Inspiration Mining Corporation (the "Company") (TSX: ISM)(FRANKFURT: OI8) is pleased to announce the following updates on its continuing diamond drilling and exploration programs and corporate developments.
As of August 1, 2007, the Company, either directly or through its wholly owned subsidiaries, owned or held the rights to acquire 100% ownership in three (3) different properties. Those include:
- The "Langmuir Property" which covers approximately 1,090 hectares in the north-central part of Langmuir Township, Porcupine Mining Division, Ontario. The primary target of this property is nickel.
- The "Jasper Property" which covers approximately 6,615 hectares located on the southeaster portion of Vancouver Island, in British Columbia. The primary target of this property is Volcanogenic Massive Sulphide ("VMS") type deposit including copper, lead, zinc with silver and gold credits.
- The "Dry Fork Property" which covers 246 hactares located approximately 35 km southwest of Salt Lake City, Utah, in the United States. The primary target of this property is gold.
The Langmuir Property, being the most advanced of the three properties, has been the primary focus of management's attention over the past two years. The property hosts the past producing Langmuir No. 1 Mine and a major portion of the past producing Langmuir No. 2 mine. (Figure 1)
The first phase of the diamond drilling program for Langmuir was focused on the large area of mineralization known as the "North Zone", an extension of the No.2 Mine. (Figure 2)
The other known target is the area surrounding the Langmuir No. 1 mine hosting multiple zones of mineralization defined as the West Zone, the Central Zone and the East Zone. (Figure 4)
To view Figure 1: Location Map of Inspiration Mining Corp property with known zones of mineralization, please visit the following link: http://www.ccnmatthews.com/docs/inspirationfig1.pdf
Due to the fact that at both the North Zone and Langmuir No.1 Mine the known zones of mineralization are open both at depth and at length, the Company estimates it could continue the drilling program at the North Zone for approximately 2 to 3 months and at the Langmuir No.1 Mine for 12 to 14 months.
Langmuir No. 2 Mine & Surrounding Area: The current diamond drill program has proceeded uninterrupted since July 2005. Drilling during 2006 emphasized the Langmuir 2 North Zone and the South Zone, with drilling concentrated near the workings of the previous Langmuir No. 2 production and extending outward from the historic production areas. As of June 30, 2007, the Company has completed 63 drill holes (approx. 8,500m) on the North Zone and 3 drill holes on the South Zone as noted in a news release dated March 5, 2007. That drilling has tested this zone in detail to 100 meters depth with 3 holes penetrating substantially deeper up to 230m. That zone is yet open, both to the north and to depth. That drilling is summarized in a technical report by Kian Jensen, B.Sc., P.Geo., which was updated to December 31, 2007. The report can be viewed online under the Corporate Profile of the Company on the SEDAR web site (www.sedar.com).
To view Figure 2: Diamond Drill Hole Location Map, Lang No. 2 - North, please visit the following link: http://www.ccnmatthews.com/docs/inspirationfig2.pdf
Figure 2 illustrates the detail location map of the Langmuir No. 2 Mine area with a composite of the eight levels of underground mine workings and the ore zones, the location of the electromagnetic anomalies, the historical overburden basal till geochemical anomalies, and the location of the Company's diamond drill holes since December 31, 2006.
The drilling consistently encountered 3 distinct zones of high-grade nickel mineralization surrounded by lower-grade haloes. The low-grade mineralization haloes have an averaged true width of 22m to 44m. The zone widens at depth (approx. 100m to 125m below the surface) to 75m to 117m true widths. The overall strike length of the North Zone is approximately 350m. The low-grade mineralized haloes range up to 0.769% nickel while narrow high-grade mineralization sections from 1m up to 10.5m true widths typically assaying between 1% and 4% nickel.
To view Figure 3: Langmuir No. 2 Mine - North Zone Vertical Longitudinal, please visit the following link: http://www.ccnmatthews.com/docs/inspirationfig3.pdf
Figure 3 illustrates the drilling results of the Langmuir No. 2 Mine - North Zone. Starting at the top of Figure 3 is the skyline down to 285m elevation. Below the skyline is the narrow layer of unconsolidated overburden followed by the main section of the nickel mineralization halo of the North Zone. Also of note is the underground development of the former producing Langmuir No. 2 located in the bottom left side of Figure 3.
The diamond drilling at the Langmuir No.2 Mine - North Zone has indicated a long and broad nickel bearing mineralization zone containing 3 possible distinct komatiitic extrusive flows in a paleo-topographic depression with the higher-grade mineralization generally located in the basal flow but also located in the middle and upper flows. The majority of the drilling was concentrated to a depth of 100m below surface on approximately 25m centers. The deepest intersection was at a vertical depth of 230 m below surface with the pierce point of the zone at a depth of 150m.
