New Dimension and International Minerals Sign Agreement

VANCOUVER, BC - New Dimension Resources Ltd. and its wholly-owned subsidiary Dimension Resources (USA) Inc. reported that it has executed a Letter Agreement with International Minerals Corp. to earn an interest in New Dimension's Reese River Project, (the "Property" or "Reese River"), located in the Austin Mining District of Nevada.
The Agreement obligates International Minerals to fund a 2,000 metre Phase I reverse circulation drill program in the first year of the Agreement following the receipt of all necessary permits. This drill program is expected to commence in the second quarter of this year.
New Dimension is very enthusiastic about the potential of Reese River and pleased to join forces with International Minerals in evaluating this important project. International Minerals is an emerging gold and silver producer, with an operating silver-gold mine (Pallancata) in Peru and two gold development projects in Ecuador together with a strong balance sheet that includes cash and short term investments of approximately US$48 million.
New Dimension's Reese River Project includes the Amador Canyon and New York Canyon priority target areas which, along with the intervening ground, cover over 4.5 square kilometres of very prospective geology. Within the property there are numerous historical mine workings with most of these positioned along a sedimentary-intrusive contact that hosts much of the known mineralization in the district. The Company believes the property holds significant potential for both high grade underground and open-pittable silver deposits. The property is well located with good access and infrastructure.
Although the New York Canyon area of the Property is the site of several historic underground bonanza silver mines, there is very little outcrop and all the underground workings are inaccessible. Surprisingly there has been no modern exploration or any drilling on these historic high-grade targets. In addition to the historical underground vein mineralization, there is evidence for important wall-rock mineralization that could support an open pit deposit. This evidence includes the results of 89 rock chip and representative dump samples collected by the Company over the main target area. All the samples reported anomalous silver with 21 of these assaying over 100 g/t with an average of 254 g/t silver and a range from 102 to 601 g/t silver. In addition, 39 one to three metre rock chip samples collected by the Company's consulting geologist averaged 60 g/t silver. Samples values ranged from 1 to 285 g/t silver and 10 grab samples from wall rock material collected from mine dumps averaged 160 g/t silver with a range of 32 to 485 g/t silver. A high silver value of 1,829 g/t was not used in the average.
Of the initial 2,000 metre drill program, approximately one half of the program will consist of eight holes to be completed at New York Canyon as a preliminary test of a large 1,000 by 300 metre mineralized area hosting multiple historical vein feeder structures and potentially important wall rock mineralization.
At the Amador Canyon area on the Property, located approximately two kilometres to the northwest of New York Canyon, two styles of silver mineralization have been identified by the Company. One style is related to shallow-dipping shear zones on bedding planes that had limited drilling by another unrelated company in 2004. Historical results from one of these drill holes were reported to include 12.2 metres (drill width) of 286 g/t silver. The Company cannot verify the accuracy of these results.
The company’s address is Suite 860 - 625 Howe Street, Vancouver BC V6C 2T6, (604) 687-7545, fax: (604) 689-5041, email: [email protected].