| ||Mon Nov 19, 2007|
Corporate Update: Historical Exploration Data Regarding Red Ridge Property
| ||CALGARY, ALBERTA - Prize Mining Corporation ("Prize") is pleased to provide the following summary of its review of the historic data from prior exploration programs carried out on its newly optioned Red Ridge Property, located near Carcross in southwestern Yukon. Prize has entered into an option agreement pursuant to which it has the right to acquire a 100% interest in the Red Ridge Property (see News Releases dated October 5, 2007 and October 17, 2007). Prior to the completion of the review of this data, Prize visited and sampled all areas described in the summary set out below. Assay results of these samples are pending.|
The Red Ridge Property consists of 30 quartz claims located in the Whitehorse mining district 40 kilometres south of Whitehorse. The claims are accessible by 4x4 and ATV road from Whitehorse or Carcross. The Red Ridge Property flanks a gentle but prominent gossanous ridge. Lithologies on the property are predominantly granodioritic units intruding an older sedimentary package. Broad zones of breccia/conglomerate containing intrusive fragments indicate more recent structural activity in some of the mineralized areas. Most of the exploration to date has focused on sulphide-bearing quartz veins and shear zones. Trenching and diamond drilling in the late 1980s explored six main zones named Western, Miller, Saddle, Don, Vance and East, situated along the main ridge from west to east. Subsequent prospecting has identified several additional mineralized zones.
The following is a summary of data regarding historical exploration activities undertaken on the Red Ridge Property compiled from the Yukon Geological Survey Minfile data, several assessment reports completed in respect of Red Ridge Property and assay results of sampling more recently completed by the present owners of the Red Ridge Property.
The east zone consists of three subparallel altered zones. Hand trenching on one zone showed a width of mineralization exceeding 15 metres. Within this zone are narrower quartz/barite veins containing massive tetrahedrite, azurite, and malachite which assayed 410 g/t silver and 1.15 g/t gold over a 0.7 metre width. Mechanical trenching has exposed the vein for a length of 20 metres. Grab samples containing galena, found in hand trenched rubble, assayed 5,626 g/t silver and 0.53 g/t gold (reference Keyser, H. 1987).
The Don Zone consists of a one metre wide zone of altered granodiorite containing pods and seams of manganese stained quartz. Sampling returned an average of 10.1 g/t gold and 1,519 g/t silver across 0.5 metres, over a strike length of 39 metres (reference YGS Minfile). A second trench located 150 metres to the northwest also exposes the Don Zone. No sulphide minerals are present in the Don Zone.
Three drill holes explored the Don Zone to a depth of 30 metres. Core recovery was a problem, as low as 30%, due to bad ground conditions. Review of the drill core logs show an abundance of unsampled porphyry style mineralization.
The Saddle Zone was discovered by prospecting and consists of several small outcrops and boulders of silicified granodiorite and quartz-galena found over a 20 x 50 metre area. Initial grab samples from this zone contained 34.8 g/t gold and 342.1 g/t silver (reference Henneberry, 1988). Quartz veins contained trace to several percent galena and chalcopyrite. Precious metal values are not limited to samples with sulphides indicating the presence of free gold or electrum.
Further trenching and exploratory drilling show that the Saddle Zone consists of limonite-manganese-clay gouge within a 30 metre wide zone of alteration and shearing. A quartz stockwork zone up to 1.5 metres in width surrounds the sulphide bearing quartz veins. The quartz veins returned an average of 6.1 g/t gold and 423 g/t silver over 0.5 metres for a length of 42 metres. Drilling of this zone returned assay values up to 28.5 g/t gold and 31.51 g/t silver over 0.4 metres (reference YGS Minfile). Wall rock was not sampled.
More recently, Sidehill Ventures Ltd. of Whitehorse reviewed the drill logs and sent several previously unsampled core intervals for assay. A 1.5 metre section of fractured, limonitic, granodiorite adjacent to a previous assayed section of core returned 2.34 g/t gold (reference YGS Minfile) increasing the weighted average to 2.87 g/t gold over 2.3 metres. It was determined that the sample interval selections were biased toward quartz veins and veinlets ignoring the potential of the wider zones of silicified granodiorite.
On the surface, the Miller Zone consists of a 2 to 3 metre wide zone of shearing and alteration that contains galena/quartz pods throughout. In addition, 10 to 30 centimetre wide quartz veins containing galena and pyrite occur in both the footwall and hanging wall of the zone. Grab samples of quartz-galena assayed up to 883.24 g/t silver.
The Miller Zone was intersected by 8 diamond drill holes. The northern shallow holes intersected a 2 to 5 metre wide zone of brecciation and argillic alteration with an associated 30 centimetre wide galena/quartz vein. The best intersection was 3.5 g/t gold and 341 g/t silver over 0.76 metres (reference YGS Minfile).
An interesting parallel structure was intersected in the hanging wall of the Miller Zone. Assay values to 0.71 g/t gold and 9.64 g/t silver over 2.13 metres were obtained from this stockwork structure. A small lens of weak argillic alteration returned 3.12 g/t gold and 98.8 g/t silver over 0.15 metres.
Copper Porphyry Zone
Initial exploration in 1974 by Inco Ltd. was directed toward a small (250 x 300 metres) porphyry copper system located on the southeast portion of the property. Mineralization consists of pyrite, chalcopyrite, bornite, and molybdenite with associated malachite in quartz veinlets and disseminations in hornblende diorite. Secondary potassium feldspar is associated with several of the veins and fractures and the granodiorite is sericitized and argillically altered throughout the area. The Inco exploration program was limited to a small area of outcrop. Additional porphyry style mineralization, identified in drill core and recent road cuts, indicates the porphyry system is significantly larger and more developed than this previous exploration suggested.
Prospecting in 2004-2005 resulted in the discovery of massive chalcopyrite, azurite and malachite in a brecciated quartz vein 15 centimetres wide. Samples of vein material assayed up to 10.4% copper in grab samples (reference Bratvold, 2005).
A 1.4 metre wide outcrop of quartz exhibits chalcopyrite, sphalerite, massive and disseminated molybdenite. Chip samples across the vein returned assay values up to 1.6% molybdenum (reference Bratvold, 2005). The vein outcrops on the wall of a 10 metre wide gully, which appears to be the surface expression of a shear zone. Trenching across this zone is necessary to determine the true width of this quartz vein/shear zone.
Ms. Linda Dandy, P.Geo. of P&L Geological Services is the project supervisor and "Qualified Person" for the purpose of National Instrument 43-101 who has reviewed and verified the contents of this news release.
ON BEHALF OF THE BOARD OF
PRIZE MINING CORPORATION
President and CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Prize Mining Corporation
(604) 684-4743 ext. 228 or Toll Free: 1-866-684-4743
The TSX Venture Exchange Inc. has neither approved nor disapproved the information contained herein.
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