News

High Grade Copper, Nickel, PGM Trench Intercepts of 5.38% Cu, 2.21% Ni, 0.086% Co, 4.71 g/t Pt, and 15.16 g/t Pd. over 9.43 Metre Discovered at AZ Prospect, Kang-Dian Project, Sichuan, China

Oct 12, 2004

VANCOUVER, BRITISH COLUMBIA--October 12, 2004-Nu XMP Ventures Ltd ("NUX") is pleased to report exploration progress on the AZ Property of the Kang-Dian Project, Sichuan, China. The Kang-Dian Project is situated in the centre of the Panxi rift, which is developed along the western margin of the South China craton. The Panxi rift shows marked similarities to the Noril'sk rift in western Siberia, with respect to the age of the volcanic eruption event, composition of the continental flood basalts and the occurrence of significant Cu-Ni-PGM (Copper-nickel – platinum group metals) mineralization associated with mafic to ultramafic intrusive phases genetically linked to the flood basalts.

The AZ prospect contains a number of mafic-ultramafic sills and small stocks that intruded into Devonian limestones. The AZ prospect, consisting of three mineralization zones, was discovered in 2003 through field mapping and trenching. After a road and a suspension bridge to the discovery area were built, a ground magnetic survey covering four square kilometers was conducted and several trenches were dug on the No. 1 zone. The No. 1 zone is now mapped out as a sulfide mineralized proxene peridotite sill intruded into Devonian limestone layers. Over 100 metres has been traced, in which the sill shows clear Ni-Cu-PGM mineralization over the entire length with stronger mineralization nearing the contact with limestone. The sill and mineralization is open at both ends. The sulfide mineralization in the sill occurs in either massive or disseminated pyrrhotite, chalcopyrite, Nisulfide, and pyrite. Significant Cu, Ni and PGM mineralization intercepts in trenches include 9.43 metres with an average grade of 5.38% Cu, 2.21% Ni, 0.086% Co (cobalt), 4.71 g/t Platinum (Pt), 15.16 g/t Palladiium (Pd) and 0.64 g/t gold (Au) (Table 1) in massive sulfides. Since many surface samples taken are gossan, it is possible that some useful metals have been leached out.

AZ Property Geology Map

Massive Sulfides

A Ground Magnetic Survey was performed over a four square kilometer area on 200 metre line spacing and 20 metre centers to test the extension of the No. 1 zone and to explore for other possible new zones, as magnetic mineral pyrrhotite is closely associated with Cu-Ni mineralization. The ground magnetic survey shows that the No. 1 Zone overlaps a strong magnetic anomaly that extends over 500 metres to the northeast beyond the area trenched to date. About 150 metres west of the No.1 Zone, two stronger ground magnetic anomalies with higher magnetic values were identified that also extend to the northeast and are over 1,500 metres in length. Elsewhere on the property, a fourth parallel magnetic anomaly occurs at the northwest corner of the property and extends for over 1,000 metres.

Magnetic Survey at AZ Property

With all necessary Chinese government approvals received, NUX can now accelerate its proposed underground tunneling and other exploration work to test the extension of the No. 1 Zone both at depth and over the ground magnetic indicator extension, and to test three newly identified ground magnetic anomalies.

In addition to exploration on the significant Cu-Ni-PGM at the AZ Prospect, NUX has just commenced drilling at the Nantianwan Prospect, located about 400 km south of AZ Prospect.

Table1

Quality Control
The company has implemented a quality control program to ensure best practice in sampling and analysis of the tunnel samples. All samples are shipped directly in security sealed bags to the Central Laboratory of Sichuan Bureau of Geology and Mineral Resources in Chengdu city located 240km by road from the AZ Prospect area, where they are dried, crushed, split, and then pulverized to 200 mesh. The Laboratory is certified by China Bureau of Quality Control and Quality Assurance. Pulverized samples (200 grams each) were then sent to ALS Chemex Laboratories in Vancouver Canada for assay. Pt, Pd and Au were assayed by fire assay method and Cu, Ni and Co by wet chemistry-ICP method.

The Exploration work is directly supervised by Dr. Rui Feng, President of NUX and Dr. Scott Song, a consulting geologist for NUX. Myles Gao, P.Geo, Director of NUX, is the Qualified Person on the Project.

For Further Information:
Nu XMP Ventures Ltd.
Rui Feng, Ph.D.
President & Director
Phone: +1 (604) 633-1368
Fax: +1 (604) 669-9387
Email: [email protected]
Website: www.newpacificmetals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.

Download News Release (PDF: 164KB)