Newmac Resources Inc. (“Newmac” or the “Company”) (TSX-V: NER) is pleased to announce that it has received a National Instrument 43-101 compliant report on the Crazy Fox property. The authors of this Technical Report, E. D. Harrington, PGeo and T. H. Carpenter, PGeo, of Discovery Consultants were requested to undertake an independent review of all available geological, geochemical and geophysical reports and data on the Crazy Fox Property. This technical report will be available for download from SEDAR (www.sedar.com).
Summary of Report
The Crazy Fox Property is located within the Kamloops Mining Division in southcentral British Columbia. The centre of the Property is approximately 100 kilometres north of the City of Kamloops and 18 km west-southwest of the community of Clearwater. Newmac Resources Inc entered an option agreement, dated September 14, 2005, with Emerald Gold Mines Inc., controlled by Robert Bourdon and Lloyd Addie, pursuant to which Newmac had the option to purchase a 100-per-cent interest in the Fox property. In consideration, Newmac would make payments totalling $100,000 and issue 200,000 shares over a three-year period. Newmac has fulfilled all of its obligations under the terms of the option agreement. An additional 200,000 shares would be issued upon a positive feasibility study.
In 1998 Bourdon and Addie acquired claims in the Property area based on anomalous results from a till sampling program completed in 1997 by the British Columbia Geological Survey Branch. The focus of exploration in 1998 and 1999 was the base metal potential of the Property.
In 2004, new logging roads were extended into the area of the historical Anticlimax molybdenite showings. Prospectors Addie and Bourdon, while routinely prospecting the new roads, found significant new high grade molybdenum mineralization (2.38% Mo) approximately 1,000 metres from the historical showings and on the eastern flank of a broad, previously defined molybdenum-tungsten geochemical area in the vicinity of Rong Lake.
In 2005, Newmac, on the conclusion of the option agreement with Addie and Bourdon, commenced a program of geochemical sampling and prospecting followed by excavator trenching on some of the geochemical anomalies. Newmac completed its program in early December. At the same time, logging operations were commencing over much of the area underlain by prospective granite between the new showings and the historical showings.
In February 2006, Newmac returned to the Property and commenced a drilling program utilizing newly constructed logging roads and skid trails. In total, 7,486 metres of NQ drilling was completed between February 16 and June 16, 2006 in 33 drill holes.
A significant feature of the drilling was that several of the holes drilled through the granite and into a thrust fault bounded volcanic member of the Nicola Group. Newmac initiated regional prospecting and sampling in an attempt to locate the mineralized granite originally underlying the thrust fault.
Newmac instituted another drill program in June of 2007. In late 2007, a high-grade molybdenum discovery was made in drilling, which led to an extensive drilling program in 2008. By the end of August 2008, Newmac had completed a total of 13,328 metres of diamond drilling composed of 6,916 metres of NQ and 6,413 metres of HQ sized hole. In total, 3,295 core and quality control samples were submitted for analysis.
The significant molybdenum-tungsten mineralization was defined by drilling over 800 metres of strike length and is open in several directions. Intersections included 316 metres in hole 07-41 that assayed 0.14% Mo and 254 metres in hole 08-47 that contained 0.15% Mo over 254 metres.
The tenor of mineralization in deep drill holes at Crazy Fox compares favourably to that at the Davidson Deposit of Thompson Creek Metals (www.thompsoncreekmetals.com), which is estimated to contain a NI 43-101 compliant measured and indicated mineral resource of 77.2 million tonnes grading 0..169% Mo at a cut-off grade of 0.12% Mo.
As a result of the review, programs of till sampling, an airborne geophysical survey and an infill diamond drilling are recommended. The latter drill program will contain 9,500 metres of coring. The total cost for the recommended programs is estimated at $2.6 million. Pending the results of the above programs additional exploration may be warranted at a cost yet to be determined.
The information presented in this news release has been reviewed and approved by David Bridge, PGeo, qualified person (as defined by National Instrument 43-101) and also by the authors of the report.
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