Laramide Agrees to Acquire Bilbao Base Metal Property

Laramide Resources Ltd. (LAM:TSE) has entered into an agreement with Portree Inc. to acquire some 7,100 hectares of mineral claims in the Bilbao base metal property located 56km southeast of Mexico's Zacatecas, and some 10km northwest of the recent Western Copper/Teck discovery at San Nicholas.

The Bilbao property contains a measured zinc-lead-copper-silver resource which was mined primarily for lead during and succeeding the first World War. Studies conducted by Portree Inc., and supported by independent reports from ACA Howe and Kilborn Engineering, suggest that the former mine may be operated as an open pit and may host economic mineralization below the water table where the former mine workings stop.

In addition, reconnaissance geologic work and geophysical studies carried out by Portee indicate that the Bilbao group of claims have potential for the discovery of new base metal and silver deposits. Portree has been active in the area since 1989 and is one of the largest landholders in the district. In spite of its past production history, the Bilbao property has never been the subject of a drilling program.

The terms of the Portree agreement require Laramide to pay Portree US$1,755,000 in cash and stock over a 34-month period in order to earn a maximum 75% interest in the project. There is no defined work commitment. The agreement, which is subject to regulatory approval, calls for an initial cash payment of US$175,500 within 60 days. Portree intends to subscribe for a CDN US$100,000 private placement of units in Laramide at US$0.14 per unit.