Press ReleasesNovember 27, 2006
Wallbridge Mining Announces Broken Hammer Scoping Study
Toronto, Ontario -- November 27, 2006 -- Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) today announced that it has commenced a Preliminary Economic Assessment ("PEA") or Scoping Study of its Broken Hammer Platinum-Palladium-Gold Copper project located in the North Range of the Sudbury Basin.
Alar Soever, President of Wallbridge Mining, commented on the progress at Broken Hammer stating, "Gaining control of this resource and positive metallurgical results are now allowing us to proceed and plan for its potential development. We look forward to advancing this exciting project for Wallbridge shareholders." Xstrata Nickel ("Xstrata"), formerly Falconbridge Limited, retains a 1.5% royalty interest.
The PEA or scoping report will be prepared under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Wardrop Engineering ("Wardrop") will lead the study and prepare the mining component. DRA Americas ("DRA") and AMEC will prepare the milling and waste management components respectively. SGS Mineral Services ("SGS") has been retained to conduct confirmatory test work following up on the recently completed gravity and flotation tests.
The Scoping Study will include design of the open pit mine, on-site milling facilities, waste rock and tailings management and completion of environmental baseline studies within several proposed potential tailings management sites. Capital and operating cost estimates will be prepared and included in a cash flow analysis and economic evaluation. A sensitivity analysis will be conducted using conservative metal prices as the base case.
The Broken Hammer Zone is a shallow surface zone of vein and vein stockwork-hosted copper-PGE mineralization. An initial mineral resources estimate for the Zone was completed by David Rennie, P.Geo. of Roscoe Postle Associates Inc. ("RPA") in November 2005. The total Inferred Mineral Resource as estimated by RPA to NI-43-101 standards, is 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).
In October 2006 Wallbridge concluded the restructuring of its 4X Joint Venture with Xstrata thereby acquiring Xstrata's interest in the Broken Hammer Resource (Xstrata retains a 1.5% NSR Royalty on production from the property). Positive metallurgical results were also received from the second round of test work, which predicted total metal recoveries at 91.9% of the copper, 89.4% of the platinum, 77.8% of the palladium, and 83.7% of the gold.
Wardrop is an internationally recognized multidisciplinary engineering company with mining offices in Toronto, Sudbury, Saskatoon, and Vancouver. The Broken Hammer project will be led by Eric Harkonen, P.Eng. (Mining), MBA of Wardrop Toronto. Based on successful mining project executions in northern Ontario, Manitoba, and Nunavut, Eric has demonstrated skills in leading multidisciplinary teams.
DRA is an international Engineering company with offices and projects spanning five continents. Established in 1984, DRA employs over eighty qualified engineers across the world and provides skills in mechanical, civil and structural engineering design; project and construction management; process, winder, electrical and instrumentation engineering. The company also offers services in feasibility studies, procurement of equipment and supplies, fabrication and erection, and commissioning and training. An extensive contract operations capability provides processing services to the mining industry. Stephen Cole, P.Eng., President of DRA Americas, will be the lead engineer and Qualified Person for the metallurgical component of the project.
AMEC is an international project management, engineering and consulting company that designs, delivers and supports client assets across the public and private sectors, from a network of offices throughout Canada, the US, the UK and regional offices world-wide. They are recognized by the international lending community for services to the mining industry, and have more than 50 years of experience helping world leaders in the mining industry manage environmental and geotechnical issues. Dr. Maciej Szymanski, P.Eng. is the principal with overall technical responsibility for AMEC's component of the project.
The Qualified Person responsible for the technical content of this press release is Fred Baker, P. Eng., Manager of Mining and Environment for Wallbridge Mining Company Limited.
About Wallbridge Mining
Wallbridge Mining Company Limited explores for and develops 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 a major shareholding in Duluth Metals Limited, which has a significant property position in the rapidly emerging Duluth Complex base metal camp in Minnesota.
For Further Information
Please visit the Company's website at www.wallbridgemining.com, or contact:
Wallbridge Mining Company Limited
Alar Soever, President
Tel: (705) 682-9297
Email: [email protected]
Tel: (416) 710-0646
Email: [email protected]
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.