New Island Resources Inc.: Progress Report
ST. JOHN’S, NEWFOUNDLAND AND LABRADOR–(Marketwire – Sept. 15, 2008) – New Island Resources Inc. (New Island) (TSX VENTURE:NIS) of St. John’s, NL provides a progress report on its projects.
Pine Cove Gold Property
Anaconda Mining Inc., which is earning a 60% interest in the Pine Cove property, advises that the Pine Cove mill is now in operation but has not as yet achieved full commercial operation. It is presently in the commissioning stage where certain modifications and adjustments are being made to optimize production and improve yields. Anaconda is quite optimistic that full commercial operation will be achieved in the near term.
Glover Island – Gold Base Metal
Crew Gold Corporation, which has signed a joint venture agreement to expend $5,000,000 in exploration expenditures to earn a 60% interest in the Company’s prospective Glover Island property, advises that exploration has commenced and in process. The exploration program planned for the year entails an airborne geophysical survey, a full environmental base line study, geological mapping of known gold occurrences to develop a coherent information base to assist later drilling, and metallurgical testing of selected bulk samples to assist in undertaking a scoping study.
Sims Basin – Uranium base metal
An airborne geological survey has now been completed by Aeroquest International on the Company’s 80,000 hectare Uranium property in the Sims Basin area of western Labrador. The survey comprised time- domain electromagnetic radiometric and magnetometer survey. The final report from Aeroquest is not due until late September, however all information has now been uploaded and available for review by New Island’s contracted senior experienced geologists. A full ground truthing program has now been designed and crews positioned on the property to commence work on September 13. This program will further test targets identified by the airborne survey and is expected to be completed within four weeks following which a report on results will be released.
Prominex Resource Corp. – Investment
The Company holds 8,000,000 shares in Prominex Resource Corp. (Prominex), roughly 20% of the shares outstanding. It also holds warrants for 8,000,000 shares at a price of 13 cents per share expiring on July 22, 2009. Prominex’s main asset is the Tulks Hill property some 40 kilometers South of Buchans in central Newfoundland where a 43-101 report by Scott Wilson Roscoe Postle Associates Inc. gives an indicated mineral resource of 431,000 tonnes grading 0.89% Cu, 3.97% Zn, 1.61% Pb, 35.09 g/t Ag and 1.17 g/t Au. Prominex advises that it plans to initiate a Titan 24 survey by Quantec Geoscience Ltd. designed to locate deep sulphide rich zones up to an effective depth of 500 – 750 metres. It further advises that it has engaged E&P Associates of Yorkshire, England to carry out a pre- treatment pilot plant study in Segovia Spain on the Tulks Hill ore to determine whether a significant percentage of low density material can be removed without a major loss of metal from the feed. A report on this study is expected in the near term. Overall, the company is pleased with the progress being made on this project.
During the past year, the Company undertook two relatively small exploration programs on properties in the Nugget Pond area of the Baie Verte Peninsula in Newfoundland. One project involved a property optioned from South Coast Ventures Inc. Two holes were drilled without significant success and, as a result, the option has been terminated. A second project involved drilling two claims held by the company adjacent to the Nugget Pond mill. Drilling on one of the claims did not yield results anticipated but sufficient to hold the property in good standing. The other claim near the Nugget Pond mill on which the twenty-year mineral licence was expiring, was reduced in size and converted to a mining lease. Both properties warrant additional work and are held in good standing.
Statements contained in this release that are not historical facts are forward-looking statements, which involve known and unknown risks and uncertainties not under the company’s control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or expectations implied by these forward-looking statements.
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