Mantra Mining Inc. (the "Company") (TSX VENTURE: MAN) is pleased to
announce that the notice of a special meeting of shareholders, and
an Information Circular dated August 24, 2009, have been mailed to
all shareholders and are available on the Company's profile at
www.sedar.com. The meeting will be held in Vancouver on September
25, 2009 at 10:30 am.
The Company is seeking the approval of its shareholders to pass
a special resolution approving the spinout of AsiaBaseMetals Inc.
in a manner where each existing shareholder of Mantra would receive
an equivalent number of shares of AsiaBaseMetals Inc. as held in
Mantra as of the effective date. AsiaBaseMetals Inc. will be listed
a separately traded company on the TSX Venture exchange.
Furthermore, the Company is seeking shareholder approval to pass an
ordinary resolution approving and ratifying a potential "change of
control", as defined by TSX Venture Exchange policies, of Mantra to
Electrum Strategic Metals LLC and the removal of certain
restrictions on exercise of warrants of Mantra held by Electrum
Strategic Metals LLC, as more fully set forth in the Information
Circular. Please refer to Mantra Mining press release dated June
22, 2009 and the Information Circular for more detailed
information.
The Company is also pleased to announce that it has completed
its planned 2009 work programs on its exploration properties in
Alaska. Updates on the exploration work, including the drilling at
Colorado Creek are provided for each project below.
COLORADO CREEK PROPERTY
The Company's 2009 drilling program at its Colorado Creek,
Alaska, property was completed with 2,547 meters drilled in 12 core
holes across an area measuring 1.2 kilometers by 0.5 kilometers.
The program was designed to test the potential for a major gold
mineralized system from a multi-kilometer long area of elevated
gold in soil and rock samples. The area of elevated surface gold
values is the source area for the extensive Colorado Creek and
Cripple Creek placer deposits, estimated to have historic
production in excess of 250,000 ounces of gold and still producing.
The property lies in the Tintina Gold Belt in southwest interior
Alaska and has geologic, geophysical and geochemical
characteristics similar to the 30 million ounce gold reserve at the
Donlin Creek deposit being developed by NovaGold and Barrick.
The results from the Company's first three core holes of its
2009 drilling program at Colorado Creek, Alaska, confirm that gold
mineralization is present across significant thicknesses and
lateral extent (see attached Map - A1 and A2). Mineralization in
these three holes occurs primarily in a rhyodacite quartz porphyry
sill which intrudes siltstone, sandstone and andesite, and measures
117.6 meters (approximately 350 feet) thick in DDH CC09-14 (based
on the geologic projections, this intersection is believed to
approximately represent the true thickness of the sill in this
location). These three holes test a gold mineralized area of about
150 m by 470 meters (approximately 450 feet by 1500 feet), and the
mineralized rhyodacite remains open to expansion to the south,
southwest and southeast.
Gold mineralization in the rhyodacite porphyry is associated
with disseminated and veinlet controlled sulfide mineralization.
Mineralization has also been observed in both the surrounding
sedimentary and volcanic rocks in structurally favorable zones. In
addition, drilling further east encountered significant quantities
of disseminated sulfide mineralization hosted by altered andesite,
diorite, and siltstone proximal to the Cripple granodiorite
stock.
Analyses for the next nine drill holes are still pending.
Further work could significantly expand the size of the known
mineralized body. Additional comprehensive soil sampling and
mapping has also been completed over the property as part of this
year's program to determine the extent of the elevated gold target.
Of particular interest are large areas of mapped rhyodacite and
andesite porphyry units which are known to host mineralization
elsewhere in the district.
In the drilling to date, oxidation is pervasive down to
approximately 75 meters (approximately 225 feet), but can occur
intermittently throughout the entire drilled thickness. Some
oxidized veins show visible gold, and visible gold is apparent in
drill cuttings and in core saw sludge.
