Admiral Bay Resources Inc. has recently diversified its interests into both the Oil & Gas, and Mining sectors. The Oil & Gas Division is currently developing a prospective Coalbed Methane project in the Moose River Basin located in the James Bay Lowlands of northern Ontario, while the Mining Division has begun a significant exploration program on the Monte del Favor Gold/Silver project, located in Jalisco state, Mexico.

 

Admiral Bay Resources Inc.           [ADB:TSX-V]

Monte del Favor Property, Jalisco. The property was originally discovered by the Spaniards in the 1500's and has been mined intermittently since that time. Then, in the early 1900's, Americans mined the property and constructed a floatation plant. Since that time, the property has sat idle because the area has been segmented into a number of small, uneconomic land parcels. Minera San Jorge has assembled an attractive land package of 324 hectares. Other companies such as Kennecott, Penoles and Tormex have been among previous groups who have attempted to put together a land package in the district.

A geological report on the Monte del Favor property compliant with National Instrument 43-101 has been completed by G.J. Walton & Associates authored by Godfrey Walton, P.Geo. a designated "Qualified Person" (Q.P.). The report has been approved by the TSX Venture Exchange and can be accessed by the public on the Company's updated website (www.admiralbay.com) which includes other information about the Monte del favor gold-silver project.

Historical resource estimates indicate that there are approximately 17 million tonnes grading 0.85 g/t gold and 224 g/t silver for total contained resources of 2.3 million gold equivalent ounces. Although this resource estimate is not NI 43-101 compliant, it is an indication that the property has potential to host significant mineralization. The Company is working towards expanding the known mineralized structures both along strike and down dip. Mineralization is hosted in veins and breccia zones in a volcanic dome with grades varying from less than a gram of gold to 7.0 grams/tonne gold and 1 kilogram/tonne silver. There have been two structural orientations noted, however preliminary evaluations conducted in April indicate that there is a flat lying series of structures that could be important to the mineralizing system.

Press Release 15Jul03