Argentina Mining Play

[Ed Monton]

Committee Bay finds gold in stream at Cordon El Penon


2006-09-28 09:29 ET - News Release

Mr. John Williamson reports

COMMITTEE BAY IDENTIFIES NEW GOLD ZONE AT CORDON EL PENON PROJECT AND INCREASES LAND HOLDINGS IN SAN JUAN PROVINCE, ARGENTINA

Reconnaissance mapping and stream sediment sampling conducted by Committee Bay Resources Ltd. on the Cordon El Penon project has identified anomalous gold in stream silt samples in drainages over a 10-kilometre length off the leading edge of the Caracol Thrust fault, located within the southern half of the project area. A single drainage system in the El Penon area returned six highly anomalous non-concentrated stream silt values ranging from 76 to 2,500 parts per billion gold (Au), coincident with anomalous silver (Ag), arsenic (As), antimony (Sb), thallium (Tl), mercury (Hg), tellurium (Te), tungsten (W), lead (Pb) and zinc (Zn).

Based on these results the company has increased its landholdings on its 100-per-cent-owned Cordon El Penon project to 9,895 hectares (ha). Committee Bay Resources Ltd., through its wholly owned subsidiary Minera La Huella S.A., now holds over 85,000 hectares of prospective ground in three areas within San Juan and La Rioja provinces, which consist of the Cordon El Penon (9,895 hectares) and Canon Oculto (14,887 hectares) projects in the PreCordillera of San Juan province, and the Rio Bonete (61,000 ha) project within the Famatina Magmatic Arc Terrane in La Rioja province.

The Cordon El Penon project is located in the PreCordillera region of Argentina, and encompasses a sequence of thrust-faulted Ordovician-aged platformal carbonate rocks which have been intruded by Tertiary porphyritic quartz diorites. This geologic environment contains the majority of gold deposits identified in the PreCordillera of Argentina including Gualcamayo, Virgen de Lourdes, Salamanca and Gualilan. These deposits are characterized by mantos, skarns and breccia zones hosted within carbonate rocks proximal to quartz diorite intrusions. Committee Bay also believes these rocks have the potential to host more distal, disseminated-type gold mineralization analogous to deposits of the Carlin and Battle Mountain trends in Nevada.

The company is planning a follow-up sampling and geological mapping program at the Cordon El Penon property scheduled to commence in mid-November, and will also be investigating opportunities to increase its landholdings over areas prospective for bulk tonnage, open pittable gold resources in Argentina, focused primarily within San Juan province.

Committee Bay Resources maintains an extensive quality control program in the preparation, shipping and checking of all samples from the project, and the programs are supervised by Peter Kleespies, MSc, PGeol, vice-president of exploration (Australia), who is the qualified person as defined by National Instrument 43-101. All rock and stream sediment samples were delivered in sealed bags to the ALS-Chemex Labs facility in Mendoza, Argentina, for sample preparation and were then sent to the La Serena, Chile, lab for gold analysis (50-gram-per-tonne gold fire assay with atomic absorption finish) and the Vancouver, B.C., lab for four-acid multielement ICP-MS analysis.

Committee Bay also announced today that Dean McDonald, PGeo, PhD, vice-president of exploration, has resigned from the company. Dr. McDonald will continue on with the company in a technical advisory role. The directors, management and staff of Committee Bay wish to thank Mr. McDonald for his years of service and wish him the best in his new endeavours. Management of exploration activities and programs in Australia, Canada and Argentina, as well as all quality assurance/quality control procedures will now be conducted under the guidance of Peter Kleespies, MSc, PGeol, currently the company's vice-president of exploration, (Australia), and a qualified person under National Instrument 43-101 guidelines.

Committee Bay also controls major greenstone belts in Nunavut and Western Australia and has the opportunity to conduct year-round exploration on three continents in order to build on its existing gold resources.