Canadian Imperial Venture Corp. Signs West Newfoundland Minerals Agreement

    
    Trading Symbols:
    TSX-V: CQV
    Frankfurt Exchange: DFM
    

ST. JOHN'S, NL, Oct. 4 /CNW/ - Canadian Imperial Venture Corp. ("CIVC" / the "Company") is pleased to announce that it has entered into an agreement with Tectonics Inc. ("Tectonics") of Calgary, Alberta for the purpose of exploring mineral rights overlying its Green Point oil-in-shale lands ("EL 1070") on the Port au Port Peninsula.

The focus of the mineral exploration is a feature known as the "Odd Twins Magnetic Anomaly". This feature has been identified on magnetic surveys, covers a license area of 19840 ac, and includes two prospective sandstone units with a gross thickness of up to 506 meters. The possibility of low cost energy from the production of oil and gas on EL 1070 and elsewhere in west Newfoundland raises the potential of commercial extraction of iron, titanium and chromium oxides. Odd Twins outcrops on Long Point and preliminary estimates from limited outcrop indicate a concentration of heavy metals (magnetite, ilmenite and chromite) at approximately 5% of the total rock. The planned work program under this agreement includes a $200,000 budget for the drilling of core holes before December 31, 2010. CIVC has the right to earn a 40% interest in the licensed area (see below).

In the agreement the following terms and conditions have been laid out:

    
    Initial Earning:
    ----------------
    

CIVC will earn a 40% interest in Mineral License 016508M, which comprises 68 mineral claims (1700 hectares; 4352 acres) on Long Point and extending offshore immediately west of Long Point, by (1) the expenditure of $200,000 on the exploration of the property by December 31, 2010. This program will consist principally of drill holes to delineate, and collect core from, two high-magnetic susceptibility sandstone units within the upper Long Point Group of late Ordovician age; (2) issue of 3,000,000 shares to Tectonics; and (3) the granting of a 2% Net Smelter Royalty (NSR) to Tectonics on production from the earned interest.

    
    Mineral Option Blocks A and B, and First Right of Refusal:
    ----------------------------------------------------------
    

After these earning commitments have been fulfilled, CIVC will additionally be granted by Tectonics an option to participate in the adjoining License 018019M (121 claims; approx. 3025 ha; 7744 ac) immediately north and contiguous to License 016508M ("Mineral Option A"), and an option to participate in the adjoining License 018035M (121 claims; approx. 3025 ha; 7744 ac) lying immediately west and contiguous to License 016508M ("Mineral Option B"). These Options will include terms and conditions identical to that of License 016508M except that, upon election to participate, 5,000,000 shares shall be issued to Tectonics (rather than 3,000,000) for each of Mineral Options A and B, and a property-specific exploration program will be agreed on by the partners prior to election . Furthermore, upon fulfillment of earning commitments on License 016508M, and prior to election of Mineral Option A and Mineral Option B, CIVC shall be granted by Tectonics a First Right of Refusal to match any third party joint-venture offer to Tectonics.

    
    Geological Setting and Heavy Mineral Potential
    ----------------------------------------------
    

The upper Ordovician Long Point Group lies stratigraphically and structurally above both the upper Cambrian to middle Ordovician carbonate platform rocks, and their deepwater equivalents, the Cow Head Group/Green Point Formation petroliferous shales of the Humber Arm Allochthon, on the northern Port au Port Peninsula. As such, the Long Point Group includes clastic sediments derived from uplift of crystalline massifs lying to the east of the ancient Port au Port area at the end of the middle Ordovician Taconian Orogeny, and therefore represents the initiation of a foreland basin at this time. These massifs contained suites of heavy minerals which were eroded, transported westward, and deposited and distributed along a shoreline along the ancestral west coast of Newfoundland. Such bodies of sands with concentrations of heavy minerals are commonly found along shorelines in the modern environment ("black sands"). When they are found within lithified rock units they are known as "paleoplacers" and often bear significant quantities of heavy minerals, concentrated in the sandstone by the action of ancient winds, currents and tides, generally along shorelines, and within deltas and rivers. Such units have been identified in the upper part of the Long Point Group, which outcrops on Long Point, north of the village of Lourdes, and has been documented by Waldron et al. (Bull. Canadian Jour. Earth Science, 2002). Modelling of the geophysical data and field observation suggest the gross thickness of the unit ranges from 294 to 506 metres, with a net magnetic sandstone thickness of 134 metres.

