TORONTO, ONTARIO--(CCNMatthews - May 3, 2006) - CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX VENTURE EXCHANGE:CML) is pleased to announce that it has reached an agreement in principle with Wallbridge Mining Company Limited (Wallbridge) regarding a joint venture agreement covering its 100% owned Peter's Roost Project, located in the North Range of the Sudbury Igneous Complex, Sudbury, Ontario. The two companies expect to sign a definitive agreement in the coming weeks.
The Peter's Roost Property Package ("the Property Package") includes 39 mining claims covering approximately 70 square kilometres, which were staked by Crowflight following a 2004 airborne MegaTEM geophysical survey. The airborne survey covered a large portion of the North Range Footwall section of the Sudbury Intrusive Complex which had not previously been covered by a modern airborne electromagnetic system. The survey was successful in identifying 14 strongly conductive anomalies. Several of these conductive anomalies occur coincident with concentric or offset structures related to the Sudbury Intrusive Complex and are considered to be prospective geological environments for hosting base-and-precious metal mineralization. Recent discoveries on similar structures include Wallbridge's Trill Offset Dyke and mineralization, and the Pele Mountain Offset Dyke. The Crowflight - Wallbridge joint venture (the "Joint Venture") also includes 41 claim units (6.5 square kilometres) recently staked by Wallbridge, covering an additional 12 MegaTEM geophysical conductors.
An aggressive exploration program is planned for the properties this summer. Specific exploration plans are expected to be released by Wallbridge and Crowflight with respect to the Property as they evolve.
Thomas Atkins, President and CEO of Crowflight commented on the agreement with Wallbridge stating: "Wallbridge is a company with an experienced exploration team that has a track record of discovery in the Sudbury Basin. They are a great fit for Crowflight to partner with on the advancement of the Peter's Roost Project. This partnership provides an excellent opportunity for Crowflight shareholders to participate in potential new discoveries in the Sudbury Basin, while the Company focuses on adding shareholder value through the development of its Bucko Nickel Deposit in the Thompson Nickel Belt, Manitoba and the exploration of the large land package that surrounds Bucko and ground adjacent to Inco's Thompson nickel mines, through its joint ventures with Falconbridge."
Summary of the Agreement
Under the proposed terms of the agreement between the two parties, Crowflight agrees to grant Wallbridge the right to earn an initial and conditional 50% interest in the Property Package in exchange for Wallbridge having expended $700,000 on exploration activities by December 31, 2007. Following this initial expenditure Wallbridge would have the option to increase its ownership to a 70% vested interest in any or all of four separate Project Areas by funding $1.0 million in Subsequent Exploration Activities by December 31, 2010 in each Project Area in which it selects to vest. Failure to vest $1.0 million in a specific Project Area will result in the ownership of such Project Area reverting back to Crowflight.
For any new properties Wallbridge acquires within the Joint Venture Area (a 495 square kilometer area within the North Range of the Sudbury Instrusive Complex), Crowflight will have the right to acquire a 25% participating interest at such time as an Indicated Resource is proved-up on such ground, by reimbursing Wallbridge 50% of its exploration costs to that point.
History of the Peter's Roost Property
Initial ground in the Peter's Roost Property Package was acquired by Crowflight in 2004 via a major staking program. The objective of this program was to cover areas believed to overlie the projected extension of two concentric Sudbury Offset Dykes interpreted to be prospective for hosting Offset Style nickel-copper-platinum group mineralization (PGM's) common to the Sudbury Basin. The Property consists of 39 mining claims located in the Townships of Hess, Leinster, Tyrone, Botha, Roberts, Kitchener, Creelman, and Hutton in the North Range of the Sudbury Basin, Ontario covering a combined surface area of approximately 70 square kilometres.
In 2004, the project area was covered by a regional airborne transient electromagnetic/magnetic (MegaTEM) geophysical survey completed by Fugro Airborne Surveys. Based on the results of this survey, additional ground was staked in Leinster and Roberts Township, and several attractive conductive/magnetic targets were investigated on the ground in preparation for drilling. In 2005, work included the completion of a comprehensive interpretation of regional structural lineaments, utilizing multi-spectral imaging data collected by the Aster Satellite system and modern remote sensing techniques. The results of the work in 2005 lead to the identification of additional exploration targets. Recent staking in the area (refer to releases dated February 28, 2006 and March 23, 2006) has concentrated on consolidating Crowflight's land position in the region, and covering off all newly identified targets.
Historically, several commodities have been mined in the area including nickel-copper-PGM's from the Nickel Offset and Milnet Mines in Foy and Parkin Townships, zinc-lead-silver from the Geneva Lake deposit in Hess Township, and iron from the Moose Mountain mine in Hutton Township. Despite this previous activity, little exploration work has been undertaken in large portions of the Property Package. The North Range Footwall area has been the focus of heightened staking activity in recent months as both junior exploration and major mining companies have expanded their ground positions into the area (refer to the attached figure, Geological and Property Map of the North Range, Sudbury Basin).
Crowflight - The Base Metal Builder
Crowflight Minerals Inc. is a Canadian junior mining exploration and development company listed on the TSX Venture Exchange. The company is focused on nickel, copper and Platinum Group Mineral ("PGM") projects in the Thompson Nickel Belt ("TNB") and Sudbury Basin. The company currently owns and/or has under option approximately 600 square kilometres of exploration and development properties in Manitoba and Ontario.
In Manitoba, these properties include: (1) the Bucko Nickel Deposit; (2) an earn-in option with Falconbridge Limited on five highly prospective properties (Bucko/Bowden, Resting Lake, Rock Island Lake, Halfway Lake and Gonlin Lake) on the TNB South Project located within 30 kilometres of the Bucko Deposit; and (3) six additional properties (Burntwood River, Birchtree South, Birchtree North, Airport, Moak Lake and Strong Lake) located 100 kilometres to the north on the TNB North Project.
In the Sudbury Basin, these properties include: (1) the 100% owned AER Kidd Project adjacent to Inco's Totten Deposit (10.1 million tonnes grading 1.5% nickel, 2.0% copper and 4.8 g/t PGM's); (2) the 100% owned Peter's Roost Property; and (3) the Airport Property (a 50/50 joint venture with Millstream Mines Ltd.) located 4 kilometres south, and on-strike, with Falconbridge's Nickel Rim South Deposit (13.2 million tonnes grading 1.7% nickel, 3.5% copper and 4.1 g/t PGM's).
Further information is available on the Company's web site at www.crowflight.com.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements. The Company cautions investors that the projections for increases to the Indicated Resources are based on Inferred Resources. There is no certainty that these projections will be added to the Indicated Resources or that they will be economically viable.
TSX-V Trading Symbol: CML
Total Shares Outstanding: 121.5MM
Fully Diluted: 165.0MM
52-Week Trading Range: C$0.18 - $0.33
NOTE: Please click on the following link to view the Geological and Property Map of the North Range, Sudbury Basin
FOR FURTHER INFORMATION PLEASE CONTACT:
CROWFLIGHT MINERALS INC.
President and CEO
(416) 861-8165 (FAX)
(604) 684-4743 x 30