Diamond Drilling Commences

Diamond Drilling Commences

SLAM Exploration Ltd. reported in previous updates that the airborne MegaTEM and airborne FTG (gravity) surveys have been completed as planned on its Bathurst Joint Venture (BJV) properties. SLAM and Noranda Inc. are 50/50 partners in the BJV.

The BJV team has commenced the process of data synthesis, analysis and target prioritising stage, which is expected to extend over several months. The BJV Project is now in Year 2 of the 5-year exploration plan; work is proceeding on schedule.

An initial test diamond drilling program commenced in June 2004 to verify a series of targets and to gather additional geological data. This process will assist in the interpretation and assessment of airborne geophysical anomalies and will aid to better prioritise drill targets where limited or no prior ground geophysics work was previously undertaken.

To date the BJV team has identified over 275 anomalies that have not been satisfactorily tested or explained and are worthy of further investigation. As analysis of more anomalies is completed the list of targets will be continually upgraded so that only the best will be drill tested. Target diamond drilling campaign of the BJV 5-year exploration plan will occur contemporaneously as worthy targets are identified.

The BJV area of interest is approximately 5,250 sq. km. and the properties comprise the equivalent of 8,700 mineral claim units that overlie 140,000 hectares of volcanic and sedimentary rocks in the zinc-producing Bathurst Mining Camp located in northeastern New Brunswick, which is widely recognised as one of the three largest accumulations of sulphide (zinc-bearing) deposits in the world.

Noranda’s existing infrastructure investment in the Bathurst area includes a mine/mill/smelter complex that has an appetite for 10,000 tonnes per day of zinc, lead and silver ore which is currently being mined at the Brunswick No. 12 Mine.

For an in-depth discussion concerning the development and current status of the BJV and other SLAM projects, please refer to the Fiscal 2004 Annual Report and First Quarter interim report for Fiscal 2005 that can be found at www.sedar.com.

SLAM will hold its annual and general meeting at The Delta Hotel in Fredericton, New Brunswick, on Monday, July 19, 2004 at 6:00 p.m. Atlantic Standard Time.

SLAM Exploration Ltd. is a mineral resource company based in Miramichi NB. In addition to its 50% share of the BJV, SLAM holds interests in 967 claim units that cover 15,472 hectares in the renowned gold-producing Uchi sub-province of northwestern Ontario. This includes the Miminiska Keezhik gold project where diamond drilling was completed in June.