Welcome to the May 2008
edition of Murgor’s Monthly newsletter. This newsletter provides a
summary of Murgor’s key exploration activities and management decisions that
have taken place during the month of April 2008.. An update on
upcoming activities is also provided.
APRIL 2008 EXPLORATION ACTIVITIES:
A total of 1326 metres in
seven boreholes were drilled during the month of April 2008 at the Hudvam, Flin
D, and Snow H projects. Drilling ended at Hudvam on April 2nd with the
completion of borehole HVS08-050. A total of 990 metres in four boreholes
were completed at Flin-D and 312 metres in two boreholes were completed at the
Snow-H project.
Murgor is waiting for the final assay results for the Hudvam and Wim
projects. The data of the Hudvam and Wim projects are being prepared and
verified prior to sending them to Golder Associates for the new resource estimate
at both deposits. It is anticipated that the new resource estimate for
both Hudvam and Wim deposits will be available later this summer.
Exploration drilling continued in Saskatchewan and started in Manitoba with one
helicopter-supported drill rig. Helicopter borne VTEM anomalies were
tested at the Flin-D project in the Gifford Bay area and in the Tyr deposit
area (both in Saskatchewan). Bore-hole Pulse-EM (BHPEM) surveys were
carried out in the boreholes where the anomaly remains unexplained or where the
holes intersected mineralization of interest. All results are
pending.
WIM PROPERTY:
At month-end, only a few
assay results were missing from the boreholes drilled in 2008 at Wim.
Once all the results are received, they will be subjected to Murgor’s QA/QC
procedure and released as soon as possible. Essentially, the 2007-2008
drilling programs extended the mineralization of the Wim main zone to surface.
The data of the Wim deposit is being prepared and verified prior to sending
them to Golder Associates for the new 43-101 compliant resource estimate.
It is anticipated that the new resource estimate at Wim will be available later
this summer, after the release of the resource estimate at Hudvam.
A wildlife distribution study was carried-out over the Wim project and air
quality monitors were installed on the site for baseline environmental studies.
HUDVAM PROPERTY:
The 2008 definition and
exploration drilling program ended on April 2nd with the completion of
exploration borehole HVS08-050. To date, Murgor has drilled 13,556 metres
at the Hudvam project (4,211 metres in 2007 and 9345 metres in 2008).
Only 23.15 m was drilled during the month of April to complete borehole
HVS08-050.
At month-end, only a few assay results were missing from the boreholes drilled
in 2008 at Hudvam. Once all the results are received, they will be
subjected to Murgor’s QA/QC procedure and released as soon as possible.
Initial results were released by Murgor in press releases dated March 11th and
20th, April 22nd and today May 8th, 2008
Initial results show very high gold grades to complement the copper, zinc and
silver values. Some of the best assay results received during the month
include:
DDH
HVS-08-41: 9.76 g/t
Au, 0.74% Cu, 3.42%
Zn, 18.91 g/t Ag over 22.47 metres.
Incl : 25.56 g/t Au,
1.24% Cu, 3.67% Zn, 35.97
g/t Ag over 7.00 metres..
DDH HVS-08-27: 7.07 g/t
Au, 5.92% Cu, 1.65%
Zn, 48.16 g/t Ag over 6.33
metres.
DDH HVS-08-29: 7.95 g/t
Au, 2.38% Cu, 0.63%
Zn, 22.51 g/t Ag over 3.04
metres.
DDH HVS-08-35: 5.55 g/t
Au, 1.29% Cu, 2.07%
Zn, 13.68 g/t Ag over 2.03
metres.
DDH HVS-08-43: 9.65 g/t
Au, 2.72% Cu, 3.40%
Zn, 28.29 g/t Ag over 2.95
metres.
Murgor’s New Discovery at Hudvam:
Murgor also made an important new discovery at the Hudvam deposit during the
winter drilling. Exploration borehole HVS08-44, drilled between
Zone 1 and Zone 3 on a conceptual geological target, returned 2.17 g/t Au,
1.11 % Cu, 0.76% Zn, and 13.30 g/t Ag over 5.82 m. The new
intersection is located more than 275 metres to the west of Zone #1 at a
vertical depth of 300 metres.