Due to the continuation of the mineralization at depth and the potential for continued mineralization extending to the northeast of the identified mineralization, the Company plans to initiate a deep drilling program at the Langmuir No. 2 - North Zone by the end of the summer and continue exploration drilling along the northeast extension.
With the current land position and boundaries, the mineralization identified in the North Zone could be accessed by open pit to a depth of 200m with deeper mineralization accessed via ramp.
The Langmuir No. 1 Mine & Surrounding Area: Drilling activity during 2007 has focused on the area surrounding the potential zones earlier mined by the historic Langmuir No. 1 mine. That area was accessed by a spiral ramp completed in the early 1990's. Presently, the areas targeted in the vicinity of the No. 1 mine are referred to as the West, Central and East Zones around the area previously drilled. As of June 30, 2007, the Company has completed 66 diamond drill holes (over 15,000m) with 37 holes received back from the lab and reported.
To view Figure 4: Diamond Drill Location Map and Composite of the Langmuir No. 1 Mine, please visit the following link: http://www.ccnmatthews.com/docs/inspirationfig4.pdf
In regard to that zone, in the technical report filed February 19, 2007 by Kian Jensen, B.Sc., P.Geo., the Company noted the following:
"The diamond drilling at the Langmuir No.1 Mine has indicated and confirmed historical drilling results of high-grade nickel mineralization in the East Zone. Due to the underground development and locations of the mined stopes, the Centre and West Zones have not been intersected in these drilling programs. The East Zone is located in the basal talcose ultramafic komatiites in contact with the underlying intermediate to mafic metavolcanics. A high-grade nickel bearing massive sulphide zone within the intermediate to mafic metavolcanics has been intersected in several of Inspiration's drill holes. Historically, the East Zone was approximately 400 feet long but with limited sampling indicated narrow widths. Inspiration's drilling has been concentrated in the northern portion and down plunge of the East Zone below the 315-foot mine level to a vertical depth of approximately 825 feet below surface. The current sampling practice of Inspiration has identified a broad halo zone of greater than 0.20% Ni with several higher grade intersections greater than 2.0% Ni exceeding 20 metres in true width."
The current drilling activity, which has occurred from January 1, 2007 through June 30, 2007, is focused on defining the mineralization extending out from the ramp from which past production occurred. Step-out drilling, as well as in-fill drilling, continues as the total length and depth of the mineralization has not yet been identified.
Though the detail in-fill drill program is ongoing (which was designed to outline the nickel bearing mineralization below the 315-foot mine level to a vertical depth of approximately 900-foot level, the mineralization zone remains open at depth and at length. Additional step-out holes to the north and south are ongoing to attempt to define the limits of the East Zone mineralization. Definition drilling between the 900-foot level and the 1,200-foot level and deep drilling below the 1,200-foot level is also ongoing to attempt to define the limits at depth.
Due to the encouraging drill results to date, the Company has commenced with the permitting processes for the dewatering of the Langmuir No. 1 Mine. Depending on the permitting process and the completion of the closure plan required for the advance exploration at the Langmuir No.1 Mine, the Company intends to begin dewatering as soon as possible, which could be as early as October 2007. The underground exploration activities are designed to continue outlining the nickel mineralization for a mineral resource calculation, extend the existing ramp to the 425 foot level, begin underground drilling via the ramp, and allow for a bulk sample of the nickel mineralization estimated to begin as soon as dewatering is complete.
The establishment of the grid and geophysical survey on the entire Langmuir Property began in July 2007 and should be completed in late September 2007. A soil geochemical survey (MMI equals Mobile Metal Ion geochemical assaying technique) commenced in late July 2007 with estimated completion in late September 2007.
Geological mapping and evaluating the geophysical and geochemical anomalies will be done in September to early October 2007 with diamond drill target selection and testing on an on-going basis from October to December 2007. Significant nickel mineralization located will be evaluated for economic feasibility with a detail diamond drilling program commencing in early 2008.
Four of the seven basal till nickel geochemical anomalies have had single drill holes by the Company, while the rest are untested. Limited information is available on the results from historical diamond drilling.
Based on the recommendation of Kian Jensen, B.Sc., P.Geo, the Company plans additional diamond drilling to evaluate the seven basal till nickel geochemical anomalies and follow up drilling on historical nickel mineralization intersected by either Noranda or INCO as well as the following steps:
- Continuation of the definition diamond drilling at the Langmuir No.1 Mine.
- Establish a diamond drilling grid at the Langmuir No.1 Mine.
- Commence an exploration diamond drilling program to evaluated the seven historical basal till nickel geochemical anomalies.
