WINNIPEG, Manitoba, Nov. 26, 2008 (GLOBE NEWSWIRE) -- King's Bay Gold Corp. (TSX-V:KBG) and Mainstream Minerals Corp. (TSX-V:MJO) are pleased to announce the successful completion of their Phase 1 drilling program on their joint-ventured Phyllis Lake Project located in Grummitt and Cathcart Townships near the Town of Ignace, Ontario.
The results from this program confirms the presence of wide zones of uranium, rare earths, rare metals and other minerals, notably sulfur and iron, at or near surface in East Zone Number 1. All of these minerals have significant economic value and given that these wide zones are at or near surface, they are amenable to open pit mining.
Both companies are also cooperating to stake more land in the immediate area which could triple the size of this project from the current 64 claim units (2,560 acres). The property is easily accessible via the TransCanada Highway and has a location advantage of being intersected by a railroad.
The results from the completed Phase 1 program are as follows:
Hole # 1
From 2.0 to 11.0 metres
9.0 metres grading 0.0204 % Uranium, 470.55 g/t Chromium, 27.40 g/t Gallium, 16.52 g/t Lithium, 18.22 g/t Scandium, 50.66 g/t Vanadium, 26.00 g/t Tellurium, 8.35 g/t Tantalum, 18.09 g/t Strontium, 5.50 g/t Zirconium, 7.23 g/t Cadmium, 1.021 % Calcium, 0.415 % Magnesium, 0.0654 % Manganese, 0.0343 % Titanium, 0.0222 % Copper, 0.0165 % Phosphorous, 15.03 % Sulfur and 28.80 % Iron.
From 18.0 to 29.5 metres
11.5 metres grading 0.0080 % Uranium, 606.66 g/t Chromium, 10.37 g/t Gallium, 18.58 g/t Lithium, 11.04 g/t Rubidium, 10.19 g/t Scandium, 21.79 g/t Vanadium, 8.58 g/t Tellurium, 3.33 g/t Tantalum, 5.91 g/t Strontium, 6.87 g/t Zirconium, 4.08 g/t Thorium, 8.45 g/t Cerium, 1.75 g/t Cadmium, 1.16 g/t Yttrium, 0.562 % Magnesium, 0.0603 % Manganese, 0.0513 % Titanium, 0.0245 % Phosphorous, 7.27% Sulfur and 15.32 % Iron.
Hole # 2
From 1.48 to 16.5 metres
15.02 metres grading 0.0285 % Uranium, 395.71 g/t Chromium, 30.22 g/t Gallium, 10.35 g/t Lithium, 20.39 g/t Scandium, 13.00 g/t Vanadium, 29.25 g/t Tellurium, 9.16 g/t Tantalum, 15.17 g/t Strontium, 5.23 g/t Zirconium, 9.51 g/t Cadmium, 1.091 % Calcium, 0.450 % Magnesium, 0.0585 % Manganese, 0.0180 % Titanium, 0.0230 % Copper, 0.0142 % Phosphorous, 19.09 % Sulfur and 33.35 % Iron.
From 28.5 to 33.0 metres
4.5 metres grading 0.0164 % Uranium, 591.25 g/t Chromium, 19.75 g/t Gallium, 19.12 g/t Lithium, 18.50 g/t Scandium, 29.37 g/t Vanadium, 22.37 g/t Tellurium, 6.62 g/t Tantalum, 7.12 g/t Strontium, 3.62 g/t Zirconium, 4.37 g/t Cerium, 7.37 g/t Cadmium, 0.450 % Calcium, 0.550 % Magnesium, 0.0618 % Manganese, 0.0375 % Titanium, 0.0171 % Phosphorous, 12.15 % Sulfur and 19.31 % Iron.
Hole # 3
From 7.5 to 9.5 metres
2.0 metres grading 0.0290 % Uranium, 546.75 g/t Chromium, 33.00 g/t Gallium, 6.50 g/t Lithium, 17.50 g/t Vanadium, 33.00 g/t Tellurium, 11.00 g/t Tantalum, 7.00 g/t Zirconium, 6.25 g/t Cerium, 3.50 g/t Cesium, 7.75 g/t Lanthanum, 11.75 g/t Cadmium, 33.00 g/t Rubidium, 11.75 g/t Scandium, 1.37 g/t Samarium, 1.72 g/t Thorium, 0.300 % Magnesium, 0.0397 % Manganese, 0.0332 % Titanium, 0.0233 % Phosphorous, 18.95 % Sulfur and 34.50 % Iron.
From 12.5 to 19.0 metres
6.5 metres grading 0.0100 % Uranium, 449.16 g/t Chromium, 19.14 g/t Gallium, 16.57 g/t Lithium, 25.41 g/t Scandium, 68.42 g/t Vanadium, 12.35 g/t Tellurium, 5.28 g/t Tantalum, 28.50 g/t Strontium, 4.14 g/t Zirconium, 3.78 g/t Cadmium, 1.401 % Calcium, 0.510 % Magnesium, 0.0655 % Manganese, 0.0310 % Titanium, 0.0199 % Copper, 0.0195 % Phosphorous, 10.05 % Sulfur and 20.01 % Iron.
