Welcome to the February 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 January 2008. An update on upcoming activities is also provided.
EXPLORATION ACTIVITIES:
Since January 02, 2008, Murgor has been very busy in the field, exploring on the Wim, Hudvam and Flin-D properties in the Flin Flon belt of northern Manitoba and Saskatchewan. Murgor is presently drilling at the Wim and Hudvam deposits with five drill rigs where fourteen drill holes have been completed to date, for more than 5,300 metres. Line cutting and ground geophysics is also being carried out in the north-western part of the Flin-D project whereas geophysical modelling and target selection work is underway at Fon, Tyr, Snow-H and Flin-D.
WIM PROPERTY:
Drilling started at Wim with two drill rigs during the first week of January 2008. Since then, Murgor completed ten drill holes (two more are in progress) for a total of 3,450 metres. The bulk of the drilling so far has been directed at extensions to the current ore lens and infill drilling within the lens to upgrade the Copper-Gold resource at Wim to the indicated and measured category. All results from this recent phase of drilling are pending and will be distributed as they become available after passing Murgor’s QA/QC procedure.
Meanwhile, the Company and its consultants at Golder Associates have initiated work towards the pre-feasibility at Wim, by planning and implementing metallurgical, geotechnical and environmental assessment work.
On January 10, 2008, Murgor released the results from its preliminary phase of drilling at Wim. The drilling program was completed on December 10th, 2007 and comprised a total of 14 drill holes completed (one more drill hole was abandoned due to excessive deviation) for a total of 7,240 metres. Results from this phase of drilling were very impressive and allowed Murgor to extend the strike length and down-dip extent of the known mineralization respectively by 150 metres and 50 metres (see table and section below). This should increase the current resource at the Wim deposit for the new NI 43-101 compliant resource estimate due in the summer of 2008.
Furthermore, down-hole Pulse EM surveys returned exciting results suggesting satellite sulphide lenses to the south-east and down-plunge from the known mineralization (see section below).
At the Hudvam property, drilling started with two drill rigs during the second week of January 2008 and a third drill rig started during the last week of the month. Since then, Murgor completed four drill holes (two more are in progress) for a total of 1,859 metres. The bulk of the drilling so far has been directed at extensions to the current ore lens and infill drilling within lens #1 to upgrade the Copper-Gold-Zinc resource at Hudvam to the indicated and measured category. All results from this recent phase of drilling are pending and will be distributed as they become available after passing Murgor’s QA/QC procedure.
Meanwhile, the Company and its consultants at Golder Associates have initiated work towards the pre-feasibility at Hudvam, by planning and implementing metallurgical, geotechnical and environmental assessment work..
Drilling at Hudvam in January Working late at the core shack (Hudvam camp)
FLIN-D PROJECT:
Detailed exploration work is underway over the Gifford Bay area of Kakinagamak Lake, in the north-western part of the Flin-D project area. Over 20 kilometres of line cutting was completed and a ground Pulse EM survey is underway over a prospective area outlined through compilation and field work during the summer of 2007. The area covers a new alteration zone with mineralization that was discovered on the shores of Gifford Bay with a strike length of nearly 1,000 metres along with massive sulphide mineralization occurrences returning over 1.52% copper in grab samples. An old drill hole is also reported in the area, which returned 1.32% zinc and 0.38% copper over 0.93 metres.
THE RIGHTS OFFERING:
In a press release dated January 30, 2008, Murgor announced that it is conducting a rights offering to its shareholders. This rights offering had been discussed following the share consolidation of November 2007 and is meant to allow all current shareholders of Murgor to participate in the company’s future successes by subscribing to shares and warrants of the company at a discounted price. Based on the closing price of Murgor shares on February 1st, 2008, the rights are priced at a 17% rebate to market (not including the value of the full warrant included in the unit).
At the close of business on February 8, 2008, each shareholder of Murgor will receive one right for each common share held. Every eight rights will entitle the holder to acquire one unit of Murgor at a price of $0.60 until 5:00 p.m. (Montreal time) on March 3, 2008. Each unit will be comprised of one common share of Murgor and one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share of Murgor at a price of $1.00 until March 3, 2009. The rights will be trading on the TSX Venture Exchange under the symbol “MGR.RT”
If the rights offering is fully subscribed, Murgor will issue approximately 2,837,135 units, for gross proceeds to Murgor of approximately $1.7 million. If all of the warrants are exercised, the additional proceeds to Murgor will be approximately $2.8 million, for total proceeds from the rights offering of $4.5 million.
EQUICOM AS INVESTOR RELATIONS FIRM:
In a press release dated January 31, 2008, Murgor announced that it has hired The Equicom Group to provide the Company with strategic investor relations and financial communications services. Murgor is very pleased to count on the services of such a reputable firm and is looking forward to taking full advantage of Equicom’s long standing expertise.
IN CLOSING:
In January 2007, Murgor launched a very ambitious exploration program in the Flin Flon belt of Manitoba and Saskatchewan and management is proud of what it has achieved during that year. The pace is not slowing down, however, and Murgor’s exploration program for 2008 is also ambitious. The Company’s exploration activities in January are just an indication of how much work will be achieved this year by our technical team. More importantly, Murgor is on track to fulfill its endeavours of becoming a producer in 2009.
The preliminary drilling results at Wim, released this January, show the tremendous potential to increase the resource of these deposits and management at Murgor is extremely encouraged at the fast paced development of the projects.
More results are forthcoming as one drill rig will start testing exploration targets on the Fon, Tyr, Flin-D and Snow-H projects in the very near future. Additional VTEM will also be flown over Flin-D and Snow-H. At Snow-H, a basal till survey was postponed to 2009 for logistical reasons.
Finally, management at Murgor is pleased to give current shareholders of Murgor the opportunity to participate in the future successes of the Company by way of the rights offering. We hope you will continue to support our endeavours and profit from our success.
Please keep logging 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.
André C. Tessier, P.Eng, P.Geo