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Message: Gulfside Clarifies Its Disclosure on Its Onjuul Coal Property
| May 26, 2009 |
| Gulfside Clarifies Its Disclosure on Its Onjuul Coal Property |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2009) - Robert L. Card, President of Gulfside Minerals Ltd. (the "Company" or "GMG") (TSX VENTURE:GMG), reports that as a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify its disclosure related to the Onjuul Coal Property in Mongolia. As reported in a news release dated April 30, 2009, the Company has signed final Share Purchase Agreements with two private Mongolian companies to acquire a 100% interest in and operate three Mining Exploration Licenses encompassing portions of the Khar-khonkhor (Black Hole) Brown Coal Deposit and the Onjuul (Onjuul) Brown Coal Deposit located within the Choir-Nyalga Coal Basin of SW Mongolia. The licenses are situated about 170 km SW of the city of Ulaanbaatar and 50 km SE of the Buren Soum (sub-province) center in Tuv Aimag (Central Province). The Onjuul Coal Depression was discovered in 1973 by the Russian-Mongolian Geological Expedition Group No.4 during geological mapping and follow-up of initial prospecting of coal seams in surface exposures. Fifteen holes were drilled for a total of 917.5 m, eleven exploration shafts were dug out (from 1.5 to 2.2 m in depth) along with excavation of 99.92 m3 in eight trenches. The holes were drilled to depths between 50 m to 100 m and intersected four coal seams ranging from 0.2 m to 31.6 m thick. For example, hole #12 was drilled to 90.5 m and encountered 43.7 m of coal. In the news release of April 30, 2009, the Company reported a historical (1974) mineral resource estimate, by Russian-Mongolian geologists which it retracts and restates as follows. - 232 million tons in the Mongolian P1 category - 1017.9 million tonnes in P2 category - 271.4 million tonnes in P3 category The 1974 tonnages reported by Russian-Mongolian geologists were for the Onjuul Coal Depression and include the subject licenses, areas licensed by others and non-licensed areas in the vicinity of the subject properties. All drilling took place on the Company's present Licenses. The April 30, 2009 news release also stated that additional drilling of two holes in 2005 had indicated "additional resources" that would be followed up. The Company wishes to retract any inference that it has a current resource estimate. P1 has the highest order of confidence (closest to the CIM definition of an inferred resource or in this case indicative of a potential mineral deposit) while P2 and P3 have respectively lower levels of confidence such that both are really only indicative of a favorable geological environment. The authors of the 1973 report did report on coal quality but did not have calorific and heating values at the time of their report. The following information is extracted from the 1973 report: - moisture is from 6.2 - 11.89%, - ash content of dry coal is 7.73 - 24.68% - volatile matter from 30.24 - 39.70% - volatile matter at its burning temperature 17.20 - 42.44% Calorific and heating value data shall be put in after the confirmation of the report. A later report gave calorific values of 4223 (DB), 4505 (AS) and 6085 (DAF) Kcals. These figures are not verified and are not to be relied upon. The Company has engaged Norwest Corporation of Salt Lake City, Utah, to prepare a National Instrument 43-101 Technical Report ("NI 43-101") on the property which should be ready shortly. In the interim, and at the Company's request, Norwest has conducted a preliminary independent review of the coal-bearing potential of the newly acquired licenses that included a review of publicly available reports regarding the Onjuul coal deposit. The Company cautions that this review received March 17, 2009 is only a preliminary screening assessment to determine if further and more detailed work is warranted. Norwest noted that additional drilling is required to verify existing drill-hole information, but has concluded that further exploration is warranted in the license areas. The Company has contracted a diamond driller with the intention to drill 2000 to 4000 meters over the summer to confirm the reported geology and to delineate a resource base compliant with NI 43-101 disclosure standards. It should be noted that the area of present drilling is less than one quarter of the license area and that the basin has potential for the discovery of further resources. The three licenses cover an area up to 7.08 km long by 4.15 km wide and encompass 2156 hectares. In the release of April 30, 2009, the Company reported that the coal deposit is exposed to surface and "ideal for planning a very high capacity open-pit mine with coal quality and production capacity suitable for shipping to Ulaanbaatar and local users" and also stated that the location "lends itself as the fuel source for a large power generating operation." It is premature to make such projections at this early stage as drilling programs and independent geological and engineering studies are required to determine if this potential is technically and economically viable. Studies would also be required to determine if the coal licenses have potential for Coal-to-Liquid (CTL) production such as diesel and gasoline, or the in-situ gasification of coal. The Company has agreements to acquire a 100% interest in the licenses by making payments of up to USD $19 million over 22 months and issuing two million of its common shares to the vendors. A royalty of 6% is payable on production and finders fees will also be paid. These transactions are subject to TSX Venture Exchange approval. Once approval has been received more details will then be made available. The Company has decided to relinquish two early-stage mineral projects, the Erdenet and Khentii in northern and eastern Mongolia, in order to conserve its resources and focus on programs and studies to advance the Onjuul Coal Property in Mongolia. John Jenks, BSc., P.Eng., a Qualified Person as defined by NI 43-101 has reviewed the contents of this news release. Disclaimer: The Company wishes to clarify that all of the estimates for Onjuul are historical estimates. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. On Behalf of the Board of Directors, Gulfside Minerals Ltd. Robert L. Card, President |
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