Core samples were split in half and one half was sent to an ALS
Chemex facility in Fairbanks, Alaska for preparation into pulps for
analysis. Au analyses were done by the ALS Chemex Au-AA23 method
which consists of fire assay and an atomic absorption finish.
A complete list of composite gold analyses for the first three
holes is shown below:
Hole Hole DDH09-012 Total Depth 206.0 meters
From (m) To (m) Length (m) g Au/Tonne
Has 46.0 144.4 98.4 0.57
With 62.0 84.0 22.0 1.01
and contains 80.0 84.0 4.0 2.21
and contains 143.2 144.4 1.3 6.62
and has 182.0 184.0 2.0 3.53
Hole Hole DDH09-013 Total Depth 353.9 meters
From (m) To (m) Length (m) g Au/Tonne
Has 45.3 80.0 34.7 0.55
and has 279.0 302.2 23.2 0.66
and contains 296.0 299.3 3.3 1.65
Hole Hole DDH09-014 Total Depth 221.0 meters
From (m) To (m) Length (m) g Au/Tonne
Has 49.0 160.0 111.0 0.64
which contains 49.0 73.0 24.0 1.15
With 59.0 61.0 2.0 6.38
and contains 122.0 136.0 14.0 1.44
With 122.0 124.3 2.3 7.28
and contains 150.0 160.0 10.0 1.29
Please see attached Map - A1 and A2 for drill hole
locations.
The results from these three holes provide further confirmation
that the Colorado Creek property hosts a large scale gold system
with significant concentrations of gold in and proximal to felsic
intrusions. Colorado Creek shows many geologic similarities with
the 30 Million ounce gold reserve at the Donlin Creek deposit in
the southwestern portion of the Tintina Gold Belt, where like
Donlin Creek porphyry dike and sill complexes intrude Cretaceous
age shales and siltstones. The property, geology and option
agreement are described in more detail in a recently completed
National Instrument 43-101 report (see the Company's website or the
Company's profile on Sedar for a link to the full report).
KUGRUK PROPERTY
The Kugruk property is located in Western Alaska on the northern
Seward Peninsula and consists of 176,640 acres of Alaska state
claims and 640 acres of leased Alaska state claims. The property is
100% owned by Mantra. The very large scale targets developed to
date on the Kugruk property show excellent potential for the
discovery of large copper-gold porphyry, IOCG and replacement style
deposits.
Historic shallow drilling in the 1970's encountered massive
magnetite-chalcopyrite calc-silicate assemblage along the east
margin of the Kugruk granitic intrusive complex, where it intrudes
Paleozoic meta-sediments (please refer to attached Map - B1). A
small amount of drill core left on site returned copper assays as
high as 9060 ppm within massive magnetite and calc-silicate rock.
This core came from holes drilled along a small portion of the
14-kilometer long Kugruk Magnetic Belt which flanks the east margin
of the Kugruk pluton. It is speculated by geologic inference that
the entire belt may contain additional Fe-Cu mineralization.
Further east are scattered high grade silver-lead-zinc occurrences
including the Independence mine. Extensive reconnaissance soil
sampling across the 52 kilometer by 17 kilometer area of the
property shows that glacial loess cover masks the bedrock geology
and geochemistry in the lower elevations, and that only the tops of
the low hills in the area produce a reliable bedrock-generated soil
geochemical response. The strongest and most extensive Cu-in-soil
anomalies where sampling was effective occur within the intrusive
complex on Kugruk Mountain (see attached Map - B1), and in the
southern part of the property in the Knowles Creek area (see
attached Map - B2).
Exploration activities in 2009 included an orientation ground
geophysical survey carried out by Zonge Engineering to investigate
three of the many strong magnetic anomalies and low resistivity
anomalies outlined in a Fugro 2006 airborne magnetic and EM survey.
