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Re: News Releases - Thursday, March 15, 2012
Probe Mines to Option Reliant Gold Corp's Borden Lake South
Project
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Toronto, March 15, 2012 -- PROBE MINES LIMITED (TSX-V: PRB) ("Probe" or
the "Company") is pleased to announce that the Company, subject to
regulatory approval, has entered into an option agreement (the
"Agreement") with Reliant Gold Corp (TSX-V: REC) ("Reliant") to acquire
up to a 70% interest in Reliant's Borden Lake South Project. Pursuant
to the Agreement, Probe has an option to acquire up to a 70% interest
in twenty mining claims, representing 294 claim units covering
approximately 4,704 hectares, which comprise the Borden Lake South
property.
The property ties on to the southern boundary of Probe's Borden Lake
project, which hosts the Borden Lake gold discovery, and was optioned
to further enhance the Company's regional exploration programs. The
Borden Lake gold zone is a relatively new discovery in a previously
unexplored area of Ontario, and therefore represents significant
potential for further discoveries in the surrounding area. Although
Probe has advanced the Borden Lake project very rapidly, there is still
considerable work to be done in terms of understanding the regional
setting of the mineralization, and the Borden Lake South property
represents a very prospective project within this area. Reliant has
recently completed geophysical surveys of the property, and Probe will
follow up with drill testing of those targets already identified as
well expanding the scope of the exploration programs.
An updated property map is available on the Company's website,
www.probemines.com.
Dr. David Palmer, President of Probe, states "We are very pleased to
have this opportunity of working with Reliant and expanding our
exploration area around the Borden Lake project. Although we have
accomplished a considerable amount in a very short time, we think there
is still incredible potential in this almost unexplored area and hope
to demonstrate significant value in the Borden Lake South Project."
Probe may earn a 60% undivided interest in the Borden Lake South
Project by making an initial payment of $20,000 and issuing 25,000
common shares of Probe upon signing of the Agreement; funding
exploration expenditures of $900,000, over the three-year period of the
Agreement, with a firm commitment of $150,000 within the first year;
issue a further 200,000 shares and make further payments totaling
$120,000, in aggregate, over the three-year period of the Agreement and
mobilize a drill to the property before April 15, 2012. Upon
completing all the payments and expenditures above, Probe will have a
second option to acquire an additional 10% undivided interest in the
Borden Lake South Project by making an additional cash payment of
$60,000; issuing 225,000 shares within 60 days of acquiring its 60%
interest; and delivering a feasibility study on the Property within 18
months of the vesting date.
About Probe Mines:
Probe Mines Limited is a well financed, Canadian base and precious
metal exploration company with approximately $33MM in treasury and a
portfolio of highly prospective mineral properties. The Company is
actively exploring a significant new gold resource on its Borden Lake
project near Chapleau, Ontario and owns 875 claims covering
approximately 14,000 hectares in the McFauld's Lake area, including a
100% interest in the Black Creek chromite deposit. Probe also
maintains a 5% net smelter royalty on a portion of Agnico Eagle's
Goldex Mine near Val d'Or, Quebec, which began production in 2008, and
a 45% interest in a joint venture property with Lake Shore Gold Corp,
which surrounds Lake Shore's Timmins Mine project. The Company's
shares trade on the TSX Venture Exchange under the symbol PRB.
David Palmer, Ph.D., P.Geo., is the qualified person for all technical
information in this release. To find out more about Probe Mines
Limited, visit our website at www.probemines.com, or contact:
David Palmer
President
Tel: (416) 777-6703
Karen Willoughby
Investor Relations
Tel: (866) 936-6766
Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This News Release includes certain "forward-looking statements".
These statements are based on information currently available to the
Company and the Company provides no assurance that actual results will
meet management's expectations. Forward-looking statements include
estimates and statements that describe the Company's future plans,
objectives or goals, including words to the effect that the Company or
management expects a stated condition or result to occur.
Forward-looking statements may be identified by such terms as
"believes", "anticipates", "expects", "estimates", "may", "could",
"would", "will", or "plan". Since forward-looking statements are based
on assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual results
relating to, among other things, results of exploration, project
development, reclamation and capital costs of the Company's mineral
properties, and the Company's financial condition and prospects, could
differ materially from those currently anticipated in such statements
for many reasons such as: changes in general economic conditions and
conditions in the financial markets; changes in demand and prices for
minerals; litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; technological and
operational difficulties encountered in connection with the activities
of the Company; and other matters discussed in this news release. This
list is not exhaustive of the factors that may affect any of the
Company's forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on the
Company's forward-looking statements. The Company does not undertake to
update any forward-looking statement that may be made from time to time
by the Company or on its behalf, except in accordance with applicable
securities laws.
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Copyright (c) 2012 PROBE MINES LIMITED (PRB) All rights reserved. For
more information visit our website at http://www.probemines.com/ or
send mailto:info@probemines.com
Message sent on Thu Mar 15, 2012 at 5:11:50 AM Pacific Time
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