Murgor signs two more agreements with Hudbay Minerals inc. and starts field work in Flin Flon belt
Montreal, Quebec, October 20, 2006. Murgor Resources Inc. (MUG: TSX-V) is pleased to announce that it has signed the two remaining agreements contemplated in a Letter of Intent (LOI) dated July 18th, 2006 with Hudson Bay Exploration and Development Company Limited (HBED), a wholly owned subsidiary of HudBay Minerals Inc. (HBM: TSX). Subject to regulatory approval, the two separate agreements signed October 17, 2006 give Murgor the exclusive right to earn a 50% interest in two large-scale grassroots projects covering 186,104 hectares of very prospective ground in Manitoba and Saskatchewan. The formalizing of the two agreements follows the signature of four other agreements dated September 12th, 2006 whereby Murgor acquired the right to earn a 100% interest in four properties that include the Fon, Wim, Hudvam and Tyr polymetallic deposits (Zinc-Copper-Gold-Silver). All the properties are located in the Flin Flon greenstone belt of Manitoba and Saskatchewan, one of the most prolific base metal districts in the world.
Murgor also wishes to announce that preliminary field work has started on the Flin Flon properties in preparation for deep penetration geophysical surveys in November and December 2006. Drilling of the Fon, Hudvam, and Wim properties is planned for January 2007. Data compilation is also underway on the deposits in an effort to complete NI 43-101 compliant resource estimates as soon as possible.
Andre C. Tessier, President and CEO of Murgor Resources states: “The signing of these agreements completes the transaction contemplated by our Letter of Intent and marks a new era for Murgor. There is no better place to explore than close to existing mines and with these projects, Murgor will be exploring in the shadow of HudBay’s mine shafts, mills and refineries in Flin Flon and Snow Lake. The two properties have thousands of conductors to investigate and hundreds of kilometers of strike extent of favourable mineralized horizons to investigate. It is a great place to be.”
The two signed agreements grant to Murgor the exclusive right to acquire a 50% interest in the Flin-D and Snow-H projects respectively located in Saskatchewan and Manitoba.
THE FLIN-D GRASSROOTS PROJECT:
Murgor may earn a 50% interest in the Flin-D Project by making aggregate expenditures of $2.5 million over a period of 3 years in an area covering over 80,518 hectares in Saskatchewan located 10 kilometers northwest of the town of Flin Flon. The Flin-D Project consists of current mining properties and any future mining properties acquired by either party within the area of the project (current mining properties cover an area of 4,530 hectares) as well as access by Murgor to HBED’s extensive exploration database in the area (including the data from a 3,850 line kilometer SPECTREM airborne electromagnetic survey carried-out by HBED in 1995). Murgor may elect to carve-out designated target areas of the Project. HBED will then have the choice of participating in the designated target areas as a 50-50 joint venture partner or granting Murgor the right to earn a 100% interest in the designated target areas. HBED will then retain a buy back right of up to 65% or a 2% net smelter return (NSR) royalty. The Flin-D project covers hundreds of kilometers of strike length of volcanic rocks that are believed to be equivalent to those hosting the base metals of the Flin Flon mining district (in excess of 110 million tonnes of copper-zinc-gold-silver).
THE SNOW-H GRASSROOTS PROJECT:
Murgor may earn a 50% interest in the Snow-H Project by making aggregate expenditures of $2.5 million over a period of 3 years in an area covering over 105,586 hectares in Manitoba, located 5 kilometers east of the town of Snow Lake, between the Snow Lake Mining district and the Thompson Cu-Ni belt. The Snow-H Project consists of current mining properties and any future mining properties acquired by either party within the project area (current mining properties cover an area of 8,503 hectares) as well as unlimited access by Murgor to HBED’s extensive exploration database in the area (including the data from a 5,670 line kilometer SPECTREM airborne electromagnetic survey carried-out by HBED in 1995). Murgor may elect to carve-out designated target areas of the Project. HBED will then have the choice of participating in the designated target areas as a 50-50 joint venture partner or granting Murgor the right to earn a 100% interest in the designated target areas. HBED will then retain a buy back right of up to 65% or a 2% net smelter return (NSR) royalty. The Snow-H project covers hundreds of kilometers of strike length of volcanic rocks that are believed to be equivalent to those hosting the base metals of the Snow Lake mining district (in excess of 30 million tonnes of copper-zinc-gold-silver).
The technical information in this news release has been reviewed by Dr. Jean-Philippe Desrochers, P.Geo, Vice-President Exploration of Murgor Resources Inc. a qualified person in accordance with Canadian regulatory requirements as set out in National Instrument 43-101.
FOR FURTHER INFORMATION ON MURGOR, PLEASE VISIT OUR WEBSITE AT WWW.MURGOR.COM OR CONTACT:
André C. Tessier, President & CEO
MURGOR RESOURCES INC.
Tel: (613) 546-7503 or 1-888-891-3330
Fax: (613) 546-7318
E-mail: info@murgor.com Web site: www.murgor.com
This news release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Murgor, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Murgor's expectations are exploration risks detailed herein and from time to time in the filings made by Murgor with securities regulations.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release
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