TORONTO, June 30 /CNW/ - Woodruff Capital Management Inc. (WOO - TSX-V)
("Woodruff" or the "Company") is pleased to announce that it has signed an
agreement to purchase the remaining 30% of the Estrades Mine in Northern
Quebec from Orvilliers Resources Inc. ("Orvilliers"). As consideration for the
sale of Orvilliers' 30% holding in the Estrades Mine Property, Woodruff will
issue 500,000 common shares from its treasury to Orvilliers at closing. The
agreement is subject to regulatory approval. Woodruff announced the closing of
the agreement to purchase 70% of the Estrades Mine Property from Atlas
Precious Metals Inc. on June 14, 2005.
As part of its technical due diligence, the Company has completed a
43-101 Technical Report on the Estrades Mine Property. The report was written
by Jean-Pierre Cloutier, an independent Qualified Person (QP) as defined under
National Instrument 43-101. Cloutier reviewed reports by Wright Engineers ltd.
(1989), Breakwater (1992), Derry Michener Booth and Wahl (1997), SRK
Consulting (2002) and Western Range Services Inc. (2003). Cloutier felt the
best resource estimate of the Main Zone was done by Breakwater in 1992.
According to this report the former producing Estrades Mine was in operation
from July 1990 to May 1991 and 174,946 tonnes of ore were milled, grading
1.14% Cu, 12.93% Zn, 6.35 g/t Au and 172.3 g/t Ag. The report estimated a
drill indicated resource of 271,415 tonnes at a grade of 7.52 g/t Au, 214 g/t
Ag, 0.88% Cu, 13.07% Zn and 1.34% Pb remains to elevation 4600. Wright
Engineers Ltd. (1989) reported an additional drill inferred resource of
185,000 tonnes at a grade of 3.26 g/t Au, 193 g/t Ag, 0.79% Cu, 9.22% Zn and
0.70% Pb from elevation 4600 to 4400 in the Main Zone. In today's standards
these estimates would not comply with CIM Definition Standards on Mineral
Resources and Mineral reserves that were prepared by the CIM Standing
Committee on Reserve Definitions and adopted by CIM Council, November 14,
2004. While Cloutier believes these numbers to be the most accurate, the
Company has not done the work necessary to verify the classification of the
resource or reserve, the Company is not treating them as a NI 43-101 defined
resource or reserve verified by a QP, and the historical estimates should not
be relied upon. The Company's 43-101 report is posted on SEDAR.
The Estrades mining lease will be the Company's second project hosting a
high grade past VMS producer, the other being Lemoine. The Company intends to
test the exploration potential of the Estrades Mine Property. Of particular
interest is a target down plunge from an existing hole which yielded 1.33% Cu,
1.19% Zn, 0.38 g/t Au and 31.2 g/t over 11.7 m., including 2.41% Cu, 1.26% Zn,
0.69 g/t Au and 34.3 g/t Ag over 5.4m. This intersection is associated with a
borehole EM anomaly and is completely open along the SW plunge that lines up
with the Main Zone. In his report, Cloutier adds: "Based on the large size of
the hydrothermal system associated with the Estrades deposit and on the fact
that VMS deposits typically tend to occur as clusters and form "camps" along a
given favourable stratigraphic interval, the potential for finding new
deposits along the Estrades mine horizon is excellent along strike and at
depth. Therefore, the Main Felsic Unit should be thoroughly explored across
the property."
Woodruff plans to initiate an extensive drilling program on this Property
in 2005-2006, in concert with exploration programs that have been undertaken
and that will continue later in the year on the Estrades-Newiska property that
lies adjacent to the Estrades mine. The Estrades-Newiska property makes up one
part of the Company's earn-in joint venture agreement with Inmet Mining,
whereas the recently acquired mining lease is not part of that agreement.
On Behalf of the Board of Directors
Mark Goodman
Chairman of the Board
Telephone: 416-924-9893
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00020132E
