Belvedere to Acquire West Lapland Outokumpu Dataset and Properties

Posted on Friday February 3, 2006

Key points

  • Exclusive rights to a unique dataset covering a 1200 square kilometre area of Finnish Lapland, containing results from over 40 years of exploration by Outokumpu Mining in the area.
  • Properties include the Pahtavuoma Mine, with remaining resources* of 4.1 million tonnes of 1.04% Copper (43,000 tonnes of copper), 4.1 million tonnes of 1.5% Zinc (62,000 tonnes of Zinc) and 0.14 million tonnes of 0.39% Uranium (548 tonnes of Uranium) in individual sub-parallel orebodies

Belvedere is pleased to announce it has signed a Heads of Agreement with Outokumpu Mining Oy for all of their mineral properties and associated data in Western Finnish Lapland. The agreement is subject to the completion of a due diligence by Belvedere and a mutually agreed more detailed formal sale contract being signed within 30 days.

Benefits of the proposed acquisition are:

  1. There are natural synergies with Belvedere’s existing Iron Oxide Copper Gold (IOCG) and Uranium properties in the Muonio area. These properties fall within the area of the dataset.
  2. The Pahtavuoma mining concession contains the Pahtavuoma Mine. Trial mining of the copper resource was undertaken in the 1970’s, when 0.26 million tonnes averaging 1.08% Copper and 27.4 grams per ton Silver were mined. Mining was by open pit and underground decline and included 1500m of underground development. Recoveries were above 90% Copper using a standard flotation circuit. The sub-parallel zinc and uranium orebodies were not mined.
  3. The Saattopora mining concession contains the old Saattopora mine. A total of 2.14 million tonnes averaging 3.29 grams per tonne gold and 0.28% copper was mined by open pit and underground methods from 1988-1995. There appears some potential for mineralised extensions to the west and below the current workings.
  4. Belvedere Resources have exclusive use of the dataset till January 1st, 2008, when the dataset becomes public. The dataset covers 1,200 sq km of Early Proterozoic rocks of the Fennoscandian shield. There are numerous mineral indications. Only limited exploration has occurred since the mid 1990’s. The dataset contains 1,400 heavy mineral samples, 18,000 till samples, 800 diamond drill holes, 170 sq km of ground geophysics and 3,100 outcrop and boulder samples.

AIM Listing

Belvedere Resources has delayed its proposed listing of its Ordinary shares on AIM. It is now proposed to set in motion the listing of the shares later on in the year.

This news release has been prepared under the guidance of a qualified person according to NI 43-101 requirements.

*The Pahtavuoma copper resource is quoted as a “Mining Reserve” by Outokumpu. It has not been independently reviewed by Belvedere Geologists and is not classified to CIMM standards. In view of the fact that it has been subjected to a full feasibility study in the past and the trial mined grades are in good agreement with the quoted resource, it is at least equivalent to the CIMM category of a measured mineral resource. The zinc and uranium resources are believed to be equivalent to the CIMM indicated resource category.


BELVEDERE RESOURCES LTD.
Andrew Aylwin, President

For further information, please visit http://belvedere-resources.com or contact:

Andrew Aylwin:+44-7779-128125
Steve Cuthill:+1-604-408-0550

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.