Zephyr Minerals Ltd. closes gold property acquisition

HALIFAX, Oct. 31, 2012 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSX-V: ZFR) is pleased to announce that it has closed the previously announced purchase and sale agreement (the "Agreement") with Celtic Minerals Ltd. ("Celtic") to purchase a 100% interest in the Dawson gold project ("Dawson") in Colorado, USA. The acquisition was done by way of a share purchase agreement, whereby Zephyr acquired 100% of Celtic Gold Ltd., a Colorado company and subsidiary of Celtic Minerals, who holds title to the Dawson project.

Zephyr made cash payments of $200,000 to Celtic and $20,000 to UUS Inc. The payment to UUS Inc., a 100% owned subsidiary of Cameco Corp., was to fulfill a previous purchase agreement between Celtic and UUS Inc.

Loren Komperdo, President and CEO, stated "We are very pleased to have acquired the Dawson gold project. The 400 hectare property contains multiple historic resource estimates which boast high grades over viable widths, including one zone of 121,000 ounces of gold with an average grade of approximately half an ounce per tonne (239,000 tonnes at 15.8 g/t gold)*. As part of our ongoing exploration, it is our intention to verify historic drill results by twinning selected drill holes, and to complete a National Instrument 43-101 compliant resource estimate." A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the Company is not treating the historical estimate as current mineral resources.

Dawson is an advanced gold project with excellent exploration potential. It consists of 45 contiguous unpatented, and eight patented mining claims and one patented placer claim covering approximately 275 hectares.  The gold mineralization was discovered by U.S. Borax Ltd. in the early 1980's and last explored by Uranerz U.S.A. Inc. in the early 1990's. During this period a total of 142 diamond drill holes for 27,206 metres were drilled, from which several resource estimates were completed. Gold mineralization at Dawson is hosted in discrete deposits within a Proterozoic-aged exhalite unit that trends east-west for approximately 2.6 km's on the property.  Future exploration programs will be focused on drill testing targets identified through historic programs and identifying new drill targets along this laterally extensive zone.

Please visit the Zephyr website at www.zephyrminerals.com to view a recent corporate presentation highlighting the Dawson gold project in greater detail.

* This information is historic in nature and is based on drilling results reported by US Borax Ltd. 1982 and Uranerz USA Inc. 1990.

Advisories:

Mr. Peter Webster, P.Geo., who is a Qualified Person as defined under National Instrument 43-101 has reviewed the technical contents of this news release.  Mr. Webster has not verified the data disclosed, including sampling, analytical and test data underlying the information or opinions contained in the written disclosure. 

CAUTIONARY STATEMENT:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
 This News Release includes certain "forward-looking statements".  All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Zephyr, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Zephyr's expectations are exploration risks detailed herein and from time to time in the filings made by Zephyr with securities regulators. 
(Not for distribution to US wire services or for dissemination in the United States of America)

SOURCE: ZEPHYR MINERALS LTD.

For further information please contact:

Loren Komperdo, President & CEO
or
David H. Felderhof, Executive Vice President
Zephyr Minerals Ltd.
T: 902 446-4189
F: 866 941-4715

Email: [email protected]
Or visit: www.zephyrminerals.com