NEWS
RELEASE MAY
14, 2007
WINDARRA
(“WRA”) ARRANGES PRIVATE PLACEMENT
Windarra Minerals
announces that it has arranged a non-brokered private placement of up to 2,775,000
non flow-through units of its securities at a price of $0.20 per unit, and up
to 300,000 flow-through shares at a price of $0.25 per share for total gross
proceeds of up to $630,000. Each non flow-through unit will be comprised of
one common share and one common share purchase warrant entitling the holder to
purchase one additional common share at a price of $0.25 for a period of two
years. The flow-through shares will convey income tax benefits to the
purchasers. Proceeds of the placement will be applied to a drill program on
the Company’s Pukaskwa property, located near Wawa, Ontario,
as well as to general working capital.
The financing is subject
to the approval of the TSX Venture Exchange.
Windarra is planning 1,500 metres of
diamond drilling at the Pukaskwa Property, with the focus primarily on two of
the most attractive targets, the Middle Finger Lake and Bonanza Grade zones,
neither of which has been drill-tested. Both zones boast excellent results
from trench-, grab-, and soil-sampling, and these have been reported previously
(see News Releases dated December 19, 2005, April 5, 2006, and July 25, 2006).
At the Middle Finger Lake
zone, channel samples across the entire 35 metre exposed strike length of the
zone yielded an average of greater than 5 g/t gold across nearly 6 metres. The
zone is central to a prominent multi-element soil geochemical anomaly (see News
Release dated April 5, 2006) and is also coincident with a well defined, 50-75m
wide zone of high chargeability (35mV/V). The zone of high chargeability and anomalous
geochemistry can be traced continuously from the area of trenching for over 900
meters along strike. It remains open to the southeast, but on the west appears
truncated by a prominent northeast trending feature, which the magnetic data and
previous mapping suggests is a diabase dyke, perhaps emplaced along a fault.
In contrast to most of
the other gold occurrences on the property and in the region, quartz veins are
not the immediate host to gold mineralization at the Middle Finger Lake zone.
Instead the mineralization consists of well foliated chlorite-altered arenite
and semi-pelite which is consistently well-mineralized with disseminated and
locally semi-massive arsenopyrite and pyrite. Quartz veining is only locally
apparent.
At the Bonanza-Grade
zone, approximately 500 metres southwest of the Middle Finger Lake zone,
channel sampling confirmed the extremely high-grade nature of this narrow quartz-sulphide
vein system. The Bonanza-Grade vein actually consists of two thin (0.1 to 0.4 metres
true thickness) en echelon or overlapping veins, and although gold values in
the immediate wallrocks are generally below 1.0 g/t gold, the extremely
high-grade nature of the veins still equates to excellent grades across
mineable widths, with channel samples averaging over 1.5 oz/ton gold
(approximately 60 g/t gold) across almost three metres (see News Release dated
July 25, 2006). Like the Middle Finger Lake zone, the Bonanza-grade zone is
also associated with prominent multi-element soil geochemical anomalies, again
suggesting that there is significant potential along strike (see News Releases
dated December 19, 2005, and April 5, 2006). The veins are currently exposed
along a strike length of approximately 40 metres and remain open to the west. Although
the veins appear to pinch out at surface to the east, excellent multi-element
soil geochemical anomalies in the area immediately east of the trenches remain
untested.
The Company has
contracted Cartwright Drilling Inc. to perform the drill program, which is
expected to commence by the end of the month.
The Pukaskwa property is
located 50 kilometres west of Wawa, Ontario, less than 20 km northwest of Wesdome’s
Eagle River Mine, which has produced approximately 600,000 ounces gold since
1995. The property, which consists of a belt of 55 contiguous unpatented mining
claims spanning a length of over 13 km, also lies 20 km southwest of the
formerly-producing Magnacon mine, in which Windarra holds an interest. Like the
Pukaskwa property, the Magnacon properties lie along the highly prospective
Mishibishu gold belt. Windarra Minerals Ltd. can earn a 100% interest in the
Pukaskwa Property from Messina Minerals Inc. by issuing 350,000 shares over a
30-month period and by maintaining the property in good standing.
The field and analytical
data described in this release has been reviewed and approved by C.J. Greig,
M.Sc. P.Geo., a Qualified Person as defined by National Instrument 43-101.
On behalf of the Board of
Windarra Minerals Ltd.
“John Pallot”
President
The TSX
Venture Exchange has not reviewed and does not accept responsibility for the
adequacy
or accuracy of the content of this news release.