Probe Mines' mine at 8.64 Mt of 37.41% Cr2O3 M&I

2010-12-21 09:24 ET - News Release

Dr. David Palmer reports

PROBE MINES ANNOUNCES UPDATED RESOURCE ESTIMATE FOR ITS BLACK CREEK CHROMITE DEPOSIT

Probe Mines Ltd. has received the updated mineral resource estimate for its 100-per-cent-owned Black Creek chromite deposit from Micon International Limited. The updated resource estimate, which meets the guidelines for reporting mineral exploration programs as set out in National Instrument 43-101, was based on an initial 15 diamond drill holes that tested the chromite horizon along approximately 200 metres of strike length and to a vertical depth of approximately 175 m as well as an additional 10 holes drilled during the phase III program. The phase III drilling was successful in upgrading a portion of the inferred resources in the initial resource estimate to measured and indicated categories as well as extending the zone along strike and at depth. The program delineated an additional 115 m of strike length and identified chromite mineralization to 320 m depth. The phase III drilling confirmed that the chromite zone is found at surface and, in places, is under less than four metres of overburden, indicating it would be a likely candidate for open-pit extraction. Mineralization at Black Creek is dominated by three massive chromite layers, with subordinate amounts of banded, semi-massive and disseminated chromite found between and below the massive layers. The cumulative thickness of the mineralized zone averages approximately 65 metres.

Dr. David Palmer, president of Probe, states: "We are very pleased with the results of the updated resource estimate. The phase III program was successful in not only upgrading much of our previous inferred resources into the measured and indicated categories, but also added to these categories and generated additional inferred mineralization. Drilling has shown the deposit to be of significant size and also of high quality and we have added considerable value to Black Creek with this updated resource estimate."

The table summarizes the Black Creek chromite mineral resource estimate at a cut-off grade of 20 per cent Cr2O3 including internal waste.