MONTREAL, Sept. 1, 2005 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT) announced today that the Company has decided to proceed with the next important phases in the development of its recently optioned Nickel/Cobalt property. This decision was based on the conclusions of an evaluation report by an independent Canadian mining consultant and the successful private placement of $300,000 to fund further due diligence.
As previously announced several months ago, East Delta had reached an agreement with the Chinese mining entity, Qinghai Jiahu Metal Development Co. Ltd. ("QJMD") to form a Joint Venture involving East Delta's subsidiary Sino-Canadian Metals Inc. (Sino-Canadian). Under the terms of the Agreement, the newly formed JV would 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 at least 75% of this project, subject to investing $300,000 in the new JV and assuming the responsibility of all eventual funding necessary to bring the property to the mining and production stages.
Mr. Victor Sun, President and CEO of East Delta noted, "An essential aspect of starting to implement this Agreement was to obtain independent evaluation of the overall feasibility of the undertaking, as well as raising the minimum funding required to support the full due diligence effort planned. Both of these requirements have now been met."
Mr. Sun further pointed out, "Reaching this threshold was critical for our non-gold-mining related plans in China, as we now feel we are well on are way to establishing ourselves in the base metal sector in China, in addition to our successful and ongoing activities in gold exploration and mining."
The Yuanshishan Ni-Fe-Co deposit is located south of Ping'an County, 62 km east of Xining city, the provincial capital.
As previously reported, 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 over $3,000,000 drilling and exploring this property to date.
In addition, the local infrastructure in this region to support mining activities is good. Roads connect the property to the nearby townships and counties, and a railway passes through Ping'an County. Electricity, manpower and water supplies are readily accessible.
This Agreement advances East Delta's strategy of involvement primarily in advanced-stage projects where substantial exploration has already been conducted, or with up and running and established mining projects.
Using the funds specifically raised for this endeavour, the Company will undertake intensive due diligence on this project, including sampling, metallurgical analysis, and additional drilling programs primarily to establish, fairly quickly, the mineral resource of the deposit and the feasibility of a mining operation at the site.
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Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation 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.