TSX V. GMG
VANCOUVER, June 26 /CNW/ - Robert L. Card, President of Gulfside Minerals
Ltd. (the "Company"), reports that as a result of a review by the British
Columbia Securities Commission, the Company is issuing the following news
release to clarify disclosure relating to a Letter of Intent agreement to
acquire the Erdenetsogt Coal Project in Mongolia.
The Company's news release dated June 21, 2007 referred to "reserves" and
"potential reserves" based on historical drilling conducted by Russian and
Mongolian geologists and 2005 drilling by the property vendor, a privately
held Mongolian company that operates several domestic coal mines. The Company
stated that the Erdenetsogt Project is estimated to contain up to 550 million
tonnes of coal in the Mongolian "C" Category (a moderate level of geological
confidence under this Mongolian-Russian-based classification system, generally
comparable to the CIM class of indicated resources). These were included in a
larger "potential reserve" classified as being in the "possible and probable
The "possible and probable potential reserves" were taken from "P-1
Class" and Russian "P Class", which are at best comparable to CIM inferred
resources and more commonly comparable to a potential exploration target.
The Company also wishes to clarify a fence of four drill holes on an
adjacent property not subject to the Letter of Intent Agreement may have been
incorporated into the Mongolian-Russian estimates for the larger "potential
reserves" referenced in the June 21 news release.
The Company wishes to clarify that none of the "reserves" or "potential
reserves" referred to in the June 21 news release are current resources that
meet National Instrument 43-101 disclosure standards. A Qualified Person has
not done sufficient work to classify any of the Mongolian "C" or "P" estimates
as current mineral resources, and the estimates should not be relied on. No
feasibility study, pre-feasibility study or preliminary assessment (scoping
study), either current or historical, has been conducted by any private or
public entity on the subject property. Resources that are not reserves do not
have demonstrated economic viability.
Russian and Mongolian geologists drilled five holes totaling 574.6 metres
between 1987 and 1988. Four of the holes intersected but did not fully
penetrate the deposit. The historical drill-hole data showed that cumulative
coal thickness varied between 9.8 metres and 124 metres.
Subsequent drilling in 2005 by Monrospromugoli Co. Ltd. ("MPRU")
consisted of four wide-spaced holes along two fences. The distance between the
fences was 1,200 metres, the distance between the drill-holes varied from
800 metres to 1,200 metres, and the depth varied from 74 metres to 238 metres.
These holes intersected four coal seams with a total cumulative thickness of
coal between 41.5 metres and 94.9 metres (average 64 metres). MPRU also
drilled two separate holes to check the continuity of the coal seams at the
western flank of the deposit.
Additional drilling will be required to verify these results and
determine the true thickness of the coal. The Company's goal is to verify the
550 million tonnes of coal in the Mongolian "C" category and "potential
resources" in the Russian "P" or "P-1" Class in order to update these
estimates to NI 43-101 disclosure standards.
Based on the historical exploration and drilling results, the Company
believes the Erdenetsogt Project is potentially amenable to large-scale
open-pit mining suitable for shipment to China by truck or train.
The potential grade and quality of the Brown coal was determined by two
separate tests. Initial historical tests (between 1986 and 1988) conducted by
Russian and Mongolian entities showed an average calorific value of
6,425 kcal/kg, while subsequent tests in 2005 by the current owner showed an
average calorific value of 4,682 kcal/kg. This variation has not been
explained. The Company has not yet conducted any tests to verify these
results, which are provided for information purposes only.
The Company believes that Erdenetsogt may have potential for the in situ
gasification of coal into liquids such as diesel and gasoline, but has not
conducted any tests or preliminary assessment to determine if this concept is
technically feasible or has economic potential.
Gulfside Minerals has a Letter of Intent agreement to acquire a 50%
interest in a private company set up to hold the Lease, with an option to
acquire an additional 16% interest within one year, for a total of 66%. A
sliding scale royalty of 3-5% is payable on production. The Company will be
the operator of the Project. Additional details will be provided after review
of the proposed transaction by the TSX Venture Exchange.
Dr. Marc Bustin, PhD, P.Geo., a member of the Company's Advisory Board
and a Qualified Person as defined by NI 43-101, supervised preparation of the
technical information in this news release.
The Company intends to submit an initial NI 43-101 report on the property
within 45 days.
On behalf of the board of directors,
Gulfside Minerals Ltd
"Robert L. Card"
Robert L. Card
Forward-Looking Statements: This document includes forward-looking
statements. Forward-looking statements include, but are not limited to,
statements concerning GMG's planned exploration program and other statements
that are not historical facts. When used in this document, the words such as
"could," "plan," "estimate," "expect," "intend," "may," "potential," "should,"
and similar expressions are forward-looking statements. Although GMG believes
that its expectations reflected in these forward looking statements are
reasonable, such statements involve risks and uncertainties and no assurance
can be given that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to differ from
these forward-looking statements are disclosed under the heading "Risk
Factors" and elsewhere in the corporation's periodic filings with Canadian
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the accuracy or adequacy of this news release
For further information:
For further information: Suite 1102, 475 Howe Street, Vancouver, B.C.,
V6C 2B3, Canada, Telephone (604) 687-7828, Facsimile (604) 687-7848,