Toronto – July 12, 2006 – Northwestern Mineral Ventures Inc. (“Northwestern”) (TSX-V: NWT; OTCBB: NWTMF) is pleased to announce the signing of a revised Letter of Intent with Yamana Gold Inc. (“Yamana”) (TSX: YRI; AMEX: AUY; LSE (AIM): YAU) covering the promising silver-gold Picachos Project in Durango, Mexico. The terms of the agreement grant Northwestern the right to acquire a direct 70% interest in the 19,000- acre (7,700-hectare) property portfolio.
“Our management team believes that Picachos is a highly prospective property based on strong exploration results to date, its strategic location and its favorable geology,” said Marek Kreczmer, President and CEO of Northwestern. “Northwestern expects work on the property, which will consist of ground geophysics and drilling of a near-surface disseminated zinc and silver mineralization, to restart following the rainy season in early September.”
Soil geochemical surveys and chip-channel sampling at Picachos, conducted as part of Northwestern's extensive 2005 exploration program on the property, defined epithermal precious metal mineralization over four neighboring areas, as discussed in a press released dated July 13, 2005. Analysis of results also indicated the potential for a nearsurface, open-pittable silver-rich area with the presence of lead and zinc mineralization, as disclosed in a press release dated August 29, 2005.
Under the terms of the Letter of Intent, Northwestern will incur US$3,000,000 in exploration expenditures over three years, pay US$400,000 in cash installments, including US$100,000 on the signing of a definitive option agreement, and issue 1,000,000 shares over a three-year period to acquire a direct 70% ownership of Picachos. These shares will be subject to all required regulatory hold periods. Northwestern will act as operator of the project.
On the date that this formal option agreement is signed, Northwestern and Yamana will terminate the prior option agreement pertaining to the Picachos Project that was signed between Northwestern and RNC Gold Inc. and announced in a press release dated November 10, 2005. RNC Gold was acquired by Yamana in February 2006.
The Letter of Intent is subject to regulatory approval. For more information regarding Northwestern's exploration results at the Picachos Project, please review Northwestern's website at www.northwestmineral.com.
ABOUT NORTHWESTERN:
Northwestern Mineral Ventures (www.northwestmineral.com) is an international resource exploration company with an experienced management team. The company is focused on properties in Niger and Canada with potential uranium targets. Northwestern also has a precious and base metal property in Mexico. Northwestern is listed on the NASD Bulletin Board under the symbol “NWTMF” and the TSX Venture Exchange under the symbol “NWT.”
FURTHER INFORMATION:
Marek Kreczmer, M.Sc., P.Eng.
President and CEO
(866) 437-9551
info@northwestmineral.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
This news release includes certain “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
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