June 4, 2007
Minterra Strengthens Nevada Exploration Program
Minterra Resource Corp. (“Minterra" or the “Company") is very pleased to announce it has entered into a purchase agreement for three patented claims at the core of the Majuba Hill Project. Minterra controls the remainder of the district with 89 unpatented mining claims and a 100% controlling interest in 19 claims held under a 10 year lease option agreement. The patented claims cover a portion of the area mined between 1917 and 1945.
In 1971 D.L. Stevens (University of Nevada Masters of Science Thesis) reported cumulative historic production of 2.2 million lbs of copper, 184,000 ounces of silver, 885,800 lbs lead, and 106,000 lbs zinc. (This data is historical information and is not N.I. 43-101 compliant and should not be considered reliable and is relevant only because it discloses the presence of a mineralized system at the Majuba hill prospect that has the potential for discovery of possible copper, gold, silver, lead and tin resources at this prospect.)
Minterra is very pleased with the acquisition of this core block of patented claims at Majuba Hill as it fits in very well with Minterra’s plan to expand the Company’s discovery-driven, aggressive exploration program. The Majuba Hill project combined with the Golden Snow and Agate Pass projects in the Battle Mountain-Eureka Trend represent the high-quality, high potential early stage projects which the Company’s management believe will lead to the discovery of mines in Nevada.
During the past 2 years of exploration in Nevada, Minterra has spent 68% (2005) and 82% (2006) of its total budgets on direct exploration costs. This program is driven by timely acquisitions of projects with cost-effective option arrangements and focused claim-staking combined with experienced management and geologists.
Majuba Hill Project
The following historical information is not N.I. 43-101 compliant and should not be considered reliable and is relevant only because it discloses the presence of a mineralized system at the Majuba hill prospect that has the potential for discovery of possible copper, gold, silver lead and tin resources at this prospect.
The Majuba Hill published cross sections (Nevada Bureau of Mines and Geology Bulletin 86) and conceptual cross sections are very similar to the published geology and conceptual cross sections for the Spring Valley project being explored by Midway Gold. Archival data and information available in the Nevada State archival records describes historic production and exploration at Majuba Hill, between 1907 and 1975.
The historic archival data hypothesize that a “target" of 1,282,500 tons with grades of 1.31% copper and 1.64 ounces per ton (opt) silver may occur less than 300 feet below the surface on the private patented mining claims just acquired. This possible resource estimate was prepared by D.L. Evans on or about 1975 and is based on prior data and reports obtained and prepared by previous operators and information available in the Nevada State archival records. The Company has not completed the work necessary to verify the classification of the mineral resource estimates. The Company is not treating the mineral resource estimates as NI 434-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. This property will require considerable further evaluation which Minterra’s management and consultants intends to carry out in due course.
Nevada Geologist to Join Minterra as Vice President Exploration and a Director
Management of Minterra has accepted a proposal from Buster Hunsaker pursuant to which Claremont Nevada Mines, a Nevada Limited Liability Company controlled by Hunsaker, will vend four exploration prospects in Nevada to Minterra in consideration of the issuance of 300,000 shares in the capital stock of the Company and reimbursement of costs of approximately US$50,000: the four prospects are briefly described as follows:
1. Fish Project
- Skarn gold and base metal project in Esmeralda County, Nevada (Walker Lane)
- 58 unpatented mining claims staked; Currently 18 claims filed with County and BLM; 40 claims remain to be filed
2. CPG Project
- Skarn gold and copper project in Mineral County, Nevada (Walker Lane)
- 44 unpatented mining claims; 44 Claims remain to be cornered and filed
3. IXL Claims
- Skarn gold and copper project in Churchill County Nevada
- 10 leased claims
4. Reconnaissance Project (conceptual exploration program in Western Nevada)
- General geologic research
- General land data
The Company is currently arranging for NI 43-101 geologic reports to be prepared on these prospects.
In addition, in consideration of Hunsaker agreeing to devote 100% of his time to the Company and becoming Vice President Exploration and a director of the Company he will be granted options to purchase up to 1,700,000 shares of the Company at a price in accordance with TSX Venture Exchange policy. In accordance with the Company’s stock option plan such options will vest as to 25% each six months over a two year period. The proposal is subject to completion of a more formal agreement and approval of Minterra’s board of Directors and the TSX Venture Exchange. The Company’s exploration program has been managed for the past three years and will continue to be managed by Hunsaker’s geologic consulting firm based in Elko, Nevada. During the last 25 years, he has been involved with exploration and evaluation of gold deposits, primarily the major gold-trends in Northern Nevada. He has also designed, implemented, and managed exploration programs in Argentina and Mongolia. The Company is extremely pleased to have Mr. Hunsaker join the Company as Vice President Exploration and believes his commitment to work solely for Minterra is a positive indication of the merits of the Company’s exploration prospects.
E.L. “Buster" Hunsaker III CPG, a Qualified Person, has reviewed the technical disclosure contained herein and accepts responsibility for such disclosure.
Drilling at Majuba Hill Prospect, Golden Snow Prospect and Exploration at Agate Pass
Minterra proposes to proceed with a drill program at the Majuba Hill Project as soon as a drill rig is available; expected in late June 2007. It anticipates proceeding with the first round drilling at the Golden Snow project in the Eureka area and baseline mapping, geophysics and geochemistry at the Agate Pass project. Minterra currently has approximately $600,000 which is adequate to complete the drill program and Majuba Hill and prepare for drilling at Golden Snow.
Mill City Gold Corp. legal action
Since 2004, the Company has entered into agreements for seventeen properties. The Company has dropped two of these prospects and gave notice to the optionors (including Mill City Gold Corp.) of twelve other projects that it was dropping them effective May 1, 2007. The Company wrote the value of all twelve projects off at year end 2006. While the Company considers some of these prospects to have good exploration potential it did not consider the potential adequate to justify the approximate +$800,000 in advance royalty payments and Bureau of Land Management fees it would have been obligated to pay if it had continued with the options. Mill City Gold Corp. has commenced action against the Company alleging the Company owes US$250,000 for payments in lieu of completing certain drilling obligations under underlying agreements Mill City Gold Corp has with Carl Pescio. The Company considers the action to be without merit and has instructed its litigation counsel to vigorously defend the action.
About Minterra
Minterra is a gold exploration company based in Vancouver, British Columbia. It is focused on gold exploration in the Great Basin of Nevada and currently has 3 projects in the Cortez and Carlin Trends of Nevada, as well as the Western Nevada Rift, which will increase to 7 if the agreement with Buster Hunsaker is concluded. A more detailed description of the projects being acquired from Claremont as available.
ON BEHALF OF THE BOARD OF DIRECTORS OF
MINTERRA RESOURCE CORP.
“John W. Greenslade"
JOHN W. GREENSLADE, PRESIDENT
For further information please contact John Greenslade, President, at (604) 687-6690
Investor Relations: Denby Greenslade (604) 687-6690.
The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors may also affect the actual results achieved by the Company. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.