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Newmac’s Crazy Fox Yielding High-grade Molybdenum Intercepts

Newmac Resources (TSX.V:NER) Crazy Fox project 100 km north of Kamloops in British Columbia’s Chilcotin region is turning in some good grades across long intersections. With two drills operating continuously, there will be many more to come throughout the 2008 exploration season.

Since the company began drilling the property in 2006, the Crazy Fox project has demonstrated the existence of a large mineralized zone of tungsten and molybdenum grades ranging up to 1.8% Molybdenum. The project has seen over 24,000 metres of drilling so far, and exploration is continuing at an aggressive pace.

The 2006 drill program completed 7486 m of drilling in 33 drill holes in widespread moly- tungsten mineralization and allowed the compilation of data at about 18 points of penetration of the thrust.

In November 2007, drill hole 07-41 was collared in granite and continued through the thrust fault at 391 m (1273 feet) into underlying granite to a final drill depth of 1021m or 3348 feet. The hole became mineralized as fracturing increased approaching the thrust in the upper plate. Mineralization continued in the lower plate to the end of the hole.

This hole returned an interval of 430m between 400m and 830 m or 1410 feet assaying 0.1% Mo. This interval also contains the following sub intervals:

1 150 m between 647 and 797 m of 0.18 Mo

2 48 m between 709 and 757 m of 0.29 % Mo

3 14 m between 709 and 723 m of 0.58 % Mo

Tungsten values averaged 0.01% for the entire 436m section.

The Crazy Fox tungsten molybdenum prospect has a considerable history, with references going back to the 1940’s that include mention of the removal and transport by packhorse of a small tonnage of very high-grade material during the First World War. By the 1960’s a number of showings across British Columbia were being more systematically explored by major companies.

It was at this time that certain similarities to the Cyprus and Amax owned molybdenum mines, (Climax and Henderson), in Colorado were noted. Of particular significance in this regard was the identification of unidirectional quartz crystallization (“brain rock”) associated with molybdenum mineralization which was further documented by R.V. Kirkham of the Geological Survey of Canada, (CIMM Special Vol 56, 1984)

Although this early exploration (1960s,’70s &early ’80s) was encouraging, it was not sufficient to keep the exploration active and the molybdenum prospect was eventually abandoned and largely forgotten for the next twenty years.

Since 2000, new roads have been built and new areas cleared of trees throughout the property area, in an attempt to salvage bug killed trees and to control the spread of the mountain pine bark beetle.

Prospecting since 2004 in the area of the old showings and new exposures created by new roads, has revealed significant new showings of molybdenite up to 2.81% Mo. (An angular boulder of quartz feldspar porphyry, found in 2005, in the vicinity of the ‘old’ exploration, weighed 50kg and contains 7.29% Mo and 1.583 grams per tonne Rhenium).

During the summer of 2005, Newmac Resources reviewed the property and concluded an option agreement with Bourdon and Addie for cash and stock, giving Newmac 100% control over the property. The prospectors retain a net smelter royalty.

Newmac moved quickly and commenced an orientation grid and sampling program along the grid and new road system. This was followed by an excavator trenching program in November of 2005 to assess the extent of the new showings and to develop additional information about the extent of mineral occurrences, and grades.

The mineralization system is able to generate high grades when the ‘plumbing system’ is in place. Newmac’s most recent exploration program, a diamond drill program initiated in February 2006, entailed one and later two diamond drills working in consort with an excavator. The drill program completed 7,490 m (24,567 feet) of NQ core, currently stored under cover at Little Fort BC.

The company is well financed, having been the beneficiary of a $2.4 million capital injection from the Sprott Molybdenum Participation Corporation (TSX:MLY) in March.

Newmac is headed by David Hjerpe (Chairman), David Schmidt, (newly appointed President). and James William Morton, geologist.

Mr. Hjerpe, a mining executive with significant experience, was formerly the president of Hera Resources (1994-1997), International Taurus Resources (1988-1996) and Medallion Resources (1996-1997), ,

Mr. Schmidt holds a B.ASc. (Mining) degree from U.B.C. and has been a self-employed consultant to a variety of publicly traded exploration companies.

Mr. Morton is a professional geologist since 1972 and member of the BC Association of Professional Engineers. He is also the president and a Director of Eastfield Resources and a Director of Wildrose Resources.

About the Author

Eric Pratt is the Metals Editor for Resourcex Investor, a premium source of news and investment ideas for individuals seeking information about emerging companies in the resource sector. Find our more by visiting http://www.ResourcexInvestor.com.

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