The Northern Miner, 6/3/2008

Probe, Noront mull McFauld's Lake deal

Probe Mines (PRB-V) has delayed a drill program at its McFauld's West property to see how talks go between it and Noront Resources (NOT-V, NOSOF-O) about a possible property sale in the hot McFauld's Lake area of the James Bay Lowlands of Northeastern Ontario.

Probe today announced that it has been talking with Noront about the best way to explore and develop the area that will match each company's long-term goals.

Noront's main interest is the renowned Eagle One and Eagle two nickel-copper discoveries on the 410-sq.-km Double Eagle property, which is located just 450 metres north of Probe's McFauld's West property. Double Eagle is open at depth and to the south.

Noront responded to Probe's press release later in the day, stating that the two companies had been discussing the potential sale of Probe's land in the area to Noront.

The two companies have been reviewing ownership interests, the historical work done by each company and the history of their contractual arrangements.

The Double Eagle discovery was made last September when Noront drilling returned high grades of nickel, copper, platinum and palladium. More recently, drilling has shown indications of rhodium in significant widths.

Noront has done more than 5,000 metres of diamond drilling. The latest drill results include a 117-metre intersection grading 4.1% nickel, 2.2% copper, 2.1 grams platinum per tonne and 7.1 grams palladium, beginning 7 metres below surface.

Instead of drilling on its McFauld's West property, Probe is expanding its drill program for the Victory project, a 77-sq.-km property also in the McFauld's belt. The focus will be on conductors identified in an airborne survey in March.

In total, Probe holds 150 sq. km in the McFauld's Lake area.

Noront shares fell 17¢, or 5%, today to $3.40 apiece on a trading volume of 616,000 shares.

Probe shares dropped 5¢, or 7%, to 65¢ on a trading volume of 204,000 shares.