Press ReleasesJanuary 19, 2006
Wallbridge to Acquire Resources at Broken Hammer and Parkin; Falconbridge Increases Its Interest in Frost Lake Property to 50%
Toronto, Ontario -- January 19, 2006 -- Wallbridge Mining Company Limited (TSX: WM) announced today that it has signed a letter of intent with Falconbridge Limited, subject to the completion of formal agreements to restructure its Four Times Joint Venture, which presently includes the Wisner, Frost Lake and Parkin Offset properties.
Under the terms of this proposed restructuring, Wallbridge would acquire Falconbridge's 36% interest in both the six claims comprising the Broken Hammer Zone on the Wisner Property and the Parkin Offset Property. These will now become Wallbridge properties. In return, Falconbridge will increase its interest to 50% in the Frost Lake Property, as well as the remainder of the Wisner Property, excluding the 6 claims surrounding the Broken Hammer Zone. Exploration on both of these properties will continue in Joint Venture with Falconbridge with Wallbridge as Operator. A total of $1.9 million has been budgeted for work on these properties for 2006.
Falconbridge will also have a right to buy back to a 60% interest at feasibility in any deposit which contains in excess of US$750 million of contained metal by incurring 200% of Wallbridge's total expenditures under the JV. Falconbridge also has a right of first refusal on the processing of nickel ores from the property.
"We are very pleased to have reached this agreement with Falconbridge, which benefits both companies" stated Alar Soever, President of Wallbridge. "Securing the resources at Broken Hammer and Parkin allows us to explore a variety of scenarios for advancing these two properties. In return, Falconbridge gets the increased exposure to the excellent exploration potential at both Frost Lake and Wisner that it desired."
The Wallbridge/Falconbridge Wisner Joint Venture Committee has approved a budget of $900,000 for the 2006 Work Program on the Wisner Property. This work will include drill testing of a number of targets identified by the 2005 work program.
These targets include the Southwest and the South Zone Areas, where trenching in December 2005 uncovered PGE bearing sulphide mineralization.
The Southwest Area is a 500 metre by 500 metre area of IP chargeability anomalies located on the southwestern part of the property. The area is underlain by Sudbury Breccia in mafic gneiss. Trenching of Beep Mat anomalies in December 2005 exposed stringer to semi-massive chalcopyrite with minor amounts of pentlandite.
Assays received for the initial five selected grab samples of this mineralization collected from the blasted trenches are tabulated below.
Trenching of a Beep Mat anomaly approximately 70 metres south of the South Zone, also uncovered high grade PGE-copper mineralization.
Assays for four selected grab samples of this mineralization collected from the blasted trenches are tabulated below.
Drill testing of these two areas is planned for February of this year.
Frost Lake Property
The Wallbridge/Falconbridge Frost Lake Joint Venture Committee has approved a budget of $1 million for the 2006 Work Program on the Frost Lake Property. This work will focus on follow-up drilling on the Amy Lake Zone, where shallow drilling late last year intersected wide zones of low-sulphide platinum-palladium mineralization to a maximum depth of 150 to 200 metres. The mineralization is open to depth. (For complete drill results see Press Release dated December 6, 2005.)
Broken Hammer Resource
The Broken Hammer Zone is a shallow surface zone of vein and vein stockwork hosted copper-PGE mineralization. An initial mineral resources estimate was completed by David Rennie, P.Geo. of Roscoe Postle Associates Inc. (RPA) for the Broken Hammer Zone on the Wisner Property in November 2005. The total Inferred Mineral Resources as estimated by RPA to NI-43-101 standards, are 251,000 tonnes at a grade of 3.80 g TPM/t (1.56 g/t Pd, 1.62 g/t Pt, and 0.61 g/t Au), 1.00% copper, and 0.10% nickel. (For details see Press Release dated November 29, 2005).
RPA recommends that additional work be carried out in order to upgrade the current Mineral Resources to Indicated. In addition, RPA recommends that a bulk sample should be mined from the deposit in order to check the accuracy of the Mineral Resource estimate and to help determine what density of sampling would be required to increase the resource classification from Inferred to either Measured or Indicated. A bulk sample would also provide a sufficient volume of material to carry out definitive metallurgical testing.
Initial metallurgical work was also recently completed at SGS Lakefield Research on a sample of approximately 150 kg of drill core from the Broken Hammer Zone. The mineralization showed good recoveries of copper and PGEs in response to flotation as practiced at Falconbridge's Strathcona mill. Nickel recoveries were low, but this was expected given the low nickel head grade.
Initial gravity concentration results were encouraging, particularly with respect to platinum. Platinum assay results were highly variable, with nugget effects upsetting several metallurgical balances. Further gravity concentration test work is planned.
Once results of this work are received, processing options will be reviewed, and incorporated into an initial economic assessment of the property.
Parkin Offset Property
Wallbridge began work on this property in 1999. Between 1999 and 2002, 121 boreholes totaling 22,328 metres were drilled. The drilling defined five mineralized zones along a 750-metre strike length of the offset dyke.
These mineralized zones occur between surface and the 200-metre level. Drill spacing on the mineralized zones is generally at about 25 metre centres, although some sections were tested at 12.5 metre centres.
An estimate of the mineral resource on the Parkin Offset property to NI 43-101 standards prepared in 2002 for Wallbridge by Alar Soever, P.Geo. of Watts, Griffis and McOuat, Consulting Geologists and Engineers (WGM) reported Indicated Resources of 264,000 tonnes at a grade of 0.70% Cu, 0.65% Ni, 0.62 g Pt/t, 0.80 g Pd/t and 0.23 g Au/t and Inferred Resources of 87,000 tonnes at a grade of 0.65% Cu, 0.42% Ni, 1.17 g Pt/t, 1.07 g Pd/t and 055 g Au/t.
Results of the resource estimate are tabulated below.
The WGM Report concluded there was potential to increase this resource in extensions of the known zones and by follow-up of isolated intercepts not currently included in the resource. These areas remain to be tested at this time.
"Metal prices have increased substantially since the time of this estimate." noted Alar Soever, President of Wallbridge, "that fact, and the potential to add to the resource make this an attractive property for us."
Grab samples are prepared at ALS Chemex Ltd. Laboratories in Sudbury and then shipped to their analytical facilities in Vancouver. Samples are analyzed for Au, Pt, Pd using a standard fire assay with an ICP finish and for 47 base metals and trace elements using a four acid (near total) digestion and a combination of ICPMS and ICPAES. ICP overlimits are re-analyzed using sodium peroxide fusion, acid dissolution followed by ICPAES.
Alar Soever, P.Geo, President, is the Qualified Person for Wallbridge Mining Company Limited, in accordance with NI 43-101 of the Canadian Securities Administrators, and is responsible for the technical content of this press release and quality assurance of Wallbridge's exploration data and analytical results.
Wallbridge Mining Company Limited was established to explore for and develop nickel, copper and platinum group element (PGE) deposits. The Company's principal properties are located in the Sudbury Basin in Ontario. The Sudbury area hosts the world's largest concentration of nickel deposits and is currently the most active mining camp in North America. Wallbridge also has properties elsewhere in northern Ontario, Nova Scotia and near Duluth, Minnesota.
For Further Information
Wallbridge Mining Company Limited
Alar Soever, President
Tel: (705) 682-9297
CHF Investor Relations
Nick Kohlmann, M.Sc.,Vice President
Tel: (416) 868-1079 ext. 222
This document may contain forward-looking statements relating to Wallbridge's operations or to the environment in which it operates. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and may be beyond Wallbridge's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. Wallbridge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
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