NANIKA RESOURCES INC ("NKA-V")
- Closes Herb Lake Manitoba Property Acquisition
Nanika Resources Inc. is pleased to announce that it has closed the
transaction to acquire the Herb Lake Manitoba property. Located
approximately 120 kilometers east of Flin Flon, Manitoba, Nanika's Herb
Lake property is comprised of eleven mineral claims on approximately 5,930
acres to the immediate north of the Copperman Property of VMS Ventures Inc.
Nanika has paid $46,000 in consideration for 100% of the Herb Lake property
and there is a 2% Net Smelter Royalty payable upon any commercial
production. Nanika has the right at any time to repurchase one-half of the
Net Smelter Royalty (1.0%) for five hundred thousand dollars. The agreement
was subject to the approval of the TSX Venture Exchange which has been
obtained. The property was acquired from the owners, one of whom was a
company director, Ross Blusson. Mr. Blusson declared his one-half interest
in the property to the board of directors in advance of the acquisition and
abstained from taking part in the decision to acquire the property.
Historic drilling on the Copperman Property to the south indicated that
the "A" zone contains 149,672 tonnes 3.08% Cu and 3.08% Zn. Combined
reserves of 221,308 tonnes with 2.63% Cu and 4.46% Zn were reported in
Manitoba Mineral Deposit Series Report 21. From 1983 to 1994, a regional
diamond exploration program, which also included one drill hole, was
executed by Falconbridge and European Ventures Inc. at the Mining Lease
Number 28 property less than 3 kilometers from the Herb Lake claim. The
drill hole intersected a dyke of diamondiferous Kimberlite. In 2007 a VTEM
survey flown over the northern part of the Copperman area identified a
large number of conductors of which only some were tested to date. VMS
Ventures Inc. is currently drilling on the Copperman property. The reported
mineralization in the adjacent Copperman deposit is associated with altered
volcanic rocks that are exposed at the northern edge of the limestone cover
rocks found in this area of Manitoba. A large portion of the prospective
volcanic rocks on the Copperman property extend beneath the limestone
cover, which gradually increases in thickness southwards. Felsic volcanic
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rocks and minor amounts of Cu and Zn are present at a number of localities.
It should be noted that there has been insufficient exploration to date to
define a mineral resource and it is uncertain if further exploration will
result in discovery of a mineral resource.
Alex Walus, P. Geo., a qualified person under National Instrument 43-101
is supervising Nanika's work program on the Herb Lake property and has
reviewed and approved the technical disclosure in this news release.
About Nanika Resources Inc.
Nanika Resources Inc. is a TSX Venture listed mineral exploration and
development company focusing on the advancement of its mineral properties,
all of which are located within Canada.