PHILADELPHIA, June 10, 2005 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT) announced today that its wholly owned Chinese subsidiary, Guiyang High Tech Meiya Investment, Ltd., has signed a definitive agreement to acquire a majority interest in a producing gold mine in China. EDLT's subsidiary entered into an agreement with Huaquiao Gold Mines to form a JV that will own, operate, and further develop the Huaquiao gold mine.
Under the terms of the agreement, Guiyang High Tech Meiya Investment (thus EDLT) will own 73.5% of the JV company and will be required to inject US$500,000 over the next three months, while Huaquiao will transfer complete ownership of all assets and permits related to the mine to the JV. In addition, the JV will acquire rights to explore and mine an additional one square kilometer of prospective land situated to the northeast side of the existing mine.
The Huaquiao gold property is located in the southeast part of Guizhou province lying within the Hunan-Guizhou gold belt. The existing mine has been operating and mining gold for about ten years producing more than five tonnes of gold to date. In the last two years, the mine generated a total of 20,000 ounces.
Within the property, seven independent ore zones at varying depth levels have been identified. Currently, most mining activity is confined to the fourth level. Data supplied to EDLT by Huaquiao indicate a remaining resource estimated at approximately 275,000 ounces of gold with the ore averaging 7.35 g/t and an extraction cost of under US$225 per ounce.
East Delta's chief geologist, Dr. Lu Huan Zhang, said, "Immediately following our own confirmation of the resource, our plans are to dramatically increase production at Huaquiao through a three-pronged approach: by bringing in modern production and management technology to increase current yields; expand extraction activities to the deeper levels of the mine; and to explore and develop the additional property immediately. We intend on making optimum usage of one of the biggest assets of this mine; its production capacity. It was designed to process up to 500 tonnes of ore per day using a ball mill system for grinding to obtain better yields. We are developing plans to ramp up production to 40,000 ounces annually by 2007."
Mr. Victor Sun, president and CEO of East Delta, stated, "First and foremost, this acquisition will give us profitable revenue within the next 90 days. Moreover, it represents the implementation of our China strategy, to rapidly grow our potential gold resources and reserves in China through strategic acquisitions. The closing of this deal gives us our fourth gold property in China to date."
The Company
East Delta Resources Corp. is a publicly traded Delaware corporation, headquartered in Montreal, Quebec, whose business objective is to profit from the recent strong worldwide revival of interest in precious metals. EDLT's primary activity is in mine development and production of gold. EDLT also participates in other mineral exploration and mining, specifically silver, nickel, zinc, and lead. The geographic focus of the company currently is mostly China.
With over US$1.2 million in the bank, majority interest in several highly prospective properties, experienced personnel, and an extensive network of contacts in China, the company believes it has made a solid start on implementing its business plans and objectives.
Safe Harbor
Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.