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Re: News Releases - Friday, March 16, 2007
Primary Metals Reports Progress on Argimela Tin Deposit
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Primary Metals Inc. (TSXV: PMI) (the "Company" or "Primary") is pleased
to report progress regarding its Argimela tin deposit in eastern
Portugal. The Company holds a licence for Argimela where historical
exploration has demonstrated a large tonnage of low-grade tin
mineralisation (see News Release dated April 6, 2006). Records
indicate that the historical work assessed only the potential for oxide
tin in the form of cassiterite and no analysis for tin in the form of
sulphides was undertaken.
Recent work by the Company on samples of drill core from three holes
drilled by the Portuguese State Mine Department between 1976 and 1979
has confirmed that tin sulphide mineralisation in the form of stannite
does occur in the deposit together with the tin oxide cassiterite. Core
from three drill holes, which totalled 1,523 metres in length and
showed mineralization throughout, was examined and split for analysis.
So far, results available from 135 samples indicate that the total tin
content is about 30% higher than the oxide tin content. Further
analytical work is underway.
Analysis for oxide tin was undertaken at the Company's assay laboratory
at its Panasqueira mine in Portugal using standard wet chemical
techniques. In addition, the samples were assayed for total tin using
X-ray fluorescent spectroscopy at the Portuguese State Instituto
Nacional de Engenharia, Tecnologia e Inova��o ("INETI"). This technique
is semi-quantitative and therefore the results should only be
considered as indicative, serving to demonstrate the additional
potential for tin values in the deposit.
In addition, the lithium minerals ambligonite and triphylite have been
identified. The lithium content of the samples appears to be
significant and the economic potential for lithium in the deposit is
under review.
A historical (1979) estimate indicated a near-surface open pit resource
of 77.6 million tonnes grading 0.057% Sn (tin), including 18.4 million
tonnes with a grade of 0.084% Sn based on old mine workings and drill
holes. This estimate pre-dates NI 43-101 and is considered historical
in nature (see News Release dated April 6, 2006). The London Metal
Exchange daily official price for tin is currently around US$13,650 per
tonne. Any improvement in tin content, resulting from previously
unreported stannite values and potential lithium values, could
significantly improve the economics of the deposit.
The Argimela tin deposit exists in schists with mineralization in
several sub-vertical quartz veins, varying in width from five to 30
centimetres, with a one-metre frequency and abundant veinlets and
stockwork. Past drill holes show that this frequency of veins continues
to depth. The historical estimates noted previously include material
from surface to an average depth of 155 metres below surface. There are
historical indications that mineralization continues to greater depths.
Analytical work is continuing on available core samples and a
preliminary core drilling programme of 560 metres is underway. The
Company will also continue to assess the metallurgical aspects and the
economic potential of the Argimela tin deposit and is currently
considering possible options with respect to potential joint ventures.
About Primary Metals
Primary Metals Inc. is a TSX Venture Exchange listed company which owns
100% interest in the Panasqueira tungsten mine in Portugal, currently
producing wolframite concentrates containing some 100,000 MTU's of
tungsten trioxide per annum (1 MTU = 1 metric tonne unit or 10
kilograms). The mine has operated almost continuously for 110 years.
Further information may be found on the Company's website at
www.primarymetals.ca and on SEDAR at www.sedar.com
On Behalf of the Board of Directors,
"James Robertson"
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James Robertson, P. Eng., Director
For further information contact:
Vancouver Office:
James Robertson
Phone: 604.669.8988
Email: info@primarymetals.ca
Website: www.primarymetals.ca
Investor Relations:
Jamie Mathers, Ascenta Capital Partners Inc.
Phone: 604.628.5800 extension 236
Toll free: 1.866.684.4209
Email: jamie@ascentacapital.com
The TSX Venture Exchange does not accept responsibility for the
adequacy or the accuracy of this release.
James Robertson, P. Eng., is a Qualified Person for Primary Metals Inc.
and has reviewed and approved the information contained in this
release. The historical resource estimates provided in this release are
presented in a report dated July 18, 1979 on the Argimela Tin Prospect
by Dan D. Greig for Essex Minerals Co., a subsidiary of United States
Steel Corporation utilizing extensive information dating back to the
1960's.
This News Release contains forward-looking statements respecting the
company's expectations as to the future price of tin, its planned work
program, and potential mineralization, resources and reserves. Such
statements are based on certain assumptions, including that recent
demand for tin will continue or increase without a corresponding
increase in alternate sources of supply, availability of capital,
equipment and personnel to carry out the planned work program and
accuracy within a reasonable range of reported historical exploration
results, and involve various risks and uncertainties, including global
economic factors, future commodity prices, lack of availability of
equipment or personnel, and results of exploration. 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. Other important factors that could
cause actual results to differ materially from the Company's
expectations are disclosed under the heading "Risk Factors" and
elsewhere in the Company's documents filed from time-to-time with
regulatory authorities and on www.sedar.com
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Copyright (c) 2007 PRIMARY METALS INC. (PMI) All rights reserved. For
more information visit our website at http://www.primarymetalsinc.ca/
or send mailto:info@primarymetalsinc.ca
Message sent on Fri Mar 16, 2007 at 11:38:49 AM Pacific Time
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