Finlay Minerals Ltd. press release
Finlay Minerals Ltd. Purchases Silver Hope Project, central British Columbia
TSXV - TSX Venture Exchange · Copper · Gold · Silver · Molybdenum · Zinc · Canada
VANCOUVER, March 16 /CNW/ - The Board of Directors of Finlay Minerals Ltd. ("The Company") is pleased to announce the acquisition of the Silver Hope Property located in central British Columbia. The Silver Hope Property is contiguous with the southern boundary of the past producing Equity Silver Mines Property and covers prospective stratigraphy for discovery of stratabound copper-silver-gold mineralization. Prior workers conducted several drilling programs along a 2 kilometer strike length of favourable geology that partially outlined three near-surface bulk tonnage copper-silver zones with deeper higher grade copper-silver zones. The zones, named Hope, Superstition and Gaul by prior workers, occur along favourable structural horizons in pyroclastic volcanic rock notable by fracturing and discrete breccias that have been tested by approximately 40 holes. No resources were calculated although deeper drill holes intersected reported grades in the Hope Zone of 4.1% copper and 637g/t silver over 2.4 meters (DDH 04SH-06), and 0.91% copper and 1030g/t silver over 3.0 meters (DDH X86CH-262). A re-interpretation of this style of mineralization along a 4 kilometer length that includes two deposits that saw production by Equity Silver Mines (33,800,000 tonnes (at) 0.4% copper, 64.7g/t silver, and 0.46g/t gold from open pit and underground mining) and three zones on the Silver Hope Property suggests opportunity for re-classification of the deposits as volcanogenic with a hydrothermal overprint. The Company acquired the Silver Hope Property with the objective of testing for volcanogenic style high-grade feeder mineralization and is initially planning a deep penetrating geophysical survey in the spring of 2006. Subject to regulatory approval, the Company will earn a 100% interest in the 37 mineral claim (2,775 hectares) Silver Hope Property by paying Sci-Tek Resources Ltd. ("Sci-Tek"), a private company, 2,000,000 Finlay shares, at a deemed value of $160,000. Sci-Tek will hold a royalty equal to one and one-half percent (1.5%) of Net Smelter Returns (the "Royalty"). Prior to a production decision being made in respect of the Silver Hope Property, the Company may, at its sole discretion, purchase half of the Royalty (i.e. 0.75%) from the Vendor by paying one million dollars ($1,000,000) to the Vendor. The purchase is subject to regulatory acceptance. The purchase is a related party transaction as two directors of the Company are part of the selling group.
Finlay Minerals Ltd. trades under the symbol "FYL" on the TSX Venture Exchange. The Silver Hope property is part of a strategic move to expand the Company's presence in B.C., and to complement the Company's Toodoggone projects. Documentation about the Company and properties can be viewed on the company's website at www.finlayminerals.com.
On behalf of the Board of Directors,
Robert Brown, P. Eng., President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.