MONTREAL, June 28, 2005 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT) announced today, as a follow-up to its previously disclosed LOI, that its wholly owned subsidiary, Sino-Canadian Metals Inc., has signed a definitive Joint Venture Contract with the Chinese mining entity, Qinghai Jiahua Metal Development Co. Ltd. (QJMD).
Under the terms of the Agreement, the newly formed JV is to acquire all the exploration and production permits owned by QJMD related to the Yuanshishan Nickel-Iron-Cobalt deposit located in Ping'an County, Qinghai Province, northwest China. The Agreement gives Sino-Canadian the exclusive right to earn up to 80% of this potentially substantive project, subject to an immediate investment of US$300,000 into the JV. The funds are to be used to confirm the profitability and reserves of the property. Further, the Agreement requires that EDLT assume the responsibility of raising all funding necessary to bring the property to the production stage. The financing that will be needed is estimated at between US$13 to $15 million.
Mr. Victor Sun, President and CEO of East Delta, stated, "Our multi-pronged business plan calls for participating in various base metal projects, as well as gold. This Joint Venture agreement is thus a giant step for East Delta, bringing us that much closer to being active in one of the more exciting base metals."
The Yuanshishan Ni-Fe-Co deposit is located south of Ping'an County, 62 km east of Xining city, the provincial capital. Over the past two decades, extensive exploration and fieldwork has been carried out at this site by the Bureau of Geology and Mineral Resources of Qinghai province. The results from the Bureau's exploration and fieldwork confirmed that the mineralization at Yuanshishan is of a Nickel dominated polymetallic nature, and that the Ni, Fe and Co grades are of economic importance. An open pit design was deemed suitable for the development of this deposit. QJMD reported that both it and the Chinese government have spent, to date, over US$3,000,000 drilling and exploring this property.
An independent feasibility study undertaken by a credible geological consulting firm in China in 2002, concluded that the site can be profitably mined for at least 18 years. Mr. Sun further pointed out that nickel prices have risen more than 300% in the past few years. Applying current nickel prices to the study substantially enhances the viability of the project.
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.
EDLT's primary business strategy is to involve itself only in "advanced stage" projects where a substantial portion of the exploration work has already been done. It plans to rapidly grow its resources and reserves through Joint Ventures or similar partnerships.
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.