On Track for a New Mine
Discovery and development of precious metals - New Brunswick & Manitoba
Puma Exploration Inc. RIMOUSKI, QUEBEC TSX .V : PUM,
The Company focuses its activities on the discovery of mineral deposits located outside the traditional mining camps. Moreover, to achieve its objectives, the Company has signed and is negotiating various agreements characteristic of the mining industry, such as claim acquisitions, options to purchase mineral rights, and joint-venture agreements.
The primary goal of Puma Exploration, which is 24.7% owned by Ressources Appalaches (APP-TSXV), is the discovery and development of deposits of precious and other metals.
The Company's short-term objective is to initiate a mining operation on the lenses of silver-zinc-lead mineralization at its Ann's Creek property in New Brunswick. An indicated resource of 364,000 tonnes containing more than one million ounces of silver was calculated for the Haché lens in early 2008.
During the last six months, Puma Exploration concentrated its efforts on the definition of additional resources of precious and other metals on this property by conducting major drilling campaigns and by acquiring mineral deposits with historically-known resources.
In the longer term, the Company's objective is to confirm the resources reported in 1991 on the Little Stull Lake property and to improve their grade and tonnage in order to demonstrate the viability of a mining operation. Drilling work is currently in progress on this property.
Holds 100% of the mining rights. The property comprises 292 contiguous claims with an area of 53 km2; it is located on the east edge of the Ann’s Creek property, about 20 kilometres from the town of Bathurst.
During the second quarter of 2008, Puma Exploration completed the mandatory reporting requirements and carried out minor compilation work and plotting of new mineralized lenses on the property. This work will enable the siting of boreholes planned for drilling during the third quarter of 2008.
Definition drilling is planned on the Pine Tree mineralized lens to assess its mineral resources.
A total of $22,953 has been expended on exploration activities, mainly for compilation and reporting work. The Company will now focus its efforts on drill definition of the mineralized Pine Tree and Half Mile lenses, which are adjacent to the Haché and Shaft lenses on the Ann’s Creek property.
Ann's Creek Property
Since the beginning of 2008, 84 boreholes have been drilled in the area of the Haché and Shaft lenses, for a total advance of 19,504 metres.
The drilling has enabled the Haché lens mineralization to be followed over an additional length of 50 metres to the east and 25 metres to the west, representing a 75% increase in the length originally defined, which was used to calculate the resources.
The boreholes also intersected the mineralization between the previous boreholes, thereby allowing a portion of the inferred resources to be transferred to the indicated resources column, with intersections such as 339 g/t Ag, 2.2% Zn, 3.8% Pb, and 0.7 g/t Au over 3.2 metres.
The drilling also enabled the mineralization in the Haché lens to be followed to a vertical depth of 350 metres, with grades of 23 g/t Ag, 1.1% Zn, and 1.9% Pb. All the boreholes intersected mineralization over significant thicknesses, as shown by the intersection of 12 metres with 72 g/t Ag, 1.3% Zn, and 1.2% Pb at a depth of 100 metres.
Besides confirming and increasing the known mineralized zones, Puma Exploration has also completed a major step in the definition of additional resources with the discovery of two new lenses: a first lens located at depth between the Shaft and Haché lenses, and a second lens west of the Haché lens.
Seven deep boreholes have now intersected a new mineralized zone between the Shaft and Haché lenses at a vertical depth of 250 metres, with grades of 55 g/t Ag, 2.1% Zn, and 2.0% Pb over 13.2 metres, including a high-grade zone with 92 g/t Ag, 4.0% Zn, and 3.2% Pb over 4.2 metres.
The seven boreholes have enabled the mineralization to be traced over a distance of 150 metres, thereby confirming the continuity of the mineralized zone over a distance of more than 650 metres. In the new lens, the deepest borehole intersected the target at a vertical depth of 400 metres. The mineralization remains open at depth.
The discovery of this new mineralization once again confirms the presence of hitherto-unknown mineralized lenses, which have the potential to significantly increase the project's mineral resources. The discovery of new lenses brings the Company closer to its goal of confirming an inferred resource of 3,000,000 tonnes of ore for the Nicholas-Denys project. The segment of about 1.5 km that separates the Henry and Haché lenses therefore represents a priority exploration target for new mineralized lenses. A ground magnetic survey is already under way in this area to identify new targets, using the new geologic model established during the previous drill campaign.
During the quarter, a total of $251,149 was expended for mineral exploration on the property, including $106,544 in analysis expenses. The short-term objective is to increase the near-surface resources of the Haché and other mineralized lenses, in accordance with Standard NI 43-101. Puma controls 100% of the property rights over 6.9 kilometres of the belt of favourable rocks that host this mineralization.
Preliminary sampling by Puma geologists following the option agreement confirmed the presence of rich zinc-copper mineralization in the lenses exposed on surface, with values of 1.00% to 6.80% copper and up to 8.8% zinc. The massive to semi-massive mineralization, consisting mainly of chalcopyrite, pyrite, and sphalerite, is located in the basalts that form the uppermost portion of an Ordovician ophiolite complex.
The work conducted on the property during the second quarter of 2008 focused on the compilation of previous results and the mapping of the property's mineralized showings. Line-cutting and systematic sampling work was also carried out on the Powerline and Beaver Dam showings. Analytical results from the sampling work have not yet been released by the laboratory.
The acquisition of the Turgeon deposit fits perfectly into the Company's development strategy of acquiring known deposits with historic resources and significantly increasing those resources according to the new standards. A total of $33,967 has been expended for this purpose. The
Company's objective on this property is to define the reported resources according to Standard NI 43-101 and to increase their tonnage and grade so as to demonstrate the viability of a mining operation.
Little Stull Lake Property
Puma holds an option from Tanqueray Resources to obtain 51% of the Little Stull Lake property, located in the Stull Lake-Edmund Lake volcano-sedimentary belt, in the Superior Geologic Province of Manitoba. The Company's work in 2007 completed all requirements for exercising its option.
Puma completed ten (10) boreholes for a total of 1,500 metres in the 11W Zone. All the boreholes intersected the mineralized basalt, which contains an average of three intersections one metre in length, with gold values ranging from 1 to 46 g/t Au. In addition, the drilling intersected high-grade horizons containing 46.0 g/t Au, 15.6 g/t Au, 8.4 g/t Au, and 7.2 g/t Au respectively.
The work performed on the property during second quarter 2008 involved the demobilization of drilling equipment on the work site. A total of $222,648 was spent for this purpose. No work is planned for the third quarter. The Company’s objective for this property is to define the reported resources according to Standard NI 43-101 and to increase their tonnage and grade, so as to demonstrate the viability of a mining operation.
The Edmund property, 100% owned by the Company, is located about 600 km northeast of Winnipeg, Manitoba, in the Stull Lake-Edmund Lake greenstone belt. Two major deformation zones in this belt are associated with areas of significant gold mineralization. These are the Wolf Bay-Stull-Wunnumman shear zone, which hosts the Little Stull Lake deposit, and the Twin Lake shear zone, which hosts the Monument Bay deposit.
The Edmund property has the potential to contain orogenic gold mineralization over 23 km of the Wolf Bay-Stull-Wunnumman shear zone. The Margaret Lake and Errin Lake areas display the geochemical signatures of metals and elements associated with hydrothermal alteration similar to that seen at the Little Stull Lake and Monument Bay deposits, which can be followed for more than 1 km over or close to the Wolf Bay-Stull-Wunnumman shear zone.
No work was conducted on the property during the second quarter of 2008.
André Proulx, M.A., President and Chief Executive Officer :