Copper

[Ed Monton]

Piper Capital to JV on MBMI's Copper Prince

2006-03-27 17:06 ET - News Release

See News Release (C-PCL) Piper Capital Inc


Mr. David Tafel of Piper reports

JOINT VENTURE AGREEMENT ON COPPER PRINCE GOLD-COPPER PROJECT, ONTARIO

Piper Capital Inc. has signed a letter of intent (LOI) with Garson Resources Ltd., a subsidiary of MBMI Resources Inc., which sets out the terms and conditions for an option agreement in respect of the Copper Prince property located in Sudbury, Ont.

Under the terms of the letter of intent, Piper can earn up to a 60-per-cent interest in the Copper Prince property in two stages -- 50 per cent by making total payments of $75,000, issuing 650,000 shares, and incurring $700,000 in exploration expenditures over three years, and an additional 10 per cent by issuing 250,000 shares and incurring $500,000 in exploration expenditures in the fourth year. The property is currently subject to a 2-per-cent net smelter royalty. This transaction is subject to completion of definitive agreements and regulatory approval.

The Copper Prince property is a gold-copper project comprising a contiguous block of 16 patented mining claims, encompassing approximately 260 hectares located in Falconbridge township within the greater city of Sudbury, Ont. The project lies in the Huronian gold belt -- a zone of past gold producers that extends from northeast of the Sudbury basin to the southwest, south of the town of Espanola, a distance of approximately 120 kilometres (km).

The claims immediately to the north and west of Copper Prince are owned by FNX Mining Company Inc.-Falconbridge Ltd. and are being explored by FNX Mining for footwall-type nickel-copper-platinum group mineral (Ni-Cu-PGM) deposits. Falconbridge is exploring its Nickel Rim deposit, farther to the north, with plans to go into production in the near future. The Falconbridge smelter is located approximately two km to the north of the Copper Prince boundary. To the immediate east of the Copper Prince property lies the Falcon Gold property which is owned by Kinross Gold Corp. The Manchester offset dike (a Ni-Cu-PGM deposit) that belongs to Inco Ltd. is about half a kilometre south of the Copper Prince southern boundary.

Previous exploration

From 1950 to 1973 Copper Prince Mines conducted various exploration programs over the property. During 1988 to 1989, Rainbow Exploration Corp. purchased the property from Copper Prince Mines and optioned it to Inco Gold Co. Inco Gold constructed a new grid (for 29.6 km) and completed magnetic, electromagnetic (VLF (very low frequency) and some IP (induced polarization) surveys), remapped the geology at a scale of 1:1,000, collected 594 surface samples and drilled four holes for 421 metres to test mineralization beneath the original main prospecting pit and in two other areas.

In the period 1995 to 1997, Rainbow Petroleum Corp. tested the South Range breccia belt cutting the property with 27 diamond drill holes for 6,319 m testing zones with narrow gold-copper values at surface. Estimated expenditures by Inco Gold and the Rainbow group of companies to that time were approximately $750,000.

In 2004 MBMI Resources Inc. drilled 10 shallow diamond drill holes for a total of 775 metres. The assay data received confirm copper-gold (Cu-Au) mineralization within quartz veins which range up to several metres in size concentrations. Two zones containing numerous quartz veins containing chalcopyrite, pyrite and pyrrhotite mineralization were encountered. One trend is 15 metres wide by 50 m long, and open on strike and at depth. The other trend extends 80 m in length, and up to 0.5 m in width and is also open on strike and to depth.

David Beilhartz, PGeo, is the qualified person as defined in National Instrument 43-101 and has reviewed the contents of this news release.

This letter of intent is subject to shareholder approval of the disposition agreement with Hidefield Gold PLC with respect to the company's Golden Zone assets which will be voted upon at the company's annual general meeting, to be held March 31, 2006.