Mengold Finalizes Joint Venture Agreement With X-Ore at Greenwater Lake Ni-PGE Project-Shebandowanadmin
Mengold Resources Inc. has finalized a Joint Venture Agreement with X-Ore Resources Inc. for the Greenwater Ni-PGE Property (Greenwater). Since the first announcement of this joint venture on March 3, 2008 (see news release NR-08-07), the partners have staked additional claims increasing the size of the property to 9,088 hectares (22,456 acres). This Property, located in Begin and Lamporte Townships in the Shebandowan area west of Thunder Bay, Ontario, provides Mengold with a key land position in a potentially developing nickel and PGE mining camp. The Greenwater Property is positioned about half-way between Mengold’s Burchell Lake and Goldcreek Properties.
The Joint Venture Agreement with X-Ore Resources of Montreal is on a 50:50 basis with X-Ore being the operator. The initial prospecting and sampling program is planned to begin around the end of June. The aim of the program is to identify drill targets and proceed with an initial drill program before the end of 2008.
In the light of current platinum and palladium prices and the success obtained by North American Palladium and Vale Inco on their Shebandowan West deposit located directly north of the Property, Mengold has high expectations for this project. Based on the current knowledge of the Property’s geology, it is believed that the same correlating ultramafic and iron formations, as those forming the former Inco Nickel-Copper Shebandowan Mine and Shebandowan West Ni-PGE deposits, are found within the Greenwater Property.
The former Inco Nickel-Copper Shebandowan Mine produced more than 8.7 million tonnes of 2.07% nickel, 1.0% copper, and 3.0gpt combined PGE’s and gold, between 1971 and 1998. According to a news release disseminated by North American Palladium (PDL), dated October 25, 2007, the Shebandowan West Nickel Project hosts a measured and indicated resource of 2.58 million tonnes of 0.91% nickel, 0.62% copper, 1.09gpt palladium, 0.34gpt platinum, and 0.23gpt gold. The northern boundary of Mengold’s Greenwater Ni-PGE Property lies within three kilometres of PDL’s resource.
The Qualified Person responsible for this news release is Joel Scodnick, P.Geo., President & CEO of Mengold Resources Inc.
Mengold is engaged in mineral exploration for precious and base metals. The Company has recently completed a 4,547m diamond drilling program at the Burchell Lake and Goldcreek Properties, both prospective for gold, copper, zinc, nickel, and molybdenum, in the Shebandowan area of Northwestern Ontario. Mengold has 36,820,088 common shares outstanding.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contacts: In Canada Mengold Resources Inc. Joel Scodnick, President and Chief Executive Officer (705) 522-4439 or (807) 629-7516 (705) 522-8694 (FAX)
Email: firstname.lastname@example.org or email@example.com
Mengold Resources Inc. Douglas Reeson, C.F.O. and Director (416) 533-0323 (416) 533-2890 (FAX)
In Europe Mengold Resources Inc. W. Ian L. Forrest, Chairman and Director 011.41.22.809.9511 011.41.22.899.9501 (FAX) Email: firstname.lastname@example.org
Noble Investment Dan Patience, Investor Relations (403) 262-7111
Source: Mengold Resources Inc.