This new discovery is very important for many
reasons:
• It is located near
the down plunge extension of Zone #3, long suspected to be cut off by a fault
at depth.
The new
discovery may be the offset part of that lens.
• The intersection is
poorly conductive and located at the limit of geophysical penetration for a
surface
survey (i.e
never detected before).
• The new discovery
opens a very large area between lenses #1 and #3 where no exploration has ever
been conducted.
• The proximity of the
new discovery to the Hudvam deposit greatly increases the probability of
leading to
extraction of
the resource.
Furthermore, a Bore-hole Pulse-EM (BHPEM) survey identified an off-hole
conductor interpreted to lie approximately deeper and to the west of the
borehole, suggesting some size to the new lens. Additional drilling is
warranted to test the potential of this sector situated between Zone 1 and Zone
3.
Longitudinal section of
the Hudvam deposit showing the location of the new discovery and the BHPEM
anomaly.
In other news at Hudvam: a wildlife distribution study was carried-out
and air quality monitors were installed on the site for baseline environmental
studies.
FON PROPERTY:
Murgor has not yet
received assay results from drill holes MSK08-001 and MSK08-002 drilled during
the month of March at the Fon property.
Borehole MSK08-001 was designed to test a large Infinitem anomaly
detected to the east of the Abbott Lake zone, at a vertical depth of 250
metres. The borehole intersected a unit of altered fragmental rhyolite
with 3-7% disseminated pyrite from 336.17 and 346.22 metres which corresponds
to the targeted Infinitem anomaly. The sulphide content does not,
however, explain the conductor.
A borehole Pulse EM survey detected a long wavelength off-hole anomaly near 300
metres down the hole. This anomaly is interpreted as being caused by a sizeable
source located at least 30 metres below the current trace of the hole. This anomaly will need
follow-up drilling.
Borehole MSK08-002 targeted a shallow VTEM anomaly in the structural
footwall of a longer formational conductor, approximately two kilometres east
of the Fon deposit. Assay results are pending but no significant results
are expected.
FLIN-D PROJECT:
Drilling was completed on
the Flin D project on April 21st. A total of 990.5 metres in four (4)
boreholes were drilled during the month for year-to-date total of 1,528.5
metres. The total amount of drilling completed in Saskatchewan in 2008 is
2,231.5 metres. The drill rig was demobilized to the Snow H project at
the end of the month (April 21st to 25th) to execute the 2008 exploration
drilling program on this project.
Borehole MSK08-004 was designed to test a VTEM anomaly located some 5.3
kilometres west of the Tyr Cu deposit, along the same intrusive-volcanic
contact. At the end of March, this borehole was at depth of 194 metres
and had intersected a total of three (3) weak to strong sulphide conductors.
All assays are pending.
Borehole MSK08-005 was drilled on a three line VTEM anomaly with great
conductivity thickness and associated with a disrupted magnetic
signature. The drill hole intersected a sulphide conductor. All
assays are pending.
Borehole MSK08-006 was targeting a good ground TDEM anomaly on the
northern western portion of the Flin-D project area at Gifford Bay. This
borehole intersected strongly altered gneiss containing garnet, cordierite,
sillimanite, anthophyllite, and biotite in various amounts. The targeted
TDEM anomaly was intersected from 236.09 to 238..23 metres down the hole and
explained by a sulphide conductor. All assays are pending. A BHPEM survey
was carried-out in the hole and geophysical interpretation is pending.
Borehole MSK08-007 was targeting the continuation of the same TDEM
anomaly drilled with MSK08-006, at Gifford Bay. This borehole intersected
heavily altered gneiss containing botite-garnet-cordierite-sillimanite in
variable amounts. A sulphide conductor was intersected From 186.27 to
187.04 metres which explains the targeted TDEM anomaly. All assays are
pending.
