Prime Meridian Resources
For Immediate Release
WINTERFIRE PROJECT DRILLING STARTS THIS WEEK
Prime Meridian & Wolfden Resources Enter Into Option Agreement
Calgary, AB February 14, 2011 Prime Meridian Resources Corp (TSX-V, PMR: FRA, DYD) (PMR) is pleased to announce that it has entered into a Letter of Intent (“LOI”) with Wolfden Resources Corp.(“Wolfden”), a private company, to conclude a joint venture for the Winterfire project. These mineral leases are located approximately 50 kilometers west of the town of International Falls in Minnesota, USA. A drill program budgeted at approximately US $400,000.00 with a minimum of three holes and 2,000 feet is planned to begin this week.
Geology and Exploration Program
Previous drill programs identified an amphibolized gabbro-norite within a sulfide-bearing, Archean-age metavolcanic - metasedimentary sequence. PMR believes these gabbro units are prospective for magmatic nickel-copper-cobalt-PGE+/- gold and silver mineralization. Prime Meridian resampled core intervals of coarse grained gabbro with heavily disseminated and/or semi-massive net-textured sulfides composed mostly of pyrrhotite with lesser chalcopyrite and pentlandite. This re-sampling yielded grades ranging from 0.15% to 0.42% copper, 0.1% to 0.56% nickel, and anomalous platinum, palladium and gold in core intervals ranging from 4.7 metres to 12.8 metres. In 2007 PMR contracted an airborne VTEM survey over the property. Interpretation of this data indicates that the historic drilling tested only the shallowest part of the gabbro-norite where the sulfide content was low. Typically it is the basal zone which would contain the best mineralization in this environment. The modeling also defined a series of well defined depth-limited conductive plates that appear to underpin the intrusion.
PMR believes the Winterfire geology is analogous to Nuinsco’s 34 Zone approximately 20 miles north of the project in Canada. Nuinsco discovered the 34 Zone which consists of magmatic Ni-Cu-Co-PGE-Au-Ag massive to net-textured and disseminated mineralization associated with a tubular, late-stage pyroxenite-gabbro intrusion which crosscuts the Rainy River gold deposit. Rainy Resources have estimated that the body contains 100,000 tonnes grading 1.9% Cu, 2.0% Ni, 2.5 g/t Pt, 6.0 g/t pd, 2.0 g/t Au, and 21.0 g/t Ag. The intrusion which hosts the historic mineralization at Winterfire appears to be substantially larger than the 34 Zone intrusion.
Prime Meridian Resources #515, 505 8th Ave. SW, Calgary, AB T2P 1G2 TEL: 403-539-0192 www.primemeridianres.com PMR and Wolfden have evaluated the historic drilling and VTEM data and selected three targets to test in the 2011 winter drill program. The drilling will be in the vicinity of known copper-nickel-PGE drill mineralization however will now target the basal section of the gabbro-norite unit which has been better defined by the recent VTEM survey. Drilling is expected to commence this week.
Highlights of the Agreement
PMR and Wolfden have entered into a LOI with the following terms:
a) Wolfden can acquire an initial 60% interest in the property by completing the following expenditures:
- Expending CDN$2.0 Million for exploration within four years. A minimum of CDN $400,000 will be incurred during the first and every year of the earn in period;
- Wolfden will issue 250,000 common shares to PMR upon signing of the LOI (now complete) and an additional 250,000 common shares upon completion of its initial earn in expenditures. These shares may be subject to standard regulatory hold periods.
b) Upon earning an initial 60% interest, Wolfden will have a one-time option to increase its ownership by an additional 10% by:
- Paying PMR an additional 500,000 common shares;
- Funding all costs for the completion of a feasibility study.
PMR and Wolfden are working to complete a definitive option and joint venture agreement based on the LOI terms.
About Wolfden Resources Corp.
Wolfden is a new company focused on acquiring and exploring base metal and gold projects in the Americas. Wolfden has been revived by the original founders of Wolfden Resources Inc. that was acquired by Zinifex in 2007, and was the predecessor company to Premier Gold Mines Inc.
About Prime Meridian Resources Corp.
Prime Meridian has undertaken a strategy of identifying option/joint venture parties for all their projects. The Corporation remains committed to exploring and developing its assets and to continuing its Cu-Ni-PGE project development primarily focusing on the Midcontinent Rift System.
John F. Gartner, MSc. P.Geol, is PMR’s Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has reviewed the technical information disclosed in this news release.
Prime Meridian Resources Corp. is a Canadian grass roots exploration company based in of Calgary, Alberta. With a portfolio of projects located in the Midcontinent Rift System of Michigan and Minnesota, Prime Meridian is recognized as a specialist within this historic area that is known to have large and valuable base metal deposits. Our focus is on advancing projects to the drill ready stage and beyond while increasing shareholder value.
Prime Meridian Resources Corp
John Boreta President
For further information, please refer to our website www.primemeridianres.com or contact:
Prime Meridian Resources Corp.
John Boreta Tel: (403) 539-0192 [email protected]
Certain disclosures in this release, including management’s assessment of Prime Meridian’s plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Prime Meridian’s operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Prime Meridian expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.