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(TSX-V:
MPS)
August
29, 2007
NEWS RELEASE (CORRECTED)
MPH Ventures Acquires Molybdenum Deposit
from Rio
Algom and Goldcorp
Vancouver, BC – MPH Ventures Corp.
(TSX-V: MPS) (the “Company”)
announces it has signed a formal agreement (the “Formal
Agreement”) with Rio Algom Limited, a wholly-owned subsidiary of BHP Billiton Ltd., (NYSE:
BHP), and with Goldcorp Inc., (“Goldcorp”) (TSX: G), for the
acquisition by the Company of 93.45% of the outstanding shares of Pidgeon
Molybdenum Mines Limited (“PMML”).
PMML holds
a 100% interest in 210 hectares of mining claims under the name “Pidgeon Molybdenum Deposit”. The
Pidgeon Molybdenum Deposit is accessible through the #1 Trans Canada Highway
and is approximately 50 kilometres east from the city of Dryden,
District of Kenora, Northwestern Ontario. In
addition to the accessibility of the property by road, it also has power
lines running though its entire length, and is within 8 km of the nearest
rail link.
Pidgeon Molybdenum Deposit Claims Map:
http://www.mphventurescorp.com/i/maps/MPS-ON-Pidgeon-area-map.gif
Highlights
 Acquisition of majority
control of Pidgeon Molybdenum Mines Limited (“PMML”) from BHP
Billiton and Goldcorp Inc.
Historic drilling demonstrates
excellent potential for a significant large scale and high-grade molybdenum
deposit.
The system remains open in all
directions.
Work on the property for molybdenum dates back to 1946 with
diamond drilling carried out in the 1950’s, 60’s, and
70’s. Several historical resource estimates, produced in
the 1950’s through to the late 1980’s, have been prepared on the
Pigeon Molybdenum Deposit that include reports by T. Bottrill for BHP
Billiton (Sept. 17, 1979) and consulting engineering firm Strathcona Mineral
Services Ltd. for BHP Billiton (July 16, 1980). These reports are the
most recent and extensive on the deposit and are believed to be the most
reliable. The most recent reports indicate the contained tonnage in the
mineralized zone varies from Strathcona’s report of 9,000,000 tons
drill indicated at 0.096% molybdenum to as much as T. Bottrill’s report
of 55,000,000 tons inferred with grades of 0.081% molybdenum. Both
reports used a cut-off grade of 0.04% molybdenum. The tonnage varies
depending on the parameters used and the assumptions made with respect to molybdenum grades, limits of the mineralization,
and geometry of the mineralized body. The historic estimates were based
on a total of 76 variably spaced diamond drill holes completed on the
property and the historic resources were not calculated to National
Instrument 43 101 standards and therefore cannot be relied upon.
The Company has not yet completed the work necessary to verify
the classification of the mineral resource estimates and since the resource
estimates are historical in nature and predate and are non-compliant with NI
43-101 standards, the estimates should not be relied upon. For this
reason, and in conjunction with Wardrop Engineering Corp, MPH Ventures has
initiated a technical report to confirm the historic data and plans to
initiate a fill-in diamond drill program to provide sufficient reliable information
to complete a NI 43-101 compliant resource estimate. This diamond drill
program will commence immediately upon receiving the necessary
recommendations from Wardrop Engineering.
Pidgeon Molybdenum Deposit Drill Map:
http://www.mphventurescorp.com/i/maps/MPH-ON-PMML-Drill-Map.gif
The
Pidgeon Molybdenum Deposit mineralization is contained within what has been
referred to as a "mineralized shell". This shell has a strike
length of 1,500 metres and an average true thickness of 30 metres and dips 45
degrees to the south. The bulk of the known deposit is within 100
metres of surface. The property covers an elongated granodiorite that
has intruded metavolcanic rocks. The granodiorite trends almost east west and
forms the core of
an anticline. Molybdenum mineralization occurs within the granodiorite along
the contact with the metavolcanic rocks. Molybdenum mineralization is
associated with abundant aplitic sills that intrude the outer margins of the
granodiorite.
The simple
geology with 30 metre widths and shallow dips indicate potential for
development as an open pit mine. Only a portion of the prospective geology on
the property has been adequately tested. “Based on the
preliminary geologic interpretation of the Pidgeon Molybdenum Deposit, the
Company believes there is real potential of increasing the tonnage
significantly”, stated Jim Pettit, President of MPH Ventures
Corp, “upon completion of a technical report by Wardrop Engineering,
the Company will initiate a drill program to confirm existing historical
information, expand upon the known zone, and to test new
targets.”
Majority
ownership in PMML was acquired by Rio Algom and Dickinson Mines in 1979 and
subsequently by BHP Billiton and Goldcorp (respectively) through on-going
mergers and acquisitions. Prior records indicate that historical
data on the Pidgeon Molybdenum Deposit dates back to 1946 with the original
owner, G.L. Pidgeon.
Under the
terms of the Formal Agreement, MPH Ventures agrees to purchase all existing
shares held by BHP Billiton and Goldcorp for the sums of $701,506.61 and
$205,000.00 respectively. Within the terms of the agreement, the
Company also agrees to make a payment of $93,493.39 to BHP Billiton with
respect of existing debt owed by PMML to BHP Billiton. The Formal
Agreement is subject to satisfactory completion of a due diligence review and
TSX Venture Exchange approval.
Molybdenum
is used as an alloying agent in steel to enhance strength and resistance to
wear and corrosion. It is also used in lubricants developed for
high-temperature and high-pressure applications. There are no known
substitutes for molybdenum's unique properties which are used in most of the
present day super-alloys. The price of molybdenum oxide has gone from $3 per
pound to $30 per pound over the last couple of years due to the strong demand
and short supply.
Wardrop Engineering (“Wardrop”) is a multidisciplinary
consulting engineering firm and has completed projects in more than 40
countries throughout North America, South America, Europe, Africa and Asia. Wardrop was founded in 1955 and is in the
business of providing engineering, environmental, information technology and
business solutions around the world. Some of the notable high-profile
projects that the company has worked on include the Canadian Space Station
Team in the development of the Canadian Mobile Base System (MBS), the partial
decommissioning of the Chernobyl nuclear
reactor in Ukraine, the
rebuilding of New York's subway line under
the former World Trade Centre and Winnipeg's Provencher Bridge. The company currently has
projects underway in Canada,
the United States, Chile, Nigeria,
Uganda, Ghana, Russia
and Uzbekistan.
Wardrop has international offices in most of the locations where it has
projects and is involved in infrastructure, manufacturing, supply chain,
mining, mineral processing, nuclear, oil, gas, power and pulp and paper. The
company's North American operations have achieved ISO 9001:2000 Certification
and the company's mining division has experience in all facets of the mining
life cycle from exploration through to mine development, production, closure
and reclamation.
David J. Busch, B.A., B.Sc., PGeo., MPH Ventures’ Project
Manager, is the qualified person under the meaning of National Instrument
43-101, and has reviewed the data in this News Release.
For
further information on MPH Ventures Corp. (TSX-V: MPS), visit the
Company’s web site at www.mphventurescorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
“Jim Pettit”
________________________________
JAMES G. PETTIT
President
Share Outstanding
29.7 million
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