SNOW-H PROJECT:
A total of 312 metres in
two (2) boreholes was completed on the Snow H project. The two boreholes were
drilled in the central part of the Snow-H project area, targeted on Infinitem
anomalies defined during the 2007 winter geophysical survey.
Borehole MMB08-001 was designed to follow-up an intersection of 0.57 m @
2.69% Zn and 0.24% Cu reported in borehole ROS-10 by HudBay Minerals Inc. in
2006. This target coincides also with a 2 kilometre-long INFINITEM
anomaly. The borehole intersected actinolite-plagioclase-biotite-chlorite
gneiss and quartzofeldspathic-biotite gneiss. The INFINITEM anomaly was
explained by a sulphide conductor with quartz veins. All assays are
pending and a bore-hole Pulse EM survey is planned as a follow up.
Borehole MMB08-002 was designed to test a ground INFINITEM anomaly south
of MMB08-001. This anomaly corresponds to a 1 kilometre-long body of high
conductance, flanking a magnetic body.
At the end of April 2008, this borehole was still in progress.
FINANCING:
Anytime Murgor raises
money it is not a decision that is made lightly. Financings are used for the
long term sustainability of the Company.
Unfortunately the market conditions have not treated junior mining companies
well, as a whole, over the past year. With the current market conditions, those
companies that continue to advance their projects forward with aggressive
exploration programs, need to raise funds at conditions that are not
ideal. The bottom-line is, in order to keep the companies moving forward,
money is required.
In April, Murgor was faced with this decision while confronted with a weak
stock price due to poor market conditions and compounded by the divesture of
Murgor stock by institutional holders who are converting to cash during these
uncertain times. Murgor needed the money to continue drilling to further
its exploration and to commission reports such as 43-101 resource estimates
etc., none of which are inexpensive propositions, but Murgor must stay focused
on the long term goals of the Company.
With that in mind Murgor elected to raise $2.3 million dollars in late April,
through a private placement. The financing was closed on May
6th.
IN CLOSING:
Murgor is staying
focussed on its goals. Exploration programs are going extremely well and
so far, Murgor has reached all the exploration milestones set when it acquired
the Flin Flon group of properties from HudBay Minerals in late 2006.
Here are a few milestones achieved by Murgor during the last 17 months:
• Murgor completed over
36,000 metres of drilling,
• Murgor increased the 43-101 compliant resources of its
three deposits (Hudvam, Wim and Fon)
compared to their historical resources.
• Murgor advanced the Hudvam and Wim copper-gold deposits to
the point where a new 43-101 compliant
resource
estimate will be calculated this summer. Based on the results from
Murgor’s winter drilling,
these new
estimations should confirm larger resources that will be largely upgraded to
the Indicated
and/or Measured
categories.
• Murgor advanced its exploration projects through strategic,
multi-disciplinary exploration work.
Although the market conditions are poor, metal prices remain high. The rise of metal prices
is predicted to continue as foreign mining projects are halted and/or delayed
due to political decisions. As stated in the Globe and Mail (Wednesday,
April 30, 2008): “The political decisions that have taken a toll on mining
companies trying to develop projects in risky jurisdictions will help keep
metal prices strong, creating an added boon for miners already in
production…”.
Murgor intends to be in the producer category in the short term, in one of the
most mining-friendly jurisdiction in the world: Manitoba.
Log on to www.murgor.com for more up to date
details on the Corporation.
Thank you for your interest in Murgor Resources and for your continued
support.
Respectfully submitted,
André C. Tessier, P.Eng, P.Geo
President, CEO
May
08, 2008.
This newsletter includes certain "forward-looking statements". All
statements other than statements of historical fact, included in this
newsletter, including, without limitation, statements regarding potential
mineralization, resources and reserves, exploration results, and future plans
and objectives of Murgor, are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors that
could cause actual results to differ materially from Murgor's expectations are
exploration risks detailed herein and from time to time in the filings made by
Murgor with securities regulators.
The TSX Venture Exchange
has not reviewed and does not accept responsibility for the adequacy or
accuracy of this press release.