VANCOUVER, June 4 /CNW/ - Nanika Resources Inc. (TSXV: NKA and FSE: C7X) is pleased to announce that it has closed the transaction to acquire the Herb Lake Manitoba property. Located approximately 120 kilometers east of Flin Flon, Manitoba, Nanika's Herb Lake property is comprised of eleven mineral claims on approximately 5,930 acres to the immediate north of the Copperman Property of VMS Ventures Inc. Nanika has paid $46,000 in consideration for 100% of the Herb Lake property and there is a 2% Net Smelter Royalty payable upon any commercial production. Nanika has the right at any time to repurchase one-half of the Net Smelter Royalty (1.0%) for five hundred thousand dollars. The agreement was subject to the approval of the TSX Venture Exchange which has been obtained. The property was acquired from the owners, one of whom was a company director, Ross Blusson. Mr. Blusson declared his one-half interest in the property to the board of directors in advance of the acquisition and abstained from taking part in the decision to acquire the property.
Historic drilling on the Copperman Property to the south indicated that the "A" zone contains 149,672 tonnes 3.08% Cu and 3.08% Zn. Combined reserves of 221,308 tonnes with 2.63% Cu and 4.46% Zn were reported in Manitoba Mineral Deposit Series Report 21. From 1983 to 1994, a regional diamond exploration program, which also included one drill hole, was executed by Falconbridge and European Ventures Inc. at the Mining Lease Number 28 property less than 3 kilometers from the Herb Lake claim. The drill hole intersected a dyke of diamondiferous Kimberlite. In 2007 a VTEM survey flown over the northern part of the Copperman area identified a large number of conductors of which only some were tested to date. VMS Ventures Inc. is currently drilling on the Copperman property. The reported mineralization in the adjacent Copperman deposit is associated with altered volcanic rocks that are exposed at the northern edge of the limestone cover rocks found in this area of Manitoba. A large portion of the prospective volcanic rocks on the Copperman property extend beneath the limestone cover, which gradually increases in thickness southwards. Felsic volcanic rocks and minor amounts of Cu and Zn are present at a number of localities. It should be noted that there has been insufficient exploration to date to define a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource.
Alex Walus, P. Geo., a qualified person under National Instrument 43-101 is supervising Nanika's work program on the Herb Lake property and has reviewed and approved the technical disclosure in this news release.
About Nanika Resources Inc.
Nanika Resources Inc. is a TSX Venture listed mineral exploration and development company focusing on the advancement of its mineral properties, all of which are located within Canada.
On Behalf of the Board
James D. Jacuta
Chairman, President and CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada (IIROC) accepts responsibility for the adequacy or accuracy of this release.
SOURCE NANIKA RESOURCES INC.
For further information: For further information: CHF Investor Relations, (416) 868-1079; Christopher Haldane, Account Manager - ext. 237, email@example.com; Chelsea Jones, IR Associate - ext. 246, firstname.lastname@example.org; Or visit: www.nanikaresources.com