The survey consisted of 16.4 line kilometers of 100 meter
dipole-dipole Induced Polarity and resistivity, and 11 gravity
profiles. Work focused on three distinct areas: 1) a three
kilometer segment of the northern Kugruk magnetic belt; 2) on a
three kilometer non-magnetic airborne low resistivity anomaly on
the south slope of Kugruk Mountain (see attached Map - B1); and 3)
on a five kilometer non-magnetic airborne low resistivity anomaly,
coincident with a copper-in-soil anomaly, near Knowles Creek in the
southern part of the property (see attached Map - B2). In all
cases, the survey confirmed the low resistivity response shown in
the airborne survey, and showed a coincident and unusually high IP
response. The scale of the geophysical response in all cases was
larger than the size of the survey - additional work is planned in
the future. In addition, the magnetic high in the northern Kugruk
magnetic belt also showed an extremely high gravity response.
The results of this orientation geophysical survey strongly
indicate widespread concentrations of metallic minerals in the
subsurface of the Kugruk property, some of which are coincident
with copper mineralization known from soil sampling and from very
limited historic shallow surface drilling. The targets developed to
date indicate the potential for large scale metal deposits and
define several excellent targets for drill testing for large
copper-iron-gold porphyry, IOCG and replacement deposits.
BAIRD PROPERTY
The Baird property is located in the Baird Mountains of
northwest Alaska and consists of 80,560 acres of 100% owned Alaska
state claims, and the 9,600 acre Omar claim block where Mantra is
earning a 60% joint venture interest from Teck. The property lies
100 kilometers southeast of Red Dog, the world's largest zinc
producing mine. Work by NovaGold and Mantra Mining to date includes
collecting 3,826 soil, rock, talus fine, and stream silt samples
and has identified four large copper-zinc mineralized areas ranging
from 4 to 10 kilometers in length which contain multi-percent-level
copper and zinc mineralization hosted by Paleozoic carbonate (see
Map C). At Omar, an historic drill program conducted by Bear Creek
Mining Co. in the 1960's intersected 6.1 meters of 9.6% copper in
one hole, and 36.6 meters grading 3.2% copper in another within a
4.3 kilometer long area of anomalous Cu and Zn. The Deadfall
prospect lies within a 4 kilometer belt of strongly anomalous Zn
and Pb where channel samples returned 36 meters grading 6% zinc and
21.7 grams silver per tonne. At Frost, a 4.3 kilometer belt of
strongly anomalous Zn and Cu in soils is coincident with widely
extensive silica-barite rock with strong copper and zinc
mineralization occurring in both stratabound and cross cutting
structural zones. The fourth area, Peak, consists of an extensive
10 kilometer long trend of Zn, Pb, and Ba geochemical anomalies
with locally anomalous Cu.
This year's limited work program focused on following up
geochemical anomalies generated by a 2007 NovaGold sampling
program. Most work was focused on the Capital Hill area at the
southeast end of the 10 kilometer long Peak mineralized trend.
Here, scattered narrow gossan trains occur in the carbonate for
over 1.5 kilometers and include a broad zone of mixed gossan,
silica rock, and baritic rock. A two meter wide silica-barite vein
in the carbonate returned 5.3% Zn. From broad areas of carbonate
subcrop with widely scattered cobbles and pebbles of gossan float,
samples of gossan return as much as 1% Zn, 0.5% Pb, and 500 ppm Cu.
All the material is strongly oxidized and determining original
metal concentrations will require drilling. Additional results are
pending.
These exceptionally large metal anomalies are hosted in
Paleozoic carbonates, and Re-Os dating of Cu mineralization at Omar
by the U.S.G.S. shows an early Devonian age of mineralization,
demonstrating that the Baird occurrences are part of the same
regional metallization event that produced the nearby Red Dog zinc
deposit, the Ruby Creek copper deposit, and the Ambler Cu-Zn
deposit. Mantra's geologists believe that the Baird property
represents an excellent district-scale target in which to locate
another giant base metal deposit.
