Kingston, Ontario, May 11, 2010 – Murgor Resources Inc. (MGR: TSX-V) announces the completion of a 70 line kilometer Deep Electro-Magnetic (DeepEM) geophysical survey at its 100% owned Hudvam property adjacent to its Hudvam gold-copper-zinc deposit in Manitoba.
The objective of the survey was to investigate the potential of the Hudvam mineralized horizon west of the Hudvam deposit, with a modern, high resolution and deep penetrating electromagnetic geophysical survey.
Three new conductors were detected with geophysical signatures similar to the those of the Hudvam massive sulphide deposit. The anomalies are all located on the fault-offset, western extension of the Hudvam deposit mineralized horizon. The mineralized horizon is believed to be offset approximately 75 meters to the north relative to the Hudvam deposit. The coordinates of the anomalies are as follows (a 3D model showing the location of the anomalies is here (a) and here (b) ):
“This is a very exciting development at the Hudvam property since any of these conductors has the potential of doubling the size of the Hudvam deposit.” said André Tessier, President and CEO of Murgor Resources. “Being so close to HudBay’s existing mill in Flin Flon, makes these new targets even more attractive.”
None of the new targets have ever been tested or detected by previous methods. Follow-up work is planned at Hudvam upon complete characterization of the new targets.
In other news, Murgor announces that its Board of Directors has amended Murgor’s 2004 Stock Option Plan by increasing the number of shares that may be issued under the Plan from 4,114,056 to 6,662,985. The Board of Directors amended the 2004 Stock Option Plan in light of the increase in the number of Murgor’s issued and outstanding shares since the establishment of the Plan.
The total number of shares that can be issued by Murgor under the 2004 Stock Option Plan, as amended, is equal to 10% of Murgor’s 66,629,868 issued and outstanding shares.
Murgor has received all regulatory approvals for the amendment to the 2004 Stock Option Plan.
About the Hudvam Deposit:
The Hudvam deposit is located 47 kilometres north-east of the Town of Flin Flon Manitoba, where HudBay Minerals Inc. operates a concentrator, a copper smelter and a zinc plant. The deposit already has an access ramp, nearly 250 metres long, that could be rehabilitated for quick development of the deposit, with low capital expenditures.
Since December 2006, Murgor increased the tonnage of the Hudvam deposit by 113%, including a 40% increase in the gold resource and a conversion of more than 70% of the resource to the Indicated category.
Metallurgical testing of the Hudvam mineralization showed that copper recoveries of 89% are achieved and captured into a high-grade concentrate averaging 30% copper. Gold recoveries average 56% by flotation and 67.1% with the addition of a gravity concentrator. Gold grades in the copper concentrate are extremely high, averaging 51 g/tonne gold.
Murgor owns a 100% interest in the deposit. HudBay may buy back an interest of up to 65% within 3 years of September 12, 2012 and would have to double Murgor's work expenditures before that date.
The most recent 43-101 compliant resource estimate at Hudvam was announced by Murgor in a press release dated August 28, 2008 and the complete report is available at www.murgor.com. Current mineral resource at Hudvam is as follows:
About Murgor Resources
Murgor Resources Inc. is a mineral exploration and development company focused on copper, gold and zinc in Canada. The company owns a 100% interest in two deposits, adjacent to the Snow Lake and Flin Flon mining districts of Manitoba, and is earning a 100% interest in the Fon zinc deposit in Saskatchewan. The deposits were initially optioned from HudBay Minerals Inc. (TSX:HBM). Murgor is also exploring an exceptional portfolio of gold properties in proven mining districts of Canada such as the Red Lake Gold District of Ontario and the Chibougamau Gold-Copper District of Quebec.
The table below shows the total 43-101 compliant resource for Murgor’s Hudvam, Wim and Fon deposits.
Andre C. Tessier, P.Geo., P.Eng. and President & CEO for Murgor Resources Inc. is a Qualified Person as defined by NI-43-101 and is responsible for the technical information presented in this press release.
André C. Tessier, President & CEO
MURGOR RESOURCES INC.
Tel: (613) 546-7503 or 1-888-891-3330
|
