MONTREAL, March 14, 2006 (PRIMEZONE) -- East Delta Resources Corp. (OTCBB:EDLT), (Frankfurt: EJK) announced today that Sino-Canadian Metals Inc., a 63% owned subsidiary of East Delta, has signed a letter of intent with Qinghai Hua Long Ding Shun Minerals Ltd of Qinghai Province, China, to form a joint venture to develop a nickel-copper property covering an area of approximately 17 square kilometers.
Victor Sun, President and CEO of Sino-Canadian Metals, stated: "For many years now, it has been well known that this area contains sizable mineral deposits. The recent development of major roadways, combined with the opening of the area to foreign investment, has created an outstanding opportunity for Sino-Canadian Metals to obtain a property with world-class potential for nickel production."
The property is located 160 kilometers southeast of XiNing, the capital of Qinhai Province in northwest China. Infrastructure is good, with power available from the national grid, GPRS cell coverage, and ample workforce in the vicinity. Climate is conducive to year-round operation.
The proposed joint venture agreement calls for Sino-Canadian Metals to initially deposit US$300,000 into the project in order to obtain 80% equity ownership, with further exploration and development expenditure of up to US$4.7 million within two years, given positive results.
There are currently six drill holes and three tunnels defining the known mineralization, which according to documents provided by the Chinese partner, define a significant deposit containing economically mine-able nickel sulfide and copper ores. Sino-Canadian Metals will immediately begin its due diligence to confirm the information provided, including the taking of underground channel samples from the tunnels for analysis by an independent North American laboratory.
Initial exploration work will be focused on defining the continuity and extents of the ore body, the variation in grade throughout the zone, and the metallurgical characteristics of the mineralization. Subsequent work will determine the feasibility of the construction and operation of a mine and processing facility at the site.
The Companies
Sino-Canadian Metals Inc. is a private Delaware corporation, headquartered in Montreal, Quebec. It is the intent of Sino-Canadian Metals to become a publicly traded company in the US or Canada within the next 12 months.
East Delta Resources Corp. is a publicly traded Delaware corporation, headquartered in Montreal, Quebec. 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 is China. With over US $1.5 million in the bank, majority interest in several highly-prospective properties, experienced personnel, and an extensive network of contacts in China, the Company is on track in 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.