PEBBLE CREEK MINING LTD. TO DRILL DEEPER AT ASKOT, INDIA

TSX-V:  PEB

NEW WESTMINSTER, BC and NEW DELHI, India, June 27, 2011 /CNW/ - Pebble Creek Mining Ltd. ("Pebble Creek" or "the Company") intends to engage India Resources Ltd. ("IRL") to manage a fourth drilling campaign at its Askot project in Uttarakhand state, India.

Askot is a VMS (volcanogenic massive sulphide) deposit of copper, zinc and lead, with significant silver and gold. The Company's indicated and inferred mineral resource estimates in respect of Askot were reported in the Company's news release dated February 14, 2011.

Drill Program.  Drilling will start from underground stations in the hanging wall of the mineralized units, to go deeper than the 57 holes drilled by government agencies in the period 1968 through 1988. Pebble Creek twinned 17 of the government holes in 2006 and 2007 and verified the previous results.

The mountainous topography and the steeply dipping mineralized strata require holes drilled from the surface to be collared at 1,150 to 1,300 metres elevation and drilled through hundreds of metres of wall rock before reaching target depths of 700 to 850 metres elevation. The use of underground stations that the Company has installed at 985 metres elevation, will eliminate hundreds of metres of drilling. Also, underground drilling will be more efficient than drilling from the surface during the summer monsoon that usually takes place from July through early October.

To drill still deeper, after the monsoon ends a second rig will be moved into the valley on the footwall side of the mineralization to repeat the method the Company used for drill hole 019A in 2010. That hole was drilled to 230 metres at a minus 60 degree angle, then deflected to minus 30 degrees. It intersected the mineralization at 363.7 to 373.4 metres down-hole for a true thickness of 6.7 metres. That intersection extended the mineralization down to 720 metres elevation, or 160 metres below the deepest previous hole in that vicinity.

The entire program is planned for approximately 7,500 metres of drilling in 40 holes.

Drill Targets.  The underground holes will target mineralization at 50 metre vertical intervals below the average elevations of the deepest previous drill holes, 850 metres; and repeated along strike. The deflected holes from the valley will jump well below that zone to intersect the projection of mineralization at elevations between 600 and 200 metres.

Several reasons argue for deep tests:

  • The northwest and vertical boundaries of the Askot deposit have not yet been found.
  • A large regional syncline has folded the mineralized beds and the keel of this fold is projected to lie at 200 metres elevation, about 650 metres below the known mineralization.
  • Folded VMS deposits are generally thicker in the axes of folds than they are on the limbs.
  • Much of the observed mineralization has been remobilized and re-deposited between layers of fissile schist - from a source under high pressure during a post-depositional deformation and hydrothermal event - and that source may lie deeper in the system.

India Resources Ltd. IRL is a company based in Perth, Australia whose main activity is contract mining the underground Surda copper mine in Jharkhand state, India, and milling the ore at the nearby Mosaboni concentrator. The owner of Surda and Mosaboni is Hindustan Copper Ltd., a Government of India company.

IRL is listed on the ASX and has a large management, engineering and geologic staff and a total of 1,500 employees in India. IRL has reopened, refurbished and re-engineered the mine and mill in 2007 and has been operating the integrated facilities since. More information can be found at http://www.indiaresources.com.au. IRL also holds mineral tenements and is developing other projects elsewhere in India

IRL became interested in Askot in 2007 and has been a supportive shareholder of Pebble Creek since that time.

Contracting IRL to manage the drilling under standard commercial terms makes economic sense. It will make use of IRL's considerable pool of operating expertise and will free up the Pebble Creek management for other activities such as arranging additional financing and liaison with the governments of India and Uttarakhand.

Qualified Person.  Technical information in this release has been approved by Andrew E. Nevin, PhD, PEng, President and CEO of Pebble Creek, a Qualified Person under NI 43-101.

This news release contains forward-looking statements that address future events and conditions and are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the application of laws and regulations where the Company's operations are situated, the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in commodity prices; currency fluctuations; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements

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.


SOURCE Pebble Creek Mining Ltd.

For further information:

Gyan C. Singhai, PEng, Executive Chairman, Telephone: +1 604 529 9076
Mike Romanik, Vice President, Telephone: +1 204 724 0613

Profil de l'entreprise

Pebble Creek Mining Ltd.

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.