the entrance was eroded, supported by old timbers and almost blocking the entrance, water was almost above waist deep which prevents the team from further exploring the length of the tunnel for safety reasons. Tunnel # 3~the entrance was also eroded and this was probably used as explosive magazines. Tunnel # 4~has the highest elevation among the 4 existing tunnels within the small scale mining area. Ore stockpiles were noted at the muck bay underground. Some old timber support was noted to have collapsed. A 1 meter by 1 meter raise was driven and approximately 10 meters following the depth of the vein. A sublevel was driven above the raise and the face was advanced to approximately 2 meters and accordingly, this was the source of high grade ores. The walls and roof were moderately soft to hard ground while the face of the tunnel had also collapsed.

Ongoing construction of temporary office/staff house is about 60% complete and already livable. The XYZ gold project was accessed through carabao path approximately 9 kilometers from the Office/staff house. Rehabilitation of the XYZ site was undertaken to include establishment of a base camp to be located in the area with great and fast telecommunication signals. Tunnel # 4 will be given priority for the rehabilitation, as these have a higher potential with minor support requirement, to further explore the veins and other structure. A new test run on the recovery of gold 15 Kgs of ore stockpile from tunnel # 4 will be done. This will give more of an idea on the possible assay/recovery of gold before the establishment of a higher capacity plant. A 150 kg ball mill capacity will be installed near Tunnel # 4 for the test run. Tunnels 1 and 2 will be manned after rehabilitation of Tunnel 4 is completed and the last priority is Tunnel 3. Tunnel 1 was perceived to be the main haulage in the future. Miners, unskilled workers, underground mapper and sampler are the needed manpower for this initial project. The company also conducted a survey on the site development and access road, recommends to hire additional manpower to man the project. It will take an estimated 60-90 days to complete this initial rehabilitation on the XYZ Gold Project.


ZNext Mining Corporation, Inc. is an international mining company engaged in the exploration and commercialization of new and underdeveloped mine sites, primarily gold and other precious metals. Twelve (12) mining claims in British Columbia, Canada are owned 100% by ZNext Mining. Additionally, under a Philippines Mineral Production Sharing Agreement (MPSA) with the government of the Republic of the Philippines, ZNext Mining owns 40% of the PEARL, a Philippines domestic private company, that through aggregation of manpower and production among small-scale miners and indigenous peoples, ZNXT intends to capitalize on economies of scale in gold and silver extraction, processing and commodities selling and trading. ZNext Mining Corporation, Inc. is committed to the implementation of sustainable green technologies to achieve fiscal strength based on the principal of Profit-People-Planet. Management continues to focus on achieving profit, while conducting business with utmost consideration and compassion for people and protection of our planet and the environment.


Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding the Company's projections regarding gold production in future periods. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks; the risk of commodity price fluctuations; political and regulatory risks; risks of obtaining required operating permits and other risks and uncertainties. Penny Stocks are very highly speculative and may be unsuitable for all but very aggressive investors. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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