Supreme Metals Corporation: Acquires Cobalt Project in IOCG Setting

Sudbury - Supreme Metals Corp. (the “Company”) (CSE: ABJ)(FSE:A68) is pleased to announce that it has entered into an agreement to acquire the Mount Thom copper-cobalt-gold deposit and surrounding project area (the “Mount Thom Cobalt Project”). The Mount Thom property is believed to be an “IOCG-type” copper-cobalt-gold prospect located in central Nova Scotia, Canada, approximately 22km east of Truro. The project consists of 39 mineral claims over five contiguous licenses and covers approx. 1,560 acres.


Highlights:

- IOCG-style deposit discovered by Imperial Oil in 1970’s, only tested for copper

- Levels of Co into the thousands of ppm were later recognized in mineralized outcrop and rubble crop from the trenches with historic assays up to 0.57% Co.

- Non-43-101 compliant historic resource of 300,000 tonnes of copper grading 1.5%

- Over 3,500 metres of existing drill core ready for immediate re-assay, not yet tested for cobalt

- Untested regional targets offering significant cobalt exploration potential

- Infrastructure rich with both a highway and power-line within the project


Bob Komarechka P.Geo., CEO of the Company, commented:

“The Mount Thom Cobalt Project includes a historic deposit explored before the IOCG-style deposit model was well-understood. IOCG targets can contain rich and mass tonnage orebodies that have the ability to be world-class in scale, such as the super-giant 2.95 billion tonne Olympic Dam deposit in Southern Australia.

A 2001 study by the Nova Scotia Department of Resources, conducted over 20 years after Imperial Oil made its discovery at Mount Thom, concluded that significant similarities exist between the copper-gold occurrences along the Cobequid-Chedabucto Fault Zone such as Mount Thom with those of IOCG deposits, like Olympic Dam.

Nova Scotia is an extremely mining friendly environment and we are fortunate to have well archived core to accelerate our understanding of this project from Day 1, by, amongst other things, testing the existing core for a suite of metals and minerals that may have been overlooked prior to the understanding of the geological setting underlying the project.

With easy access to the project by way of the TransCanada Highway, we look forward to deploying modern-day exploration methods and technology to not only re-evaluate the identified deposit but also to explore for additional mineralization and new deposits over the 1,560 acre project area.

We’re pleased to add Mount Thom as a near drill-ready cobalt exploration prospect to our growing cobalt project portfolio.”


About the Mount Thom Cobalt Project

The Mount Thom property covers an historic copper deposit discovered the early 1970’s by Imperial Oil. The deposit is now recognized as having affinities to IOCG-style deposits. Assays of up to 1.66% copper over 15.5 feet were reported by Imperial Oil. IOCG deposits were essentially unknown at the time of the discovery of Mount Thom and Imperial Oil did not accordingly have benefit of this model to guide their exploration. Subsequent to Imperial Oil, the mineralization was found to contain high concentrations of cobalt assaying up to 0.57% Cobalt (see Nova Scotia assessment report AR2005-005).

Figure One: Geological Map of the Mount Thom Area
http://www.fscwire.com/sites/default/files/NR/1306/15099_image1.png

At the time of discovery, Imperial Oil drilled 49 largely shallow diamond-drill holes at the project for a total of 3,185 metres (see also Nova Scotia Minerals Update, “Does the Mt. Thom Cu-Co-Au Prospect Have an Igneous Parent? Fall 2011”). A non-43-101 compliant historic resource of 300,000 tonnes of copper grading 1.5% was estimated from that past drilling (see Nova Scotia assessment report AR95-074). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the issuer is not treating the historical estimate as current mineral resources or mineral reserves. The Company cautions that there is a risk further exploration will not result in the delineation of a current mineral resource.

Moving-forward, Supreme Metals believes modern-day exploration techniques at the Mount Thom Project will also benefit from the infrastructure-rich nature of the project. The four-lane TransCanada Highway #104 crosses the southern portion of the property and a network of secondary roads make the project highly accessible. In addition, a major power transmission line also crosses the property.

Figure Two: Mount Thom Project and Regional Infrastructure
http://www.fscwire.com/sites/default/files/NR/1306/15099_image2.png


Transaction Terms

The Company is acquiring the Mount Thom Cobalt Project from arm’s length parties in exchange for two and a half million common shares of the Company, a cash payment of $20,000 and the granting of a 1.5% gross royalty.


Qualified Person

Mr. Robert Komarechka, P.Geo, a Qualified Person under NI 43-101 regulations has reviewed the technical data for accuracy.


On Behalf of the Board,

“Bob Komarechka”
CEO



Supreme Metals Corp. (CSE: ABJ) (FSE:A68) is a Canadian based exploration company with a focused approach in the area of green and energy metals in the Western World adjacent to anticipated downstream manufacturing projects that will have a significant need for these metals.


Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. There is no assurance the private placement, property option, change of board or reinstatement of trading referred to above will close on the terms as stated, or at all. The Company disclaims any intention or obligation to revise or update such statements.