DEVELOPMENT CONTRACT SIGNED WITH BARMINCO FOR HIGH-GRADE PERSEVERANCE DEPOSIT COOLGARDIE GOLD PROJECT, WESTERN AUSTRALIA
July 31, 2007
EDMONTON, Alberta – Committee Bay Resources Ltd. (CBR: TSXV) (“Committee Bay” or the “Company”) and Australian Redemption Joint Venture (“RJV”) partner Focus Minerals Ltd. (FML: ASX) have confirmed plans to commence near-term mining at the Coolgardie Gold Project in Western Australia after securing a development contract with mining services group Barminco Ltd. for the high-grade Perseverance gold deposit.
The RJV and Barminco have signed a Letter of Intent (LOI) for the development of a 400 metre decline to the Perseverance orebody, to facilitate underground exploration and resource definition programs.
Commencement of the Perseverance decline from fully-permitted underground infrastructure is scheduled for the first week of August. The decline is expected to be completed by Fall 2007, ahead of the proposed commencement of mining at Perseverance near year end.
Preparatory work is underway for the decline, which is an extension of existing underground workings (To view Tindals Mining Centre Schematic Plan View see Figure 1) within the Tindals Mining Centre (To view overview map of area see Figure 2), centrally located within the Coolgardie Gold Project.
The RJV anticipates further development of the decline, to facilitate production, following completion of an advanced Bankable Feasibility Study targeting the priority development of Perseverance for near-term mining.
Historic workings for several other deposits located within the Tindals Mining Centre are also under assessment for potential near-term mining. These include the Cyanide, Countess and Empress ore bodies which, combined with Perseverance, represent a gold inventory currently totaling 208,146 ounces.
An upgraded resource for the Perseverance deposit is anticipated in the third calendar quarter of 2007, based on recent positive drill results, assays pending for an additional eight completed holes and initial calculations from ongoing drilling programs. Total resources for the Tindals Mining Centre are expected to be boosted further following completion of a resource drilling program scheduled to commence in late August-early September for an extension to the Countess deposit.
The total Tindals inventory and potential mining options resulting from the further assessment of historic mine workings will be incorporated in the Perseverance Bankable Feasibility Study.
Today’s announcement follows an agreement finalized by the RJV earlier this month for priority toll treatment of up to 480,000tpa of ore at the Greenfields processing facility, which is owned and operated by Barminco subsidiary Higginsville Mining Pty Ltd. The Greenfields plant is centrally located within the Coolgardie Gold Project, on RJV land adjacent to the fully-permitted 1.2mtpa Three Mile Hill facility wholly-owned by the RJV.
Coolgardie Project, Western Australia
Committee Bay Resources Ltd., through the Redemption Joint Venture (Committee Bay in a 50% partnership with Focus Minerals Ltd. ASX: FML), has the mineral rights to more than 210 km2 of under-explored greenstone tenements, located in one of the world’s most significant gold and nickel mining regions. These tenements contain Measured Resources of 31,014 ounces gold* (0.55 million tonnes at 1.77 g/t gold), Indicated Resources of 354,124 ounces gold* (6.03 million tonnes at 1.83 g/t gold) and Inferred Resources of 1,240,991 ounces gold* (13.79 million tonnes at 2.80 g/t gold). The RJV also has a 100% interest in the fully permitted, 1.2mtpa, Three Mile Hill Mill processing plant.
*For more information on the stated gold resources and historic drill results of Committee Bay Resources Ltd., please refer to the detailed NI 43-101 compliant technical report filed on SEDAR by Committee Bay on February 26, 2007.
Committee Bay Resources Ltd. maintains an extensive quality control program in the preparation, shipping and checking of all samples from the property as detailed in Committee Bay Resources Ltd. ‘Technical Report for the Coolgardie Gold Project, Coolgardie, Western Australia’ by Dean Besserer - May 27, 2005 pp. 76-80. The program is supervised by Peter Kleespies, M.Sc. P.Geol., and Vice President of Exploration, who is the Qualified Person as defined by NI 43-101.
About Committee Bay
Committee Bay controls major greenstone belts in Nunavut and Western Australia and has the opportunity to conduct year-round exploration on three continents in order to build on its existing gold resources.
On behalf of the Board
Committee Bay Resources Ltd.
/s/”John Williamson”
John Williamson, P.Geol.
President
For further information about Committee Bay Resources Ltd. or this news release, please visit our website at www.committeebay.com or contact:
Derek Iwanaka
Investor Relations
Email: info@committeebay.com
Dial 604-646-4524 or toll-free 1-888-331-2269
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
Certain disclosures in this release, including management's assessment of Committee Bay’s plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Committee Bay's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Committee Bay expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Figure1. Tindals Mining Centre Schematic Plan View
Figure2. Tindals Mining Centre Overview
