Inspiration Mining Corporation
ACQUISITION OF METAL MINES INC.
Corporate-news announcement sent by DGAP.
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INSPIRATION MINING CORPORATION PRESS RELEASE
ACQUISITION OF METAL MINES INC. TSX.V – ISM
November 8, 2004, Toronto, Ontario – Inspiration Mining Corporation (the
“Corporation”) is pleased to announce that it has entered into an arm’s length
agreement with the shareholders of Metal Mines Inc. (“Metal”), a private Ontario
company. Pursuant to the terms of the agreement, the Corporation will issue one
and one half (1?) common share, for each common share issued and outstanding in
the capital of Metal. Pursuant to the terms of the agreement, an aggregate of
16,800,000 common shares in the capital of the Corporation will be issued to the
shareholders of Metal. Mr. Randy Miller, the President and a director of the
Corporation, is also the President of Metal but will not receive any common
shares pursuant to the agreement, as he is not a shareholder of Metal.
Metal is a junior mining company that owns a 100% interest in 54 unpatented
contiguous claim units in the north-central part of Langmuir Township, Porcupine
Mining Division, Ontario (the “Langmuir Property”) and is in the business of
nickel-copper-platinum exploration, development and production. The Langmuir
Property is an advanced exploration property with a historical inferred resource
of 1,017,400 tones grading 1.38% Ni at four locations with unknown contents of
copper, cobalt, gold and platinum group elements. This historical inferred
resource based on surface and underground drill holes was calculated by Timmins
Nickel Inc. in 1991.
The following summary regarding the Langmuir Property is extracted from an
independent technical report dated May 17, 2004 that was prepared by Gerald A.
Harron, P.Eng. of G.A. Harron & Associates Inc (the “Langmuir Report”). The
Langmuir Report was prepared in accordance with National Instrument 43-101 and
is available on the SEDAR website (www.sedar.com).
Metal acquired the Langmuir Property in February 2004, which is located about 25
km southeast of Timmins, Ontario and consists of 21 unpatented contiguous
claims comprised of 54 units covering a nominal 864 ha. Surface rights are
attached to 17 of the claims and the other 4 claims are “Mining Rights Only”.
Early exploration (circa 1911-27) focused on the base and precious metal content
of iron formations. Komatiite related nickel-copper mineralization was
discovered on the property in 1966, resulting in the subsequent delineation of
the Langmuir # 1 and # 2 deposits. Production in the 1973-78 period by a Noranda
/ Inco joint venture totaled 1,133,750 tons grading 1.45% Ni from the # 2 Mine.
Timmins Nickel Inc. developed the Langmuir #1 Mine, which was in production
during the 1990-91 period, milling a total of 101,132 tones grading 1.74% Ni.
In 1990-91 Timmins Nickel conducted a comprehensive exploration program covering
the Langmuir property. This work included a helicopter-borne combined MAG and
VLF-EM survey, as well as ground magnetic and HLEM surveys focused on the areas
along strike from the #1 Mine. This work resulted in the definition of 5 major
conductive zones and the delineation of iron formations and variously altered
ultramafic rocks.
The same exploration program included 295m of surface diamond drilling at 3
sites and 1,137m of underground drilling at 33 sites in the Langmuir # 2 Mine.
Assay results are available for the North and South Zones located near the # 2
Mine, but not for the drill holes located northeast of the Langmuir #1 Mine.
1991 Drill Results – North and South Zones
DDHComplete Intersection (m)High Grade Intersection (m)
North Zone% NiCore length (m)% NiCore length (m)
L-89-H 7 1.24 13.7 2.4 14.9
L-89-H 11 0.78 14.1 1.00 4.8
L-89-H 13 0.91 12.3 1.38 3.9
L-89-H 14 1.41 5.5 1.75 3.0
L-89-H 15 0.75 14.6 1.00 2.7
South Zone
L-89- 1 4.9 1.8
L-89- 2 2.0 1.2
L-89- 5 0.88 1.5
The drilling indicates the continuation of a large volume of net-textured and
disseminated nickel sulphide mineralization associated with massive nickel
sulphide mineralization within the North Zone.
Till sampling in areas northwest and east of the Langmuir #1 Mine, and north of
the Langmuir #2 Mine identified nine anomalous (>300 ppm Ni) sites located along
the strike of the known deposits or associated with HLEM conductors. These
results are exploration targets for massive sulphide type nickel mineralization
that could also contain large volumes of disseminated and net-textured nickel
sulphide mineralization.
The Langmuir Report recommends a two-phase exploration program for the Langmuir
Property. A Phase I exploration program will focus on the area surrounding the
Langmuir #1 Mine where previous operators defined conductive zones and
geochemical anomalies. In addition to MAG and HLEM surveying UTEM and IP/RES
surveying will be used to identify deeper massive nickel sulphide and
disseminated nickel sulphide mineralization drill targets in this area.
Inspiration also plans to initiate a program to confirm the historical inferred
resource in the four known zones during this phase of exploration.
A Phase II exploration program is not contingent upon the results from the Phase
I program but continues exploration in the vicinity of the # 2 Mine. The
program includes re-establishing the historical survey grid with geophysical
coverage of the eastern part of the property and provides for diamond drilling
of targets in all parts of the property. Similar to the Phase I program UTEM and
IP/RES surveys will be used to search for deeper massive nickel sulphide and
disseminated nickel sulphide mineralization respectively.
The data generated by the exploration programs and the resource estimations will
allow a decision regarding the direction of further development of the Langmuir
Property. The drill core assays will provide guidance as to which nickeliferous
deposit(s) will attract the next exploration program and budget, such as a
focus on redeveloping the # 1 Mine.
For further information about the Corporation, please contact Randy Miller,
President of the Company, at 905.853.7400.
For further investor relations’ inquiries, please contact Dan Boase, First
Canadian Capital Corp., at 416.742.5600.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
end of message, (c)DGAP 09.11.2004
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WKN: 909977; ISIN: CA45772J1093; Index:
Listed: Freiverkehr Berlin-Bremen
091810 Nov 04
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