Cambridge Mineral Resources plc Acquires Large Base Metal Resource at Masa Valverde in Spain.

LONDON -- Cambridge Mineral Resources plc ("CMR" or "the Company") (LSE:CMR), the mining exploration and production company, is pleased to announce that it has been informed by the Provincial Mining Authorities of the Junta de Andalucia that the Company's wholly owned Spanish subsidiary Recursos Metalicos SA is the successful applicant for two permits covering the Valverde area.

The permits, P.I. Valverde and P.I. Masa Valverde-2, cover an area of 38.71km2 over the Masa Valverde polymetallic Volcanic-hosted Massive Sulphide deposit located in the central part of the Iberian Pyrite Belt in south-western Spain.

The Masa Valverde deposit hosts defined massive sulphide and cupriferous stockwork deposits. CMR estimates these deposits to have geologic resources of approximately 100 million tonnes.

Eleven holes have been drilled at a spacing of approximately 100m. These have intersected up to 180m of massive sulphide and up to 111m of stockwork mineralization. The average thickness of the massive sulphide intersections is about 70m and the average for stockwork mineralization is about 90m.

Potential exists for a high grade deposit in the adjacent area of the massive sulphide mineralization. Potential also exists for the upgrading and extension of the stockwork mineralization.

Michael Thomsen, Executive Chairman of Cambridge, commented today in London: "Masa Valverde represents a very large accumulation of massive and stockwork sulphides with notable grades of copper, zinc and lead, with strong credits from gold and silver. Our initial resource model is very encouraging. The addition of the Masa Valverde deposit significantly increases CMR's overall asset base at a time when base metal and precious metal prices are at historically high levels. The Company is also actively progressing joint venture opportunities to develop and exploit its Spanish portfolio of properties."

The Masa Valverde deposit was discovered in July 1986 by Penarroya-ADARO, the former Spanish State-owned consortium, after drilling a geophysical residual gravity anomaly extending over 1,000m x 850m in an area of steep topography.

A total of 25 drillholes were completed between 1986 and 1993, of which 19 tested the main gravity anomaly and 6 tested satellite anomalies. A total of 13 of the 19 holes intersected massive sulphide and well developed semi-massive/stockwork mineralization.

Intercepts within the overall zones of massive and stockwork sulphides include:

Massive Sulphides :
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Hole      Intercept     Cu%    Pb%    Zn%    Ag g/t     Au g/t
A-01            39m    0.60   1.78   4.87        54       0.80
A-03            10m    0.21   4.05   5.45        73       1.23
A-18            14m    0.41   2.85   5.81        58       0.83
A-18            45m    0.52   0.76   4.26        42       1.41

Stockwork Zone:
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Hole      Intercept     Cu%    Pb%    Zn%    Ag g/t     Au g/t
A-17          31.0m    1.71   0.07   1.35         8       0.06
A-15          46.0m    1.05   0.28   1.25         8       0.10
A-21          33.0m    1.15   0.05   0.14         6       0.03
A-14          58.0m    1.32   0.13   1.10        16       0.00

From this drilling, Masa Valverde represents a very large accumulation of massive and stockwork sulphides with notable grades of copper, zinc and lead, and strong credits from gold and silver. Drilling to date has been inadequate to fully evaluate this potential resource as the broad spacing may have missed high grade zones.

A preliminary resource model developed by CMR technical staff has calculated the following Inferred Resource (massive sulphide and stockwork):

Cutoff        Tonnage    Cu%     Pb%     Zn%     Ag g/t    Au g/t

3.0% Zn         12 Mt   0.57    1.28    4.30       41.9      0.86

0.5% Cu         80 Mt   0.76    0.38    1.28       22.4      0.43

1.0 g/t Au      16 Mt   0.45    0.86    1.49       46.1      1.26

The zinc and copper mineralization are generally separated from each other with zinc largely being within massive sulphides and the copper within the stockwork zone. As such, these resources can be considered as separate zones. Additional potential is indicated by the westernmost hole (A-23), having an intersection of 98m of massive sulphides. The deposit remains open in this direction and is untested.

Cambridge Mineral Resources plc is an AIM-listed junior exploration and mining company. Its principal focus is the exploration and production of gold and base metals in Europe (Spain, Bulgaria and Serbia) and South America (Peru and Colombia). A full graphical presentation of Masa Valverde is available on the Company's website at www.cambmin.co.uk

Cambridge Mineral Resources plc (LSE:CMR)