Pebble Creek announces mineral resource estimate



    TSX-V: PEB

    VANCOUVER and NEW DELHI, India, Aug. 12 /CNW/ - Pebble Creek Mining Ltd.
("Pebble Creek" or the "Company") is pleased to announce that the Company has
received an independent mineral resource estimate on its Askot property from
SRK Consulting (India) Pvt. Ltd. ("SRK").
    Askot is a massive sulphide deposit held by Adi Gold Mining Pvt. Ltd
("Adi"), a wholly owned subsidiary of the Company. It is located in northern
India.
    Askot contains five metals of economic significance; therefore the
mineral resources are reported using a cut-off grade of US$100 net smelter
return ("NSR") considering the likely underground mining extraction scenario
and metal prices and recovery assumptions reported below.
    The mineral resources are reported in accordance with Canadian Securities
Administrators' National Instrument 43-101 and have been estimated in
conformity with generally accepted CIM "Estimation of Mineral Resource and
Mineral Reserves Best Practices" guidelines. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. There is no
certainty that all or any part of the mineral resource will be converted into
mineral reserve. The mineral resource statement is presented in Table 1.

    
     Table 1. Mineral Resource Statement(*) Askot Polymetallic Sulphide
               Deposit, India, SRK Consulting, August 10, 2008.

    -------------------------------------------------------------------------
    Category     Quantity                        Grade
                  (Tonnes)   Cu (%)     Zn (%)   Pb (%)   Ag (gpt)  Au (gpt)
    -------------------------------------------------------------------------
    Indicated    1,860,000    2.62       5.80     3.83       38       0.48
    Inferred       149,000    1.70       4.56     1.89       29       0.44

    (*) Reported at a net smelter return cut-off of US$100 per tonne based on
        metal prices of US$2.00 per pound of copper, US$0.65 per pound of
        lead, US$0.90 per pound of zinc, US$15.00 per ounce of silver and US
        $900 per ounce of gold and metallurgical recoveries of 85%, 78%, 76%,
        60% and 60%, respectively. Mineral resources are not mineral reserves
        and do not have demonstrated economic viability. All figures have
        been rounded to reflect the relative accuracy of the estimates.
    

    The mineral resources have been estimated using a block modelling
approach constrained by three dimensional wireframes. SRK modelled one
sulphide-rich zone using information from 74 core boreholes (13,900 metres)
and underground chip sampling and mapping information. Assay data were
composited to equal 1-meter length and after analysis SRK found it not
necessary to cap composite. Copper, lead, zinc, silver and gold grades were
estimated into a partial block model in Surpac using an inverse distance
squared algorithm with a spherical search neighbourhood defined using
variography. Two estimation runs were completed at full variogram and double
the variogram ranges. Mineral resources were classified according to the CIM
Definition Standards for Mineral Resources and Mineral Reserves (December
2005) into Indicated and Inferred Mineral Resources on the basis of distance
from the nearest informing composite and based on variography. All blocks
located within 60 metres from the nearest composite and inside the modelled
sulphide wireframe were classified as Indicated. Other blocks located within
the modelled wireframes and located within 120 metres from the nearest
composite were classified as Inferred.
    The mineral resources for the Askot polymetallic sulphide deposit are not
very sensitive to the selection of the cut-off grade. Table 2 presents the
global quantities and metal grades at various US$NSR cut-off. The reader is
cautioned that these figures should not be misconstrued as a mineral resource.
The reported quantities and grades are only presented as a sensitivity of the
resource model to the selection of cut-off grade.

    
    Table 2. Global Block Model Quantity and Grade Estimates(*) at Various
         US$ NSR Cut-off Grades, Askot Polymetallic Sulphide Deposit.
    -------------------------------------------------------------------------
    Cut-off      Quantity                       Grades
    NSR (US$)    (Tonnes)   Cu (%)     Zn (%)   Pb (%)   Au (gpt)  Ag (gpt)
    -------------------------------------------------------------------------
    Indicated
         80        1.90      2.59       5.72     3.78      36       0.47
        100        1.86      2.62       5.80     3.83      36       0.48
        120        1.72      2.72       6.06     3.99      38       0.49
        140        1.62      2.80       6.29     4.10      39       0.49
    Inferred
         80        0.18      1.56       4.18     1.79      25       0.42
        100        0.15      1.70       4.56     1.89      29       0.44
        120        0.12      1.83       5.00     1.93      33       0.47
        140        0.09      1.99       5.39     2.04      34       0.47
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) The reader is cautioned that the figures presented in this table
        should not be misconstrued as mineral resource statements. The
        reported quantities and grades are only presented as a sensitivity of
        the resource model to the selection of cut-off grade
    

    The Company reiterates its previous news releases that geophysical and
soil geochemical studies have found anomalies along 3,000 metres of strike
length beyond the known deposit, and that it is characteristic of volcanogenic
massive sulphide deposits to occur as multiple lenses.
    Work on the project is proceeding and a renewed drilling program is
planned for the fall, after the summer monsoon rains.
    Mr. Souvik B Banerjee and Dr. Jean-Francois Couture have visited the
property and reviewed the content of this news release. By virtue of his
education and relevant experience, Dr. Couture, P. Geo (APGO No. 0197), is an
independent qualified person for the purpose of National Instrument 43-101. 
An NI 43-101 technical report detailing the mineral resource estimate will be
filed within 45 days of this release.

    About Pebble Creek.

    The Company has been exploring in India since 1995 and has built up a
technical and business infrastructure. The Company's main project is the Askot
massive sulphide deposit in Uttarakhand state.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release

    %SEDAR: 00023083E




For further information:

For further information: Gyan Singhai, Executive Chairman, Telephone:
(604) 696-6101; Mike Romanik, Investor Relations, Verenex Capital Corp.,
Telephone: (204) 724-0613

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Pebble Creek Mining Ltd.

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