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| | October 31, 2008
Update on Drilling Program -- Fruso Property, Argentina
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| | Vancouver, BC -- Metropolitan Mining Inc. ("Metropolitan" or the "Company") announces that it has taken steps to finalize its Phase I exploration program (the "Exploration Program") on its Fruso Property, Salta, NW Argentina (the "Fruso Property"), in the Puna. Metropolitan has the right to earn up to a 60% interest in the Fruso Property from Argentine Frontier Resources Inc. ("AFRI"), Vancouver, B.C., and Salta Exploraciones S.A. ("SESA"), Salta, Argentina, pursuant to an option agreement dated January 31, 2008 (the "Option Agreement").
The drill rig and crew, supplied by Connors Argentina S.A., Boart Longyear Drilling Services ("Connors"), mobilized on the Fruso Property on October 4, 2008. Connors worked together with AFRI and SESA, the operators under the Option Agreement, who were responsible for setting up the Fruso camp, managing the exploration program and carrying out related services. Kenneth Dawson, Ph. D., P. Geo., of Terra Geological Consultants, was engaged by Metropolitan to oversee the Exploration Program and was at the Fruso camp from September 25 to October 26, 2008.
Approximately 970 metres of drilling over four holes has been completed. In general terms, progress at Fruso has not proceeded as anticipated, in large part due to mechanical difficulties and breakdowns incurred with the drilling rig. Of the holes drilled to date, Hole 2 was drilled to a depth of 72 metres before having to be abandoned due to technical difficulties, Hole 2A was drilled to a depth of 169.5 metres, and Hole 3 was drilled to a depth of 400 metres. It is anticipated that Hole 4 will be drilled to a depth of 400 metres and that depth is anticipated to be reached on or before November 3, 2008. The Company originally anticipated drilling six holes in 30 -- 35 days, but based on the average number of metres drilled per day being well below forecast, the project is behind schedule and, without adjustment, would exceed the Cdn $583,096 figure set out in the Company's Prospectus dated June 6, 2008. In addition, the recent dramatic rise in the U.S. dollar, which is the currency of the drilling contract, has contributed to further increases in the Canadian equivalent cost of the Exploration Program.
As a result of these developments, Metropolitan has provided Connors and SESA with a notice letter dated October 31, 2008 that the Exploration Program will be finalized on completion of drilling Hole 4, at approximately 400 metres depth, or on November 3, 2008, whichever is the first to occur, and the Fruso camp will be de-mobilized. The Company will defer any decision to do current additional exploration work on the Fruso Property until all assay results are received and analysed. Core samples from the Exploration Program have and will continue to be been forwarded from the Fruso camp to ACME Analytical Laboratories Ltd. ("Acme"). The samples are prepped in Mendoza, Argentina, and then processed at Acme's facility in Santiago, Chile. Metropolitan will announce assay results in due course once it obtains the complete results from Acme.
The Company made its determination, as set out above, based on a number of factors including, without limitation, the progress at Fruso, advice from SESA (the operator under the Option Agreement), consultations with Terra Geological, the state of the current world-wide financial crisis, the Canadian dollar hitting its lowest point this week since September of 2004 and the drop in the price of Copper, from over U.S. $4.00 per pound in July of 2008 to U.S. $1.85 per pound this week.
The work carried out under the Exploration Program will satisfy the Company's year 1 obligations under the Option Agreement. Metropolitan has had preliminary discussions with SESA and anticipates that the parties will be able to amend the Option Agreement to extend the completion date of additional exploration work and programs on the Fruso Property until July 31, 2010. Upon payment of all costs incurred directly related to the Exploration Program, Metropolitan should have sufficient funds remaining to cover its operating costs for the ensuing year.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael G. Thomson, President, CEO & Director
For further information about Metropolitan Mining Inc., please contact:
Michael G. Thomson, B.C.: (604) 633-5088, x 102 (Vancouver Office)
ONT.: (613) 864-4005 (Mobile); independentpresident@shaw.ca
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expect", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking information. All of the forward-looking information contained in this press release is qualified by this cautionary statement. There can be no assurance that the actual results or developments anticipated by the Company, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business operations. The Company disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events. Readers should not place undue reliance on forward-looking information.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
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| | You can view the Next News Releases item: Fri Jan 9, 2009, Metropolitan Announces Assay Results From Phase 1 Drill Program at Fruso Property, Argentina
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