| ||November 05, 2002|
Manele Bay Ventures Inc. Acquires Interest In Worldbeater, A High Grade Patented Gold Project In Inyo County California
| ||Vancouver, British Columbia: November 5, 2002|
Manele Bay Ventures Inc. ("Manele Bay") (TSX Venture Exchange - MBA.V) today announced that it has entered into an agreement with Compass Minerals Ltd., a U.S. subsidiary of Compass Minerals NL, NSW, Australia (Compass), whereby Manele Bay has the option to acquire up to an 80% interest in the Worldbeater Gold Project. The Worldbeater Project is located in the Panamint Ranges, near Ballarat, Inyo County California. The property consists of 94 unpatented mining claims and 11 patented claims covering approximately 800 Ha. The property lies approximately 10 kilometers northeast of the Canyon Resource's Briggs Mine Operation and is accessed by 10 kilometers of road extending east from Ballarat. Historic production is reportedly 25,000 ounces of gold from the Radcliffe and Worldbeater zones of the property in the period between 1896 and 1908.
Manele Bay can earn a 30% interest by carrying out an exploration program of at least US$500,000 over the next 12 months. Manele Bay can earn a further 30% interest by completing a pre-feasibility study on the property by March 31, 2004. Compass could then retain the remaining 40% interest as a joint venture partner if Compass elects to contribute to the cost of a bankable feasibility study on the property, otherwise its interest will be converted to a 20% carried interest, thereby increasing Manele Bay's interest to 80%. The agreement with Compass is subject to regulatory approval and the conclusion of negotiations with the underlying landowner.
Manele Bay has agreed to issue up to 100,000 shares to Compass upon completion of the pre-feasibility study and a further 100,000 shares upon the commencement of commercial production. A further 100,000 will be issued as a finder's fee.
A gold deposit located within the Worldbeater Gold Project is thought to be syngenetic exhalitive in nature with zones of underlying footwall mineralization. Present resource calculations have been made only for the stratabound mineralization. Previous drilling has outlined a total indicated and inferred resource of 857,600 tonnes at a grade of 5.5 grams gold per tonne and at a cut-off of 0.16 grams gold per tonne as calculated by Mine Development Associates of Reno, Nevada. This resource calculation is based on a database of 213 drill holes and 69 underground samples. Approximately half of the gold contained in the deposit is within high-grade zones in exhalite.
Significant drill intercepts of gold in footwall structures have been encountered in previous drilling, including the following:
· C34 51.8 meters @ 8.87 grams gold per tonne (includes 7.62 m @ 12.27 grams gold per tonne)
· C34A 13.71 meters @ 12.58 grams gold per tonne.
· RRC-150-93 6.25 meters @ 10.72 grams gold per tonne (does not include additional 1.6 meters @ 239.7 grams gold per tonne).
The focus of Manele Bay's exploration program will be to better delineate the higher grade gold zones presently known in the exhalite horizons and their untested extensions and to assess the tonnage and grade potential of the footwall mineralized zones.
"After researching properties in various parts of the globe from North America to Asia, we were thrilled to find a property that so clearly meets our mandate" stated Dr. Peter Guest, CEO of Manele Bay. "The Worldbeater project is an advanced, high grade property in a historical mining district, in close proximity to a producing mine and the necessary services and infrastructure. I am looking forward to working with our new partners, Compass Resources N.L., who I had the opportunity to spend time with during my recent trip to Australia."
The acquisition of the Worldbeater Project represents the first step in Manele Bay's strategy to acquire a portfolio of precious metal properties that have indicated mineral resources and require further exploration or development work. Manele Bay will add value to these projects by providing capital, exploration expertise and where justified, development and production planning.
For more information contact Dr. Peter Guest, President, at 1-604-707-0373 or email@example.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or the adequacy of this press release.
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