| ||Thu Aug 21, 2008|
Processing of Cross-Section Through Gold-Rich Zone Underway, YellowJacket Zone, Atlin Gold Property, BC
| ||CALGARY, ALBERTA --- Prize Mining Corporation ("Prize") (TSXV: PRZ) is pleased to announce that three more 250 tonne blocks of gold-bearing rock have been processed this past week as part of the Yellowjacket Zone bulk sampling (trial mining) program on its Atlin Gold Property, located in northwestern British Columbia. See News Releases, dated August 6 and August 13, 2008, for the previous weekly updates on the bulk sampling program.|
The 10,000 tonne gold-rich bulk sample is being run through a Knelson designed processing plant as forty individual 250 tonne blocks. In order to calculate gold content of each block, full gold cleanup is done at the end of each block run. Over the past week Prize has completed processing Block A28, has processed blocks A25, A26 and part of A27, and has started screening and crushing Block A29. Block A29 is the 7th block to be processed.
A semi-autogenous grinding (SAG) mill, which Prize purchased last spring, has now been re-furbished by Titan Equipment and is currently enroute from Ontario. It is anticipated to be on site in Atlin by the end of the week. The SAG mill will allow for coarser material to be incorporated into the milling circuit and will double daily tonnage input through the mill.
Blocks A25 to A30 represent a cross-section, across the strike of the main gold-bearing mineralized fault zone mapped in the bedrock pit. A25 and A26 were taken from the hanging wall of the zone, A27 and A28 from the central mineralized portion of the zone and A29 and A30 were collected from the footwall of the mineralized fault zone.
Over the past week, table concentration of high-grade Block A28 was completed with a total of 16.6 kilograms of dry concentrate produced. This concentrate has been retained for smelting in order to produce a gold bar, either on site or at a refinery. Final decision on the concentrate refining location has not yet been made, but the gold flux has been optimized on site with the production of good quality, small gold beads.
Blocks A25 and A26, which represent lower grade hanging wall mineralization produced 1.94 and 1.87 kilograms of dry concentrate, respectively.
As of today, high-grade Block A27 is partially milled, with approximately 100 tonnes put through the milling circuit. So far, from this 100 tonnes of gold-rich rock that has been milled, 8.5 kilograms of high-grade concentrate has been produced. Visually, as the concentrate crosses the Deister table, it appears that Block A27 is recovering the largest quantity of gold from the blocks processed to date.
The remaining two blocks, representing the footwall in the cross-section through the mineralized structural zone, Blocks A29 and A30, returned low gold values from channel sampling. Following the milling of these final two blocks from the top level of the cross section, Blocks B26, B27, B28, B29, C27 and C28 will be processed. The "B" level blocks are from one lift below the A level, and the "C" level blocks are from two lifts down. With each lift representing 2.5 metres, processing of the B and C blocks from below the A cross-section will give a third dimension to the gold values obtained from this section.
Eur. Geol. Dr. Simon Dominy, C.Eng., C.Geol., Principal Geological Engineer and General Manager of Snowden Mining Industry Consultants Ltd (UK) has been contracted to assist Prize in laying out the blocks for processing and implementation of a rigorous head, tail and concentrate sampling program in order to determine the exact gold content of each block. The bulk sampling program is designed to mitigate the erratic nature of the very coarse-grained and "nuggety" high grade gold concentrations found in the Yellowjacket Zone in order to produce a new 43-101 compliant resource estimate. Dr. Dominy brings a wealth of knowledge to the project with his extensive global experience in the field of coarse gold ("high nugget effect") deposit evaluation and exploitation along with practical experience in the planning and expiation of surface and underground bulk sampling/trial mining programs. Upon receipt of final gold values, Dr. Simon Dominy will review the data in order to produce a 43-101 compliant resource estimate for the Yellowjacket Zone, along with recommendations for the next step in the development of this resource.
Prize's President Harry McGucken states "We are extremely pleased with the progress of the bulk sampling program to date. Although there were unforeseen delays in upgrading of the newly purchased SAG mill, upgrades have now been completed and the mill is on its way to site. Integrating the SAG mill into the existing milling circuit will greatly increase production rates. Gold recoveries from blocks processed to date, although results cannot be officially quantified prior to obtaining certified assays from ACME Labs, appear to meet or exceed expectations."
Weekly updates will be provided by news release during the course of the Yellowjacket Zone bulk sample (trial mining) program.
Additional details and information regarding past work conducted on Prize's Atlin Property is set out in past news releases issued and technical reports published by Prize, all of which are available on SEDAR at www.sedar.com.
QUALITY ASSURANCE /QUALITY CONTROL (QA/QC)
Prize follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards, blanks and duplicates into the sample stream submitted to ACME Laboratory Ltd. for analyses.
Ms. Linda Dandy, P.Geo., the project supervisor of Prize's trial mining program on the Yellowjacket Zone of the Atlin Gold Property, is Prize's nominated Qualified Person responsible for monitoring the supervision and quality control of the programs completed within the Atlin Gold Property. Ms. Dandy has reviewed and verified the technical information contained in this news release.
About Prize Mining
Prize Mining Corporation (TSX VENTURE: PRZ) is dedicated to the exploration, discovery and development of precious metal deposits. Prize is exploring for gold in the Atlin area of northwestern British Columbia, Canada and for nickel-copper-palladium and platinum on the Muskox Layered Intrusion in Nunavut, Arctic Canada.
ON BEHALF OF THE BOARD OF
PRIZE MINING CORPORATION
President and CEO
For further information:
Jamie Mathers, Investor Relations
Toll Free: 1-866-684-4743
This news release contains forward-looking information including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations and potential mineral recovery processes. Forward-looking information includes disclosure regarding possible future events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. When used in this news release the words "estimated", "plan", "anticipated", "expected", "intend", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Prize to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. For any forward-looking information given, management has assumed that the analytical results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Although management has a reasonable basis for the conclusions drawn, there can be no assurance that forward-looking statements will prove to be accurate and actual results may differ materially from those currently anticipated in such statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise. Prize undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
The TSX Venture Exchange Inc. has neither approved nor disapproved the information contained herein.
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