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Slam's Nash Creek estimate shows 30.95 gpt Ag indicated

2005-08-26 11:04 ET - News Release

Mr. John Hansuld reports

POSITIVE RESOURCE ESTIMATE ENCOURAGES DEVELOPMENT OF SLAM'S NASH CREEK PROPERTY

Slam Exploration Ltd. is very encouraged by the independent initial resource estimate reported for the Hayes zinc-lead-silver deposit, located in its wholly owned Nash Creek property in northern New Brunswick. Slam's primary objective is to advance this project rapidly through additional diamond drilling with the intent of completing a preliminary feasibility study by the end of 2006. The estimate includes an indicated resource of 3.4 million tonnes plus an inferred resource of 1.7 million tonnes summarized as follows:

 
  
 Hayes               Average  Average  Ag 
              Tonnes  Zn %   Pb %     gpt 
 Indicated 
 resource  3,400,000  5.01   0.89   30.95 
  
 Inferred 
 resource  1,710,000  3.68   0.66   19.20 
 

The estimated resource comprises 375 million pounds of zinc, 67 million pounds of lead and 3.4 million ounces of silver in the indicated. The estimated resource also comprises an inferred resource of 139 million pounds of zinc, 25 million pounds of lead and 1.1 million ounces of silver. The higher-grade core of the deposit is presently being evaluated.

Drilling to date defines the Hayes base-metal-sulphide deposit at a depth range from surface to 225 metres, over a strike length of 800 metres and over a width of up to 200 metres. The deposit occupies an area of approximately 16 hectares and is open to expand along strike. The essentially flat-lying volcano-sedimentary stratigraphy holds potential to increase the resource beneath the 12,000-hectare property.

Prepared by Mercator Geological Services Ltd., the report concludes, "substantial opportunity currently exists to extend the limits of known mineralized zones," and recommends further diamond drilling to expand the Hayes deposit. Specific recommendations are cited for 16 locations where step-out drilling has potential to expand the deposit from known mineral intercepts. This includes six deep, high-grade, isolated intercepts located beneath the main sulphide lens of the Hayes deposit. Recognizing that a substantial number of resource polygons in Mercator's estimate grade in excess of 7 per cent zinc, Slam has requested a resource estimate based on this higher-grade material.

Prior to drilling, Slam completed MegaTEM II electromagnetic and magnetic surveys (conducted by Fugro Airborne Surveys Ltd.) and airborne gravity surveys (by Bell Geospace Inc.). Maps showing the MegaTEM results as well as drill hole locations can be viewed on the Slam website.

Mike Taylor, president and chief executive officer, states: "We are excited about the confirmation of the Hayes deposit and the increasing resource potential of our Nash Creek property. This technical report supports our vision that Nash Creek has the potential to expand tonnage laterally from the existing resources that occur at depths less than 250 metres."

Slam intends to expand the Hayes deposit by a step-out drilling program designed to test potential extensions from known mineral intercepts as recommended by Mercator. Slam also intends to test the potential for satellite deposits within the Nash Creek geological complex as suggested by coincident soil geochemical, gravity and MegaTEM conductors located within a horizontal, sheet-like conductive zone identified by the MegaTEM survey. Currently, the defined mineralization of the Hayes deposit occupies only 16 hectares along the western margin of this entire conductive zone underlying 1,500 hectares of the Nash Creek property.

Michael Cullen, PGeo, of Mercator is the qualified person, as defined under National Instrument 43-101, responsible for preparation of the mineral resource estimate reported. The estimate was prepared in accordance with Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definitions and Guidelines, and both Mr. Cullen and Mercator are independent parties as defined in the instrument.

The mineral resource estimate was prepared using data from 62 historic diamond-drill holes plus the nine holes recently completed by Slam. It reflects application of the cross-sectional end area method of resource estimation. Data used in the estimate were verified to the necessary degree established by the qualified person and deemed acceptable for resource estimate use.

Drill holes within the resource area were assigned to cross-sections spaced at 50 metres or less across the trend of the mineralized zone and resource polygon end areas were defined on the sections, based upon composite zinc grade intercepts, all of which exceeded 1.5 metres in core length. To develop polygon volumes, end areas were calculated using Visidata Pty. Ltd. Interdex software and assigned influences to the midpoints with adjacent sections, thereby defining a maximum polygon length of 50 metres along the strike of the mineralized zone. A maximum influence area of 25 metres was otherwise applied within and orthogonal to drill sections. Specific gravity factors of 2.9 grams per cubic centimetre or 2.6 grams per cubic centimetre were assigned to reflect intercept-specific mineralized-zone host rocks and volumes were multiplied by these factors to determine polygon tonnages. No specific gravity determinations based upon analysis of drill core from the property were available. Average metal grades were determined through tonnage weighting for each resource category. Indicated mineral resources were defined in areas showing drill section spacing of 50 metres or less where resource polygons showed lateral continuity with two or more adjacent polygons. Inferred resource status was assigned to all other polygons included in the estimate. Based upon review of assay distribution patterns, only drill hole composites meeting or exceeding a six-metre-percentage zinc threshold value were included in the resource estimate.

Slam has several options for advancing exploration of the property. At this time, no environmental, permitting, legal, taxation or other issues are know to Slam that would materially affect the mineral resource estimate as reported.

Slam's wholly owned Nash Creek property comprises 760 mineral claims located 20 kilometres west of the Belledune smelter and sea port in northern New Brunswick. The property is in close proximity to the Brunswick No. 12 mine, a 10,000-tonne-per-day producer operated by Falconbridge Ltd., and the former-producing 3,000-tonne-per-day Caribou mine. Since both mines have mills with excess capacity, one of Slam's options could be a load-haul operation to one of these sites.

The board wishes to extend its gratitude and best wishes to David Silversides who retired from the board on Aug. 23, 2005, after five years of service.