From 37.5 to 42.5 metres
5.0 metres grading 0.0106 % Uranium, 500.00 g/t Chromium, 13.27 g/t Gallium, 18.63 g/t Lithium, 12.50 g/t Scandium, 23.63 g/t Vanadium, 11.81 g/t Tellurium, 4.18 g/t Tantalum, 11.45 g/t Strontium, 8.09 g/t Zirconium, 3.18 g/t Cadmium, 0.521 % Calcium, 0.360 % Magnesium, 0.0364 % Manganese, 0.0181 % Titanium, 0.0206% Phosphorous, 12.08 % Sulfur and 20.00 % Iron.
Hole # 4
From 101.0 to 106.0 metres
5.0 metres grading 0.0124 % Uranium, 640.00 g/t Chromium, 13.72 g/t Gallium, 16.81 g/t Lithium, 23.70 g/t Scandium, 50.45 g/t Vanadium, 10.18 g/t Tellurium, 4.27 g/t Tantalum, 16.45 g/t Strontium, 3.90 g/t Zirconium, 1.00 % Calcium, 0.301 % Magnesium, 0.0380 % Manganese, 0.0151 % Titanium, 0.0105 % Phosphorous, 12.25 % Sulfur and 21.77 % Iron.
From 118.5 to 129.0 metres
10.5 metres grading 0.0200 % Uranium, 546.00 g/t Chromium, 20.27 g/t Gallium, 46.13 g/t Rubidium, 27.63 g/t Lithium, 11.55 g/t Scandium, 33.40 g/t Vanadium, 19.00 g/t Tellurium, 6.36 g/t Tantalum, 7.50 g/t Strontium, 9.54 g/t Zirconium, 9.72 g/t Cerium, 7.31 g/t Lanthanum, 1.86 g/t Yttrium, 5.81 g/t Cadmium, 0.360 % Calcium, 0.701 % Magnesium, 0.0632 % Manganese, 0.0490 % Titanium, 0.0178 % Phosphorous, 16.92 % Sulfur and 21.10 % Iron.
These drill results came from an area of the property known as the East Zone Number 1 and shows excellent potential to host several times the mineralization identified to date as these highly mineralized zones are still open at both ends and at depth.
Hole #1 and Hole #4 were drilled over 500 metres apart which now confirms a strike length of at least 500 metres and drill intersections from surface to a depth of 129 metres so far. This area will definitely need more surface stripping at both ends to fully define the actual strike length of this large mineral-rich structure and deeper drilling to test the depth extensions.
China Calling
King's Bay Gold and Mainstream Minerals have also recently been approached by several Chinese mining entities that have expressed an interest in acquiring or partnering in some of the partners' projects. Discussions are at the preliminary stage and the partners will inform their shareholders if a deal or deals are struck.
The project is also host to other zones that have not been drilled yet. They include:
East Zone Number 2
Another area of significant interest is a shear zone that runs for 6 kilometres with a width of approximately 40 metres. Only one grab sample was taken from it to see if it carried gold and it yielded 2.811 g/t Au. This zone will need additional sampling and stripping.
North Zone
This zone is approximately 30 metres wide and the strike length has not been established as of yet. Surface sampling has revealed that the mineralization in this zone consists of Copper, Nickel, Cobalt, Gold, Silver, Platinum and Palladium. Additional stripping and sampling of this zone will also be needed.
Central Zone
This zone appears to be a layered intrusive and again is large with a width of 50 metres and a strike length of approximately 700 metres. Surface sampling has revealed that the mineralization consists of Cobalt, Copper, Nickel, and Silver. The borders of this zone have not been established as of yet either.
Surface sampling of the North and Central zones have yielded results as high as: 2.192 % Copper (Cu), 0.415 % Cobalt (Co), 0.393 % Nickel (Ni), 0.100 % Zinc (Zn), 9.60 g/t Silver (Ag), 2.50 g/t Palladium (Pd) and 1.20 g/t Platinum (Pt).
Uranium - Supply and Demand
The main use of uranium in the civilian sector is to fuel commercial nuclear power plants. A persistent deficit between world U3O8 demand and the world's U3O8 mining supply has existed for close to two decades and inventories are steadily being depleted. As such, prices are expected to increase significantly in the future due to international supply shortages of uranium, along with escalating demand from nuclear programs in nations such as India and China. According to the World Nuclear Association there are official plans in the works worldwide for 349 new reactors (either under construction, planned, or proposed). Governments worldwide are struggling for solutions to control green house gas emissions and to produce affordable energy. Nuclear power is the cleanest, least expensive and most secure source of electricity. There are currently 439 operational nuclear reactors worldwide and that number is expected to grow significantly within the next decade. In the U.S.A., which has 104 operational nuclear power plants providing approximately 20% of the country's energy, reactors that have met the end of their normal 40-year operating license are being granted extensions and the U.S. Department of Energy is actively providing incentives encouraging power corporations to apply for licenses to build new reactors.
