Cream rises on Manitoba nickel intercept (July 30, 2007)

Vancouver — Cream Minerals’ (CMA-V, CRMXF-O) first test hole on its Wine-Radar Lake property, in northern Manitoba, has delivered promising results, cutting 20.4 metres of 1.3% nickel and 2.27% copper.

The copper-nickel mineralized interval was intersected from 55.7 metres down-hole depth in hole 1. The true width of the section is estimated at about 13.3 metres, with the hole drilled at a dip of minus 49.

The intercept also returned 0.32 gram gold per tonne, 0.13 gram platinum per tonne and 0.27 gram palladium per tonne in the rhyolitic unit with disseminated (to near-massive in sections) chalcopyrite and pyrrhotite.

The Wine property, located about 60 km southeast of Flin Flon, Man., covers an east-west-trending mafic-ultramafic intrusive suite of rocks with base metal and platinum group metal (PGM) mineralization associated with a contact breccia zone.

Cream drilled a second hole collared 70 metres southeast of hole 1, looking for the downward plunge of the mineralization, but did not intersect the favourable horizon. It plans to use the hole for a pulse-EM survey.

Past work on the property saw drilling by Hudson Bay Exploration and Development in 1987, returning 16.5 metres of 0.85% nickel and 1.42% copper including a 6.4-metre interval grading 1.67% nickel, 1.52% copper, 0.38 gram platinum and 1.06 grams palladium. The company allowed the claims to lapse in 2002.

Cream optioned the claims early last year 2006 for cash payment commitments of $100,000, 200,000 shares and $20,000 in exploration spending over four years. The claimholder has a 2% net smelter return royalty, half of which can be bought back by Cream for $1 million.

Shares of Cream soared on the drill results, touching an intra-day high of $1.38 apiece before closing up 112%, or 47, at 89 per share on trading volume of 5.7 million shares.