Whitemud Resources Inc. Announces Completion of Mineral Inventory Review, 65% Net Increase in Gollier Creek Resource Base, and Operations Update



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    CALGARY, Dec. 16 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the
"Company") (WMK - TSX Venture Exchange) announced today the completion of a
revised mineral inventory, based on results recently compiled from the 2007
exploration drilling program. The revised inventory reflects a 65 % net
increase in indicated and measured resources on the Gollier Creek lease block.
    Four new resource areas were delineated, including: extensions to the
Gollier Creek Mine West Pit to the north and west, a "bridge" between the
North and East pits, and a new discovery of kaolinitic sandstone, named the
Elm Springs deposit, northeast of the Gollier Creek Mine. All of the new
material in the revised inventory is classified as resources. There has been
no change to the Proven Reserves of the Gollier Creek Mine West Pit since the
Technical Report filed with SEDAR in December 2006. Results are summarized in
the comparative table below, and more detailed information is presented in the
expanded table and map which are appended to this press release.

    
    Gollier Creek                     Dec. 2007               Dec. 2006
    Resources                     Resource Estimate       Resource Estimate
                                 Million     Grade(*)    Million     Grade(*)
                                 -------     --------    -------     --------
                                  tonnes                  tonnes
                                  ------                  ------

    Measured Resources             131.1      41.7 %        74.1      40.1 %

    Indicated Resources             28.2      38.5 %        22.3      42.9 %
                                    ----      ------        ----      ------

    Total Resources                159.3      41.1 %        96.4      40.8 %

    Gollier Creek
    Reserves

    Proven: West Pit                52.9      40.8 %        52.9      40.8 %

    (*) Grade expressed as weight percent finer than 45 microns, a proxy for
    kaolinite content.
    

    Scott Wilson Roscoe Postle Associates (Scott Wilson RPA) authored the
National Instrument 43-101 (NI 43-101) compliant Technical Report dated
December 6, 2006 for which the 2006 Resource Estimate was compiled and has
reviewed the assumptions and methodology employed in the 2007 Resource
Estimate. Scott Wilson RPA will review other construction and operating cost
assumptions in order to complete an updated Technical Report in the first
quarter of 2008.
    Whitemud's Manager, Exploration and Geology, Lynn I. Kelley, a
Professional Geoscientist in the Province of Saskatchewan, planned and
supervised the exploration drilling program, compiled exploration results and
revised the mineral resource estimates. Mr. Kelley is the Qualified Person
responsible for exploration and resource estimation. The Company plans to
conduct additional exploration in 2008 to upgrade and continue to delineate
the additional resources.
    Additionally, the drilling program and the excavation of the initial
quarry have identified potential to exploit materials that overlie the
kaolinized sand, including kaolin-rich ball clay, coal, and gravel. The
Company is in the process of analyzing the quality and quantity of these
materials in order to assess their value. Securing sources of gravel and coal
on Whitemud's property has the potential to offset costs currently incurred to
purchase these materials for mining and processing. Initial analysis of the
ball clay suggests a high percentage of kaolinite, which implies potential to
increase the Company's kaolin resource base. Additional analysis is required
to determine the exact chemistry and the viability of extracting the
kaolinite. Mining costs for each of these materials would be very low since
they occur as overburden to the primary kaolin resource. The Company is
acquiring the mineral leases to secure the rights to these minerals.
    The Company has awarded a three-year mining contract. Based on the terms
of the contract, Whitemud is confident that mining costs will be within the
costs estimated in the NI 43-101 technical report prepared in 2006.
    The plant is 98% complete and staffing is complete. More than
100,000 tonnes of ore have been stockpiled. Crews are expected to start
testing equipment next week in preparation to commence commissioning early in
January. Assuming no unforeseen difficulties during commissioning and
start-up, the Company plans to initiate shipments of Whitemud(MK) to key
customers in February.

    Whitemud Resources Inc. is a Canadian-based corporation which is
currently developing the Gollier Creek Mine to exploit a large kaolin deposit
in southern Saskatchewan. Whitemud plans to produce Whitemud(MK), a
high-reactivity cement-grade metakaolin that enhances the performance of
cement in construction, and oil and gas wells. The first phase of construction
and mine development is nearly complete. The Company plans to ship
Whitemud(MK) to markets across North America beginning in the first quarter of
2008. Shares of the Company trade on the TSX Venture Exchange under the
trading symbol "WMK". More information is available on the Company's website
at www.whitemudresources.com.

    This press release may contain forward-looking statements which may
include estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact, including
without limiting the generality of the foregoing, statements made with respect
to future drilling and delineation of the Company's resource base, timing for
the delivery of major equipment, completion of commissioning of the processing
plant and establishing a presence in the Company's key market areas. There is
no assurance that the expected timeframes will be met as all are subject to
risks which include, without limitation, the possibility for equipment
failures, labour disputes, work stoppages, equipment delivery delays, and the
potential for delays arising from injuries and safety concerns at the
worksite. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it cannot give any assurance
that such expectations will prove to be correct. Results of Whitemud may be
affected by a variety of variables and risks associated with the mining and
mineral processing industry such as loss of market, competition, ability to
access sufficient debt and equity capital from internal and external sources,
ability to expand in the marketplace, exploration and development plans and
results, anticipated capital expenditures and financing thereof, timing of
applications and approvals. As such the future plans and objectives of
Whitemud are forward-looking statements that involve risks and uncertainties
and may be based on assumptions that could cause actual results to differ
materially from those anticipated or implied in such statements. The Company's
forward-looking statements are expressly qualified in their entirety by this
cautionary statement. Unless otherwise required by applicable securities laws,
the Company does not intend nor does it undertake any obligation to update or
review any forward-looking statements to reflect subsequent information,
events, results or circumstances or otherwise.

    
    Whitemud Resources Inc.
    Attachment to 16 Dec 2007 Press Release
    Detailed Resource Estimates and Map

    -------------------------------------------------------------------------
    Gollier Creek
    Resources       Dec. 2007 Resource Estimate   Dec. 2006 Resource Estimate

                   Million   Grade(*)  Category   Million  Grade(*)  Category
                   -------   --------  --------   -------  --------  --------
                    Tonnes                         Tonnes
                    ------                         ------

    West Pit          52.9     40.8 %  Measured      52.9    40.8 %  Measured

    North Pit         13.2     36.8 %  Measured      13.2    36.8 %  Measured

    East Pit           8.0     41.4 %  Measured       8.0    41.4 %  Measured

    Elm Springs
     Deposit          19.5     43.0 %  Measured        --        --        --

    W Extension of
     W Pit            29.0     45.3 %  Measured        --        --        --

    E Pit Bridge       8.5     40.3 %  Measured        --        --        --

    N Extension of
     W Pit            28.2     38.5 % Indicated        --        --        --
                      ----     ------
    Gollier Creek
     Total           159.3     41.1 %  Measured      96.4    40.8 %  Measured
                                            and                           and
                                      Indicated                     Indicated

    Gollier Creek
    Reserves
    West Pit          52.9     40.8 %    Proven      52.9    40.8 %    Proven

    (*) Grade expressed as weight percent finer than 45 microns, a proxy for
    kaolinite content.

    To view the map please visit:
    http://files.newswire.ca/663/whitemudmap.pdf
    





For further information:

For further information: Kevin Graham, VP Communications, Ron Love, CFO
or Kelly Babichuk, President & COO, Whitemud Resources Inc., (403) 517-0040

Organization Profile

WHITEMUD RESOURCES INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890