Rare Metals and Rare Earth Elements - Demand, Uses and Supply
Demand for rare metals and rare earth elements is soaring because of consumer demand for more fuel-efficient cars, alternative energy technologies such as fuel cells, the nuclear power industry for both practical and experimental utilization, rechargeable batteries, lasers, hydrogen storage, superalloys as used in the aerospace industry, computer chips, cell phones, digital cameras, plasma televisions, computer screens, permanent magnets as used in electric-hybrid vehicles and in the conductor industry for many of the new "Green" technologies, etc.
By some estimates, 30% of the world's consumption of rare earths is related to cars, a figure that could grow as more consumers shift to hybrid vehicles, which typically contain more than 60 pounds of rare-earth products.
China recently announced a reduction in the exports of REMs coming out of their mines, in part because the government in Beijing may be trying to encourage the development of more value-added processes at home. This decision will considerably reduce the supply for buyers outside of China while world demand is in full growth. The many plants in China are competitive, and that has traditionally kept prices low for overseas buyers in the past. But in recent years the Chinese government has imposed tariffs and export restrictions that are causing concern for foreign buyers of the minerals. The potential bottleneck in supply is forcing some overseas buyers to consider shifting their own plants to China to ensure secure and cheap raw materials. And regardless of whether buyers move entire plants, prices will remain strong because of higher demand that China alone cannot meet.
The current situation, with China dominating the supply chain, is "unhealthy and unsound". Prices and demand are both expected to continue to rise drastically. It will soon become critical to produce these resources outside of China.
All these rare earths and metals have significant economic and strategic value. Some of these metals like Rubidium and Cesium, which are not actively traded, have each recently sold for as much as $100.00 US per gram.
Sulfur and Iron - Prices, Uses and Demand
In only a year, the price of sulfur has risen more than tenfold from $50 US per metric tonne to $500 US, according to ICIS, the chemicals-pricing service. Editor Stephen Burns writes to clients today that Mideast sellers have mentioned $900 US per metric tonne as a minimum target for second-half sulfur contracts, with up to $1,000 US possible. "Their position is based on higher spot prices since the start of this year and expectations that the sulfur market will strengthen even further as the year progresses," ICIS writes.
Demand for sulfur, long an ugly yellow waste product of petroleum refining, is surging because it's needed to make sulfuric acid, which in turn is essential to the production of fertilizer. Earlier this month, Purchasing.com reported that increased demand for sulfuric acid from booming agricultural and base metals markets has pushed the raw material price of sulfur through the roof in the U.S. while the U.S. market continues to see a long-term slowdown in sulfur supply from reduced production at oil refineries. The media spotlight on potash has made Canadians are somewhat familiar with this boom in the demand for components used in the manufacture of agricultural fertilizers.
Although iron prices are depressed at the moment at approx. $90 US per metric tonne, industry analysts expect prices to return to above $100 US per metric tonne in the first part of 2009 and then upwards back to $150 US per tonne once the global economy eventually recovers.
The Phyllis Lake property is also well situated for the mining of bulk ores such as sulfur and iron. It has a location advantage of being intersected by a railroad and is near the TransCanada Highway.
The earn-in joint venture agreement is 50 % Kings Bay Gold (TSX.V: KBG) and 50 % Mainstream Minerals (TSX.V: MJO) with King's Bay Gold being the Operator of the project.
Andrew Gracie, Ph.D, P.Eng, P.Geo is the Qualified Person under National Instrument 43-101. All of the samples herein were analyzed by Acurassay Labs. True widths are not known.
King's Bay and Mainstream Minerals are very pleased with the results of this successful initial drill program and are presently evaluating all of the data from this Phase 1 program before commencing an aggressive Phase 2 drilling program. King's Bay is also anxiously awaiting assay results from its 50 % owned high-grade gold and rare earths Bobjo Mine Project and its 100 % owned Sakoose Gold Mine Project. Results will be announced when received and verified.
About Kings Bay Gold
King's Bay Gold is unique in the industry in that it owns most of the equipment required to carry out the various phases of exploration. This includes diamond drills, bulldozers and other exploration equipment, which gives the company the ability to quickly adjust work programs as exploration results are realized and company strategies change. The Corporation is a very active Canadian mineral exploration company with mineral projects strategically located in Canada's gold camps.
Strategic properties include - (1) a property located directly adjacent to Canada's richest gold mine, (2) two past producing gold mines, (3) another project located between three past producing gold mines, (4) a property located directly adjacent to and on strike of a new diamond discovery and, (5) this new Phyllis Lake discovery project.
KBG Shares Outstanding: 45,256,903
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe KBG's future plans, objectives or goals, including words to the effect that KBG or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.