Petrography of the sandstones from Long Point shows the occurrence of three principal detrital heavy minerals: magnetite, ilmenite, and chromite, which are interpreted to have had their provenance principally in rocks of the Bay of Islands Ophiolite Complex. A preliminary estimate of the concentration of these three minerals from the very limited outcrop is placed at around 5% of the total rock. Other opaque minerals occur in the rock and have not yet been investigated for their economic potential.

    
    Structural Attitude of the Long Point Group
    -------------------------------------------
    

The Long Point Group lies within the foreland basin succession above and west of the east-verging roof thrust of the "triangle zone" which encloses the deformed sediments of the Humber Arm Allochthon, including oil-bearing units of the Green Point Formation. As such, the group is a relatively undeformed unit which dips uniformly northwestward about 34 degrees, for about 4 km offshore, where it is seen to flatten to horizontal on offshore seismic profiles at a depth of about 1200 metres.

    
    Magnetic Signature of the Paleoplacers
    --------------------------------------
    

Two magnetic linear traces seen on magnetic surveys from the offshore north of the Port au Port Peninsula come onshore near Misty Point and continue into the paleoplacer units onshore. This feature was originally termed the "Odd Twins Magnetic Anamoly" by Ruffman and Woodside in 1970. Tectonics, Inc. has completed a hand-held magnetometer survey in three traverses across the strike of the beds and these data will be used to site the locations of drilling. The magnetite in the sandstones, therefore, not only may have economic value in its own right, but acts as a tracer mineral for the other minerals in the paleoplacer units.

    
    Work Program
    ------------
    

The work program shall consist of the drilling of several coreholes with orientations both perpendicular to and along the dip of the gross sandstone units. The former will help establish the attitude and thickness of the units, while the latter will explore lateral changes in facies, and therefore, clast and heavy mineral composition, in a direction perpendicular to the ancient shoreline, which in general shows the most rapid facies transitions. Evaluation will consist of core examination, petrographic studies, field sampling and possibly trenching for bulk sample separation analysis, and other germane studies, directed toward establishing an early assessment of potential commerciality.

    
    Relationship to Petroleum Exploration License 1070
    --------------------------------------------------
    

An attractive feature of the location of the claims is that they overlie the western extent of the triangle zone on EL 1070, which is interpreted to hold potential for Green Point oil-in-shale, and in which CIVC holds a 38.5% working interest. This may result in several synergies relating to infrastructure which could potentially reduce input costs to a mining operation.

    
    Provisional Mining Model
    ------------------------
    

At this very preliminary stage, it can be surmised that if sufficient grades are found in the Long Point paleoplacers to establish a pilot project for extraction, several factors may combine to enhance the possibility of commerciality: (1) the thickness and regional continuity of the beds (2) the possibility of inclined-ramp mining from the surface at Long Point to the offshore, and (3) low cost energy from oil and gas production would be available nearby; (4) infrastructure and equipment (e.g., roads) could be shared with petroleum installations, and (5) common partnerships exist in the tenure of the petroleum and mineral lands.

    
    Economic Climate for Strategic Metals
    -------------------------------------
    

Recently we have seen a worldwide thrust to accumulate strategic metals, and indeed commodities in general, by emerging, particularly Asian, economies. Iron, titanium and chromium have in particular have participated in dramatic price runups in the last several years.

Canadian Imperial Venture Corp. is an independent Canadian-based energy company, a leader in the Green Point oil-in-shale play. Eastern Canada is the home to such developments as the Hibernia, Terra Nova, White Rose, Sable Island, Deep Panuke, and McCully fields.

    
    CANADIAN IMPERIAL VENTURE CORP.

    By: "Steven M. Millan"
    Steven M. Millan, P.Geo.
    Chairman and CEO

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ACCURACY OF THIS PRESS RELEASE.
    

This release includes certain forward looking statements which reflect beliefs, expectations, objectives and goals which are believed to be reasonable at the time such statements are made. Actual results could differ materially from anticipated results and may be impacted upon such factors as commodity prices, political developments, legal decisions, market and economic conditions, industry competition, the weather, changes in financial markets and changing legislation.

For further information: Canadian Imperial Venture Corp., Tel.: [phone], Fax: [phone], [email protected], www.canadianimperial.com