VANCOUVER, June 26 /PRNewswire-FirstCall/ -- Robert L. Card, President of Gulfside Minerals Ltd. (the "Company"), reports that as a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify disclosure relating to a Letter of Intent agreement to acquire the Erdenetsogt Coal Project in Mongolia.
The Company's news release dated June 21, 2007 referred to "reserves" and "potential reserves" based on historical drilling conducted by Russian and Mongolian geologists and 2005 drilling by the property vendor, a privately held Mongolian company that operates several domestic coal mines. The Company stated that the Erdenetsogt Project is estimated to contain up to 550 million tonnes of coal in the Mongolian "C" Category (a moderate level of geological confidence under this Mongolian-Russian-based classification system, generally comparable to the CIM class of indicated resources). These were included in a larger "potential reserve" classified as being in the "possible and probable category."
The "possible and probable potential reserves" were taken from "P-1 Class" and Russian "P Class", which are at best comparable to CIM inferred resources and more commonly comparable to a potential exploration target.
The Company also wishes to clarify a fence of four drill holes on an adjacent property not subject to the Letter of Intent Agreement may have been incorporated into the Mongolian-Russian estimates for the larger "potential reserves" referenced in the June 21 news release.
The Company wishes to clarify that none of the "reserves" or "potential reserves" referred to in the June 21 news release are current resources that meet National Instrument 43-101 disclosure standards. A Qualified Person has not done sufficient work to classify any of the Mongolian "C" or "P" estimates as current mineral resources, and the estimates should not be relied on. No feasibility study, pre-feasibility study or preliminary assessment (scoping study), either current or historical, has been conducted by any private or public entity on the subject property. Resources that are not reserves do not have demonstrated economic viability.
Russian and Mongolian geologists drilled five holes totaling 574.6 metres between 1987 and 1988. Four of the holes intersected but did not fully penetrate the deposit. The historical drill-hole data showed that cumulative coal thickness varied between 9.8 metres and 124 metres.
Subsequent drilling in 2005 by Monrospromugoli Co. Ltd. ("MPRU") consisted of four wide-spaced holes along two fences. The distance between the fences was 1,200 metres, the distance between the drill-holes varied from 800 metres to 1,200 metres, and the depth varied from 74 metres to 238 metres. These holes intersected four coal seams with a total cumulative thickness of coal between 41.5 metres and 94.9 metres (average 64 metres). MPRU also drilled two separate holes to check the continuity of the coal seams at the western flank of the deposit.
Additional drilling will be required to verify these results and determine the true thickness of the coal. The Company's goal is to verify the 550 million tonnes of coal in the Mongolian "C" category and "potential resources" in the Russian "P" or "P-1" Class in order to update these estimates to NI 43-101 disclosure standards.
Based on the historical exploration and drilling results, the Company believes the Erdenetsogt Project is potentially amenable to large-scale open-pit mining suitable for shipment to China by truck or train.
The potential grade and quality of the Brown coal was determined by two separate tests. Initial historical tests (between 1986 and 1988) conducted by Russian and Mongolian entities showed an average calorific value of 6,425 kcal/kg, while subsequent tests in 2005 by the current owner showed an average calorific value of 4,682 kcal/kg. This variation has not been explained. The Company has not yet conducted any tests to verify these results, which are provided for information purposes only.
The Company believes that Erdenetsogt may have potential for the in situ gasification of coal into liquids such as diesel and gasoline, but has not conducted any tests or preliminary assessment to determine if this concept is technically feasible or has economic potential.
Gulfside Minerals has a Letter of Intent agreement to acquire a 50% interest in a private company set up to hold the Lease, with an option to acquire an additional 16% interest within one year, for a total of 66%. A sliding scale royalty of 3-5% is payable on production. The Company will be the operator of the Project. Additional details will be provided after review of the proposed transaction by the TSX Venture Exchange.
Dr. Marc Bustin, PhD, P.Geo., a member of the Company's Advisory Board and a Qualified Person as defined by NI 43-101, supervised preparation of the technical information in this news release.
The Company intends to submit an initial NI 43-101 report on the property within 45 days.
On behalf of the board of directors,
Gulfside Minerals Ltd
"Robert L. Card"
Robert L. Card
President
Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning GMG's planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although GMG believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian securities regulators.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the accuracy or adequacy of this news release
CONTACT: Suite 1102, 475 Howe Street, Vancouver, B.C., V6C 2B3, Canada, Telephone (604) 687-7828, Facsimile (604) 687-7848, http://www.gulfsideminerals.com/