- A minimum of 10 samples from each zone across the strike length and down dip should be collected for bulk density test work to compliment the current specific gravity database.
- Initial metallurgical work for Langmuir No.1 Mine and Langmuir No.2 Mine - North Zone.
The main objectives for the Company during 2007 and 2008 are to continue outlining the known nickel mineralization at the Langmuir No.2 Mine - North Zone and the Langmuir No.1 Mine and to locate other sources of nickel mineralization in one of several horizons with the largest covering a strike length of approximately 5 km.
To view Figure 5: Geochemical Anomalies - Langmuir Property, please visit the following link: http://www.ccnmatthews.com/docs/ism05a.pdf
To view Figure 6: Generalized Geology of the Northern Part of Langmuir Township, please visit the following link: http://www.ccnmatthews.com/docs/ism06a.pdf
New Claim Acquisitions
FOR THE PURPOSE OF PROVIDING INFORMATION RELATING TO THE PROPERTIES, THE COMPANY IS RELYING ON INFORMATION PROVIDED TO IT BY THE VARIOUS PARTIES. ALL INFORMATION PERTAINING TO THE PROPERTIES WAS DERIVED FROM HISTORICAL GEOLOGICAL REPORTS AND DO NOT PRESENTLY CONFORM TO THE STANDARDS AS OUTLINED IN NATIONAL INSTRUMENT 43-101.
Recently the Company has acquired the rights to two new claim groups in the vicinity of Timmins, Ontario.
The properties are located in the Abitibi greenstone belt of the Abitibi Subprovince in the Superior Province. The geology of the area consists of Archean supracrustal and plutonic rocks that are partially overlain by Proterozoic sedimentary rocks and intruded by late Proterozoic diabase dikes. Archean metavolcanic and metasedimentary rocks are subdivided into 4 distinct assemblages, a lower calc-alkalic assemblage; a magnesium-rich tholeiitic basalt and komatiite assemblage; an assemblage of iron-rich tholeiitic basalt; and an upper calc-alkalic assemblage that are intruded by ultramafic to felsic plutonic rocks. Numerous north-trending diabase dikes of the Matachewan swarm and a few east-northeast trending diabase dikes of the Proterozoic Abitibi swarm intrude the metavolcanic and plutonic rocks. In parts of Cleaver townships, Proterozoic sedimentary rocks of the Gowganda Formation overlie the Archean bedrock.
Ultramafic intrusive rocks consist of peridotite and pyroxenite plugs that intrude the lower and upper calc-alkalic assemblages, respectively. Large granodiorite intrusions are located in Cleaver and McNeil townships. Late lamprophyre and mafic to felsic syenite dikes intrude the metavolcanic rocks.
Regional metamorphism ranges from sub-greenschist to greenschist facies, which is overprinted by amphibolite facies contact metamorphic aureoles adjacent to the intrusions in the area. Narrow zones of carbonate alteration occur locally along fractures in the iron-rich basalt assemblage and appear to be associated with mafic to felsic syenite dikes and quartz veins.
The Cleaver Property consists of 13 mining claims containing 192 mining claim units and is located in the northeastern portion of Cleaver Township, the southeastern portion of Fallon Township, the southwestern portion of Fasken Township and the northwestern portion of McNeil Township. The property is accessed by an all weather gravel logging road approximately 46.75km south of Highway 101 at South Porcupine, Ontario.
The western portion of the property is underlain by felsic metavolcanics and metasediments, which are then overlain by peridotitic komatiites. Numerous airborne electromagnetic anomalies are located at or near the komatiite lower contact. This unit has not been explored for either base metal or nickel mineralization. The eastern portion of the property is underlain by felsic metavolcanics with numerous airborne electromagnetic anomalies and mafic metavolcanics. Previous exploration activities utilizing Reverse Circulation Drilling (RCD) within the central portion of the property returned values in the overburden ranging from 0 ppm up to 3,110 ppm (0.30%) of copper and from 0 ppb up to 521,460 ppb (15.209 oz/t) gold. The known Flinsky copper-zinc showing is located approximately 2.3km southwest of the property.
To view Figure 7: Location Map and Generalized Geology of the Cleaver Property, please visit the following link: http://www.ccnmatthews.com/docs/ism07a.pdf
Figure 7 illustrates the general geology of the Cleaver Property and the location of airborne electromagnetic anomalies and the RCD drill holes with copper (ppm) and gold (ppb) assay results from the Resident Geologist Assessment Files.
