COMMITTEE BAY CLOSES MERGER WITH NIBLACK MINING
October 1, 2008
VANCOUVER, BRITISH COLUMBIA – Further to the joint news release of August 22, 2008, Committee Bay Resources Ltd. (“Committee Bay”) (CBR: TSX-V) is pleased to report that it has acquired all of the issued shares of Niblack Mining Corp. (“Niblack”) by way of plan of arrangement. The plan of arrangement, which was approved by Niblack shareholders at the special meeting held on September 18, 2008 and by the Supreme Court of British Columbia on September 26, 2008, closed today.
Pursuant to the arrangement, holders of Niblack shares are entitled to receive one (1) Committee Bay share for each Niblack share surrendered. Outstanding options and warrants to purchase Niblack shares are to be exchanged for options and warrants to purchase Committee Bay shares on the same share exchange ratio at the same exercise prices.
The effect of the arrangement is that Niblack and 0830928 B.C. Ltd., a wholly-owned subsidiary of Committee Bay, have merged and the merged company is a wholly-owned subsidiary of Committee Bay named “CBR Alaska Holdings Inc.” An application will be made to have Niblack’s shares delisted from the TSX Venture Exchange as soon as practicable. Registered shareholders of Niblack will receive letters of transmittal providing instructions on how to exchange their share certificates and receive certificates representing their shares of Committee Bay.
About Committee Bay
Committee Bay is a well-funded Canadian based exploration company with 100% ownership in two advanced exploration projects in North America and several early stage projects including the Jaurdi Hills Project in Western Australia. With the recently completed merger, Committee Bay will focus on advancing both the Niblack VMS Project in southeastern Alaska and the Committee Bay Greenstone Belt Project in Nunavut, Canada, host to the high grade Three Bluffs gold deposit. The Company conducts year round exploration and development to advance its projects and will continue to monitor the market for undervalued acquisition opportunities.
Drilling at Three Bluffs during the 2008 program (See CBR press release dated September 30, 2008) focused on identifying additional potential tonnage in proximity to the current 43-101 compliant resource of 468,400 indicated ounces (2,451,000 tonnes at 5.94 g/t gold) and 230,900 inferred ounces (1,344,000 tonnes at 5.34 g/t gold) (See CBR press release dated March 12, 2008), based on a 1.5 g/t gold block cutoff grade. Two drill fences were completed 60 metres and 500 metres west of the resource area along trend of Three Bluffs targeting coincident magnetic and grab/sample/till anomalies.
The drilling completed subsequent to resource definition matched some of the best results ever with an intercept of 23.53 g/t gold over 13.59 metres in hole 08TB077, which extends the known strike length of the Three Bluffs mineralized trend by over 500 metres to the west.
This drilling indicates that significant gold mineralization is present at shallow levels over a much greater strike length than previously indicated, and that excellent potential exists to expand the potentially open pittable Three Bluffs Resource. Additionally, the mineralization trend remains open and untested for at least another 900m westward where historic drilling at the Antler Showing has also identified significant widths of mineralized iron formation.
Committee Bay maintains an extensive quality control program in the preparation, shipping and checking of all samples from its projects. The program is supervised by Peter Kleespies, M.Sc., P.Geol. who is the Qualified Person as defined by NI 43-101. A detailed description of Committee Bay’s QA/QC program is provided on the Committee Bay’s website at www.committeebay.com.
About Niblack
Niblack Mining Corp. is a mineral exploration company engaged in advanced stage exploration of the copper-zinc-gold-silver Niblack volcanogenic massive sulphide (VMS) property located on Prince of Wales Island in southeast Alaska. Niblack is carrying out underground exploration programs that are designed to expand the Lookout Zone at depth.
Niblack recently reported a new NI 43-101 compliant independent resource estimate (see news release dated September 10, 2008) for the project. Using a NSR cut-off of $50/tonne, a nearer surface indicated resource of 1,424,000 tonnes grading 2.86 grams per tonne (g/t) gold , 41.73 g/t silver, 1.04% copper and 2.14% zinc and a deeper inferred resource of 1,893,000 tonnes grading 2.07 g/t gold, 29.21 g/t silver, 1.65% copper, and 2.71% zinc have been calculated.
Subsequent to resource definition (See NIB press release dated September 17, 2008), Niblack announced assay results for the first 12 holes of an underground drill program at the Company's copper-zinc-gold-silver Niblack VMS property located in southeast Alaska. Among the best results was drill hole U017, which intersected 7.71 metres (25.3 feet) of massive sulphide grading 4.23 g/t gold, 9 g/t silver, 1.65% copper, and 30.55% zinc. The intersection includes an exceptionally zinc rich 2.93 metre (9.6 foot) sub-interval grading 1.63 g/t gold, 9 g/t silver, 1.65% copper, and 48.83% zinc. A separate, visible gold bearing sub-interval grades 52.6 g/t gold over 0.3 meters (1.0 feet). The intersection, part of the L2 mid-zone horizon, is located 60 metres (198 feet) east of the main drift, and is accessible to future development.
The latest drill results expand the Lookout Zone at depth below the limits of the new mineral resource by a distance of 200 metres (660 feet) down dip. The Niblack property has excellent exploration potential and is particularly attractive due to its high precious metals content, and year round tidewater access.
A rigorous quality control and quality assurance protocol is utilized on the project including blank, duplicate and reference samples with each batch of assays. All samples were analyzed by fire assay and ICP at ALS Chemex Labs in Vancouver, B.C., Canada. Darwin Green, Vice President of Exploration for Niblack Mining Corp., is the Qualified Person for this exploration project.
On behalf of the Board
Committee Bay Resources Ltd.
/s/ “John Williamson”
John Williamson, P. Geol.
President, CEO & Director
For further information, please contact:
Derek Iwanaka
Manager, Investor Relations
Dial 604-646-4527 or toll-free 1-888-331-2269
** WEBSITE: http://www.committeebay.com **
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.
