Wallbridge Mining Announces Updated Mineral Resource for Broken Hammer

TORONTO, June 19, 2012 /CNW/ - Wallbridge Mining Company Limited (TSX: WM) today announced the updated mineral resource estimate for  the Broken Hammer Zone in Sudbury, Ontario, as prepared by Roscoe Postle Associates Inc. ("RPA").

Highlights:

• The total Indicated Mineral Resource is 231,100 tonnes at a grade of 4.62 g TPM/t (1.90 g/t Pd, 2.01 g/t Pt, and 0.71 g/t Au), 0.92% copper, and 0.10% nickel and 6.35 g/t Ag.
• Permitting and Closure plan on schedule for completion in Q4, 2012
• Pre-feasibility study on schedule for completion in Q3, 2012
• Production decision in Q4, 2012
• Mineral deposit is open at depth (very little drilling below 100m depth)
• 2011 bulk sample generated approximately $98 per tonne of net cash flow

"We have now reached our first milestone. The next key milestone for us is the Pre-Feasibility Study which is currently underway on our Broken Hammer deposit. We are excited to see that the results of our additional exploration efforts since 2005 and the successful 2011 bulk sample have not only generated some revenue and additional metal endowment to our Broken Hammer resource, but more importantly have increased the confidence level of our resource from Inferred to Indicated, thereby getting us closer to a production decision and creating a potential source of revenue". Said Marz Kord, President & CEO of Wallbridge

Wallbridge discovered the Broken Hammer Zone as a result of an ongoing grass roots exploration program on the North Range of the Sudbury Basin. In November 2005, Roscoe Postle Associates Inc. estimated the NI 43-101 compliant, inferred mineral resource to be 251,000 tonnes at a grade of 3.80 g/t total precious metals (1.56 g/t palladium, 1.62 g/t platinum and 0.61 g/t gold), 1.00% copper and 0.10% nickel. This resource estimate was prepared using a cut-off value of $CAN40/t, and the then prevailing, long-term metal price projections of $US800/oz for platinum, $US180/oz for palladium, $US400/oz for gold, $US 1.40/lb for copper, and $US5.00 for nickel.

RPA, in its initial report in 2005, recommended that Wallbridge should carry out a bulk sample to validate the inferred resources and confirm grades and grade continuity to improve the technical risks and economics of the project.

In 2008, preliminary discussions were held with several mills and a smelting facility to develop costs and plan the extraction and processing of a bulk sample.  With the economic downturn during the latter half of 2008 and the collapse of metal prices, the Company decided to defer plans for the bulk sample until such time as metal prices recovered.

This recommended bulk sampling program was initiated late in 2010 after metal prices had recovered.  Excavation and delivery of the 30,000 tonne bulk sample from the Broken Hammer Zone to Xstrata's Strathcona Mill was completed in March 2011.  A total of approximately 30,000 tonnes of mineralization and crusher pad material was shipped and was later processed at the Xstrata Nickel processing facility in July 2011.

The recoveries of the material were in line with typical Sudbury ore and the net proceeds from the bulk sample after all mining and processing costs was approximately $3 million representing a net return of approximately $98/Tonne of ore.

The success of bulk sample in 2011 prompted Wallbridge to initiate a prefeasibility study including an updated mineral resource estimate. The mineral resource update has been completed by Roscoe Postle & Associates, the details of which are in this Press Release. The prefeasibility study, which will incorporate the updated resource estimate, will be completed in Q3 of 2012 while permitting has been ongoing and on schedule for completion in 2012. A production decision will be made in 2012 for commercial production of Broken Hammer deposit in 2013.

Mineral Resource Estimate

The Updated Mineral Resource estimate was completed by RPA on June 13, 2012 and is in accordance with National Instrument 43-101 (NI 43-101).

Indicated Mineral Resource Estimate for the Broken Hammer Project

1. Mineral Resource estimates were prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definition standards for Mineral Resources and Mineral Reserves.
   
   
2. The Qualified Person for this Mineral Resource estimate is Bruce Churchill, P. Geo.
   
   
3. The resource model was prepared based on drill section interpretations using a cut-off of 1.00% copper equivalent (CuEq).
   
   
4. Mineral Resources are estimated using average long-term metal prices of US$3.00/lb Cu, US$9.00/lb Ni, US$750/oz Pd, US$1,600/oz Pt, US$ 1,300/oz Au, and US$ 20.00/oz Ag and a US$:C$ exchange rate of 1:1.
   
   
5. All aspects of the core sampling, assay procedures, and QA/QC program have been reviewed by RPA and were judged to be of industry standard and suitable for use in the estimation of Mineral Resources.
   
   
6. 3D solids were constructed cooperatively between Wallbridge and RPA geologists, then reviewed and revised as necessary by RPA.
   
   
7. The estimation employed statistical analysis and variography of metal values with construction of block models by domain.  Block cell size was 5*5*5 metres with level 3 sub-celling and then re-blocked to 3*3*3 metres for the pit optimization runs.  Grade interpolation to assign grade values to cells used Ordinary Kriging.
   
   
8. Specific gravity determinations were completed by ALS Chemex on 300 sample pulps.  Where data was not available, values were assigned based on a regression of specific gravity versus sulphur.
   
   
9. Preliminary pits used to constrain the mineral resources reported were constructed using Whittle software based on the metallurgical and cost assumptions provided by Wallbridge and based on the 30,000 tonne bulk sample mined and processed in 2011.
   
   
10. Mineral Resources are reported at a pit discard cut-off value of C$11 per tonne NSR value.  NSR values were calculated based on metal prices, metallurgical recoveries, and all off-site payment terms and charges (including ore processing).  The resulting NSR value in each block is then compared to operating costs for crushing and administration, within the pit shell (which includes consideration for the mining costs).
    
    
11. No minimum mining width was used.
    
    
12. Resource classification considered geological and grade continuity and was based on drill hole spacing.
    
    
13. RPA is not aware of any environmental, permitting, legal, title, taxation, socio-political or marketing issues that are material to the statement of the mineral resource estimate.

The full Resource Estimate report will be posted within 45 days from the date of this Press Release at www.sedar.com, with a link from the Wallbridge Mining Company website.

Marz Kord, P. Eng.,  the Qualified Person for the contents of this Press Release and Bruce Churchill, P. Geo., who is the Qualified Person responsible for the Resource Estimate have both reviewed the technical content of this press release.

About Wallbridge Mining

Wallbridge Mining Company Limited (WM:TSX) is an established metals company working to build sustainable growth for investors through discovery and development of mineral resources.

Wallbridge specializes in nickel, copper, platinum, palladium and gold projects in mining friendly jurisdictions of North America, with a particular focus on Sudbury, Ontario. Wallbridge's position in Sudbury offers unique large-scale discovery upside in Canada's premier mining district.

Wallbridge has a record of generating high potential projects and financing exploration through joint ventures or spin-out companies. Wallbridge has 48 exploration to pre-feasibility stage mineral projects. These include 12 joint ventures with partners Impala Platinum Holdings Limited, Lonmin Plc, Xstrata Nickel and a number of junior mining companies.

Wallbridge also holds significant equity interests in spin-out companies Duluth Metals Limited (DM:TSX) and Miocene Metals Limited (MII:TSV).

This document may contain forward-looking statements relating to operations of Wallbridge or its subsidiaries or to the environment in which they operate. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and may be beyond Wallbridge's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. Wallbridge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.

SOURCE Wallbridge Mining Company Limited