OMILAK PROPERTY
The Omilak property consists of 19,680 acres of 100% owned
Alaska state claims in the eastern Seward Peninsula. Mantra's 2009
work included soil sampling across mineralized trends and rock
sampling across the claim block (see attached Map - D). Results are
pending. The claims cover an area including the historic Omilak
lead-zinc-silver mine which was active during the late 19th century
and produced high grade direct shipping silver ore. One report from
1889 records 142 ounces per ton silver and 75% lead in the 41 tons
shipped. The Omilak East and the Foster prospects lie 4 to 6
kilometers east of Omilak and show argentiferous galena and
sphalerite replacement mineralization focused on both structural
and stratigraphic controls. At Omilak East, part of which is
controlled by a third party, gossan float occurrences extend for
over five kilometers along strike. At the nearby Foster prospect, a
1953 work program by the U.S. Bureau of Mines encountered values
reaching 30 ounce Ag per ton in pit, trench, and float sampling,
and recovered samples reaching 10 ounces per ton Ag in their
shallow drill testing of the oxidized occurrence.
These silver-rich carbonate replacement deposits lie near a
large granitic pluton northeast of the property which presumably
provided the mineralizing fluids which invaded the Paleozoic
carbonates. The property offers Mantra an excellent opportunity for
discovery of a large high grade, silver rich polymetallic
deposit.
Jerry Zieg, Vice President Exploration for the Company, is a
Qualified Person for the purposes of National Instrument 43-101 and
has reviewed and approved the information of a scientific or
technical nature contained in this news release.
About Mantra
Mantra is a growth company focused on the exploration and
development of precious and base metals properties around the
world. The Company's experienced management team has assembled an
impressive portfolio of gold and base metal projects in Alaska,
including the Colorado Creek gold project, located in southwest
Alaska approximately 100 miles northwest of the 40 million ounce
Donlin Creek project. The Company, in a short period of time, has
successfully become one of the most significant gold and base metal
explorers in the Tintina Gold Belt - one of the most exciting and
prolific gold belts of the world. Mantra trades on the TSX Venture
Exchange under the symbol MAN. More information is available online
at www.mantramining.com or by e-mail at info@mantramining.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Raj I. Chowdhry, C.A., President & CEO
Cautionary Note Regarding Forward-Looking Statements
The information in this press release includes certain
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical fact, included
herein including, without limitation, plans for and intentions with
respect to the Company's properties, statements regarding
intentions with respect to obligations due for various projects,
strategic alternatives, quantity of resources or reserves, timing
of permitting, construction and production and other milestones,
future operating or financial performance including production,
rates of return, recoveries, cash costs and capital costs are
forward-looking statements. Statements concerning Mineral Reserves
and Mineral Resources are also forward-looking statements in that
they reflect an assessment, based on certain assumptions, of the
mineralization that would be encountered and mining results if the
project were developed and mined in the manner described.
Forward-looking statements 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
the Company's expectations include the uncertainties involving the
need for additional financing to explore and develop properties and
availability of financing in the debt and capital markets;
uncertainties involved in the interpretation of drilling results
and geological tests and the estimation of reserves and resources;
the need for cooperation of government agencies and native groups
in the development and operation of properties; the need to obtain
permits and governmental approvals; risks of construction and
mining projects such as accidents, equipment breakdowns, bad
weather, non-compliance with environmental and permit requirements,
unanticipated variation in geological structures, ore grades or
recovery rates; unexpected cost increases; fluctuations in metal
prices and currency exchange rates, and other risks and
uncertainties disclosed in the Company's Annual Information Form
filed with the Canadian securities regulatory authorities, and the
Company's annual report s and documents filed with applicable
securities regulatory authorities from time to time. Mantra's
forward looking statements reflect the beliefs, opinions and
projections of management on the date the statements are made.
Mantra assumes no obligation to update the forward looking
statements if management's beliefs, opinions, projections, or other
factors should they change.
To view Maps A - D associated with this release, please click on
the following link:
http://media3.marketwire.com/docs/MANN0910.pdf.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Mantra Mining Inc. Kelsey Chin (604) 628 1162 (604)
628 1163 (FAX) info@mantramining.com www.mantramining.com