Very nice IMO. Prefeasibility study a go re: open pit operation.

red911

Puma Exploration estimates Hache indicated resource

2008-02-27 11:55 ET - News Release

Mr. Andre Proulx reports

PUMA EXPLORATION : 1 MILLION OUNCES OF SILVER IN THE HACHE LENS (NI 43-101 COMPLIANT)

Puma Exploration Inc. has just received the report on the mineral resources estimates of the Hache lens on its Nicholas-Denys property in New Brunswick, prepared in accordance with the NI 43-101 standard. An indicated resource of 364,000 tonnes containing more than one million ounces of silver, 11 million pounds of zinc, five million pounds of lead and 6,200 ounces of gold has been estimated in the centre of the Hache lens, at a cut-off grade of 1 per cent Zn equivalent. The high-grade part of the deposit contains an indicated resource of 110,000 tonnes at 217 g/t Ag, 2.5 per cent Zn, 1.5 per cent Pb and 1.1 g/t Au at a cut-off grade of 3 per cent Zn equivalent.

The resource estimate covers only the central portion of the Hache lens, an area about 100 metres in length and 50 metres wide. Previous drilling has confirmed the presence of mineralization in extension zones on either side of the Hache lens. To delineate the resources in these extension zones, Puma has mobilized a fourth drill to the property. The new drilling will enable the Hache lens to be followed over an additional length of 200 metres, corresponding to about three times the current area. The drilling should also allow the inferred resources to qualify as indicated resources, representing a higher level of confidence.

HACHE LENS INDICATED MINERAL RESOURCE

Cut-off Tonnage Au Pb Zn Ag ZnEq Silver ounces
grade g/t % % g/t % (rounded)

ZnEq
greater
than 3% 110 592 1.05 1.47 2.48 218 5.74 775,000
ZnEq
greater
than 2% 181 406 0.81 1.11 2.03 158 4.45 920,000
ZnEq
greater
than 1% 364 312 0.53 0.70 1.43 95 2.93 1,110,000

HACHE LENS INFERRED MINERAL RESOURCE

Cut-off Tonnage Au Pb Zn Ag ZnEq Silver ounces
grade g/t % % g/t % (rounded)

ZnEq
greater
than 3% 56,877 0.45 1.42 2.57 100 4.49 180,000
ZnEq
greater
than 2% 167,051 0.40 1.02 1.69 85 3.22 450,000
ZnEq
greater
than 1% 442,703 0.31 0.66 1.06 55 2.08 780,000

"The resources estimated in the central portion of the Hache lens meet the objectives set by the company. Puma has therefore decided to go ahead immediately with a prefeasibility study, to include in particular the design of an optimal open pit mine and an assessment of the profitability of putting the Hache lens into production," observes Andre Proulx, the president.

Resource estimate methodology

The estimate was prepared by InnovExplo, an independent geological consulting firm based in Val d'Or, Que., and considered compliant with both Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves Definitions and Guidelines (the CIMM Standards) and reporting requirements of National Instrument 43-101. Carl Pelletier, PGeo, BSc, and Bruno Turcotte, PGeo, MSc, senior geologists at InnovExplo, are the qualified persons as defined under 43-101 who supervised and conducted the resources estimate presented in this news release. A technical report compliant with NI 43-101 and documenting resource estimation procedures will be filed on SEDAR within 45 days of this press release.

Only the diamond drill holes and channel sampling performed by Puma Exploration were retained for the resources estimate. The data consist of 33 diamond drill holes totalling 5,849 samples and 21 channels totalling 569 samples.

Although the shape of the lenses was lenticular, the lenses of each mineralized zone have a minimal width of four metres. The set of sections on the Hache zone contains nine sections spaced at 12.5 metres. The current resource model was done on nine identified mineralized lenses. The lenses were interpreted based only on visible sulphide content as observed in drill core. The sections were generated using Gemcom software version 6.1.2. Each lens was linked in 3-D to form 3-D solids. The sample predominantly cut across the trend of the wire framed lenses. These samples were composited on one-metre equal intervals within the wire framed solids defining the limits of mineralization. No high values of zinc, lead, silver and gold were capped before the composite calculation. High outlier values are practically absent.

The specific gravity was determined using the pulp of 130 channel samples. The majority of these samples were associated with mineralized lenses 1, 2 and 3. The specific gravity for these lenses was 2.82, 2.98 and 2.99 respectively. An average of all channel samples was calculated for the other lenses to determine their specific gravity. A value of 2.95 was attributed to lenses 4 to 9. The specific gravity for the waste was established at 2.7.

The block model was built with a cell size of two by two by two metres. Using the search ellipsoid, each of the blocks was coded as ore or waste. For the block model construction, each of the zones was calculated individually, but using the same parameters. The squared inverse distance method was used. The mineral resource estimate was done using a zinc equivalent percentage.

For the current mineral resource estimate, a series of long sections of each zone were printed and zones with a tight drill pattern (25 m), plus a rim of 15 metres around the holes on the fringe, were contoured and coded in the block model as indicated. The remaining areas where blocks were evaluated with a larger drill spacing pattern were all coded in the block model as inferred. InnovExplo is of the opinion that this method represents well the level of confidence in geological and grade continuities obtained by the geological interpretation.