The Douglas Property consists of 1 mining claim containing 16 mining claim units and is located in the southeast corner of Douglas Township, Porcupine Mining Division, Ontario. The property is accessed by an all weather gravel logging road approximately 43.97km south of Highway 101 at South Porcupine, Ontario, and is approximately 4.1km west of the Cleaver Property.
Three known copper showings consisting of disseminated chalcopyrite in quartz carbonate veining occur within a strongly foliated mafic metavolcanics in the west central portion of the property.
Minor amount of molybdenite along fracture surfaces within quartz veins intruding a porphyritic granodiorite occurs 1.3km to the northwest of the property. The former Texmont Nickel Mine is located approximately 9.6km to the west-southwest of the Douglas Property.
To view Figure 8: Location Map and Generalized Geology of the Douglas Property, please visit the following link: http://www.ccnmatthews.com/docs/ism08.pdf
Figure 8 illustrates the general geology, airborne electromagnetic anomalies and known copper mineralization within the Douglas Property and surrounding area.
The Company also owns a 100% interest in a group of mineral claims on Vancouver Island, British Columbia (the "Jasper Property"). The primary target of this property is VMS mineralization, including copper, lead, zinc and other base and precious metals. The Jasper property originally consisted of four legacy claims covering approximately 2,052 hectares. In December 2006, three of the four legacy claims were converted to cell claims, which among other items, are subject to digital claim mapping. At that time, the Company acquired six additional claims adjoining and surrounding the original claims, adding approximately 4,460 hectares, bringing the present area covered by the Jasper Claims to approximately 6,512 hectares (approx 16,084 acres).
Prior to 2004, four separate exploration programs had been conducted on the Jasper Property on behalf of the Company. The results of this exploration work are compiled and discussed in a technical report dated October 28, 2003, (the report can be viewed online under the Corporate Profile of the Company on the SEDAR web-site (www.sedar.com)), and are deemed sufficiently encouraging to warrant additional exploration of the Jasper Property for poly-metallic massive sulphide mineralization. In 2004, further ground and stream sediment geochemical surveys and ground geophysical surveys were conducted. The results of those surveys, are contained in an Assessment Report dated February 16, 2005, and are available on the Company's website. On May 5, 2007, Jacques Houles, P.Eng, prepared an updated geological report for the Legacy claim group, which included the newly acquired claims. The report can be viewed online under the Corporate Profile of the Company on the SEDAR web site (www.sedar.com).
The primary recommendation of that report was that a detailed airborne magnetic and electromagnetic survey be conducted over most of the property. Magnetics would be useful as a mapping tool to assist in mapping geology, structure and alteration. The electromagnetic survey should define conductors associated with mineralization. The airborne survey should accomplish the following:
- Provide new target areas for additional surface work aimed at discovering new mineralized zones,
- Possibly connect some of the mineralized zones found to date along mineralized trends, and
- Provide information regarding the orientation of mineralized areas providing drill target information.
In August 2007, the Company entered into a contract with a subsidiary of Aeroquest International Limited to perform the recommended survey. The survey expected completion date is December 31, 2007.
In a news release dated July 17, 2007, the Company noted that pursuant to a proposed restructuring plan, the Company intends to transfer the Jasper Property to an arm's length third party (the "Purchaser") and subsequently distribute the consideration it is to receive from the Purchaser to the Company's shareholders by way of a special dividend. Shareholders of record on July 30, 2007 will be receiving the special dividend in the form of stock in the newly formed entity. Due to the ongoing nature of the restructuring, the exact terms of the dividend have not been finalized at this time.
With the completion of its recent private placement, the Company has working capital of approximately $38 million. On a fully diluted basis and assuming the exercise of all of the outstanding warrants (approx. 75 million shares fully diluted), the Company will have working capital of approximately $57.5 million.
These reserves are more than sufficient to continue and expand the Company's development of both existing and newly acquired properties. In that regard, the Company is in the process of expanding the Langmuir drilling program including the addition of both surface and deep drilling rigs. It is the intention of the Company to have multiple additional drills in operation by the end of the summer and to increase the exploration costs from the current level of approximately $275,000 per month to $1,000,000 per month. That exploration will extend onto the properties recently acquired in the vicinity of Timmins, Ontario.
The Company is also proceeding with its detailed airborne magnetic and electromagnetic survey of the Jasper Property on Vancouver Island. That survey, along with the evaluation of the results, should be completed by December 31, 2007 at an expected cost of $150,000.
The Qualified Person in charge of the Langmuir Project and the person who prepared the technical data in this release is Kian Jensen, B.Sc., P.Geo. (Ont).
Forward Looking Statements
This update contains "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward looking statements can be identified by the use of forward looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Inspiration Mining Corporation
For Investor Relations call:
Gale Capital Corporation
(604) 221-7606 (FAX)