VANCOUVER, British Columbia, Sept. 2, 2008 (GLOBE NEWSWIRE) -- Douglas Lake Minerals, The Company (OTCBB:DLKM) (Franfurt:D60) (www.douglaslakeminerals.com), is pleased to provide the following Progress Report.
In April, 2008, Douglas Lake Minerals personnel and five senior members of the Tianjian Institute of Geology and Mineral Resources (TIGMR) inspected a new gold property in southeastern Tanzania. A three day inspection of the 430 square kilometer property resulted in an option agreement to acquire the property licenses from the existing license holder. The property has become known as the Mbwemkuru or Mkuvia Gold Project. During May and June three more visits were made to the property by the Company with various representatives of the mining industry. These visits yielded several proposals that were carefully considered by Douglas Lake's management and advisors. Ultimately the Company entered into a financing agreement with TIGMR allowing Douglas Lake to close the transaction on June 27, 2008, with a payment of $1 million. The Purchase Agreement also calls for a management, security and consulting contract valued at $540,000 over five years, as well as a 3% NSR.
In early June 2008, the company began interviewing industry experts in alluvial exploration, and mine development. On August 1, 2008 Douglas Lake hired Tanzanian Mineral Exploration (Tanzminex). Tanzminex is based in Arusha, Tanzania, and headed by Australian Geologist Ross McMaster BSc, MAusIMM. Mr. McMaster is defined as a Competent Person (JORC Compliant) for the preparation of Resource Statements. Under the Tanzanian Mining Act, a resource must be defined on at least part of a property before a mining license will be issued. The decision to hire Tanzminex was based on a number of key factors including their reputation, alluvial project experience, being Tanzania based with an understanding of local language and customs, technical team, equipment, and an excellent fit to the existing Douglas Lake Technical Team. Tanzminex begins full time work on the Mbwemkuru / Mkuvia Gold Project September 20, 2008.
On August 4, 2008 The Company made two significant changes to its board of directors. Joining the Company's Board were two Tanzanian nationals, Dr. Medard Kalemani, LLB, LLM, PhD, and Professor Abdulkarim Mruma, BSc, MSc, PhD, Geology. Dr. Kalemani is the General Counsel to the Millennium Challenge Account Tanzania, Ministry of Finance, which is an autonomous government entity responsible for managing energy, transportation and water projects in Tanzania. Professor Mruma is the Chief Executive Officer of the Geological Survey of Tanzania, Ministry of Energy and Minerals.
Mbwemkuru / Mkuvia Gold Project On-Site Work Review.
Douglas Lake currently employs a staff of 30 on the Mbwemkuru / Mkuvia Gold Project. The exploration objective is to define the pattern and extent of placer mineralization. Geological mapping is ongoing at a scale of 1:10,000. Regional stream panning is underway on all the rivers and streams within the Mbwemkuru / Mkuvia property. On-going operations were reviewed by Dr. David Groves who completed an Initial Technical Assessment Report in early July.
To date, 72 pits have been dug yielding 306 - 50kg samples and 162 channel samples as well as 44 rock samples. The pits were dug along the Mbwemkuru River at a line spacing of 500 meters and a pit interval of 50 meters. These initial 306 samples were on a volumetric control of 50kg for every cubic meter. The channel samples were taken on a geological control maintaining a 50kg sample size at each individual horizon (sand, gravel, pebble). The 162 channel samples and the 44 rock samples have been sent to SGS Laboratory in Mwanza, Tanzania for testing, with results expected in September. Samples are being tested for gold, uranium, thorium and base metals. Tanzminex using two onsite Knelson Concentrators will be testing the balance of the 306 samples. A regional pitting program at a spacing of 2km by 100 meters is continuing across the entire 22km stretch of the Mbwemkuru River.
Tianjian Institute of Geology and Mineral Resources (TIGMR) Partnership
To date $1.5 million of $6.0 million has been received from TIGMR - the Company's strategic partner. $1 million of these funds were used for the acquisition of the Mbwemkuru / Mkuvia property. Under the current agreement with TIGMR, the Institute will be funding all costs associated with exploration and project development. The TIGMR and its associates have been issued 10 million restricted shares of Douglas Lake Minerals Inc.
About Tianjian Institute of Geology and Mineral Resources (TIGMR)
TIGMR is a subsidiary of the China Geological Survey, a department of the Chinese Ministry of Land and Resources. The Institute assists the Chinese government with special geological projects conducted in China and throughout the world. TIGMR has achieved numerous earth science accomplishments and accumulated significant scientific experience through its findings and related basic studies in Precambrian and Quaternary Geology, paleobotany and paleontology. Website http://old.cgs.gov.cn/Ev/about/cags/tianjin.htm
ABOUT DOUGLAS LAKE
DLKM is an emerging mineral exploration company focused on exploring and developing mining opportunities in Tanzania. The Company has a large portfolio of gold, copper, nickel, uranium and diamond prospecting licenses.
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This release contains forward-looking statements that involve risks and uncertainties. A complete forward-looking statement is available at www.douglaslakeminerals.com/forwardlooking.html