Minara signs $5.5m exploration JV with Gryphon

Subiaco-based nickel explorer Gryphon Minerals Ltd has signed a joint venture agreement with Perth-based Minara Resources Ltd for exploration of its Collurabbie and Mount Rankin projects.

Under the agreement, Minara will fund $5.5 million in exploration costs over four years to earn 70 per cent equity in nickel and base metals, and 60 per cent on all other commodities in either project area. The company will earn no equity in the projects untill all the money has been spent.

Minara must find $1.5 million within the first 12 months before they can withdraw from the joint venture, paying $750,000 to continue in the second year and $500,000 in the third.

Gryphon will remain the manager and operator of the projects until a decision to mine has been made.

Minara will also reimburse Gryphon a further $600,000 for previous expenditure.

The full text of a Gryphon announcement is pasted below

Gryphon Minerals Ltd is pleased to announce a Farm in and Joint Venture agreement with major nickel producer Minara Resources Ltd (Minara) to primarily explore for sulphide nickel mineralisation on Gryphon Minerals Collurabbie and Mount Rankin Projects, located in two highly prospective nickel regions of Western Australia.

Inaugural exploration programmes for the Gryphon-Minara JV has already commenced with detailed geophysical ground Electro-Magnetic surveys at the Collurabbie and Mount Rankin Projects being undertaken. The Company anticipates generating several drill targets from the geophysical surveys which are expected to be completed over the coming weeks.

Minara Resources Limited is a leading Australian resources company, based in Perth and listed on the Australian Stock Exchange (ASX Code: MRE). The Company is Western Australia's second largest nickel producer, and one of the top ten in the world. Founded in 1994, Minara Resources (formerly Anaconda Nickel Limited) owns and operates the world-class Murrin Murrin nickel cobalt joint
venture project (60% Minara, 40% Glencore International AG) near Leonora in Western Australia's historic northern goldfields region.

The terms of the Farm In and Joint Venture agreements are as follows:

• Minara to fund $5,500,000 in exploration over 4 years to earn 70% equity in nickel and base metal minerals and 60% on all other commodities for both the Collurabbie and Mt Rankin Projects. The $5,500,000 can be used to fund exploration on either Project area.
• Minara to fund $1,500,000 within the first 12 months before they can withdraw from the joint venture and can then elect to continue in year two by funding a further $750,000, and again at their election to continue in the third year by funding at least a further $500,000 on exploration.
• No equity in the project is earned by Minara until the $5,500,000 exploration funding has been spent.
• Gryphon Minerals is the manager and operator of the project until a decision to mine has been made.
• Minara will reimburse Gryphon Minerals a further $600,000 for previous expenditure.

Collurabbie Project

The Collurabbie project covers approximately 270km2 and hosts both the Northern and the Southern extensions of the sequence of ultramafic and mafic rock types that host the mineralisation at the BHP/Falcon Minerals Ltd Collurabbie Joint Venture Nickel Discovery. WMC Resources announced in November 2004, that drill results from their Collurabbie JV Project indicated the potential for a new nickel sulphide province.

Gryphon's tenure is located approximately 30km along strike to the North West and 30km along strike to the South of the Collurabbie Joint Venture Nickel Discovery.

Reconnaissance Rotary Air Blast drilling by Gryphon Minerals within its southern tenure confirmed the presence of rock types favorable to nickel, copper, gold and PGE mineralization.

Mount Rankin Project

The Mount Rankin Project is located only a few kilometres southwest of the township of Southern Cross and covers an area of 205 square kilometres of highly prospective rocks of the Southern Cross Greenstone Belt. Outside of the project area the Southern Cross Greenstone Belt has produced over 10 million ounces of gold and contains an estimated 3 million ounces in resources. Within a twelve kilometre radius of the project over 2 million ounces of gold have been produced.

In addition to the gold potential on the property there are ultramafic units that are highly prospective for nickel sulphide mineralisation, as seen at the Flying Fox and Forrestania nickel deposits approximately 100km to the south of the Project. The package of ultramafic rocks in the Forrestania region are interpreted to be the same or similar rocks that extend north onto the Mount Rankin Project area.

The Mount Rankin Project area has had relatively little exploration for gold and virtually no exploration for nickel mineralisation compared to other parts of the Southern Cross Greenstone Belt.

Results from the geophysical surveys on both the Mount Rankin and Collurabbie Projects will be made available at the earliest opportunity on their completion.

Gryphon Minerals believes the farm in and joint venture agreement provides the Collurabbie and Mount Rankin Projects with significant funding to advance any potential mineral discoveries.

Banfora Gold Project, West Africa - Gryphon Minerals

Gryphon Minerals is currently undertaking an aggressive exploration programme which includes approximately 10,000 metre Reverse Circulation drilling and extensive regional soil geochemical and target generation programmes.